10-Q

U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

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

FOR THE QUARTERLY PERIOD ENDED: September 30, 2012

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	(ZIP CODE)
EXECUTIVE OFFICES)

(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 ¨

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A LARGE ACCELERATED FILER, AN ACCELERATED FILER, OR A NON-ACCELERATED FILER. SEE DEFINITION OF “ACCELERATED FILER AND LARGE ACCELERATED FILER” IN RULE 12B-2 OF THE EXCHANGE ACT.

LARGE ACCELERATED FILER    ¨     ACCELERATED FILER   ¨    NON-ACCELERATED FILER    x

ON September 30, 2012, 3,108,867 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)
	September 30,			December 31,
	2012			2011
ASSETS
Cash and due from banks	$	20,070		$	10,152
Interest-bearing deposits with banks		15,652			12,788
Federal funds sold		990			241
Total cash and cash equivalents		36,712			23,181
Securities held-to-maturity, at amortized cost		8,478			6,002
Securities available-for-sale, at fair value		233,621			212,529
Other securities		2,638			2,645
Total securities		244,737			221,176
Loans held for sale		4,898			2,906
Loans		388,062			385,022
Allowance for loan losses		(4,400	)		(4,511	)
Loans, net		388,560			383,417
Premises and equipment		22,522			22,991
Interest receivable		3,054			2,772
Cash surrender value of life insurance		6,400			6,270
Goodwill		9,362			9,362
Other assets		6,313			7,891
Other real estate owned		8,008			4,353
TOTAL ASSETS	$	725,668		$	681,413
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	110,051		$	107,129
Interest-bearing		511,882			466,265
TOTAL DEPOSITS		621,933			573,394
Interest payable		227			308
Borrowed funds		16,781			27,032
Subordinated debentures		10,310			10,310
Other liabilities		11,045			9,944
TOTAL LIABILITIES		660,296			620,988
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, $1,000 per share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at Sept. 30, 2012 and at December 31, 2011		17,000			16,939
Common stock, par value $1 per share, 10,000,000 shares authorized; 3,135,361 and 3,092,566 shares issued at Sept. 30, 2012 and at December 31, 2011		3,135			3,093
Additional paid-in capital		23,636			23,504
Retained earnings		19,000			16,791
Accumulated other comprehensive income		3,060			562
Treasury stock, at cost, 26,494 shares at Sept. 30, 2012 and at December 31, 2011		(464	)		(464	)
TOTAL STOCKHOLDERS’ EQUITY		65,372			60,425
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	725,668		$	681,413

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

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

	(Unaudited)
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2012		2011			2012		2011
INTEREST INCOME:
Interest and fees on loans	$	5,204	$	5,165		$	16,011	$	15,296
Interest and dividends on securities:
Taxable interest and dividends		731		452			2,154		1,290
Tax exempt interest		513		366			1,527		1,029
Interest on federal funds sold		11		16			42		58
TOTAL INTEREST INCOME		6,459		5,999			19,734		17,673
INTEREST EXPENSE:
Interest on deposits		714		963			2,440		3,271
Interest on borrowed funds		314		304			870		908
TOTAL INTEREST EXPENSE		1,028		1,267			3,310		4,179
NET INTEREST INCOME		5,431		4,732			16,424		13,494
PROVISION FOR LOAN LOSSES		371		230			744		883
NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES		5,060		4,502			15,680		12,611
OTHER INCOME:
Service charges on deposit accounts		853		632			2,580		1,758
Other service charges and fees		665		456			1,923		1,273
Impairment loss on securities:
Total other-than-temporary impairment (gain)loss		-		(52	)		-		(141	)
Portion of gain (loss) recognized in other comprehensive income		-		52			-		137
Net impairment loss recognized in earnings		-		-			-		(4	)
TOTAL OTHER INCOME		1,518		1,088			4,503		3,027
OTHER EXPENSES:
Salaries and employee benefits		3,075		2,391			9,009		6,864
Occupancy and equipment		493		534			2,402		1,466
Other		1,869		1,554			4,962		4,966
TOTAL OTHER EXPENSES		5,437		4,479			16,373		13,296
INCOME BEFORE INCOME TAXES		1,141		1,111			3,810		2,342
INCOME TAXES		269		365			930		425
NET INCOME		872		746			2,880		1,917
PREFERRED STOCK ACCRETION AND DIVIDENDS		106		86			318		257
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$	766	$	660		$	2,562	$	1,660
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS:
BASIC	$	.25	$	.22		$	.83	$	.54
DILUTED		.24		.21			.82		.54
DIVIDENDS PER SHARE – COMMON		.0375		.0375			.1125		.1125

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months					Nine Months
	Ended					Ended
	Sept. 30,					Sept. 30
	2012		2011			2012		2011
Net income per consolidated statements of income	$	872	$	746		$	2,880	$	1,917
Other comprehensive income, net of tax:
Unrealized gains (losses) on available-for- sale securities:
Unrealized holding gains (losses) arising during the period		1,313		(103	)		2,450		1,035
Unrealized gain on derivative carried at fair value during the period		24		51			48		34
Comprehensive Income	$	2,209	$	694		$	5,378	$	2,986

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, 2011	$	3,059	$	16,939	$	284	$	23,135		$	14,723		$	(577	)	$	(464	)	$	57,099
Net income		-		-		-		-			1,917			-			-			1,917
Net change in unrealized gain(loss)on available- for-sale securities, net of tax		-		-		-		-			-			1,035			-			1,035
Net change in unrealized gain(loss)on derivative, net of tax		-		-		-		-			-			34			-			34
Dividends on preferred stock		-		-		-		-			(257	)		-			-			(257	)
Dividends on common stock, $.1125 per share		-		-		-		-			(346	)		-			-			(346	)
Restricted stock grant		34		-		-		(34	)		-			-			-			-
Compensation expense		-		-		-		88			-			-			-			88
Balance, Sept. 30, 2011	$	3,093	$	16,939	$	284	$	23,189		$	16,037		$	492		$	(464	)	$	59,570
Balance, January 1, 2012	$	3,093	$	16,939	$	284	$	23,220		$	16,791		$	562		$	(464	)	$	60,425
Net income		-		-		-		-			2,880			-			-			2,880
Net change in unrealized gain(loss)on available- for-sale securities, net of tax		-		-		-		-			-			2,450			-			2,450
Net change in unrealized gain(loss)on derivative, net of tax		-		-		-		-			-			48			-			48
Accretion and dividends on preferred stock		-		61		-		-			(318	)		-			-			(257	)
Dividends on common stock, $.1125 per share		-		-		-		-			(348	)		-			-			(348	)
Restricted stock grant		42				-		(42	)		-			-			-			-
Compensation expense		-		-		-		174			-			-			-			174
Balance, Sept. 30, 2012	$	3,135	$	17,000	$	284	$	23,352		$	19,005		$	3,060		$	(464	)	$	65,372

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ Amounts in Thousands)

	(Unaudited) Nine Months Ended
	Sept. 30,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$	2,880		$	1,917
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		1,894			821
Impairment loss on securities		-			4
Provision for loan losses		744			883
Loss on sale/writedown of ORE		396			127
Restricted stock expense		174			88
Increase in cash value of life insurance		(130	)		(140	)
Federal Home Loan Bank stock dividends		(3	)		(3	)
Changes in:
Interest receivable		(282	)		(297	)
Loans held for sale, net		(1,914	)		(1,020	)
Interest payable		(81	)		(71	)
Other, net		3,287			2,264
NET CASH PROVIDED BY OPERATING ACTIVITIES		6,965			4,573
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities and calls of securities available- for-sale		40,136			36,901
Purchases of securities available-for-sale and held-to-maturity		(60,762	)		(64,876	)
Net redemptions of other securities		11			-
Net increase in loans		(10,020	)		(13,854	)
Net additions in premises and equipment		(428	)		(1,189	)
Cash received from acquisition		-			116,143
NET CASH PROVIDED BY (USED IN)INVESTING ACTIVITIES		(31,063	)		73,125
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits		48,477			26,267
Net increase (decrease) in borrowed funds		(10,251	)		(3,056	)
Dividends paid on common stock		(340	)		(340	)
Dividends paid on preferred stock		(257	)		(257	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		37,629			22,614
NET INCREASE IN CASH		13,531			100,312
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		23,181			33,976
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	36,712		$	134,288
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST		3,391			4,250
CASH PAYMENTS FOR INCOME TAXES		967			788
LOANS TRANSFERRED TO OTHER REAL ESTATE		6,353			2,957
ISSUANCE OF RESTRICTED STOCK GRANTS		42			34

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 nine months ended September 30, 2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. 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, 2011.

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 September 30, 2012, the Company had approximately $725.7 million in assets, $393.0 million in loans, $621.9 million in deposits, and $65.4 million in stockholders' equity. For the nine months ended September 30, 2012, the Company reported net income of $2.9 million ($2.6 million applicable to common stockholders).

In the first, second and third quarters of 2012, the Company declared and paid a dividend of $.0375 per common share.

NOTE C – BUSINESS COMBINATION

On September 16, 2011 the Company completed the purchase of seven (7) branches located on the Mississippi Gulf Coast and one (1) branch located in Bogalusa, Louisiana from Whitney National Bank and Hancock Bank of Louisiana (the “Whitney branches”). As part of the agreement, the Company purchased loans of $46.8 million and assumed deposit liabilities of $179.3 million, and purchased the related fixed assets and cash of the branches. The Company operates the acquired bank branches under the name The First, A National Banking Association. The acquisition allowed the Company to expand its presence in South Mississippi as well as enter a new market in Louisiana. The Company’s condensed consolidated statements of income include the results of operations of the Whitney branches.

In connection with the acquisition, the Company recorded $8.7 million of goodwill and $2.4 million of core deposit intangible. The core deposit intangible of $2.4 million will be expensed over 10 years. The recorded goodwill is deductible for tax purposes.

The Company acquired the $46.8 million loan portfolio at a fair value discount of $.7 million. The discount represents expected credit losses, adjustments to market interest rates and liquidity adjustments. The non credit quality portion of the discount was $.1 million and the credit quality portion of the discount was $.6 million.

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

Purchase price:
Cash	$	9,100
Total purchase price		9,100
Identifiable assets:
Cash		125,243
Loans and leases		46,118
Core deposit intangible		2,402
Personal and real property		7,481
Other assets		95
Total assets		181,339
Liabilities and equity:
Deposits		179,196
Other liabilities		1,703
Total liabilities		180,899
Net assets acquired		440
Goodwill resulting from acquisition	$	8,660

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2012, are as follows (dollars in thousands):

Outstanding principal balance	$	26,467
Carrying amount		26,099

All loans obtained in the acquisition of the Whitney branches reflect no specific evidence of credit deterioration and very low probability that the Company would be unable to collect all contractually required principal and interest payments.

NOTE D – PREFERRED STOCK AND WARRANT

On February 6, 2009, as part of the U.S. Department of Treasury’s (“Treasury”) Capital Purchase Program (“CPP”), the Company received a $5.0 million equity investment by issuing 5 thousand shares of Series A, no par value preferred stock to the Treasury pursuant to a Letter Agreement and Securities Purchase Agreement that was previously disclosed by the Company. The Company also issued a warrant to the Treasury allowing it to purchase 54,705 shares of the Company’s common stock at an exercise price of $13.71. The warrant can be exercised immediately and has a term of 10 years.

The Company allocated the proceeds received from the Treasury, net of transaction costs, on a pro rata basis to the Series A preferred stock and the warrant based on their relative fair values. The Company assigned $.3 million and $4.7 million to the warrant and the Series A preferred stock, respectively. The resulting discount on the Series A preferred stock is being accreted up to the $5.0 million liquidation amount at the time of the exchange that is described in the following paragraphs.

On September 29, 2010, and pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company closed a transaction whereby Treasury exchanged its 5,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST, (the “CPP Preferred Shares”) for 5,000 shares of a new series of preferred stock designated Fixed Rate Cumulative Perpetual Preferred Stock, Series CD (the “CDCI Preferred Shares”). On the same day, and pursuant to the terms of the letter agreement between the Company and Treasury, the Company issued an additional 12,123 CDCI Preferred Shares to Treasury for a purchase price of $12,123,000. As a result of the CDCI Transactions, the Company is no longer participating in the TARP Capital Purchase Program being administered by Treasury and is now participating in Treasury’s TARP Community Development Capital Initiative (the “CDCI”). The terms of the CDCI Transactions are more fully set forth in the Exchange Letter Agreement and the Purchase Letter Agreement.

The Letter Agreement, pursuant to which the Preferred Shares were exchanged, 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 2010) and on the Company’s ability to repurchase its common stock, 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 most significant difference in terms between the CDCI Preferred Shares and the CPP Preferred Shares is the dividend rate applicable to each. The CPP Preferred Shares entitled the holder to an annual dividend of 5% increasing to 9% after 5 years of the liquidation value of the shares, payable quarterly in arrears; by contrast, 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. Other differences in terms between the CDCI Preferred Shares and the CPP Preferred Shares, including, without limitation, the restrictions on common stock dividends and on redemption of common stock and other securities exist. The terms of the CDCI Preferred Shares are more fully set forth in the Articles of Amendment creating the CDCI Preferred Shares, which Articles of Amendment were filed with the Mississippi Secretary of State on September 27, 2010.

As a condition to participate in the CDCI, the Company was required to obtain certification as a Community Development Financial Institution (a “CDFI”) from the Treasury’s Community Development Financial Fund. On September 28, 2010, the Company was notified that its application for CDFI certification had been approved. In order to become certified and maintain its certification as a CDFI, the Company is required to meet the CDFI eligibility requirements set forth in 12 C.F.R. 1805.201(b).

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
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share		2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

	For the Three Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	660,000		3,066,072	$	.22
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	660,000		3,075,451	$	.21

	For the Nine Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,660,000		3,062,311	$	.54
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	1,660,000		3,071,690	$	.54

The Company granted 42,795 shares of restricted stock in the first quarter of 2012 and 33,850 shares of restricted stock in the first quarter of 2011.

NOTE F — COMPREHENSIVE INCOME

The following table discloses Comprehensive Income for the periods reported in the Consolidated Statements of Income:

(In thousands)

	Three Months					Nine Months
	Ended					Ended
	September 30,					September 30,
	2012		2011			2012		2011
Unrealized holding gains (losses) on available-for-sale securities during the period, net of tax	$	1,313	$	(103	)	$	2,450	$	1,035
Unrealized gain on derivative carried at fair value during the period, net of tax		24		51			48		34
Accumulated Other Comprehensive Income(Loss) beginning of period		1,723		544			562		(577	)
Accumulated Other Comprehensive Income, end of period	$	3,060	$	492		$	3,060	$	492

NOTE G — 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 September 30,2012 and December 31, 2011 (in thousands):

September 30, 2012

			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	$	46,712	$	-	$	46,712	$	-
Municipal securities		99,783		-		99,783		-
Mortgage-backed securities		64,557		-		64,557		-
Corporate obligations		21,596		-		18,665		2,931
Other		973		973		-		-
Total	$	233,621	$	973	$	229,717	$	2,931

December 31, 2011

			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	$	43,673	$	-	$	43,673	$	-
Municipal securities		94,259		-		94,259		-
Mortgage-backed securities		59,330		-		59,330		-
Corporate obligations		14,293		-		12,041		2,252
Other		974		974		-		-
Total	$	212,529	$	974	$	209,303	$	2,252

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
	2012		2011
Balance, January 1	$	2,252	$	2,619
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		(4	)
Unrealized gain (loss) included in comprehensive income		679		(363	)
Balance at September 30, 2012 and December 31, 2011	$	2,931	$	2,252

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 September 30, 2012, amounted to $8.0 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 September 30, 2012 and December 31, 2011.

($ in thousands)

September 30, 2012

			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	$	3,135	$	-	$	3,135	$	-
Other real estate owned		8,008		-		8,008		-

December 31, 2011

			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	$	5,125	$	-	$	5,125	$	-
Other real estate owned		4,353		-		4,353		-

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.

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				As of
	September 30, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	36,712	$	36,712	$	23,181	$	23,181
Securities available-for-sale		233,621		233,621		212,529		212,529
Securities held-to-maturity		8,478		9,996		6,002		6,002
Other securities		2,638		2,638		2,645		2,645
Loans, net		388,560		400,908		383,417		396,905
Liabilities:
Noninterest-bearing deposits	$	110,051	$	110,051	$	107,129	$	107,129
Interest-bearing deposits		511,882		512,258		466,265		467,198
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		16,781		16,781		27,032		27,032

NOTE H — 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. At September 30, 2012 and December 31, 2011, respectively, loans accounted for 60.1% and 62.4% of earning assets. 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

	Sept. 30, 2012						December 31, 2011
				Percent						Percent
				of						of
	Amount			Total			Amount			Total
	(Dollars in thousands)
Mortgage loans held for sale	$	4,898			1.2	%	$	2,906			0.7	%
Commercial, financial and agricultural		51,616			13.1			48,385			12.5
Real Estate:
Mortgage-commercial		135,660			34.5			138,943			35.8
Mortgage-residential		129,149			32.9			117,692			30.3
Construction		56,761			14.4			63,357			16.3
Consumer and other		14,876			3.9			16,645			4.4
Total loans		392,960			100	%		387,928			100	%
Allowance for loan losses		(4,400	)					(4,511	)
Net loans	$	388,560					$	383,417

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 is as follows:

(In thousands)

	Three Months			Nine Months
	Ended			Ended
	Sept. 30, 2012			Sept. 30, 2012
Balance at beginning of period	$	4,468		$	4,511
Loans charged-off:
Real Estate		(314	)		(678	)
Installment and Other		(53	)		(151	)
Commercial, Financial and Agriculture		(114	)		(140	)
Total		(481	)		(969	)
Recoveries on loans previously charged-off:
Real Estate		26			40
Installment and Other		13			52
Commercial, Financial and Agriculture		3			22
Total		42			114
Net Charge-offs		(439	)		(855	)
Provision for Loan Losses		371			744
Balance at end of period	$	4,400		$	4,400

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 September 30, 2012 and December 31, 2011.

Allocation of the Allowance for Loan Losses

	September 30, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	292		13.4	%
Commercial Real Estate		3,148		64.2
Consumer Real Estate		727		16.8
Consumer		137		5.6
Unallocated		96		-
Total	$	4,400		100	%

	December 31, 2011
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	397		16.3	%
Commercial Real Estate		3,356		63.8
Consumer Real Estate		680		15.7
Consumer		78		4.2
Unallocated		-		-
Total	$	4,511		100	%

The following table represents the Company’s impaired loans at September 30, 2012 and December 31, 2011. This table excludes performing troubled debt restructurings.

	Sept. 30,		December 31,
	2012		2011
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,302	$	2,791
Impaired loans with a valuation allowance		1,833		2,334
Total impaired loans	$	3,135	$	5,125
Allowance for loan losses on impaired loans at period end		771		738
Total nonaccrual loans		2,808		5,125
Past due 90 days or more and still accruing		878		496
Average investment in impaired loans		3,363		4,185

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

	Three Months Ended Sept. 30, 2012		Nine Months Ended Sept. 30, 2012
Average of individually impaired loans during period	$	2,719	$	2,690
Interest income recognized during impairment		-		-
Cash-basis interest income recognized		5		39

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 and nine months ended September 30, 2012, was $75,900 and $145,300, respectively. The Company had no loan commitments to borrowers in non-accrual status at September 30, 2012 and 2011.

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 September 30, 2012 and December 31, 2011. 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.

September 30, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	2,867	$	47	$	221	$	3,135
Collectively evaluated		311,588		21,637		51,702		384,927
Total	$	314,455	$	21,684	$	51,923	$	388,062
Allowance for Loan Losses
Individually evaluated	$	672	$	44	$	55	$	771
Collectively evaluated		3,202		190		237		3,629
Total	$	3,874	$	234	$	292	$	4,400

December 31, 2011

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,841	$	38	$	246	$	5,125
Collectively evaluated		301,271		16,107		62,519		379,897
Total	$	306,112	$	16,145	$	62,765	$	385,022
Allowance for Loan Losses
Individually evaluated	$	662	$	13	$	63	$	738
Collectively evaluated		3,375		64		334		3,773
Total	$	4,037	$	77	$	397	$	4,511

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2012 and December 31, 2011. The recorded investment included in the following table represents 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 September 30, 2012 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.

September 30, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	76	$	76	$	-	$	76	$	-
Commercial real estate		993		993		-		957		3
Consumer real estate		231		231		-		231		10
Consumer installment		2		2		-		2		-
Total	$	1,302	$	1,302	$	-	$	1,266	$	13
Impaired loans with a related allowance:
Commercial installment	$	145	$	145	$	55	$	164	$	5
Commercial real estate		1,544		1,544		637		1,079		18
Consumer real estate		99		99		35		175		2
Consumer installment		45		45		44		35		1
Total	$	1,833	$	1,833	$	771	$	1,453	$	26
Total Impaired Loans:
Commercial installment	$	221	$	221	$	55	$	240	$	5
Commercial real estate		2,537		2,537		637		2,036		21
Consumer real estate		330		330		35		406		12
Consumer installment		47		47		44		37		1
Total Impaired Loans	$	3,135	$	3,135	$	771	$	2,719	$	39

December 31, 2011
							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	121	$	121	$	-	$	69	$	5
Commercial real estate		2,420		2,420		-		1,457		85
Consumer real estate		241		241		-		288		3
Consumer installment		9		9		-		11		-
Total	$	2,791	$	2,791	$	-	$	1,825	$	93
Impaired loans with a related allowance:
Commercial installment	$	125	$	125	$	63	$	128	$	-
Commercial real estate		1,533		1,533		571		1,463		23
Consumer real estate		647		647		91		740		12
Consumer installment		29		29		13		29		6
Total	$	2,334	$	2,334	$	738	$	2,360	$	41
Total Impaired Loans:
Commercial installment	$	246	$	246	$	63	$	197	$	5
Commercial real estate		3,953		3,953		571		2,920		108
Consumer real estate		888		888		91		1,028		15
Consumer installment		38		38		13		40		6
Total Impaired Loans	$	5,125	$	5,125	$	738	$	4,185	$	134

The following tables provide additional detail of troubled debt restructurings at September 30, 2012.

For the Three Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
	$	107	$	107		1	$	7

For the Nine Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		63		63		1		1
Consumer installment		42		42		1		1
	$	212	$	212		3	$	9

The balance of troubled debt restructurings at September 30, 2012 was $210,000. There was $53,000 allocated in specific reserves established with respect to these loans as of September 30, 2012. As of September 30, 2012, the Company had no additional amount committed on any loan classified as troubled debt restructuring.

The recorded investment in receivables for which the allowance for credit losses was previously measured under a general allowance for credit losses methodology and are now impaired under Section 310-10-35 was $210,000. The allowance for credit losses associated with those receivables on the basis of a current evaluation of loss was $53,000. All loans were performing as agreed with modified terms.

During the three and nine month period ending September 30, 2012, there were 1 and 3, respectively, loans modified as TDR.

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:

	September 30, 2012
	(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	$	222	$	67	$	1,615	$	1,904	$	56,761
Real Estate-mortgage		2,236		763		455		3,454		129,149
Real Estate-non farm non residential		509		-		596		1,105		135,660
Commercial		282		-		137		419		51,616
Consumer		146		48		5		199		14,876
Total	$	3,395	$	878	$	2,808	$	7,081	$	388,062

	December 31, 2011
	(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	$	70	$	22	$	945	$	1,037	$	63,357
Real Estate-mortgage		2,189		311		984		3,484		117,692
Real Estate-non farm non residential		1,662		144		2,877		4,683		138,943
Commercial		138		19		246		403		48,385
Consumer		214		-		73		287		16,645
Total	$	4,273	$	496	$	5,125	$	9,894	$	385,022

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 September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

($ in thousands)

September 30, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	230,865	$	64,411	$	21,603	$	51,532	$	368,411
Special Mention		6,356		148		27		-		6,531
Substandard		12,161		678		54		340		13,233
Doubtful		-		-		-		61		61
Subtotal		249,382		65,237		21,684		51,933		388,236
Less:
Unearned discount		93		71		-		10		174
Loans, net of unearned discount	$	249,289	$	65,166	$	21,684	$	51,923	$	388,062

December 31, 2011

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	223,692	$	57,835	$	16,004	$	60,741	$	358,272
Special Mention		5,169		71		45		3		5,288
Substandard		16,815		2,553		99		1,846		21,313
Doubtful		-		104		-		175		279
Subtotal		245,676		60,563		16,148		62,765		385,152
Less:
Unearned discount		94		34		-		2		130
Loans, net of  unearned discount	$	245,582	$	60,529	$	16,148	$	62,763	$	385,022

NOTE I — 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 September 30, 2012, follows:

($ in thousands)

	September 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	46,421	$	297	$	6	$	46,712
Tax-exempt and taxable obligations of states and municipal subdivisions		95,832		3,976		25		99,783
Mortgage-backed securities		62,766		1,809		18		64,557
Corporate obligations		22,806		298		1,508		21,596
Other		1,255		-		282		973
Total	$	229,080	$	6,380	$	1,839	$	233,621
Held-to-maturity securities:
Mortgage-backed securities	$	2,478	$	94	$	-	$	2,572
Taxable obligations of states and municipal subdivisions		6,000		1,424		-		7,424
Total	$	8,478	$	1,518	$	-	$	9,996

NOTE J — 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 short operating history and rapid growth. 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 three year quarterly moving average is utilized in determining the appropriate allowance. Historical loss factors are determined by graded and ungraded 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 loan officers.

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 K – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued.

NOTE L – RECLASSIFICATION

Certain amounts in the 2011 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 $724.3 million at September 30, 2012, compared to $679.9 million at December 31, 2011. Loans increased $5.0 million, or 1.3%, during the first nine months of 2012. Deposits at September 30, 2012, totaled $622.0 million compared to $573.4 million at December 31, 2011. For the nine month period ended September 30, 2012, The First reported net income of $3.2 million compared to $2.4 million for the nine months ended September 30, 2011.

NONPERFORMING ASSETS AND RISK ELEMENTS. Diversification within the loan portfolio is an important means of reducing inherent lending risks. At September 30, 2012, 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 September 30, 2012, The First had loans past due as follows:

	($ In Thousands)
Past due 30 through 89 days	$	3,395
Past due 90 days or more and still accruing		878

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 $2.8 million at September 30, 2012, a decrease of $2.3 million from December 31, 2011. Any other real estate owned is carried at fair value, determined by an appraisal. Other real estate owned totaled $8.0 million at September 30, 2012. 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 September 30, 2012, the Bank had $210,000 in loans that were modified as troubled debt restructurings.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is adequate with cash and cash equivalents of $36.7 million as of September 30, 2012. In addition, loans and investment securities repricing or maturing within one year or less exceeded $182.7 million at September 30, 2012. Approximately $76.6 million in loan commitments could fund within the next three months and other commitments, primarily standby letters of credit, totaled $.5 million at September 30, 2012.

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 September 30, 2012, was $65.4 million, or approximately 9.0% 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 September 30, 2012, were as follows:

Tier 1 leverage	8.52	%
Tier 1 risk-based	12.87	%
Total risk-based	13.81	%

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 in 2012 or later, 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 – QUARTERLY

The Company had a consolidated net income of $872,000 for the three months ended September 30, 2012, compared with consolidated net income of $746,000 for the same period last year.

Net interest income increased to $5,431,000 from $4,732,000 for the three months ended September 30, 2012, or an increase of 14.8% as compared to the same period in 2011. Earning assets through September 30, 2012, increased $8.6 million, or 1.3% and interest-bearing liabilities also increased $6.5 million or 1.2% when compared to September 30, 2011.

Noninterest income for the three months ended September 30, 2012, was $1,518,000 compared to $1,088,000 for the same period in 2011, reflecting an increase of $430,000 or 39.5%. Included in noninterest income is service charges on deposit accounts, which for the three months ended September 30 2012, totaled $853,000 compared to $632,000 for the same period in 2011.

The provision for loan losses was $371,000 for the three months ended September 30, 2012, compared with $230,000 for the same period in 2011. The allowance for loan losses of $4.4 million at September 30, 2012 (approximately 1.12% of total loans and 1.20% of loans excluding those booked at fair value due to business combination) 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 $958,000 or 21.4% for the three months ended September 30, 2012, when compared with the same period in 2011. This increase is primarily related to nonrecurring events including compromises of contingent claims and costs associated with the acquisition of the Whitney branches.

RESULTS OF OPERATIONS – YEAR TO DATE

The Company had a consolidated net income of $2,880,000 for the nine months ended September 30, 2012, compared with consolidated net income of $1,917,000 for the same period last year.

Net interest income increased to $16.4 million from $13.5 million for the nine months ended September 30, 2012, or an increase of 21.7% as compared to the same period in 2011. This increase was a result of increased loan volume and increased securities as well as lower funding costs.

Noninterest income for the nine months ended September 30, 2012, was $4,503,000 compared to $3,027,000 for the same period in 2011, reflecting an increase of $1,476,000 or 48.8%. Included in noninterest income is service charges on deposit accounts, which for the nine months ended September 30, 2012, totaled $2,580,000 compared to $1,758,000 for the same period in 2011. An increase in fee income associated with higher loan and deposit volumes attributed to this income as well as fee income generated from our mortgage division.

The provision for loan losses was $744,000 for the nine months ended September 30, 2012, compared with $883,000 for the same period in 2011. The allowance for loan losses of $4.4 million at September 30, 2012 (approximately 1.12% of total loans and 1.20% of loans excluding those booked at fair value due to business combination) 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 $3.1 million or 23.1% for the nine months ended September 30, 2012, when compared with the same period in 2011. This increase is primarily related to an increase in operating costs associated with the acquisition of the Whitney branches acquired in the fourth quarter of 2011, as more fully discussed at Note C.

ITEM NO. 3. CONTROLS AND PROCEDURES

As of September 30, 2012, (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 September 30, 2012, that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

ITEM NO. 4. RECENT ACCOUNTING PRONOUNCEMENTS

The Company has adopted ASU No. 2011-05, “Presentation of Comprehensive Income.” This guidance (ASC Topic 220, Comprehensive Income) revises the manner in which entities present comprehensive income in their financial statements. It requires entities to report components in either a continuous statement of comprehensive income or in two separate but consecutive statements. The Company chose the latter presentation. The items that must be reported in other comprehensive income did not change. In December 2011, the FASB issued ASU No. 2011-12 to defer changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments until the FASB has time to reconsider the presentation of such adjustments.

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet Disclosures about Offsetting Assets and Liabilities.” The ASU amends ASC Topic 210 by requiring additional improved information to be disclosed regarding financial instruments and derivative instruments that are offset in accordance with the conditions under ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The amendment is effective for annual and interim reporting periods beginning on or after January 1, 2013. The disclosures required by the amendments should be applied retrospectively for all comparative periods presented. The Company does not believe the amendments will have a material impact on the financial statements.

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment. It allows companies to perform a “qualitative” assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard is not expected to have a material impact on the Company’s financial statements.

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, 2011. Please refer to the Annual Report on Form 10-K of The First Bancshares, Inc., filed with the Securities and Exchange Commission on March 29, 2012.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITY AND USE OF PROCEEDS

Not Applicable

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4. REMOVED AND RESERVED

ITEM 5. OTHER INFORMATION

Not Applicable

ITEM 6. EXHIBITS

(a) Exhibits

Exhibit No.
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.

(b) The Company filed two reports on Form 8-K during the quarter ended September 30, 2012

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.
November 13, 2012	M. Ray (Hoppy) Cole, Jr.
(Date)	Chief Executive Officer
	/s/  DEEDEE LOWERY
November 13, 2012	DeeDee Lowery, Executive
(Date)	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:	November 13, 2012	/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:	November 13, 2012	/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 September 30, 2012, 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:	November 13, 2012

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 September 30, 2012,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:	November 13, 2012

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

Fair Values of off-Balance Sheet Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010
Assets:
Cash and cash equivalents	$ 36,712	$ 23,181	$ 134,288	$ 33,976
Securities available-for-sale	233,621	212,529
Securities held-to-maturity	8,478	6,002
Other securities	2,638	2,645
Loans, net	388,560	383,417
Liabilities:
Noninterest-bearing deposits	110,051	107,129
Interest-bearing deposits	511,882	466,265
Subordinated debentures	10,310	10,310
FHLB and other borrowings	16,781	27,032
Estimated Fair Value
Assets:
Cash and cash equivalents	36,712	23,181
Securities available-for-sale	233,621	212,529
Securities held-to-maturity	9,996	6,002
Other securities	2,638	2,645
Loans, net	400,908	396,905
Liabilities:
Noninterest-bearing deposits	110,051	107,129
Interest-bearing deposits	512,258	467,198
Subordinated debentures	10,310	10,310
FHLB and other borrowings	$ 16,781	$ 27,032

XML

Additional Detail of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	$ 107	$ 212
Outstanding Recorded Investment Post - Modification	107	212
Number of Loans	1	3
Interest Income Recognized	7	39	134
Consumer real estate
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification		63
Outstanding Recorded Investment Post - Modification		63
Number of Loans		1
Interest Income Recognized		12	15
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	107	107
Outstanding Recorded Investment Post - Modification	107	107
Number of Loans	1	1
Interest Income Recognized	7	21	108
Consumer Installment [Member]
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification		42
Outstanding Recorded Investment Post - Modification		42
Number of Loans		1
Interest Income Recognized		$ 1

XML

Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Loans
Individually evaluated	$ 3,135		$ 5,125
Collectively evaluated	384,927		379,897
Total	388,062		385,022
Allowance for Loan Losses
Individually evaluated	771		738
Collectively evaluated	3,629		3,773
Total	4,400	4,468	4,511
Real Estate
Loans
Individually evaluated	2,867		4,841
Collectively evaluated	311,588		301,271
Total	314,455		306,112
Allowance for Loan Losses
Individually evaluated	672		662
Collectively evaluated	3,202		3,375
Total	3,874		4,037
Installment and Other
Loans
Individually evaluated	47		38
Collectively evaluated	21,637		16,107
Total	21,684		16,145
Allowance for Loan Losses
Individually evaluated	44		13
Collectively evaluated	190		64
Total	234		77
Commercial Financial And Agricultural
Loans
Individually evaluated	221		246
Collectively evaluated	51,702		62,519
Total	51,923		62,765
Allowance for Loan Losses
Individually evaluated	55		63
Collectively evaluated	237		334
Total	$ 292		$ 397

XML

Earnings Applicable to Common Stockholders - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares of restricted stock granted	42,795	33,850

XML

LOANS (Tables)

9 Months Ended

Sep. 30, 2012

Loans Receivable, Net [Abstract]

Composition of Loan Portfolio

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

Composition of Loan Portfolio

	Sept. 30, 2012						December 31, 2011
				Percent						Percent
				of						of
	Amount			Total			Amount			Total
	(Dollars in thousands)
Mortgage loans held for sale	$	4,898			1.2	%	$	2,906			0.7	%
Commercial, financial and agricultural		51,616			13.1			48,385			12.5
Real Estate:
Mortgage-commercial		135,660			34.5			138,943			35.8
Mortgage-residential		129,149			32.9			117,692			30.3
Construction		56,761			14.4			63,357			16.3
Consumer and other		14,876			3.9			16,645			4.4
Total loans		392,960			100	%		387,928			100	%
Allowance for loan losses		(4,400	)					(4,511	)
Net loans	$	388,560					$	383,417

Activity in Allowance for Loan Losses

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

(In thousands)

	Three Months			Nine Months
	Ended			Ended
	Sept. 30, 2012			Sept. 30, 2012
Balance at beginning of period	$	4,468		$	4,511
Loans charged-off:
Real Estate		(314	)		(678	)
Installment and Other		(53	)		(151	)
Commercial, Financial and Agriculture		(114	)		(140	)
Total		(481	)		(969	)
Recoveries on loans previously charged-off:
Real Estate		26			40
Installment and Other		13			52
Commercial, Financial and Agriculture		3			22
Total		42			114
Net Charge-offs		(439	)		(855	)
Provision for Loan Losses		371			744
Balance at end of period	$	4,400		$	4,400

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 September 30, 2012 and December 31, 2011.

Allocation of the Allowance for Loan Losses

	September 30, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	292		13.4	%
Commercial Real Estate		3,148		64.2
Consumer Real Estate		727		16.8
Consumer		137		5.6
Unallocated		96		-
Total	$	4,400		100	%

	December 31, 2011
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	397		16.3	%
Commercial Real Estate		3,356		63.8
Consumer Real Estate		680		15.7
Consumer		78		4.2
Unallocated		-		-
Total	$	4,511		100	%

Impaired Loans

The following table represents the Company’s impaired loans at September 30, 2012 and December 31, 2011. This table excludes performing troubled debt restructurings.

	Sept. 30,		December 31,
	2012		2011
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,302	$	2,791
Impaired loans with a valuation allowance		1,833		2,334
Total impaired loans	$	3,135	$	5,125
Allowance for loan losses on impaired loans at period end		771		738
Total nonaccrual loans		2,808		5,125
Past due 90 days or more and still accruing		878		496
Average investment in impaired loans		3,363		4,185

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 Ended Sept. 30, 2012		Nine Months Ended Sept. 30, 2012
Average of individually impaired loans during period	$	2,719	$	2,690
Interest income recognized during impairment		-		-
Cash-basis interest income recognized		5		39

Loans and Allowance for Loan Losses Evaluated Individually and Collectively

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 September 30, 2012 and December 31, 2011. 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.

September 30, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	2,867	$	47	$	221	$	3,135
Collectively evaluated		311,588		21,637		51,702		384,927
Total	$	314,455	$	21,684	$	51,923	$	388,062
Allowance for Loan Losses
Individually evaluated	$	672	$	44	$	55	$	771
Collectively evaluated		3,202		190		237		3,629
Total	$	3,874	$	234	$	292	$	4,400

December 31, 2011

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,841	$	38	$	246	$	5,125
Collectively evaluated		301,271		16,107		62,519		379,897
Total	$	306,112	$	16,145	$	62,765	$	385,022
Allowance for Loan Losses
Individually evaluated	$	662	$	13	$	63	$	738
Collectively evaluated		3,375		64		334		3,773
Total	$	4,037	$	77	$	397	$	4,511

Additional Detail of Impaired Loans Broken Out According to Class

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2012 and December 31, 2011. The recorded investment included in the following table represents 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 September 30, 2012 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.

September 30, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	76	$	76	$	-	$	76	$	-
Commercial real estate		993		993		-		957		3
Consumer real estate		231		231		-		231		10
Consumer installment		2		2		-		2		-
Total	$	1,302	$	1,302	$	-	$	1,266	$	13
Impaired loans with a related allowance:
Commercial installment	$	145	$	145	$	55	$	164	$	5
Commercial real estate		1,544		1,544		637		1,079		18
Consumer real estate		99		99		35		175		2
Consumer installment		45		45		44		35		1
Total	$	1,833	$	1,833	$	771	$	1,453	$	26
Total Impaired Loans:
Commercial installment	$	221	$	221	$	55	$	240	$	5
Commercial real estate		2,537		2,537		637		2,036		21
Consumer real estate		330		330		35		406		12
Consumer installment		47		47		44		37		1
Total Impaired Loans	$	3,135	$	3,135	$	771	$	2,719	$	39

December 31, 2011
							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	121	$	121	$	-	$	69	$	5
Commercial real estate		2,420		2,420		-		1,457		85
Consumer real estate		241		241		-		288		3
Consumer installment		9		9		-		11		-
Total	$	2,791	$	2,791	$	-	$	1,825	$	93
Impaired loans with a related allowance:
Commercial installment	$	125	$	125	$	63	$	128	$	-
Commercial real estate		1,533		1,533		571		1,463		23
Consumer real estate		647		647		91		740		12
Consumer installment		29		29		13		29		6
Total	$	2,334	$	2,334	$	738	$	2,360	$	41
Total Impaired Loans:
Commercial installment	$	246	$	246	$	63	$	197	$	5
Commercial real estate		3,953		3,953		571		2,920		108
Consumer real estate		888		888		91		1,028		15
Consumer installment		38		38		13		40		6
Total Impaired Loans	$	5,125	$	5,125	$	738	$	4,185	$	134

Additional Detail of Troubled Debt Restructurings

The following tables provide additional detail of troubled debt restructurings at September 30, 2012.

For the Three Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
	$	107	$	107		1	$	7

For the Nine Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		63		63		1		1
Consumer installment		42		42		1		1
	$	212	$	212		3	$	9

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

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:

	September 30, 2012
	(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	$	222	$	67	$	1,615	$	1,904	$	56,761
Real Estate-mortgage		2,236		763		455		3,454		129,149
Real Estate-non farm non residential		509		-		596		1,105		135,660
Commercial		282		-		137		419		51,616
Consumer		146		48		5		199		14,876
Total	$	3,395	$	878	$	2,808	$	7,081	$	388,062

	December 31, 2011
	(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	$	70	$	22	$	945	$	1,037	$	63,357
Real Estate-mortgage		2,189		311		984		3,484		117,692
Real Estate-non farm non residential		1,662		144		2,877		4,683		138,943
Commercial		138		19		246		403		48,385
Consumer		214		-		73		287		16,645
Total	$	4,273	$	496	$	5,125	$	9,894	$	385,022

Risk Category of Loans by Class of Loans

As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

($ in thousands)

September 30, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	230,865	$	64,411	$	21,603	$	51,532	$	368,411
Special Mention		6,356		148		27		-		6,531
Substandard		12,161		678		54		340		13,233
Doubtful		-		-		-		61		61
Subtotal		249,382		65,237		21,684		51,933		388,236
Less:
Unearned discount		93		71		-		10		174
Loans, net of unearned discount	$	249,289	$	65,166	$	21,684	$	51,923	$	388,062

December 31, 2011

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	223,692	$	57,835	$	16,004	$	60,741	$	358,272
Special Mention		5,169		71		45		3		5,288
Substandard		16,815		2,553		99		1,846		21,313
Doubtful		-		104		-		175		279
Subtotal		245,676		60,563		16,148		62,765		385,152
Less:
Unearned discount		94		34		-		2		130
Loans, net of  unearned discount	$	245,582	$	60,529	$	16,148	$	62,763	$	385,022

XML

Risk Category of Loans by Class of Loans (Excluding Mortgage Loans Held for Sale) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 26,467	$ 385,152
Unearned discount	174	130
Total	388,062	385,022
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	368,411	358,272
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	6,531	5,288
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	13,233	21,313
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	61	279
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	249,382	245,676
Unearned discount	93	94
Total	249,289	245,582
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	230,865	223,692
Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	6,356	5,169
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	12,161	16,815
Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	65,237	60,563
Unearned discount	71	34
Total	65,166	60,529
Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	64,411	57,835
Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	148	71
Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	678	2,553
Real Estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross		104
Installment and Other
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	21,684	16,148
Total	21,684	16,148
Installment and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	21,603	16,004
Installment and Other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	27	45
Installment and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	54	99
Commercial Financial And Agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	51,933	62,765
Unearned discount	10	2
Total	51,923	62,763
Commercial Financial And Agricultural | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	51,532	60,741
Commercial Financial And Agricultural | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross		3
Commercial Financial And Agricultural | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	340	1,846
Commercial Financial And Agricultural | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 61	$ 175

XML

Activity in Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	$ 4,468		$ 4,511
Loans charged-off	(481)		(969)
Recoveries on loans previously charged-off	42		114
Net Charge-offs	(439)		(855)
Provision for Loan Losses	371	230	744	883
Balance at end of period	4,400		4,400
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(314)		(678)
Recoveries on loans previously charged-off	26		40
Installment and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(53)		(151)
Recoveries on loans previously charged-off	13		52
Commercial Financial And Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off	(114)		(140)
Recoveries on loans previously charged-off	$ 3		$ 22

XML

Fair Value of Assets and Liabilities - Additional Information (Detail) (Other Real Estate Owned, USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 8,008	$ 4,353
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 8,000	$ 4,353

XML

Additional Detail of Impaired Loans Broken Out According to Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, recorded investment	$ 1,302	$ 1,302	$ 2,791
Impaired loans with no related allowance, unpaid balance	1,302	1,302	2,791
Impaired loans with no related allowance:	1,302	1,302	2,791
Impaired loans with no related allowance, average recorded investment YTD		1,266	1,825
Impaired loans with no related allowance, interest income recognized YTD		13	93
Impaired loans with a related allowance , recorded investment	1,833	1,833	2,334
Impaired loans with a related allowance , unpaid balance	1,833	1,833	2,334
Impaired loans with a related allowance:	771	771	738
Impaired loans with a related allowance , average recored investment YTD		1,453	2,360
Impaired loans with a related allowance , interest income recognized YTD		26	41
Recorded Investment	3,135	3,135	5,125
Unpaid Balance	3,135	3,135	5,125
Related Allowance	771	771	738
Average Recorded Investment YTD	2,719	2,690	4,185
Interest Income Recognized YTD	7	39	134
Commercial installment
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, recorded investment	76	76	121
Impaired loans with no related allowance, unpaid balance	76	76	121
Impaired loans with no related allowance:	76	76	121
Impaired loans with no related allowance, average recorded investment YTD		76	69
Impaired loans with no related allowance, interest income recognized YTD		0	5
Impaired loans with a related allowance , recorded investment	145	145	125
Impaired loans with a related allowance , unpaid balance	145	145	125
Impaired loans with a related allowance:	55	55	63
Impaired loans with a related allowance , average recored investment YTD		164	128
Impaired loans with a related allowance , interest income recognized YTD		5
Recorded Investment	221	221	246
Unpaid Balance	221	221	246
Related Allowance	55	55	63
Average Recorded Investment YTD		240	197
Interest Income Recognized YTD		5	5
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, recorded investment	993	993	2,420
Impaired loans with no related allowance, unpaid balance	993	993	2,420
Impaired loans with no related allowance:	993	993	2,420
Impaired loans with no related allowance, average recorded investment YTD		957	1,457
Impaired loans with no related allowance, interest income recognized YTD		3	85
Impaired loans with a related allowance , recorded investment	1,544	1,544	1,533
Impaired loans with a related allowance , unpaid balance	1,544	1,544	1,533
Impaired loans with a related allowance:	637	637	571
Impaired loans with a related allowance , average recored investment YTD		1,079	1,463
Impaired loans with a related allowance , interest income recognized YTD		18	23
Recorded Investment	2,537	2,537	3,953
Unpaid Balance	2,537	2,537	3,953
Related Allowance	637	637	571
Average Recorded Investment YTD		2,036	2,920
Interest Income Recognized YTD	7	21	108
Consumer real estate
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, recorded investment	231	231	241
Impaired loans with no related allowance, unpaid balance	231	231	241
Impaired loans with no related allowance:	231	231	241
Impaired loans with no related allowance, average recorded investment YTD		231	288
Impaired loans with no related allowance, interest income recognized YTD		10	3
Impaired loans with a related allowance , recorded investment	99	99	647
Impaired loans with a related allowance , unpaid balance	99	99	647
Impaired loans with a related allowance:	35	35	91
Impaired loans with a related allowance , average recored investment YTD		175	740
Impaired loans with a related allowance , interest income recognized YTD		2	12
Recorded Investment	330	330	888
Unpaid Balance	330	330	888
Related Allowance	35	35	91
Average Recorded Investment YTD		406	1,028
Interest Income Recognized YTD		12	15
Consumer installment
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, recorded investment	2	2	9
Impaired loans with no related allowance, unpaid balance	2	2	9
Impaired loans with no related allowance:	2	2	9
Impaired loans with no related allowance, average recorded investment YTD		2	11
Impaired loans with no related allowance, interest income recognized YTD		0
Impaired loans with a related allowance , recorded investment	45	45	29
Impaired loans with a related allowance , unpaid balance	45	45	29
Impaired loans with a related allowance:	44	44	13
Impaired loans with a related allowance , average recored investment YTD		35	29
Impaired loans with a related allowance , interest income recognized YTD		1	6
Recorded Investment	47	47	38
Unpaid Balance	47	47	38
Related Allowance	44	44	13
Average Recorded Investment YTD		37	40
Interest Income Recognized YTD		$ 1	$ 6

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2012

Basis Of Presentation [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 nine months ended September 30, 2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. 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, 2011.

XML

Allocation of Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 4,400	$ 4,468	$ 4,511
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	292		397
Allowance for loan losses, percentage of total	13.40%		16.30%
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	3,148		3,356
Allowance for loan losses, percentage of total	64.20%		63.80%
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	727		680
Allowance for loan losses, percentage of total	16.80%		15.70%
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	137		78
Allowance for loan losses, percentage of total	5.60%		4.20%
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 96
Allowance for loan losses, percentage of total

XML

Amounts of Acquired Identifiable Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 16, 2011
Purchase price:
Cash	$ 9,100
Total purchase price	9,100
Identifiable assets:
Cash	125,243
Loans and leases	46,118
Core deposit intangible	2,402
Personal and real property	7,481
Other assets	95
Total assets	181,339
Liabilities and equity:
Deposits	179,196
Other liabilities	1,703
Total liabilities	180,899
Net assets acquired	440
Goodwill resulting from acquisition	$ 8,660

XML

Business Combination - Additional Information (Detail) (USD $)	1 Months Ended
	Sep. 16, 2011
Business Acquisition [Line Items]
Loans acquired	$ 46,800,000
Assumed deposit liabilities	179,196,000
Goodwill resulting from acquisition	8,660,000
Identifiable assets core deposit intangible	2,402,000
Core deposit intangible, weighted average useful life	10 years
Fair value discount on loan acquired	700,000
Non-credit quality portion
Business Acquisition [Line Items]
Fair value discount on loan acquired	100,000
Credit quality portion
Business Acquisition [Line Items]
Fair value discount on loan acquired	$ 600,000
Mississippi Gulf Coast branches
Business Acquisition [Line Items]
Number of branches acquired	7
Bogalusa, Louisiana
Business Acquisition [Line Items]
Number of branches acquired	1

XML

Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Impaired Loans:
Impaired loans without a valuation allowance	$ 1,302	$ 1,302	$ 2,791
Impaired loans with a valuation allowance	1,833	1,833	2,334
Total impaired loans	3,135	3,135	5,125
Allowance for loan losses on impaired loans at period end	771	771	738
Total nonaccrual loans	2,808	2,808	5,125
Past due 90 days or more and still accruing	878	878	496
Average investment in impaired loans	$ 2,719	$ 2,690	$ 4,185

XML

Outstanding Principal Balance and Carrying Amount of Loans Included in Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Business Acquisition [Line Items]
Outstanding principal balance	$ 26,467	$ 385,152
Carrying amount	26,099
Business acquisition
Business Acquisition [Line Items]
Outstanding principal balance	26,467
Carrying amount	$ 26,099

XML

Preferred Stock and Warrant - Additional Information (Detail) (USD $)	1 Months Ended			1 Months Ended
	Sep. 29, 2010	Sep. 30, 2012	Dec. 31, 2011	Feb. 06, 2009 Series A Preferred Stock	Sep. 29, 2010 Capital Purchase Program (CPP)	Sep. 29, 2010 Capital Purchase Program (CPP) After Five Years	Sep. 29, 2010 Series CD Preferred Stock
Class of Stock [Line Items]
Proceeds received from treasury				$ 5,000,000
Issuance of preferred stock, shares				5,000			12,123
Common Stock, shares repurchased				54,705
Warrant, exercise price				$ 13.71
Warrant, term period				10 years
Preferred Stock, liquidation preference		$ 1,000	$ 1,000
Preferred stock, annual dividend rate					5.00%	9.00%	2.00%
Proceeds received from treasury, warrant				300,000
Net proceeds from issuance and redemption of preferred stock				4,700,000			12,123,000
Accretion of Series A Preferred Stock discount, maximum amount				$ 5,000,000
Series UST Fixed rate cumulative perpetual preferred shares exchangeed to Series CD Preferred stocks					5,000
Series CD Fixed rate cumulative perpetual preferred shares issued in exchange to Series UST Preferred stocks							5,000
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

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 2,880	$ 1,917
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	1,894	821
Impairment loss on securities		4
Provision for loan losses	744	883
Loss on sale/writedown of ORE	396	127
Restricted stock expense	174	88
Increase in cash value of life insurance	(130)	(140)
Federal Home Loan Bank stock dividends	(3)	(3)
Changes in:
Interest receivable	(282)	(297)
Loans held for sale, net	(1,914)	(1,020)
Interest payable	(81)	(71)
Other, net	3,287	2,264
NET CASH PROVIDED BY OPERATING ACTIVITIES	6,965	4,573
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities and calls of securities available- for-sale	40,136	36,901
Purchases of securities available-for-sale and held-to-maturity	(60,762)	(64,876)
Net redemptions of other securities	11
Net increase in loans	(10,020)	(13,854)
Net additions in premises and equipment	(428)	(1,189)
Cash received from acquisition		116,143
NET CASH PROVIDED BY (USED IN)INVESTING ACTIVITIES	(31,063)	73,125
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits	48,477	26,267
Net increase (decrease) in borrowed funds	(10,251)	(3,056)
Dividends paid on common stock	(340)	(340)
Dividends paid on preferred stock	(257)	(257)
NET CASH PROVIDED BY FINANCING ACTIVITIES	37,629	22,614
NET INCREASE IN CASH	13,531	100,312
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	23,181	33,976
CASH AND CASH EQUIVALENTS AT END OF PERIOD	36,712	134,288
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST	3,391	4,250
CASH PAYMENTS FOR INCOME TAXES	967	788
LOANS TRANSFERRED TO OTHER REAL ESTATE	6,353	2,957
ISSUANCE OF RESTRICTED STOCK GRANTS	$ 42	$ 34

XML

Earnings Applicable to Common Stockholders (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Earnings Per Share Basic [Line Items]
Net income available to common stock holders, basic	$ 766	$ 660	$ 2,562	$ 1,660
Net income available to common stock holders, diluted	$ 766	$ 660	$ 2,562	$ 1,660
Weighted average number of shares outstanding, basic	3,108,867	3,066,072	3,099,024	3,062,311
Effect of dilutive shares:
Restricted stock grants	26,378	9,379	26,378	9,379
Weighted average number of shares outstanding, diluted	3,135,245	3,075,451	3,125,402	3,071,690
Basic per share	$ 0.25	$ 0.22	$ 0.83	$ 0.54
Diluted per share	$ 0.24	$ 0.21	$ 0.82	$ 0.54

XML

Loans - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Percentage of loan portfolio to earning assets		60.10%	62.40%
Loan to value ratio	80.00%	80.00%
Gross interest income if non-accrual loans had been current	$ 75,900	$ 145,300
Troubled debt restructurings, balance	210,000	210,000
Impaired receivables for which allowance for credit losses had previously been measured under general allowance for credit losses methodology	210,000	210,000
Impaired receivables for which allowance for credit losses had previously been measured under general allowance for credit losses methodology, allowance for credit losses	$ 53,000	$ 53,000

XML

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash and due from banks	$ 20,070	$ 10,152
Interest-bearing deposits with banks	15,652	12,788
Federal funds sold	990	241
Total cash and cash equivalents	36,712	23,181
Securities held-to-maturity, at amortized cost	8,478	6,002
Securities available-for-sale, at fair value	233,621	212,529
Other securities	2,638	2,645
Total securities	244,737	221,176
Loans held for sale	4,898	2,906
Loans	388,062	385,022
Allowance for loan losses	(4,400)	(4,511)
Loans, net	388,560	383,417
Premises and equipment	22,522	22,991
Interest receivable	3,054	2,772
Cash surrender value of life insurance	6,400	6,270
Goodwill	9,362	9,362
Other assets	6,313	7,891
Other real estate owned	8,008	4,353
TOTAL ASSETS	725,668	681,413
Deposits:
Noninterest-bearing	110,051	107,129
Interest-bearing	511,882	466,265
TOTAL DEPOSITS	621,933	573,394
Interest payable	227	308
Borrowed funds	16,781	27,032
Subordinated debentures	10,310	10,310
Other liabilities	11,045	9,944
TOTAL LIABILITIES	660,296	620,988
STOCKHOLDERS EQUITY:
Preferred stock, no par value, $1,000 per share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at Sept. 30, 2012 and at December 31, 2011	17,000	16,939
Common stock, par value $1 per share, 10,000,000 shares authorized; 3,135,361 and 3,092,566 shares issued at Sept. 30, 2012 and at December 31, 2011	3,135	3,093
Additional paid-in capital	23,636	23,504
Retained earnings	19,000	16,791
Accumulated other comprehensive income	3,060	562
Treasury stock, at cost, 26,494 shares at Sept. 30, 2012 and at December 31, 2011	(464)	(464)
TOTAL STOCKHOLDERS EQUITY	65,372	60,425
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$ 725,668	$ 681,413

XML

Summary of Interest Recognized and Cash-Basis Interest Earned on Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Average of individually impaired loans during period	$ 2,719	$ 2,690	$ 4,185
Interest income recognized during impairment	7	39	134
Cash-basis interest income recognized	$ 5	$ 39

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, 2010	$ 57,099	$ 3,059	$ 16,939	$ 284	$ 23,135	$ 14,723	$ (577)	$ (464)
Net income	1,917					1,917
Net change in unrealized gain(loss)on available- for-sale securities, net of tax	1,035						1,035
Net change in unrealized gain(loss)on derivative, net of tax	34						34
Dividends on preferred stock	(257)					(257)
Dividends on common stock, $.1125 per share	(346)					(346)
Restricted stock grant		34			(34)
Compensation expense	88				88
Balance at Sep. 30, 2011	59,570	3,093	16,939	284	23,189	16,037	492	(464)
Balance at Dec. 31, 2011	60,425	3,093	16,939	284	23,220	16,791	562	(464)
Net income	2,880					2,880
Net change in unrealized gain(loss)on available- for-sale securities, net of tax	2,450						2,450
Net change in unrealized gain(loss)on derivative, net of tax	48						48
Accretion and dividends on preferred stock	(257)		61			(318)
Dividends on common stock, $.1125 per share	(348)					(348)
Restricted stock grant		42			(42)
Compensation expense	174				174
Balance at Sep. 30, 2012	$ 65,372	$ 3,135	$ 17,000	$ 284	$ 23,352	$ 19,005	$ 3,060	$ (464)

XML

Fair Value of Assets Measured on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 233,621	$ 212,529
Obligations of U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	46,712	43,673
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	99,783	94,259
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	64,557	59,330
Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	21,596	14,293
Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	973	974
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	973	974
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	973	974
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	229,717	209,303
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	46,712	43,673
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	99,783	94,259
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	64,557	59,330
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	18,665	12,041
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	2,931	2,252
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	$ 2,931	$ 2,252

XML

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Applicable to Common Stockholders

	For the Three Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share		2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

	For the Three Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	660,000		3,066,072	$	.22
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	660,000		3,075,451	$	.21

	For the Nine Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,660,000		3,062,311	$	.54
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	1,660,000		3,071,690	$	.54

XML

Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Detail) (Bank-Issued Trust Preferred Securities, USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Bank-Issued Trust Preferred Securities
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance, January 1	$ 2,252	$ 2,619
Transfers into Level 3
Transfers out of Level 3
Other-than-temporary impairment loss included in earnings		(4)
Unrealized gain (loss) included in comprehensive income	679	(363)
Balance at September 30, 2012 and December 31, 2011	$ 2,931	$ 2,252

XML

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2012

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 September 30,2012 and December 31, 2011 (in thousands):

September 30, 2012

			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	$	46,712	$	-	$	46,712	$	-
Municipal securities		99,783		-		99,783		-
Mortgage-backed securities		64,557		-		64,557		-
Corporate obligations		21,596		-		18,665		2,931
Other		973		973		-		-
Total	$	233,621	$	973	$	229,717	$	2,931

December 31, 2011

			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	$	43,673	$	-	$	43,673	$	-
Municipal securities		94,259		-		94,259		-
Mortgage-backed securities		59,330		-		59,330		-
Corporate obligations		14,293		-		12,041		2,252
Other		974		974		-		-
Total	$	212,529	$	974	$	209,303	$	2,252

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
	2012		2011
Balance, January 1	$	2,252	$	2,619
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		(4	)
Unrealized gain (loss) included in comprehensive income		679		(363	)
Balance at September 30, 2012 and December 31, 2011	$	2,931	$	2,252

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 September 30, 2012 and December 31, 2011.

September 30, 2012

			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	$	3,135	$	-	$	3,135	$	-
Other real estate owned		8,008		-		8,008		-

December 31, 2011

			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	$	5,125	$	-	$	5,125	$	-
Other real estate owned		4,353		-		4,353		-

Financial Instruments with No Distinguishable Fair Value

	As of				As of
	September 30, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	36,712	$	36,712	$	23,181	$	23,181
Securities available-for-sale		233,621		233,621		212,529		212,529
Securities held-to-maturity		8,478		9,996		6,002		6,002
Other securities		2,638		2,638		2,645		2,645
Loans, net		388,560		400,908		383,417		396,905
Liabilities:
Noninterest-bearing deposits	$	110,051	$	110,051	$	107,129	$	107,129
Interest-bearing deposits		511,882		512,258		466,265		467,198
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		16,781		16,781		27,032		27,032

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Dividends on common stock, per share	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Preferred stock, no par value
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	10,000,000	10,000,000
Common stock, shares issued	3,135,361	3,092,566
Treasury stock, shares	26,494	26,494

XML

SECURITIES

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

SECURITIES

NOTE I — 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 September 30, 2012, follows:

($ in thousands)

	September 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	46,421	$	297	$	6	$	46,712
Tax-exempt and taxable obligations of states and municipal subdivisions		95,832		3,976		25		99,783
Mortgage-backed securities		62,766		1,809		18		64,557
Corporate obligations		22,806		298		1,508		21,596
Other		1,255		-		282		973
Total	$	229,080	$	6,380	$	1,839	$	233,621
Held-to-maturity securities:
Mortgage-backed securities	$	2,478	$	94	$	-	$	2,572
Taxable obligations of states and municipal subdivisions		6,000		1,424		-		7,424
Total	$	8,478	$	1,518	$	-	$	9,996

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Trading Symbol	FBMS
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
Entity Common Stock Shares Outstanding	3,108,867

XML

ALLOWANCE FOR LOAN LOSSES

9 Months Ended

Sep. 30, 2012

Allowance For Loan Losses [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE J — 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 short operating history and rapid growth. 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 three year quarterly moving average is utilized in determining the appropriate allowance. Historical loss factors are determined by graded and ungraded 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 loan officers.

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.

XML

CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
INTEREST INCOME:
Interest and fees on loans	$ 5,204	$ 5,165	$ 16,011	$ 15,296
Interest and dividends on securities:
Taxable interest and dividends	731	452	2,154	1,290
Tax exempt interest	513	366	1,527	1,029
Interest on federal funds sold	11	16	42	58
TOTAL INTEREST INCOME	6,459	5,999	19,734	17,673
INTEREST EXPENSE:
Interest on deposits	714	963	2,440	3,271
Interest on borrowed funds	314	304	870	908
TOTAL INTEREST EXPENSE	1,028	1,267	3,310	4,179
NET INTEREST INCOME	5,431	4,732	16,424	13,494
PROVISION FOR LOAN LOSSES	371	230	744	883
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,060	4,502	15,680	12,611
OTHER INCOME:
Service charges on deposit accounts	853	632	2,580	1,758
Other service charges and fees	665	456	1,923	1,273
Impairment loss on securities:
Total other-than-temporary impairment (gain)loss		(52)		(141)
Portion of gain (loss) recognized in other comprehensive income		52		137
Net impairment loss recognized in earnings				4
TOTAL OTHER INCOME	1,518	1,088	4,503	3,027
OTHER EXPENSES:
Salaries and employee benefits	3,075	2,391	9,009	6,864
Occupancy and equipment	493	534	2,402	1,466
Other	1,869	1,554	4,962	4,966
TOTAL OTHER EXPENSES	5,437	4,479	16,373	13,296
INCOME BEFORE INCOME TAXES	1,141	1,111	3,810	2,342
INCOME TAXES	269	365	930	425
NET INCOME	872	746	2,880	1,917
PREFERRED STOCK ACCRETION AND DIVIDENDS	106	86	318	257
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 766	$ 660	$ 2,562	$ 1,660
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS:
BASIC	$ 0.25	$ 0.22	$ 0.83	$ 0.54
DILUTED	$ 0.24	$ 0.21	$ 0.82	$ 0.54
DIVIDENDS PER SHARE COMMON	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125

XML

PREFERRED STOCK AND WARRANT

9 Months Ended

Sep. 30, 2012

Preferred Stock and Warrant [Abstract]

PREFERRED STOCK AND WARRANT

NOTE D – PREFERRED STOCK AND WARRANT

On February 6, 2009, as part of the U.S. Department of Treasury’s (“Treasury”) Capital Purchase Program (“CPP”), the Company received a $5.0 million equity investment by issuing 5 thousand shares of Series A, no par value preferred stock to the Treasury pursuant to a Letter Agreement and Securities Purchase Agreement that was previously disclosed by the Company. The Company also issued a warrant to the Treasury allowing it to purchase 54,705 shares of the Company’s common stock at an exercise price of $13.71. The warrant can be exercised immediately and has a term of 10 years.

The Company allocated the proceeds received from the Treasury, net of transaction costs, on a pro rata basis to the Series A preferred stock and the warrant based on their relative fair values. The Company assigned $.3 million and $4.7 million to the warrant and the Series A preferred stock, respectively. The resulting discount on the Series A preferred stock is being accreted up to the $5.0 million liquidation amount at the time of the exchange that is described in the following paragraphs.

On September 29, 2010, and pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company closed a transaction whereby Treasury exchanged its 5,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST, (the “CPP Preferred Shares”) for 5,000 shares of a new series of preferred stock designated Fixed Rate Cumulative Perpetual Preferred Stock, Series CD (the “CDCI Preferred Shares”). On the same day, and pursuant to the terms of the letter agreement between the Company and Treasury, the Company issued an additional 12,123 CDCI Preferred Shares to Treasury for a purchase price of $12,123,000. As a result of the CDCI Transactions, the Company is no longer participating in the TARP Capital Purchase Program being administered by Treasury and is now participating in Treasury’s TARP Community Development Capital Initiative (the “CDCI”). The terms of the CDCI Transactions are more fully set forth in the Exchange Letter Agreement and the Purchase Letter Agreement.

The Letter Agreement, pursuant to which the Preferred Shares were exchanged, 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 2010) and on the Company’s ability to repurchase its common stock, 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 most significant difference in terms between the CDCI Preferred Shares and the CPP Preferred Shares is the dividend rate applicable to each. The CPP Preferred Shares entitled the holder to an annual dividend of 5% increasing to 9% after 5 years of the liquidation value of the shares, payable quarterly in arrears; by contrast, 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. Other differences in terms between the CDCI Preferred Shares and the CPP Preferred Shares, including, without limitation, the restrictions on common stock dividends and on redemption of common stock and other securities exist. The terms of the CDCI Preferred Shares are more fully set forth in the Articles of Amendment creating the CDCI Preferred Shares, which Articles of Amendment were filed with the Mississippi Secretary of State on September 27, 2010.

As a condition to participate in the CDCI, the Company was required to obtain certification as a Community Development Financial Institution (a “CDFI”) from the Treasury’s Community Development Financial Fund. On September 28, 2010, the Company was notified that its application for CDFI certification had been approved. In order to become certified and maintain its certification as a CDFI, the Company is required to meet the CDFI eligibility requirements set forth in 12 C.F.R. 1805.201(b).

XML

BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2012

Business Combination, Description [Abstract]

BUSINESS COMBINATION

NOTE C – BUSINESS COMBINATION

On September 16, 2011 the Company completed the purchase of seven (7) branches located on the Mississippi Gulf Coast and one (1) branch located in Bogalusa, Louisiana from Whitney National Bank and Hancock Bank of Louisiana (the “Whitney branches”). As part of the agreement, the Company purchased loans of $46.8 million and assumed deposit liabilities of $179.3 million, and purchased the related fixed assets and cash of the branches. The Company operates the acquired bank branches under the name The First, A National Banking Association. The acquisition allowed the Company to expand its presence in South Mississippi as well as enter a new market in Louisiana. The Company’s condensed consolidated statements of income include the results of operations of the Whitney branches.

In connection with the acquisition, the Company recorded $8.7 million of goodwill and $2.4 million of core deposit intangible. The core deposit intangible of $2.4 million will be expensed over 10 years. The recorded goodwill is deductible for tax purposes.

The Company acquired the $46.8 million loan portfolio at a fair value discount of $.7 million. The discount represents expected credit losses, adjustments to market interest rates and liquidity adjustments. The non credit quality portion of the discount was $.1 million and the credit quality portion of the discount was $.6 million.

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

Purchase price:
Cash	$	9,100
Total purchase price		9,100
Identifiable assets:
Cash		125,243
Loans and leases		46,118
Core deposit intangible		2,402
Personal and real property		7,481
Other assets		95
Total assets		181,339
Liabilities and equity:
Deposits		179,196
Other liabilities		1,703
Total liabilities		180,899
Net assets acquired		440
Goodwill resulting from acquisition	$	8,660

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2012, are as follows (dollars in thousands):

Outstanding principal balance	$	26,467
Carrying amount		26,099

All loans obtained in the acquisition of the Whitney branches reflect no specific evidence of credit deterioration and very low probability that the Company would be unable to collect all contractually required principal and interest payments.

XML

COMPREHENSIVE INCOME (Tables)

9 Months Ended

Sep. 30, 2012

Comprehensive Income Note [Abstract] (Deprecated 2011-01-31)

Comprehensive Income Reported in Consolidated Statements of Income

The following table discloses Comprehensive Income for the periods reported in the Consolidated Statements of Income:

(In thousands)

	Three Months					Nine Months
	Ended					Ended
	September 30,					September 30,
	2012		2011			2012		2011
Unrealized holding gains (losses) on available-for-sale securities during the period, net of tax	$	1,313	$	(103	)	$	2,450	$	1,035
Unrealized gain on derivative carried at fair value during the period, net of tax		24		51			48		34
Accumulated Other Comprehensive Income(Loss) beginning of period		1,723		544			562		(577	)
Accumulated Other Comprehensive Income, end of period	$	3,060	$	492		$	3,060	$	492

XML

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE K – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued.

XML

FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

NOTE G — 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 September 30,2012 and December 31, 2011 (in thousands):

September 30, 2012

			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	$	46,712	$	-	$	46,712	$	-
Municipal securities		99,783		-		99,783		-
Mortgage-backed securities		64,557		-		64,557		-
Corporate obligations		21,596		-		18,665		2,931
Other		973		973		-		-
Total	$	233,621	$	973	$	229,717	$	2,931

December 31, 2011

			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	$	43,673	$	-	$	43,673	$	-
Municipal securities		94,259		-		94,259		-
Mortgage-backed securities		59,330		-		59,330		-
Corporate obligations		14,293		-		12,041		2,252
Other		974		974		-		-
Total	$	212,529	$	974	$	209,303	$	2,252

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
	2012		2011
Balance, January 1	$	2,252	$	2,619
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings		-		(4	)
Unrealized gain (loss) included in comprehensive income		679		(363	)
Balance at September 30, 2012 and December 31, 2011	$	2,931	$	2,252

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 September 30, 2012, amounted to $8.0 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 September 30, 2012 and December 31, 2011.

 ($ in thousands)

September 30, 2012

			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	$	3,135	$	-	$	3,135	$	-
Other real estate owned		8,008		-		8,008		-

December 31, 2011

			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	$	5,125	$	-	$	5,125	$	-
Other real estate owned		4,353		-		4,353		-

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.

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				As of
	September 30, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	36,712	$	36,712	$	23,181	$	23,181
Securities available-for-sale		233,621		233,621		212,529		212,529
Securities held-to-maturity		8,478		9,996		6,002		6,002
Other securities		2,638		2,638		2,645		2,645
Loans, net		388,560		400,908		383,417		396,905
Liabilities:
Noninterest-bearing deposits	$	110,051	$	110,051	$	107,129	$	107,129
Interest-bearing deposits		511,882		512,258		466,265		467,198
Subordinated debentures		10,310		10,310		10,310		10,310
FHLB and other borrowings		16,781		16,781		27,032		27,032

XML

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

9 Months Ended

Sep. 30, 2012

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
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	766,000		3,108,867	$	.25
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	766,000		3,135,245	$	.24

	For the Nine Months Ended
	September 30, 2012
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share		2,562,000		3,099,024	$	.83
Effect of dilutive shares:
Restricted stock grants				26,378
Diluted per share	$	2,562,000		3,125,402	$	.82

	For the Three Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	660,000		3,066,072	$	.22
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	660,000		3,075,451	$	.21

	For the Nine Months Ended
	September 30, 2011
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,660,000		3,062,311	$	.54
Effect of dilutive shares:
Restricted stock grants				9,379
Diluted per share	$	1,660,000		3,071,690	$	.54

The Company granted 42,795 shares of restricted stock in the first quarter of 2012 and 33,850 shares of restricted stock in the first quarter of 2011.

XML

COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2012

Comprehensive Income Note [Abstract] (Deprecated 2011-01-31)

COMPREHENSIVE INCOME

NOTE F — COMPREHENSIVE INCOME

The following table discloses Comprehensive Income for the periods reported in the Consolidated Statements of Income:

(In thousands)

	Three Months					Nine Months
	Ended					Ended
	September 30,					September 30,
	2012		2011			2012		2011
Unrealized holding gains (losses) on available-for-sale securities during the period, net of tax	$	1,313	$	(103	)	$	2,450	$	1,035
Unrealized gain on derivative carried at fair value during the period, net of tax		24		51			48		34
Accumulated Other Comprehensive Income(Loss) beginning of period		1,723		544			562		(577	)
Accumulated Other Comprehensive Income, end of period	$	3,060	$	492		$	3,060	$	492

XML

LOANS

9 Months Ended

Sep. 30, 2012

Loans Receivable, Net [Abstract]

LOANS

NOTE H — 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. At September 30, 2012 and December 31, 2011, respectively, loans accounted for 60.1% and 62.4% of earning assets. 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

	Sept. 30, 2012						December 31, 2011
				Percent						Percent
				of						of
	Amount			Total			Amount			Total
	(Dollars in thousands)
Mortgage loans held for sale	$	4,898			1.2	%	$	2,906			0.7	%
Commercial, financial and agricultural		51,616			13.1			48,385			12.5
Real Estate:
Mortgage-commercial		135,660			34.5			138,943			35.8
Mortgage-residential		129,149			32.9			117,692			30.3
Construction		56,761			14.4			63,357			16.3
Consumer and other		14,876			3.9			16,645			4.4
Total loans		392,960			100	%		387,928			100	%
Allowance for loan losses		(4,400	)					(4,511	)
Net loans	$	388,560					$	383,417

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 is as follows:

(In thousands)

	Three Months			Nine Months
	Ended			Ended
	Sept. 30, 2012			Sept. 30, 2012
Balance at beginning of period	$	4,468		$	4,511
Loans charged-off:
Real Estate		(314	)		(678	)
Installment and Other		(53	)		(151	)
Commercial, Financial and Agriculture		(114	)		(140	)
Total		(481	)		(969	)
Recoveries on loans previously charged-off:
Real Estate		26			40
Installment and Other		13			52
Commercial, Financial and Agriculture		3			22
Total		42			114
Net Charge-offs		(439	)		(855	)
Provision for Loan Losses		371			744
Balance at end of period	$	4,400		$	4,400

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 September 30, 2012 and December 31, 2011.

Allocation of the Allowance for Loan Losses

	September 30, 2012
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	292		13.4	%
Commercial Real Estate		3,148		64.2
Consumer Real Estate		727		16.8
Consumer		137		5.6
Unallocated		96		-
Total	$	4,400		100	%

	December 31, 2011
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	397		16.3	%
Commercial Real Estate		3,356		63.8
Consumer Real Estate		680		15.7
Consumer		78		4.2
Unallocated		-		-
Total	$	4,511		100	%

The following table represents the Company’s impaired loans at September 30, 2012 and December 31, 2011. This table excludes performing troubled debt restructurings.

	Sept. 30,		December 31,
	2012		2011
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	1,302	$	2,791
Impaired loans with a valuation allowance		1,833		2,334
Total impaired loans	$	3,135	$	5,125
Allowance for loan losses on impaired loans at period end		771		738
Total nonaccrual loans		2,808		5,125
Past due 90 days or more and still accruing		878		496
Average investment in impaired loans		3,363		4,185

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

	Three Months Ended Sept. 30, 2012		Nine Months Ended Sept. 30, 2012
Average of individually impaired loans during period	$	2,719	$	2,690
Interest income recognized during impairment		-		-
Cash-basis interest income recognized		5		39

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 and nine months ended September 30, 2012, was $75,900 and $145,300, respectively. The Company had no loan commitments to borrowers in non-accrual status at September 30, 2012 and 2011.

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 September 30, 2012 and December 31, 2011. 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.

September 30, 2012

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	2,867	$	47	$	221	$	3,135
Collectively evaluated		311,588		21,637		51,702		384,927
Total	$	314,455	$	21,684	$	51,923	$	388,062
Allowance for Loan Losses
Individually evaluated	$	672	$	44	$	55	$	771
Collectively evaluated		3,202		190		237		3,629
Total	$	3,874	$	234	$	292	$	4,400

December 31, 2011

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	4,841	$	38	$	246	$	5,125
Collectively evaluated		301,271		16,107		62,519		379,897
Total	$	306,112	$	16,145	$	62,765	$	385,022
Allowance for Loan Losses
Individually evaluated	$	662	$	13	$	63	$	738
Collectively evaluated		3,375		64		334		3,773
Total	$	4,037	$	77	$	397	$	4,511

The following tables provide additional detail of impaired loans broken out according to class as of September 30, 2012 and December 31, 2011. The recorded investment included in the following table represents 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 September 30, 2012 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.

September 30, 2012

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	76	$	76	$	-	$	76	$	-
Commercial real estate		993		993		-		957		3
Consumer real estate		231		231		-		231		10
Consumer installment		2		2		-		2		-
Total	$	1,302	$	1,302	$	-	$	1,266	$	13
Impaired loans with a related allowance:
Commercial installment	$	145	$	145	$	55	$	164	$	5
Commercial real estate		1,544		1,544		637		1,079		18
Consumer real estate		99		99		35		175		2
Consumer installment		45		45		44		35		1
Total	$	1,833	$	1,833	$	771	$	1,453	$	26
Total Impaired Loans:
Commercial installment	$	221	$	221	$	55	$	240	$	5
Commercial real estate		2,537		2,537		637		2,036		21
Consumer real estate		330		330		35		406		12
Consumer installment		47		47		44		37		1
Total Impaired Loans	$	3,135	$	3,135	$	771	$	2,719	$	39

December 31, 2011
							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	121	$	121	$	-	$	69	$	5
Commercial real estate		2,420		2,420		-		1,457		85
Consumer real estate		241		241		-		288		3
Consumer installment		9		9		-		11		-
Total	$	2,791	$	2,791	$	-	$	1,825	$	93
Impaired loans with a related allowance:
Commercial installment	$	125	$	125	$	63	$	128	$	-
Commercial real estate		1,533		1,533		571		1,463		23
Consumer real estate		647		647		91		740		12
Consumer installment		29		29		13		29		6
Total	$	2,334	$	2,334	$	738	$	2,360	$	41
Total Impaired Loans:
Commercial installment	$	246	$	246	$	63	$	197	$	5
Commercial real estate		3,953		3,953		571		2,920		108
Consumer real estate		888		888		91		1,028		15
Consumer installment		38		38		13		40		6
Total Impaired Loans	$	5,125	$	5,125	$	738	$	4,185	$	134

The following tables provide additional detail of troubled debt restructurings at September 30, 2012.

For the Three Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
	$	107	$	107		1	$	7

For the Nine Months Ending September 30, 2012

			Outstanding
	Outstanding Recorded		Recorded Investment				Interest
	Investment Pre-Modification		Post - Modification		Number of Loans		Income Recognized
	(in thousands except number of loans)
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		107		107		1		7
Consumer real estate		63		63		1		1
Consumer installment		42		42		1		1
	$	212	$	212		3	$	9

The balance of troubled debt restructurings at September 30, 2012 was $210,000. There was $53,000 allocated in specific reserves established with respect to these loans as of September 30, 2012. As of September 30, 2012, the Company had no additional amount committed on any loan classified as troubled debt restructuring.

The recorded investment in receivables for which the allowance for credit losses was previously measured under a general allowance for credit losses methodology and are now impaired under Section 310-10-35 was $210,000. The allowance for credit losses associated with those receivables on the basis of a current evaluation of loss was $53,000. All loans were performing as agreed with modified terms.

During the three and nine month period ending September 30, 2012, there were 1 and 3, respectively, loans modified as TDR.

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:

	September 30, 2012
	(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	$	222	$	67	$	1,615	$	1,904	$	56,761
Real Estate-mortgage		2,236		763		455		3,454		129,149
Real Estate-non farm non residential		509		-		596		1,105		135,660
Commercial		282		-		137		419		51,616
Consumer		146		48		5		199		14,876
Total	$	3,395	$	878	$	2,808	$	7,081	$	388,062

	December 31, 2011
	(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	$	70	$	22	$	945	$	1,037	$	63,357
Real Estate-mortgage		2,189		311		984		3,484		117,692
Real Estate-non farm non residential		1,662		144		2,877		4,683		138,943
Commercial		138		19		246		403		48,385
Consumer		214		-		73		287		16,645
Total	$	4,273	$	496	$	5,125	$	9,894	$	385,022

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 September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows:

($ in thousands)

September 30, 2012

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	230,865	$	64,411	$	21,603	$	51,532	$	368,411
Special Mention		6,356		148		27		-		6,531
Substandard		12,161		678		54		340		13,233
Doubtful		-		-		-		61		61
Subtotal		249,382		65,237		21,684		51,933		388,236
Less:
Unearned discount		93		71		-		10		174
Loans, net of unearned discount	$	249,289	$	65,166	$	21,684	$	51,923	$	388,062

December 31, 2011

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	223,692	$	57,835	$	16,004	$	60,741	$	358,272
Special Mention		5,169		71		45		3		5,288
Substandard		16,815		2,553		99		1,846		21,313
Doubtful		-		104		-		175		279
Subtotal		245,676		60,563		16,148		62,765		385,152
Less:
Unearned discount		94		34		-		2		130
Loans, net of  unearned discount	$	245,582	$	60,529	$	16,148	$	62,763	$	385,022

XML

Comprehensive Income Reported in Consolidated Statements of Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Comprehensive Income (Loss) [Line Items]
Unrealized holding gains (losses) on available-for-sale securities during the period, net of tax	$ 1,313	$ (103)	$ 2,450	$ 1,035
Unrealized gain on derivative carried at fair value during the period, net of tax	24	51	48	34
Accumulated Other Comprehensive Income(Loss) beginning of period	1,723	544	562	(577)
Accumulated Other Comprehensive Income, end of period	$ 3,060	$ 492	$ 3,060	$ 492

XML

Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	$ 229,080
Available-for-Sale, Gross Unrealized Gains	6,380
Available-for-Sale, Gross Unrealized Losses	1,839
Available-for-sale securities, Estimated Fair Value	233,621	212,529
Held-to-Maturity, Amortized Cost	8,478
Held-to-Maturity, Gross Unrealized Gains	1,518
Held-to-Maturity, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	9,996
Mortgage-backed securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	62,766
Available-for-Sale, Gross Unrealized Gains	1,809
Available-for-Sale, Gross Unrealized Losses	18
Available-for-sale securities, Estimated Fair Value	64,557
Held-to-Maturity, Amortized Cost	2,478
Held-to-Maturity, Gross Unrealized Gains	94
Held-to-Maturity, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	2,572
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	95,832
Available-for-Sale, Gross Unrealized Gains	3,976
Available-for-Sale, Gross Unrealized Losses	25
Available-for-sale securities, Estimated Fair Value	99,783
Held-to-Maturity, Amortized Cost	6,000
Held-to-Maturity, Gross Unrealized Gains	1,424
Held-to-Maturity, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	7,424
Obligations of U.S. Government Agencies
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	46,421
Available-for-Sale, Gross Unrealized Gains	297
Available-for-Sale, Gross Unrealized Losses	6
Available-for-sale securities, Estimated Fair Value	46,712
Corporate obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	22,806
Available-for-Sale, Gross Unrealized Gains	298
Available-for-Sale, Gross Unrealized Losses	1,508
Available-for-sale securities, Estimated Fair Value	21,596
Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	1,255
Available-for-Sale, Gross Unrealized Gains	0
Available-for-Sale, Gross Unrealized Losses	282
Available-for-sale securities, Estimated Fair Value	$ 973

XML

BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2012

Business Combination, Description [Abstract]

Amounts of Acquired Identifiable Assets and Liabilities

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

Purchase price:
Cash	$	9,100
Total purchase price		9,100
Identifiable assets:
Cash		125,243
Loans and leases		46,118
Core deposit intangible		2,402
Personal and real property		7,481
Other assets		95
Total assets		181,339
Liabilities and equity:
Deposits		179,196
Other liabilities		1,703
Total liabilities		180,899
Net assets acquired		440
Goodwill resulting from acquisition	$	8,660

Outstanding Principal Balance and Carrying Amount of Loans Included in Consolidated Balance Sheet

The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at September 30, 2012, are as follows (dollars in thousands):

Outstanding principal balance	$	26,467
Carrying amount		26,099

XML

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2012

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 September 30, 2012, follows:

($ in thousands)

	September 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	46,421	$	297	$	6	$	46,712
Tax-exempt and taxable obligations of states and municipal subdivisions		95,832		3,976		25		99,783
Mortgage-backed securities		62,766		1,809		18		64,557
Corporate obligations		22,806		298		1,508		21,596
Other		1,255		-		282		973
Total	$	229,080	$	6,380	$	1,839	$	233,621
Held-to-maturity securities:
Mortgage-backed securities	$	2,478	$	94	$	-	$	2,572
Taxable obligations of states and municipal subdivisions		6,000		1,424		-		7,424
Total	$	8,478	$	1,518	$	-	$	9,996

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, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	$ 3,395	$ 4,273
Past due 90 days or more and still accruing	878	496
Non- Accrual	2,808	5,125
Total Past Due and Non- Accrual	7,081	9,894
Total Loans	388,062	385,022
Real Estate Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	222	70
Past due 90 days or more and still accruing	67	22
Non- Accrual	1,615	945
Total Past Due and Non- Accrual	1,904	1,037
Total Loans	56,761	63,357
Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	2,236	2,189
Past due 90 days or more and still accruing	763	311
Non- Accrual	455	984
Total Past Due and Non- Accrual	3,454	3,484
Total Loans	129,149	117,692
Real Estate-non farm non residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	509	1,662
Past due 90 days or more and still accruing		144
Non- Accrual	596	2,877
Total Past Due and Non- Accrual	1,105	4,683
Total Loans	135,660	138,943
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	282	138
Past due 90 days or more and still accruing		19
Non- Accrual	137	246
Total Past Due and Non- Accrual	419	403
Total Loans	51,616	48,385
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	146	214
Past due 90 days or more and still accruing	48
Non- Accrual	5	73
Total Past Due and Non- Accrual	199	287
Total Loans	$ 14,876	$ 16,645

XML

Composition of Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 4,898		$ 2,906
Loans	388,062		385,022
Total loans	392,960		387,928
Allowance for loan losses	(4,400)	(4,468)	(4,511)
Loans, net	388,560		383,417
Percent of loan to total loan portfolio	100.00%		100.00%
Mortgage loans held for sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,898		2,906
Percent of loan to total loan portfolio	1.20%		0.70%
Commercial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	51,616		48,385
Percent of loan to total loan portfolio	13.10%		12.50%
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	135,660		138,943
Percent of loan to total loan portfolio	34.50%		35.80%
Mortgage-residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	129,149		117,692
Percent of loan to total loan portfolio	32.90%		30.30%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	56,761		63,357
Percent of loan to total loan portfolio	14.40%		16.30%
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 14,876		$ 16,645
Percent of loan to total loan portfolio	3.90%		4.40%

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income per consolidated statements of income	$ 872	$ 746	$ 2,880	$ 1,917
Unrealized gains (losses) on available-for- sale securities:
Unrealized holding gains (losses) arising during the period	1,313	(103)	2,450	1,035
Unrealized gain on derivative carried at fair value during the period	24	51	48	34
Comprehensive Income	$ 2,209	$ 694	$ 5,378	$ 2,986

XML

SUMMARY OF ORGANIZATION

9 Months Ended

Sep. 30, 2012

Summary Of Organization [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 September 30, 2012, the Company had approximately $725.7 million in assets, $393.0 million in loans, $621.9 million in deposits, and $65.4 million in stockholders' equity. For the nine months ended September 30, 2012, the Company reported net income of $2.9 million ($2.6 million applicable to common stockholders).

In the first, second and third quarters of 2012, the Company declared and paid a dividend of $.0375 per common share.

XML

Summary of Organization - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Organization [Line Items]
Entity Incorporation Date Of Incorporation					Jun. 23, 1995
Entity Incorporation State Country Name					Hattiesburg, Mississippi
Asset	$ 725,668				$ 725,668		$ 681,413
Loans, including Loans held for sale	392,960				392,960		387,928
Deposits	621,933				621,933		573,394
Stockholders' Equity	65,372			59,570	65,372	59,570	60,425	57,099
NET INCOME	872			746	2,880	1,917
Net Income applicable to common stockholders	$ 766			$ 660	$ 2,562	$ 1,660
DIVIDENDS PER SHARE COMMON	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.0375	$ 0.1125	$ 0.1125

XML

Fair Value of Assets Measured on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 3,135	$ 5,125
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	8,008	4,353
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	3,135	5,125
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	$ 8,000	$ 4,353

XML

RECLASSIFICATION

9 Months Ended

Sep. 30, 2012

Reclassification [Abstract]

RECLASSIFICATION

NOTE L – RECLASSIFICATION

Certain amounts in the 2011 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.