10-Q/A

U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q/A

AMENDMENT NO. 1

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

FOR THE QUARTERLY PERIOD ENDED: March 31, 2016

OR

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

COMMISSION FILE NUMBER: 000-22507

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, SUITE A
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 ¨

INDIATE BY CHECK MARK WHETHER THE REGISTRANT HAS SUBMITTED ELECTRONICALLY AND POSTED ON ITS CORPORATE WEB SITE, IF ANY, EVERY INTERACTIVE DATA FILE REQUIRED TO BE SUBMITTED AND POSTED PURSUANT TO RULE 405 OF REGULATION S-T (§232.405 OF THIS CHAPTER) DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT HE REGISTRANT WAS REQUIRED TO SUBMIT AND POST SUCH FILES).

YES x NO ¨

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

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

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

TRANSITIONAL DISCLOSURE FORMAT (CHECK ONE):

YES ¨ NO x

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

YES ¨ NO x

EXPLANATORY NOTE

We are filing this Amendment No. 1 on Form 10-Q/A to amend our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 as originally filed with the Securities and Exchange Commission on May 16, 2016 (the “Original Form 10-Q”). The original Form 10-Q was prepared and filed in accordance with disclosure requirements applicable to “smaller reporting companies” as defined in Rule 12b-2 of the Exchange Act of 1934 (“Exchange Act”). During the 3^rd quarter of 2016, after consultation with outside counsel, the Company determined that the Company had become, as of January 1, 2016, an “accelerated filer” as defined in Exchange Act Rule 12b-2 due to a re-evaluation of the affiliate status of certain shareholders, which were initially misinterpreted to be affiliates of the Company, which in turn increased the Company’s public float to more than $75 million as of June 30, 2015. Accordingly, we are amending the Original Form 10-Q so that it complies with all applicable requirements for an “accelerated filer.” Specifically, this amendment is being filed to augment Part I, Items 2 and 4, Part II, Items 1A and 6, and to add Part I, Item 3 which was previously inapplicable. We are restating the entire 10-Q in this filing as multiple items are being amended. The Company intends to file all future Exchange Act reports in accordance with accelerated filer Exchange Act rules, as applicable.

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PART I - FINANCIAL INFORMATION

ITEM NO. 1. FINANCIAL STATEMENTS

THE FIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

($ In Thousands)

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

See Notes to Consolidated Financial Statements

3

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

($ In Thousands, except earnings and dividends per share)

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

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THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

($ In Thousands)

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

See Notes to Consolidated Financial Statements

5

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited)

($ In Thousands)

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

See Notes to Consolidated Financial Statements

6

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ In Thousands)

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

See Notes to Consolidated Financial Statements

7

THE FIRST BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2016

NOTE 1 — BASIS OF PRESENTATION

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

NOTE 2 — SUMMARY OF ORGANIZATION

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

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

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

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

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

8

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

NOTE 4 – BUSINESS COMBINATION

The Mortgage Connection

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

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

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

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

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NOTE 5 – PREFERRED STOCK AND WARRANT

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

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

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

NOTE 6 — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

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

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

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

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

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NOTE 7 – COMPREHENSIVE INCOME

As presented in the Consolidated Statements of Comprehensive Income, comprehensive income includes net income and other comprehensive income. The Company’s only sources of other comprehensive income are unrealized gains and losses on available-for-sale investment securities and loans held for sale. Gains or losses on investment securities that were realized and reflected in net income of the current period, which had previously been included in other comprehensive income as unrealized holding gains or losses in the period in which they arose, are considered to be reclassification adjustments that are excluded from other comprehensive income in the current period.

NOTE 8 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

($ In Thousands)	March 31, 2016		December 31, 2015
Commitments to extend credit	$	155,996	$	144,086
Standby letters of credit		1,125		1,135

NOTE 9 – FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS

FASB’s standards on financial instruments, and on fair value measurements and disclosures, require all entities to disclose in their financial statement footnotes the estimated fair values of financial instruments for which it is practicable to estimate fair values. In addition to disclosure requirements, FASB’s standard on investments requires that our debt securities which are classified as available for sale and our equity securities that have readily determinable fair values be measured and reported at fair value in our statement of financial position. Certain impaired loans are also reported at fair value, as explained in greater detail below, and foreclosed assets are carried at the lower of cost or fair value. FASB’s standard on financial instruments permits companies to report certain other financial assets and liabilities at fair value, but we have not elected the fair value option for any of those financial instruments.

Fair value measurement and disclosure standards also establish a framework for measuring fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Further, the standards establish a fair value hierarchy that encourages an entity to maximize the use of observable inputs and limit the use of unobservable inputs when measuring fair values. The standards describe three levels of inputs that may be used to measure fair values:

· Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

· Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

· Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability.

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Fair value estimates are made at a specific point in time based on relevant market data and information about the financial instruments. The estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to realized gains and losses could have a significant effect on fair value estimates but have not been considered in those estimates. Because no active market exists for a significant portion of our financial instruments, fair value disclosures are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. The estimates are subjective and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly alter the fair values presented. The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at March 31, 2016 and December 31, 2015:

· Cash and cash equivalents and fed funds sold: The carrying amount is estimated to be fair value.

· Securities (available-for-sale and held-to-maturity): Fair values are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities when quoted prices for specific securities are not readily available.

· Loans and leases: For variable-rate loans and leases that re-price frequently with no significant change in credit risk or interest rate spread, fair values are based on carrying values. Fair values for other loans and leases are estimated by discounting projected cash flows at interest rates being offered at each reporting date for loans and leases with similar terms, to borrowers of comparable creditworthiness. The carrying amount of accrued interest receivable approximates its fair value.

· Loans held for sale: Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are not relevant for reporting purposes. If available-for-sale loans are on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices.

· Collateral-dependent impaired loans: Collateral-dependent impaired loans are carried at fair value when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement and the loan has been written down to the fair value of its underlying collateral, net of expected disposition costs where applicable.

· Bank-owned life insurance: Fair values are based on net cash surrender policy values at each reporting date.

· Other securities: Certain investments for which no secondary market exists are carried at cost and the carrying amount for those investments typically approximates their estimated fair value, unless an impairment analysis indicates the need for adjustments.

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· Deposits (noninterest-bearing and interest-bearing): Fair values for non-maturity deposits are equal to the amount payable on demand at the reporting date, which is the carrying amount. Fair values for fixed-rate certificates of deposit are estimated using a cash flow analysis, discounted at interest rates being offered at each reporting date by the Bank for certificates with similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

· FHLB and other borrowings: Current carrying amounts are used as an approximation of fair values for federal funds purchased, overnight advances from the Federal Home Loan Bank (“FHLB”), borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days of the reporting dates. Fair values of other short-term borrowings are estimated by discounting projected cash flows at the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

· Long-term borrowings: Fair values are estimated using projected cash flows discounted at the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

· Subordinated debentures: Fair values are determined based on the current market value for like instruments of a similar maturity and structure.

· 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.

Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:

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

13

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

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U. S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy.

14

Assets measured at fair value on a recurring basis as of the dates noted are summarized below:

March 31, 2016

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

December 31, 2015

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

15

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

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

The following table presents quantitative information about recurring Level 3 fair value measurements ($ In Thousands):

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

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

Impaired Loans

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

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

16

Other Real Estate Owned

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

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

($ In Thousands)

March 31, 2016

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

December 31, 2015

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

17

NOTE 10 — SECURITIES

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

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

($ In Thousands)

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

($ In Thousands)	December 31, 2015
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	19,479	$	144	$	13	$	19,610
Tax-exempt and taxable obligations of states and municipal subdivisions		95,631		2,362		103		97,890
Mortgage-backed securities		98,223		1,127		425		98,925
Corporate obligations		23,495		62		1,211		22,346
Other		1,255		-		294		961
Total	$	238,083	$	3,695	$	2,046	$	239,732
Held-to-maturity securities:
Mortgage-backed securities	$	1,092	$	15	$	-	$	1,107
Taxable obligations of states and municipal subdivisions		6,000		1,440		-		7,440
Total	$	7,092	$	1,455	$	-	$	8,547

18

NOTE 11 — LOANS

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

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

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

19

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

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

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

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

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

20

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

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

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

March 31, 2016

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

21

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

December 31, 2015

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

22

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

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

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

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

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

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

($ In Thousands)

For the Three Months Ending March 31, 2016

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

23

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

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

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

($ In Thousands)

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

($ In Thousands)

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

Internal Risk Ratings

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:

24

Special Mention.    Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard.    Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful.    Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

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

($ In Thousands)

March 31, 2016

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

25

December 31, 2015

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

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

($ In Thousands)

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

26

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

Allocation of the Allowance for Loan Losses

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

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

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

March 31, 2016

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

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December 31, 2015

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

NOTE 12 – SUBSEQUENT EVENTS/OTHER

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

NOTE 13 – RECLASSIFICATION

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

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PART I - FINANCIAL INFORMATION

ITEM NO. 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

FORWARD LOOKING STATEMENTS

This Form 10-Q/A contains statements regarding the projected performance of The First Bancshares, Inc. and its subsidiary. These statements constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act. Actual results may differ materially from the projections provided in this release since such projections involve significant known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; and legislation or regulatory changes which adversely affect the ability of the combined Company to conduct business combinations or new operations. The Company disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Further information on The First Bancshares, Inc. is available in its filings with the Securities and Exchange Commission, available at the SEC’s website, http://www.sec.gov.

CRITICAL ACCOUNTING POLICIES

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States. The financial information and disclosures contained within those statements are significantly impacted by Management’s estimates and judgments, which are based on historical experience and incorporate various assumptions that are believed to be reasonable under current circumstances. Actual results may differ from those estimates under divergent conditions.

Critical accounting policies are those that involve the most complex and subjective decisions and assessments, and have the greatest potential impact on the Company’s stated results of operations. In Management’s opinion, the Company’s critical accounting policies deal with the following areas: the establishment of the allowance for loan and lease losses, as explained in detail in Note 11 to the consolidated financial statements and in the “Provision for Loan and Lease Losses” and “Allowance for Loan and Lease Losses” sections of this discussion and analysis; the valuation of impaired loans and foreclosed assets, as discussed in Note 11 to the consolidated financial statements; income taxes and deferred tax assets and liabilities, especially with regard to the ability of the Company to recover deferred tax assets as discussed in the “Provision for Income Taxes” and “Other Assets” sections of this discussion and analysis; and goodwill and other intangible assets, which are evaluated annually for impairment and for which we have determined that no impairment exists, as discussed in the “Other Assets” section of this discussion and analysis. Critical accounting areas are evaluated on an ongoing basis to ensure that the Company’s financial statements incorporate our most recent expectations with regard to those areas.

OVERVIEW OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION

RESULTS OF OPERATIONS SUMMARY

First quarter 2016 compared to first quarter 2015

First quarter 2016 net earnings available to common shareholders totaled $2.5 million compared to $1.9 million for the first quarter of 2015. Revenues from consolidated operations increased $1,547,000 in quarterly comparison. Net interest income increased $796,000 in quarterly comparison as interest income earned on a higher volume of loans attributed to this overall increase. Noninterest income increased $633,000 in quarterly comparison for the first quarter of 2016 as compared to the first quarter of 2015 consisting mainly of increased mortgage income of $311,000 and gain on conversion of our debit card provider of $260,000.

First quarter 2016 noninterest expenses increased $577,000, or 7.4% as compared to first quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $523,000 of which $319,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015.

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Fully taxable-equivalent (“FTE”) net interest income totaled $9.9 million and $9.1 million for the first quarter of 2016 and 2015, respectively. The FTE net interest income increased $775,000 in prior year quarterly comparison primarily due to an increase in interest earned on loans. The purchase accounting adjustments had a difference of $21,000 on net interest income for the first quarter comparisons. First quarter 2016 net interest margin of 3.68% includes 2 bps related to purchase accounting adjustments.

Investment securities totaled $269.5 million, or 21.7% of total assets at March 31, 2016, versus $261.9 million, or 22.9% of total assets at March 31, 2015. The average volume of investment securities decreased $0.1 million in prior year quarterly comparison. The average tax equivalent yield on investment securities remained the same at 2.63%. The investment portfolio had a net unrealized gain of $3.7 million at March 31, 2016 as compared to $3.9 million at March 31, 2015.

The average yield on all earnings assets increased 10 basis points in prior year quarterly comparison, from 3.92% for the first quarter of 2015 to 4.02% for the first quarter of 2016. This increase was slightly offset by an increase in average interest expense of 2 basis points from 0.39% for the first quarter of 2015 to 0.41% for the first quarter of 2016.

FINANCIAL CONDITION

Consolidated assets increased $96.8 million or 8.5% to $1.2 billion for the quarter ended March 31, 2016. Total loans were $797.8 million at March 31, 2016 as compared to $772.5 million at December 31, 2015 representing an increase of 3.3%. Increased loan volume was spread across the real estate categories with commercial real estate experiencing the largest growth. Fundings for commercial real estate loans increased $16.8 million or 6.6% quarter over quarter.

Total deposits increased $124.4 million or 13.6% to $1,041.1 million for the quarter ended March 31, 2016. This increase reflects seasonal fluctuations in our public deposit portfolio. Total deposits adjusted for seasonal public fund changes increased $7.1 million or 1.0% for quarter ended March 31, 2016.

The First represents the primary asset of the Company.

NONPERFORMING ASSETS AND RISK ELEMENTS

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

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

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

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

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EARNINGS PERFORMANCE

The Company earns income from two primary sources. The first is net interest income, which is interest income generated by earning assets less interest expense on deposits and other borrowed money. The second is non-interest income, which primarily consists of customer service charges and fees but also comes from non-customer sources such as bank-owned life insurance. The majority of the Company’s non-interest expense is comprised of operating costs that facilitate offering a full range of banking services to our customers.

Net interest income AND NET INTEREST MARGIN

Net interest income increased by $796,000, or 9%, for the first quarter of 2016 relative to the first quarter of 2015. The level of net interest income we recognize in any given period depends on a combination of factors including the average volume and yield for interest-earning assets, the average volume and cost of interest-bearing liabilities, and the mix of products which comprise the Company’s earning assets, deposits, and other interest-bearing liabilities. Net interest income is also impacted by the reversal of interest for loans placed on non-accrual status during the reporting period, and the recovery of interest on loans that had been on non-accrual and were paid off, sold or returned to accrual status.

The following tables depict, for the periods indicated, certain information related to the average balance sheet and average yields on assets and average costs of liabilities. Such yields are derived by dividing income or expense by the average balance of the corresponding assets or liabilities. Average balances have been derived from daily averages.

	Three Months Ended							Three Months Ended
	March 31, 2016							March 31, 2015
			Tax							Tax
	Avg		Equivalent		Yield/			Avg		Equivalent		Yield/
($ In Thousands)	Balance		interest		Rate			Balance		interest		Rate
Taxable securities	$	189,249	$	1,056		2.23	%	$	184,401	$	992		2.15	%
Tax exempt securities		76,795		693		3.61	%		81,717		759		3.72	%
Total investment securities		266,044		1,749		2.63	%		266,118		1,751		2.63	%
Fed funds sold		12,395		30		0.97	%		16,248		23		0.57	%
Int bearing deposits in other banks		20,909		20		0.38	%		27,430		19		0.28	%
Loans		779,418		9,035		4.64	%		705,752		8,148		4.62	%
Total Interest earning assets		1,078,766		10,834		4.02	%		1,015,548		9,941		3.92	%
Other assets		117,562							111,801
Total assets	$	1,196,328						$	1,127,349
Interest-bearing liabilities:
Deposits	$	777,692	$	701		0.36	%	$	736,199	$	632		0.34	%
Repo		5,000		48		3.84	%		5,000		48		3.84	%
Fed funds purchased		782		2		1.02	%		108		-		0.00	%
FHLB		106,352		143		0.54	%		78,892		78		0.40	%
Subordinated debentures		10,310		28		1.09	%		10,310		45		1.75	%
Total interest bearing liabilities		900,136		922		0.41	%		830,509		803		0.39	%
Other liabilities		191,914							199,995
Shareholders' equity		104,278							96,845
Total liabilities and shareholders’ equity	$	1,196,328						$	1,127,349
Net interest income (TE)			$	9,912		3.61	%			$	9,137		3.53	%
Net interest margin						3.68	%						3.60	%

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Interest Rate Sensitivity – March 31, 2016

	Net Interest Income @ Risk						Market Value of Equity
Change in Interest Rates	% Change from Base			Policy Limit			% Change from Base			Policy Limit
Up 400 bps		12.2	%		-20	%		41.5	%		-40.00	%
Up 300 bps		9.2	%		-15	%		33.7	%		-30.00	%
Up 200 bps		6.1	%		-10	%		24.3	%		-20.00	%
Up 100 bps		2.7	%		-5	%		13.2	%		-10.00	%
Down 100 bps		-2.4	%		-5	%		-10.4	%		-10.00	%
Down 200 bps		-4.2	%		-10	%		-6.7	%		-20.00	%

LIQUIDITY AND CAPITAL RESOURCES

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

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

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

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

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

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PROVISION FOR LOAN AND LEASE LOSSES

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

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

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

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

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

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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.

NON-INTEREST INCOME AND NON-INTEREST EXPENSE

The following table provides details on the Company’s non-interest income and non-interest expense for the three-months ended March 31, 2016 and 2015:

	Three Months Ended
($ In Thousands)	3/31/16		% of Total			3/31/15		% of Total
Non-interest income:
Service charges on deposit accounts	$	637		25.65	%	$	568		30.87	%
Mortgage income		645		25.98	%		334		18.15	%
Interchange fee income		644		25.94	%		571		31.03	%
Gain (loss) on securities, net		-		0	%		-		0	%
Gain on sale of premises and equipment		-		0	%		100		5.43	%
BEA award, net		-		0	%		-		0	%
Other charges and fees		557		22.43	%		267		14.51	%
Total non-interest income	$	2,483		100	%	$	1,840		100	%
Non-interest expense:
Salaries and employee benefits	$	5,149		61.33	%	$	4,626		59.17	%
Occupancy expense		1,073		12.78	%		1,109		14.19	%
FDIC premiums		244		2.91	%		241		3.08	%
Marketing		72		0.86	%		62		0.79	%
Amortization of core deposit intangibles		94		1.12	%		100		1.28	%
Other professional services		231		2.75	%		258		3.30	%
Other non-interest expense		1,532		18.25	%		1,422		18.19	%
Total non-interest expense	$	8,395		100	%	$	7,818		100	%

34

Noninterest income increased $643,000 in year-over-year comparison mainly consisting of increases in mortgage income of $311,000 and other fees and charges of $290,000. First quarter 2016 noninterest expenses increased $577,000, or 7.3% as compared to first quarter 2015. The largest increase in noninterest expenses was related to salaries and benefits of $523,000 of which $391,000 can be attributed to acquisition of The Mortgage Connection, LLC in December 2015 as well as additional salaries and benefits related to the banking team in Mobile and lender in Madison along with Treasury Management personnel.

PROVISION FOR INCOME TAXES

The Company sets aside a provision for income taxes on a monthly basis. The amount of that provision is determined by first applying the Company’s statutory income tax rates to estimated taxable income, which is pre-tax book income adjusted for permanent differences, and then subtracting available tax credits if applicable. Permanent differences include but are not limited to tax-exempt interest income, BOLI income, and certain book expenses that are not allowed as tax deductions.

The Company’s provision for income taxes was $1.11 million total as of March 31, 2016 relative to $845,000 as of March 31, 2015. The higher tax provisioning for the first half comparison is the result of an increase in pre-tax income.

BALANCE SHEET ANALYSIS

EARNING ASSETS

The Company’s interest-earning assets are comprised of investments and loans, and the composition, growth characteristics, and credit quality of both are significant determinants of the Company’s financial condition. Investments are analyzed in the section immediately below, while the loan and lease portfolio and other factors affecting earning assets are discussed in the sections following investments.

INVESTMENTS

The Company’s investments can at any given time consist of debt securities and marketable equity securities (together, the “investment portfolio”), investments in the time deposits of other banks, surplus interest-earning balances in our Federal Reserve Bank (“FRB”) account, and overnight fed funds sold. Surplus FRB balances and fed funds sold to correspondent banks represent the temporary investment of excess liquidity. The Company’s investments serve several purposes: 1) they provide liquidity to even out cash flows from the loan and deposit activities of customers; 2) they provide a source of pledged assets for securing public deposits, bankruptcy deposits and certain borrowed funds which require collateral; 3) they constitute a large base of assets with maturity and interest rate characteristics that can be changed more readily than the loan portfolio, to better match changes in the deposit base and other funding sources of the Company; 4) they are another interest-earning option for surplus funds when loan demand is light; and 5) they can provide partially tax exempt income. Aggregate investments totaled $270 million, or 21% of total assets at March 31, 2016, compared to $255 million, or 22% of total assets at December 31, 2015.

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We had $26.7 million fed funds sold at March 31, 2015 and $321,000 fed funds sold at December 31, 2015; and interest-bearing balances at other banks increased to $37.3 million at March 31, 2016 from $17.3 million at December 31, 2015 primarily due to an increase in our Federal Reserve Bank account. The Company’s investment portfolio increased with a total fair value of $262 million at March 31, 2016, reflecting an increase of $13.5 million, or 5.5%. The Company carries investments at their fair market values. The Company holds a small amount of “held-to-maturity” investments with a fair market value of $8,741 million at March 31, 2016 as compared to $8,548 million at December 31, 2015. All other investment securities are classified as “available for sale” to allow maximum flexibility with regard to interest rate risk and liquidity management.

Refer to table shown in NOTE 10 - SECURITIES for information on the Company’s amortized cost and fair market value of its investment portfolio by investment type.

LOAN AND LEASE PORTFOLIO

The Company’s loans and leases, gross of the associated allowance for losses and deferred fees and origination costs, totaled $804 million at March 31, 2016, an increase of $27 million, or 3.5%, since December 31, 2015. With an increase of $22 million in the Real Estate category, the Mortgage-commercial had the largest areas of growth of $16.8 million. Additionally, the category, obligations of states and subdivisions, increased by $6 million since December 31, 2015.

At March 31, 2016 the company had direct energy related loans of $24.2 million, representing 3.0% of the total loan portfolio. A majority of the outstanding are secured by marine assets that operate in the Gulf of Mexico, which are under term contracts to major operators tied primarily to oil and gas production not exploration. All direct energy related loans are performing and are not adversely classified based on both internal and external reviews completed during the fourth quarter of 2015.

A distribution of the Company’s loans showing the balance and percentage of loans by type is presented for the noted periods in the table below. The balances shown are before deferred or unamortized loan origination, extension, or commitment fees, and deferred origination costs.

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

Composition of Loan Portfolio

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

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

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

NONPERFORMING ASSETS

Nonperforming assets are comprised of loans for which the Company is no longer accruing interest, and foreclosed assets including mobile homes and OREO. If the Company grants a concession to a borrower in financial difficulty, the loan falls into the category of a troubled debt restructuring (“TDR”). TDRs may be classified as either nonperforming or performing loans depending on their accrual status. The following table presents comparative data for the Company’s nonperforming assets and performing TDRs as of the dates noted:

Nonperforming assets totaled $10.2 million at March 31, 2016, an increase of $0.3 million compared to $10.5 million at December 31, 2015. The ALLL/total loans ratio was 0.87% at March 31, 2016 and 0.87% at December, 2015. Including valuation accounting adjustments on acquired loans, the total valuation plus ALLL was 1.10% of loans at March 31, 2016. The ratio of annualized net charge-offs (recoveries) to total loans was (0.01%) for the quarter ended March 31, 2016 compared to (0.002%) for the quarter ended December 31, 2015. As noted in our first quarter 2015 10-Q, the Company had been notified that a recovery of $941,000 was more likely than not expected during 2015. We received the first installment during the second quarter of 2015 which totaled $481,000 and the second installment during the third quarter of 2015 which totaled $241,000. The remaining balance of $219,000 is expected to be received in 2016.

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Non-performing Assets and Performing Troubled Debt Restructuring:

($ In Thousands)
	03/31/16			12/31/15			03/31/15
NON-ACCRUAL LOANS
Real Estate:
1-4 family residential construction	$	-		$	-		$	-
Other construction/land		2,632			2,957			2,712
1-4 family residential revolving/open-end		324			327			337
1-4 family residential closed-end		1,821			1,728			1,752
Nonfarm, nonresidential, owner-occupied		613			1,853			696
Nonfarm, nonresidential, other nonfarm nonresidential		359			372			396
TOTAL REAL ESTATE		5,749			7,237			5,893
Commercial and industrial		74			100			65
Loans to individuals - other		30			32			37
TOTAL NON-ACCRUAL LOANS		5,853			7,369			5,995
Other real estate owned		4,363			3,081			4,598
TOTAL NON-PERFORMING ASSETS	$	10,216		$	10,450		$	10,593
Performing TDRs		3,015			2,758			2,628
Total non-performing assets as a % of total loans & leases net of unearned income		1.27	%		1.35	%		1.48	%
Total non-accrual loans as a % of total loans & leases net of unearned income		0.73	%		0.95	%		0.83	%

ALLOWANCE FOR LOAN AND LEASE LOSSES

The allowance for loan and lease losses, a contra-asset, is established through a provision for loan and lease losses. It is maintained at a level that is considered adequate to absorb probable losses on specifically identified impaired loans, as well as probable incurred losses inherent in the remaining loan portfolio. Specifically, identifiable and quantifiable losses are immediately charged off against the allowance; recoveries are generally recorded only when sufficient cash payments are received subsequent to the charge off.

The table that follows summarizes the activity in the allowance for loan and lease losses for the noted periods:

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Allowance for Loan and Lease Losses
($ In Thousands)
	Three months ended			Year ended			Three months ended
Balances:	3/31/16			12/31/15			3/31/15
Average gross loans & leases outstanding during period:	$	779,418		$	757,036		$	705,752
Gross Loans & leases outstanding at end of period		803,859			776,489			718,016
Allowance for Loan and Lease Losses:
Balance at beginning of period	$	6,747		$	6,095		$	6,095
Provision charged to expense		190			410			149
Charge-offs:
Real Estate-
1-4 family residential construction		-			74			-
Other construction/land		68			88			-
1-4 family revolving, open-ended		-			8			-
1-4 family closed-end		10			364			342
Nonfarm, nonresidential, owner-occupied		-			-			-
Total Real Estate		78			534			342
Commercial and industrial		-			183			-
Credit cards		6			-			-
Automobile loans		4			31			11
Loans to individuals - other		-			-			-
All other loans		5			95			14
Total		93			843			367
Recoveries:
Real Estate-
1-4 family residential construction		-			-			-
Other construction/land		16			63			6
1-4 family revolving, open-ended		2			9			1
1-4 family closed-end		22			818			22
Nonfarm, nonresidential, owner-occupied		4			15			4
Total Real Estate		44			905			33
Commercial and industrial		76			99			6
Credit cards		-			2			-
Automobile loans		1			1			-
Loans to individuals - other		2			14			1
All other loans		15			64			11
Total		138			1,085			51
Net loan charge offs (recoveries)		(45	)		(242	)		316
Balance at end of period	$	6,982		$	6,747		$	5,928
RATIOS
Net Charge-offs (recoveries) to Average Loans & Leases(annualized)		(0.02	)%		(0.03	)%		0.04	%
Allowance for Loan Losses to Gross Loans & Leases @ end of period		0.87	%		0.87	%		0.83	%
Net Loan Charge-offs (recoveries) to Allowance for Loan Losses at End of Period		(0.64	)%		(3.59	)%		5.33	%
Net Loan Charge-offs (recoveries) to Provision for Loan Losses		(23.68	)%		(59.02	)%		212.08	%

39

OFF-BALANCE SHEET ARRANGEMENTS

The Company maintains commitments to extend credit in the normal course of business, as long as there are no violations of conditions established in the outstanding contractual arrangements. Unused commitments to extend credit totaled $156 million at March 31, 2016 and $144 million at December 31, 2015, although it is not likely that all of those commitments will ultimately be drawn down. Unused commitments represented approximately 19% of gross loans outstanding at March 31, 2016 and 19% at December 31, 2015, with the increase due in part to higher commitments in commercial and industrial loans. The Company also had undrawn letters of credit issued to customers totaling $1 million at March 31, 2016 and $1 million at December 31, 2015. The effect on the Company’s revenues, expenses, cash flows and liquidity from the unused portion of the commitments to provide credit cannot be reasonably predicted because there is no guarantee that the lines of credit will ever be used. However, the “Liquidity” section in this Form 10-Q outlines resources available to draw upon should we be required to fund a significant portion of unused commitments. For more information regarding the Company’s off-balance sheet arrangements, see Note 8 to the financial statements located elsewhere herein.

In addition to unused commitments to provide credit, the Company is utilizing a $51 million letter of credit issued by the Federal Home Loan Bank on the Company’s behalf as security for certain deposits and to facilitate certain credit arrangements with the Company’s customers as of March 31, 2016. That letter of credit is backed by loans which are pledged to the FHLB by the Company.

OTHER ASSETS

The Company’s balance of non-interest earning cash and due from banks was $32 million at March 31, 2016 and $24 million at December 31, 2015. The balance of cash and due from banks depends on the timing of collection of outstanding cash items (checks), the level of cash maintained on hand at our branches, and our reserve requirement among other things, and is subject to significant fluctuation in the normal course of business. While cash flows are normally predictable within limits, those limits are fairly broad and the Company manages its short-term cash position through the utilization of overnight loans to and borrowings from correspondent banks, including the Federal Reserve Bank and the Federal Home Loan Bank. Should a large “short” overnight position persist for any length of time, the Company typically raises money through focused retail deposit gathering efforts or by adding brokered time deposits. If a “long” position is prevalent, the Company will let brokered deposits or other wholesale borrowings roll off as they mature, or might invest excess liquidity in higher-yielding, longer-term bonds.

Net premises and equipment decreased by $270,000, or 0.8%, during the first three months of 2016 due to the removal of obsolete equipment and the related depreciation of certain equipment, furniture and fixtures. Company owned life insurance, with a balance of almost $15 million at March 31, 2016, is also discussed above in the “Non-Interest Income and Non-Interest Expense” section. Goodwill did not change during the period, ending the first three months of 2016 with a balance of $14 million, but other intangible assets, namely the Company’s core deposit intangible, decreased by $101,000 due to amortization. The Company’s goodwill and other intangible assets are evaluated annually for potential impairment, and pursuant to that analysis Management has determined that no impairment exists as of March 31, 2016.

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Other real estate increased $1.3 million, or 41.5% during the first three months of 2016 due to entries for two loans. Based on current appraisals, the Company does not expect to experience a loss on the disposition of the properties. Total equity securities increased $1.4 million during the first three months due to an increase in FHLB stock.

DEPOSITS AND INTEREST BEARING LIABILITIES

DEPOSITS

Deposits are another key balance sheet component impacting the Company’s net interest margin and other profitability metrics. Deposits provide liquidity to fund growth in earning assets, and the Company’s net interest margin is improved to the extent that growth in deposits is concentrated in less volatile and typically less costly non-maturity deposits such as demand deposit accounts, NOW accounts, savings accounts, and money market demand accounts. Information concerning average balances and rates paid by deposit type for the three-month periods ended March 31, 2016 and 2015 is included in the Average Balances and Rates tables appearing above, in the section titled “Net Interest Income and Net Interest Margin.” A distribution of the Company’s deposits showing the balance and percentage of total deposits by type is presented for the noted periods in the following table. This information does not include “house accounts” or demand deposits utilized for internal purposes. The balance of house accounts on March 31, 2016 was approximately $5.8 million and $5.0 million for December 31, 2015.

Deposit Distribution
($ In Thousands)	March 31, 2016			December 31, 2015
Non-interest bearing demand deposits	$	194,950		$	189,445
NOW accounts & Other		493,319			373,687
Money Market / Savings		169,733			174,090
Time Deposits of less than $100,000		72,295			73,865
Time Deposits of $100,000 or more		111,323			105,608
Total deposits	$	1,041,620		$	916,695
Percentage of Total Deposits
Non-interest bearing demand deposits		18.7	%		20.6	%
NOW accounts & Other		47.4	%		40.8	%
Money Market / Savings		16.3	%		19.0	%
Time Deposits of less than $100,000		6.9	%		8.1	%
Time Deposits of $100,000 or more		10.7	%		11.5	%
Total		100.00	%		100.00	%

OTHER INTEREST-BEARING LIABILITIES

The Company’s non-deposit borrowings may, at any given time, include fed funds purchased from correspondent banks, borrowings from the Federal Home Loan Bank, advances from the Federal Reserve Bank, securities sold under agreement to repurchase, and/or junior subordinated debentures. The Company uses short-term FHLB advances and fed funds purchased on uncommitted lines to support liquidity needs created by seasonal deposit flows, to temporarily satisfy funding needs from increased loan demand, and for other short-term purposes. The FHLB line is committed, but the amount of available credit depends on the level of pledged collateral.

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Total non-deposit interest-bearing liabilities decreased by $31 million, or 26.0%, in the first three months of 2016, due to a reduction in notes payable to the Federal Home Loan Bank and fed funds purchased. We had no overnight fed funds purchased at March 31, 2016, relative to $5.3 million in fed funds purchased at December 31, 2015. Repurchase agreements remained unchanged for both periods at $5 million. Repurchase agreements represent “sweep accounts”, where commercial deposit balances above a specified threshold are transferred at the close of each business day into non-deposit accounts secured by investment securities. The Company had junior subordinated debentures totaling $10.3 million at March 31, 2016 and December 31, 2015, in the form of long-term borrowings from trust subsidiaries formed specifically to issue trust preferred securities.

OTHER NON-INTEREST BEARING LIABILITIES

Other liabilities are principally comprised of accrued interest payable, other accrued but unpaid expenses, and house accounts. Other liabilities remained steady at 4.1 million at March 31, 2016 compared to December 31, 2015.

liquidity and market RisK MANAGEMENT

LIQUIDITY

Liquidity management refers to the Company’s ability to maintain cash flows that are adequate to fund operations and meet other obligations and commitments in a timely and cost-effective manner. Detailed cash flow projections are reviewed by Management on a monthly basis, with various scenarios applied to assess our ability to meet liquidity needs under adverse conditions. Liquidity ratios are also calculated and reviewed on a regular basis. While those ratios are merely indicators and are not measures of actual liquidity, they are closely monitored and we are focused on maintaining adequate liquidity resources to draw upon should unexpected needs arise.

The Company, on occasion, experiences cash needs as the result of loan growth, deposit outflows, asset purchases or liability repayments. To meet short-term needs, the Company can borrow overnight funds from other financial institutions, draw advances via Federal Home Loan Bank lines of credit, or solicit brokered deposits if deposits are not immediately obtainable from local sources. The net available on lines of credit from the FHLB totaled $261 million at March 31, 2016. Furthermore, funds can be obtained by drawing down the Company’s correspondent bank deposit accounts, or by liquidating unpledged investments or other readily saleable assets. In addition, the Company can raise immediate cash for temporary needs by selling under agreement to repurchase those investments in its portfolio which are not pledged as collateral. As of March 31, 2016, the market value of unpledged debt securities plus pledged securities in excess of current pledging requirements comprised $44 million of the Company’s investment balances, compared to $66 million at December 31, 2015. The decrease in unpledged debt from March 2016 compared to December 2015 is primarily due to a seasonal increase in public fund balances requiring collateralization. Other forms of balance sheet liquidity include but are not necessarily limited to any outstanding fed funds sold and vault cash. The Company has a higher level of actual balance sheet liquidity than might otherwise be the case, since we utilize a letter of credit from the FHLB rather than investment securities for certain pledging requirements. That letter of credit, which is backed by loans that are pledged to the FHLB by the Company, totaled $51 million at March 31, 2016. Management is of the opinion that available investments and other potentially liquid assets, along with the standby funding sources it has arranged, are more than sufficient to meet the Company’s current and anticipated short-term liquidity needs.

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The Company’s liquidity ratio as of March 31, 2016 was 16.19%, as compared to internal policy guidelines of 10% minimum. Other liquidity ratios reviewed include the following along with policy guidelines:

	March 31, 2016			Policy Maximum			In / Out of Policy
Loans to Deposits (including FHLB advances)		71.00	%		90.00	%	In Policy
Liquidity Ratio		16.19	%		10.00	%	In Policy
Net Non-core Funding Dependency Ratio		6.28	%		20.00	%	In Policy
Fed Funds Purchased / Total Assets		0.40	%		10.00	%	In Policy
FHLB Advances / Total Assets		6.06	%		20.00	%	In Policy
FRB Advances / Total Assets		0.00	%		10.00	%	In Policy
Pledged Securities to Total		76.91	%		90.00	%	In Policy

Continued growth in core deposits and relatively high levels of potentially liquid investments have had a positive impact on our liquidity position in recent periods, but no assurance can be provided that our liquidity will continue at current robust levels.

The holding company’s primary uses of funds are ordinary operating expenses, shareholder dividends and stock repurchases, and its primary source of funds is dividends from the Bank since the holding company does not conduct regular banking operations. Management anticipates that the Bank will have sufficient earnings to provide dividends to the holding company to meet its funding requirements for the foreseeable future. Both the holding company and the Bank are subject to legal and regulatory limitations on dividend payments, as outlined in Item 5(c) Dividends in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 which was filed with the SEC.

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INTEREST RATE RISK MANAGEMENT

Market risk arises from changes in interest rates, exchange rates, commodity prices and equity prices. The Company does not engage in the trading of financial instruments, nor does it have exposure to currency exchange rates. Our market risk exposure is primarily that of interest rate risk, and we have established policies and procedures to monitor and limit our earnings and balance sheet exposure to changes in interest rates. The principal objective of interest rate risk management is to manage the financial components of the Company’s balance sheet in a manner that will optimize the risk/reward equation for earnings and capital under a variety of interest rate scenarios.

To identify areas of potential exposure to interest rate changes, we utilize commercially available modeling software to perform earnings simulations and calculate the Company’s market value of portfolio equity under varying interest rate scenarios every month. The model imports relevant information for the Company’s financial instruments and incorporates Management’s assumptions on pricing, duration, and optionality for anticipated new volumes. Various rate scenarios consisting of key rate and yield curve projections are then applied in order to calculate the expected effect of a given interest rate change on interest income, interest expense, and the value of the Company’s financial instruments. The rate projections can be shocked (an immediate and parallel change in all base rates, up or down), ramped (an incremental increase or decrease in rates over a specified time period), economic (based on current trends and econometric models) or stable (unchanged from current actual levels).

We use seven standard interest rate scenarios in conducting our 12-month net interest income at risk simulations: “static,” upward shocks of 100, 200, 300 and 400 basis points, and downward shocks of 100, and 200 basis points. Pursuant to policy guidelines, we typically attempt to limit the projected decline in net interest income relative to the stable rate scenario to no more than 5% for a 100 basis point (bp) interest rate shock, 10% for a 200 bp shock, 15% for a 300 bp shock, and 20% for a 400 bp shock. As of March 31, 2016 the Company had the following estimated net interest income sensitivity profile, without factoring in any potential negative impact on spreads resulting from competitive pressures or credit quality deterioration:

March 31, 2016	Net Interest Income at Risk
	-200 bp			-100 bp			STATIC		+100 bp			+200 bp			+300 bp			+400 bp
Net Interest Income		37,017,127			37,713,745			38,494,177		38,813,785			39,357,405			39,841,125			40,266,713
Dollar Change		-1,477,050			-780,432			none		319,608			863,228			1,346,948			1,772,536
NII @ Risk Sensitivity YR1		-3.84	%		-2.03	%		none		0.83	%		2.24	%		3.50	%		4.60	%

If there were an immediate and sustained downward adjustment of 200 basis points in interest rates, all else being equal, net interest income over the next twelve months would likely be around $1.4 million lower than in a stable interest rate scenario, for a negative variance of 3.84%. The unfavorable variance increases if rates were to drop below 200 basis points, due to the fact that certain deposit rates are already relatively low (on NOW accounts and savings accounts, for example), and will hit a natural floor of close to zero while non-floored variable-rate loan yields continue to drop. This effect is exacerbated by accelerated prepayments on fixed-rate loans and mortgage-backed securities when rates decline, although rate floors on some of our variable-rate loans partially offset other negative pressures. While we view further interest rate reductions as highly unlikely, the potential percentage drop in net interest income exceeds our internal policy guidelines in declining interest rate scenarios and we will continue to monitor our interest rate risk profile and take corrective action as deemed appropriate.

44

Net interest income would likely improve by $863,000, or 2.24%, if interest rates were to increase by 200 basis points relative to a stable interest rate scenario, with the favorable variance expanding the higher interest rates rise. The initial increase in rising rate scenarios will be limited to some extent by the fact that some of our variable-rate loans are currently at rate floors, resulting in a re-pricing lag while base rates are increasing to floored levels, but the Company still appears well-positioned to benefit from a material upward shift in the yield curve.

The Company’s one year cumulative GAP ratio is approximately 169.72%, which means that there are more assets repricing than liabilities within the first year. The Company is “asset-sensitive.” These results are based on cash flows from assumptions of assets and liabilities that reprice (maturities, likely calls, prepayments, etc.) Typically, the net interest income of asset-sensitive companies should improve with rising rates and decrease with declining rates.

In addition to the net interest income simulations shown above, we run stress scenarios modeling the possibility of no balance sheet growth, the potential runoff of “surge” core deposits which flowed into the Company in the most recent economic cycle, and potential unfavorable movement in deposit rates relative to yields on earning assets. Even though net interest income will naturally be lower with no balance sheet growth, the rate-driven variances projected for net interest income in a static growth environment are similar to the changes noted above for our standard projections. When a greater level of non-maturity deposit runoff is assumed or unfavorable deposit rate changes are factored into the model, projected net interest income in declining rate and flat rate scenarios does not change materially relative to standard growth projections. However, the benefit we would otherwise experience in rising rate scenarios is minimized and net interest income remains relatively flat.

The economic value (or “fair value”) of financial instruments on the Company’s balance sheet will also vary under the interest rate scenarios previously discussed. The difference between the projected fair value of the Company’s financial assets and the fair value of its financial liabilities is referred to as the economic value of equity (“EVE”), and changes in EVE under different interest rate scenarios are effectively a gauge of the Company’s longer-term exposure to interest rate risk. Fair values for financial instruments are estimated by discounting projected cash flows (principal and interest) at projected replacement interest rates for each account type, while the fair value of non-financial accounts is assumed to equal their book value for all rate scenarios. An economic value simulation is a static measure utilizing balance sheet accounts at a given point in time, and the measurement can change substantially over time as the characteristics of the Company’s balance sheet evolve and interest rate and yield curve assumptions are updated.

The change in economic value under different interest rate scenarios depends on the characteristics of each class of financial instrument, including stated interest rates or spreads relative to current or projected market-level interest rates or spreads, the likelihood of principal prepayments, whether contractual interest rates are fixed or floating, and the average remaining time to maturity. As a general rule, fixed-rate financial assets become more valuable in declining rate scenarios and less valuable in rising rate scenarios, while fixed-rate financial liabilities gain in value as interest rates rise and lose value as interest rates decline. The longer the duration of the financial instrument, the greater the impact a rate change will have on its value. In our economic value simulations, estimated prepayments are factored in for financial instruments with stated maturity dates, and decay rates for non-maturity deposits are projected based on historical patterns and Management’s best estimates. The table below shows estimated changes in the Company’s market value of equity as of March 31, 2016, under different interest rate scenarios relative to a base case of current interest rates:

45

	Balance Sheet Shock
(in $000s)	-200 bp			-100 bp			STATIC (Base)		+100 bp			+200 bp			+300 bp			+400 bp
Market Value of Equity		245,346			235,662			263,054		297,721			327,006			351,589			372,271
Change in EVE from base		(17,708	)		(27,392	)				34,667			63,952			88,535			109,217
% Change		(6.73	)%		(10.41	)%				13.18	%		24.31	%		33.66	%		41.52	%
Policy Limits		(20.00	)%		(10.00	)%				(10.00	)%		(20.00	)%		(30.00	)%		(40.00	)%

The table shows that our EVE will generally deteriorate in declining rate scenarios, but should benefit from a parallel shift upward in the yield curve. As noted previously, however, Management is of the opinion that the potential for a significant rate decline is low. We also run stress scenarios for EVE to simulate the possibility of higher loan prepayment rates, unfavorable changes in deposit rates, and higher deposit decay rates. Model results are highly sensitive to changes in assumed decay rates for non-maturity deposits, in particular.

CAPITAL RESOURCES

At March 31, 2016 the Company had total stockholders’ equity of $107.2 million, comprised of $5.4 million in common stock, $17 million in preferred stock, less than one half a million in treasury stock, $45 million in surplus, $38 million in undivided profits, $2.4 million in accumulated comprehensive income for available for sale securities. Total stockholders’ equity at the end of 2015 was $103.4 million. The increase of $3.8 million, or 4%, in stockholders’ equity during the first three months of 2016 is comprised of capital added via net earnings of $2.6 million, $1.4 million increase accumulated comprehensive income for available for sale securities, offset by $204,000 in cash dividends paid.

The Company uses a variety of measures to evaluate its capital adequacy, including risk-based capital and leverage ratios that are calculated separately for the Company and the Bank. Management reviews these capital measurements on a quarterly basis and takes appropriate action to help ensure that they meet or surpass established internal and external guidelines. As permitted by the regulators for financial institutions that are not deemed to be “advanced approaches” institutions, the Company has elected to opt out of the Basel III requirement to include accumulated other comprehensive income in risk-based capital.

46

The following table sets forth the Company’s and the Bank’s regulatory capital ratios as of the dates indicated.

Regulatory Capital Ratios
The First, ANBA	March 31, 2016			December 31, 2015			Minimum Required to be Well Capitalized
Common Equity Tier 1
Capital Ratio		10.62	%		11.04	%		6.50	%
Tier 1 Capital Ratio		10.62	%		11.04	%		8.00	%
Total Capital Ratio		11.37	%		11.81	%		10.00	%
Tier 1 Leverage Ratio		8.34	%		8.62	%		5.00	%

Regulatory Capital Ratios
The First Bancshares, Inc.	March 31, 2016			December 31, 2015			Minimum Required to be Well Capitalized
Common Equity Tier 1
Capital Ratio*		7.80	%		8.10	%		6.50	%
Tier 1 Capital Ratio**		10.65	%		11.09	%		8.00	%
Total Capital Ratio		11.40	%		11.86	%		10.00	%
Tier 1 Leverage Ratio		8.36	%		8.66	%		5.00	%

* The numerator does not include Preferred Stock and Trust Preferred.

** The numerator includes Preferred Stock and Trust Preferred.

Regulatory capital ratios slightly decreased from December 31, 2015 to March 31, 2016 as asset growth outpaced capital formation. Our capital ratios remain very strong relative to the median for peer financial institutions, and at March 31, 2016 were well above the threshold for the Company and the Bank to be classified as “well capitalized,” the highest rating of the categories defined under the Bank Holding Company Act and the Federal Deposit Insurance Corporation Improvement Act of 1991. We do not foresee any circumstances that would cause the Company or the Bank to be less than well capitalized, although no assurance can be given that this will not occur

47

PART I - FINANCIAL INFORMATION

ITEM NO. 3

QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

The information concerning quantitative and qualitative disclosures about market risk is included in Part I, Item 2 above. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Market Risk Management.”

PART I - FINANCIAL INFORMATION

ITEM NO. 4

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of March 31, 2016, (the “Evaluation Date”), we carried out an evaluation, under the supervision of and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. As noted in the Explanatory Note above, the failure to file on the Original 10-Q within the specified time period for “accelerated filers” as defined by Rule 12b-2 of the Securities Exchange Act of 1934 resulted from a misinterpretation of the affiliate status of certain shareholders, and not due to any failure of disclosure controls and procedures.

Changes in Internal Controls

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

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The Company is involved in various legal proceedings in the normal course of business. In the opinion of Management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s financial condition or results of operation.

ITEM 1A: RISK FACTORS

There are no material changes in the Company’s risk factors since December 31, 2015. For additional information on risk factors refer to Part I, Item 1A. “Risk Factors” of the Annual Report on Form 10-K of The First Bancshares, Inc., filed with the Securities and Exchange Commission on March 30, 2016.

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ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES 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

49

ITEM 6: EXHIBITS -

(a) Exhibits

Exhibit No.	Description
3.2	Amended and Restated Bylaws of The First Bancshares, Inc. effective as of March 17, 2016 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on March 18, 2016.
4.1	Form of Certificate of Common Stock (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement No. 333-137198 on Form S-1 filed on 9/8/2006.
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
32.2	Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

50

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.
October 11, 2016	M. Ray (Hoppy) Cole, Jr.
(Date)	Chief Executive Officer
	/s/ DEE DEE LOWERY
October 11, 2016	Dee Dee Lowery, Executive
(Date)	Vice President and Chief Financial Officer

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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/A 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:	October 11, 2016	/s/ M. Ray (Hoppy)Cole, Jr.
		M. Ray (Hoppy) Cole, Jr.
		Chief Executive Officer

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

EX-31.2

Exhibit 31.2

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

I, DeeDee Lowery, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A 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:	October 11, 2016	/s/ Dee Dee Lowery
		Dee Dee 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/A of The First Bancshares, Inc. (the "Company") for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, M. Ray (Hoppy) Cole, Jr., the Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ M. Ray (Hoppy) Cole, Jr.
Name:	M. Ray (Hoppy) Cole, Jr.
Title:	Chief Executive Officer
Date:	October 11, 2016

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

This certification shall not be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

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/A of The First Bancshares, Inc. (the "Company") for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Dee Dee 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/ Dee Dee Lowery
Name:	Dee Dee Lowery
Title:	Executive Vice President and Chief
	Financial Officer
Date:	October 11, 2016

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

This certification shall not be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

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Document And Entity Information	3 Months Ended
	Mar. 31, 2016 shares
Document Information [Line Items]
Document Type	10-Q/A
Amendment Flag	true
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	FIRST BANCSHARES INC /MS/
Entity Central Index Key	0000947559
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	FBMS
Entity Common Stock, Shares Outstanding	5,458,508
Amendment Description	We are filing this Amendment No. 1 on Form 10-Q/A to amend our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 as originally filed with the Securities and Exchange Commission on May 16, 2016 (the “Original Form 10-Q”). The original Form 10-Q was prepared and filed in accordance with disclosure requirements applicable to “smaller reporting companies” as defined in Rule 12b-2 of the Exchange Act of 1934 (“Exchange Act”). During the 3rd quarter of 2016, after consultation with outside counsel, the Company determined that the Company had become, as of January 1, 2016, an “accelerated filer” as defined in Exchange Act Rule 12b-2 due to a re-evaluation of the affiliate status of certain shareholders, which were initially misinterpreted to be affiliates of the Company, which in turn increased the Company’s public float to more than $75 million as of June 30, 2015. Accordingly, we are amending the Original Form 10-Q so that it complies with all applicable requirements for an “accelerated filer.” Specifically, this amendment is being filed to augment Part I, Items 2 and 4, Part II, Items 1A and 6, and to add Part I, Item 3 which was previously inapplicable. We are restating the entire 10-Q in this filing as multiple items are being amended. The Company intends to file all future Exchange Act reports in accordance with accelerated filer Exchange Act rules, as applicable.

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

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

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

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

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

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

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

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1 — BASIS OF PRESENTATION

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

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SUMMARY OF ORGANIZATION

3 Months Ended

Mar. 31, 2016

Summary Of Organization Abstract [Abstract]

SUMMARY OF ORGANIZATION

NOTE 2 — SUMMARY OF ORGANIZATION

 

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

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

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

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RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

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

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

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BUSINESS COMBINATION

3 Months Ended

Mar. 31, 2016

Business Combination, Description [Abstract]

BUSINESS COMBINATION

NOTE 4 – BUSINESS COMBINATION

The Mortgage Connection

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

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

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

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

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PREFERRED STOCK AND WARRANT

3 Months Ended

Mar. 31, 2016

Preferred Stock And Warrant [Abstract]

PREFERRED STOCK AND WARRANT

NOTE 5 – PREFERRED STOCK AND WARRANT

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

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

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

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EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

NOTE 6 — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

 

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

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

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

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

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COMPREHENSIVE INCOME

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Comprehensive Income (Loss)

NOTE 7 – COMPREHENSIVE INCOME

As presented in the Consolidated Statements of Comprehensive Income, comprehensive income includes net income and other comprehensive income. The Company’s only sources of other comprehensive income are unrealized gains and losses on available-for-sale investment securities and loans held for sale. Gains or losses on investment securities that were realized and reflected in net income of the current period, which had previously been included in other comprehensive income as unrealized holding gains or losses in the period in which they arose, are considered to be reclassification adjustments that are excluded from other comprehensive income in the current period.

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FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments With Off Balance Sheet Risk Disclosure

NOTE 8 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

($ In Thousands)	March 31, 2016		December 31, 2015
Commitments to extend credit	$	155,996	$	144,086
Standby letters of credit		1,125		1,135

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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

NOTE 9 – FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS

FASB’s standards on financial instruments, and on fair value measurements and disclosures, require all entities to disclose in their financial statement footnotes the estimated fair values of financial instruments for which it is practicable to estimate fair values. In addition to disclosure requirements, FASB’s standard on investments requires that our debt securities which are classified as available for sale and our equity securities that have readily determinable fair values be measured and reported at fair value in our statement of financial position. Certain impaired loans are also reported at fair value, as explained in greater detail below, and foreclosed assets are carried at the lower of cost or fair value. FASB’s standard on financial instruments permits companies to report certain other financial assets and liabilities at fair value, but we have not elected the fair value option for any of those financial instruments.

Fair value measurement and disclosure standards also establish a framework for measuring fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Further, the standards establish a fair value hierarchy that encourages an entity to maximize the use of observable inputs and limit the use of unobservable inputs when measuring fair values. The standards describe three levels of inputs that may be used to measure fair values:

⋅ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

⋅ Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

⋅ Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability.

Fair value estimates are made at a specific point in time based on relevant market data and information about the financial instruments. The estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to realized gains and losses could have a significant effect on fair value estimates but have not been considered in those estimates. Because no active market exists for a significant portion of our financial instruments, fair value disclosures are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. The estimates are subjective and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly alter the fair values presented. The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at March 31, 2016 and December 31, 2015:

⋅ Cash and cash equivalents and fed funds sold: The carrying amount is estimated to be fair value.

⋅ Securities (available-for-sale and held-to-maturity): Fair values are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities when quoted prices for specific securities are not readily available.

⋅ Loans and leases: For variable-rate loans and leases that re-price frequently with no significant change in credit risk or interest rate spread, fair values are based on carrying values. Fair values for other loans and leases are estimated by discounting projected cash flows at interest rates being offered at each reporting date for loans and leases with similar terms, to borrowers of comparable creditworthiness. The carrying amount of accrued interest receivable approximates its fair value.

⋅ Loans held for sale: Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are not relevant for reporting purposes. If available-for-sale loans are on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices.

⋅ Collateral-dependent impaired loans: Collateral-dependent impaired loans are carried at fair value when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement and the loan has been written down to the fair value of its underlying collateral, net of expected disposition costs where applicable.

⋅ Bank-owned life insurance: Fair values are based on net cash surrender policy values at each reporting date.

⋅ Other securities: Certain investments for which no secondary market exists are carried at cost and the carrying amount for those investments typically approximates their estimated fair value, unless an impairment analysis indicates the need for adjustments.

⋅ Deposits (noninterest-bearing and interest-bearing): Fair values for non-maturity deposits are equal to the amount payable on demand at the reporting date, which is the carrying amount. Fair values for fixed-rate certificates of deposit are estimated using a cash flow analysis, discounted at interest rates being offered at each reporting date by the Bank for certificates with similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

⋅ FHLB and other borrowings: Current carrying amounts are used as an approximation of fair values for federal funds purchased, overnight advances from the Federal Home Loan Bank (“FHLB”), borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days of the reporting dates. Fair values of other short-term borrowings are estimated by discounting projected cash flows at the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

⋅ Long-term borrowings: Fair values are estimated using projected cash flows discounted at the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

⋅ Subordinated debentures: Fair values are determined based on the current market value for like instruments of a similar maturity and structure.

⋅ 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.

Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:

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

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

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U. S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy.

Assets measured at fair value on a recurring basis as of the dates noted are summarized below:

March 31, 2016

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

December 31, 2015

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

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

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

The following table presents quantitative information about recurring Level 3 fair value measurements ($ In Thousands):

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

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

Impaired Loans

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

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

Other Real Estate Owned

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

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

($ In Thousands)

March 31, 2016

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

December 31, 2015

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

XML

SECURITIES

3 Months Ended

Mar. 31, 2016

Securities [Abstract]

SECURITIES

NOTE 10 — SECURITIES

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

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

($ In Thousands)

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

($ In Thousands)	December 31, 2015
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	19,479	$	144	$	13	$	19,610
Tax-exempt and taxable obligations of states and municipal subdivisions		95,631		2,362		103		97,890
Mortgage-backed securities		98,223		1,127		425		98,925
Corporate obligations		23,495		62		1,211		22,346
Other		1,255		-		294		961
Total	$	238,083	$	3,695	$	2,046	$	239,732
Held-to-maturity securities:
Mortgage-backed securities	$	1,092	$	15	$	-	$	1,107
Taxable obligations of states and municipal subdivisions		6,000		1,440		-		7,440
Total	$	7,092	$	1,455	$	-	$	8,547

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LOANS

3 Months Ended

Mar. 31, 2016

Loans Receivable, Net [Abstract]

LOANS

NOTE 11 — LOANS

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

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

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

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

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

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

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

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

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

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

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

March 31, 2016

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

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

December 31, 2015

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

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

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

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

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

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

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

($ In Thousands)

For the Three Months Ending March 31, 2016

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

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

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

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

($ In Thousands)

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

($ In Thousands)

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

Internal Risk Ratings

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance:

Special Mention.    Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard.    Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful.    Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

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

($ In Thousands)

March 31, 2016

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

December 31, 2015

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

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

($ In Thousands)

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

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

Allocation of the Allowance for Loan Losses

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

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

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

March 31, 2016

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

December 31, 2015

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

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SUBSEQUENT EVENTS/OTHER

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 12 – SUBSEQUENT EVENTS/OTHER

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

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RECLASSIFICATION

3 Months Ended

Mar. 31, 2016

Reclassification [Abstract]

RECLASSIFICATION

NOTE 13 – RECLASSIFICATION

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

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BUSINESS COMBINATION (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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

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

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EARNINGS APPLICABLE TO COMMON STOCKHOLDERS (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Weighted-Average Number of Common Shares Outstanding

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

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

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

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FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks

($ In Thousands)	March 31, 2016		December 31, 2015
Commitments to extend credit	$	155,996	$	144,086
Standby letters of credit		1,125		1,135

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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments with No Distinguishable Fair Value

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

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

Fair Value Assets Measured on Recurring Basis

Assets measured at fair value on a recurring basis as of the dates noted are summarized below:

March 31, 2016

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

December 31, 2015

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

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

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

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

Quantitative Information About Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements ($ In Thousands):

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

Fair Value Assets Measured on Nonrecurring Basis

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

($ In Thousands)

March 31, 2016

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

December 31, 2015

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

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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2016

Securities [Abstract]

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

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

($ In Thousands)

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

($ In Thousands)	December 31, 2015
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	19,479	$	144	$	13	$	19,610
Tax-exempt and taxable obligations of states and municipal subdivisions		95,631		2,362		103		97,890
Mortgage-backed securities		98,223		1,127		425		98,925
Corporate obligations		23,495		62		1,211		22,346
Other		1,255		-		294		961
Total	$	238,083	$	3,695	$	2,046	$	239,732
Held-to-maturity securities:
Mortgage-backed securities	$	1,092	$	15	$	-	$	1,107
Taxable obligations of states and municipal subdivisions		6,000		1,440		-		7,440
Total	$	7,092	$	1,455	$	-	$	8,547

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LOANS (Tables)

3 Months Ended

Mar. 31, 2016

Loans Receivable, Net [Abstract]

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:

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

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

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

($ In Thousands)

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

($ In Thousands)

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

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

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

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

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

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

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

Troubled Debt Restructurings

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

March 31, 2016

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

December 31, 2015

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

Impaired Loans

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

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

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

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

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

Additional Detail of Troubled Debt Restructurings

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

($ In Thousands)

For the Three Months Ending March 31, 2016

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

Risk Category of Loans by Class of Loans

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

($ In Thousands)

March 31, 2016

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

December 31, 2015

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

Activity in Allowance for Loan Losses

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

($ In Thousands)

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

Allocation of Allowance for Loan Losses

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

Allocation of the Allowance for Loan Losses

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

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

Loans and Allowance for Loan Losses Evaluated Individually and Collectively

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

March 31, 2016

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

December 31, 2015

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

XML

SUMMARY OF ORGANIZATION - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares
Organization [Line Items]
Date of entity incorporation	Jun. 23, 1995
Entity Incorporation, State Country Name	Hattiesburg, Mississippi
Assets	$ 1,241,951
Loans, including Loans held for sale	796,900
Deposits	1,041,105
Stockholders' equity	107,197
Net income	2,604
Net income applicable to common Stockholders	$ 2,519
Dividends on common stock, per share | $ / shares	$ 0.0375

XML

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

XML

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

XML

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

XML

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 shares
Earnings Per Share Basic [Line Items]
Shares of restricted stock granted	61,247

XML

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments to extend credit	$ 155,996	$ 144,086
Standby letters of credit	$ 1,125	$ 1,135

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

XML

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

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Information Regarding Contractually Payments Receivable, Cash Flows (Detail) $ in Thousands	Mar. 31, 2016 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	$ 40,076
Cash flows expected to be collected	50,168
Fair value of loans acquired	38,393
Commercial Financial And Agriculture
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	1,519
Cash flows expected to be collected	1,570
Fair value of loans acquired	1,513
Mortgage-Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	29,648
Cash flows expected to be collected	37,869
Fair value of loans acquired	28,875
Mortgage-Residential
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	7,933
Cash flows expected to be collected	9,697
Fair value of loans acquired	7,048
Commercial and other
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	976
Cash flows expected to be collected	1,032
Fair value of loans acquired	$ 957

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

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

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

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

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

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Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	$ 249,406	$ 238,083
Available-for-sale Securities, Gross Unrealized Gains	5,317	3,695
Available-for-sale Securities, Gross Unrealized Losses	1,597	2,046
Available-for-sale securities, Estimated Fair Value	253,126	239,732
Held-to-Maturity, Amortized Cost	6,851	7,092
Held-to-maturity Securities, Gross Unrealized Gains	1,890	1,455
Held-to-maturity Securities, Gross Unrealized Losses	0	0
Held-to-Maturity, Estimated Fair Value	8,741	8,547
Obligations of U.S. Government Agencies
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	16,442	19,479
Available-for-sale Securities, Gross Unrealized Gains	200	144
Available-for-sale Securities, Gross Unrealized Losses	0	13
Available-for-sale securities, Estimated Fair Value	16,642	19,610
Tax-exempt and taxable obligations of states and municipal subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	94,487	95,631
Available-for-sale Securities, Gross Unrealized Gains	3,118	2,362
Available-for-sale Securities, Gross Unrealized Losses	11	103
Available-for-sale securities, Estimated Fair Value	97,594	97,890
Held-to-Maturity, Amortized Cost	6,000	6,000
Held-to-maturity Securities, Gross Unrealized Gains	1,864	1,440
Held-to-maturity Securities, Gross Unrealized Losses	0	0
Held-to-Maturity, Estimated Fair Value	7,864	7,440
Mortgage-backed securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	113,877	98,223
Available-for-sale Securities, Gross Unrealized Gains	1,914	1,127
Available-for-sale Securities, Gross Unrealized Losses	58	425
Available-for-sale securities, Estimated Fair Value	115,733	98,925
Held-to-Maturity, Amortized Cost	851	1,092
Held-to-maturity Securities, Gross Unrealized Gains	26	15
Held-to-maturity Securities, Gross Unrealized Losses	0	0
Held-to-Maturity, Estimated Fair Value	877	1,107
Corporate obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	23,345	23,495
Available-for-sale Securities, Gross Unrealized Gains	85	62
Available-for-sale Securities, Gross Unrealized Losses	1,227	1,211
Available-for-sale securities, Estimated Fair Value	22,203	22,346
Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	1,255	1,255
Available-for-sale Securities, Gross Unrealized Gains	0	0
Available-for-sale Securities, Gross Unrealized Losses	301	294
Available-for-sale securities, Estimated Fair Value	$ 954	$ 961