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Note 3 - Loans

6 Months Ended

Jun. 30, 2022

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

Note 3. Loans

The Company groups loans held for investment into three segments (commercial loans, consumer real estate loans, and consumer and other loans) with each segment divided into various classes. Customer overdrafts reclassified as loans totaled $1.94 million as of June 30, 2022, and $1.65 million as of December 31, 2021. Deferred loan fees, net of loan costs, totaled $3.90 million as of June 30, 2022, and $5.06 million as of December 31, 2021. For information about off-balance sheet financing, see Note 14, “Litigation, Commitments, and Contingencies,” to the Condensed Consolidated Financial Statements of this report.

In accordance with the adoption of ASU 2016-13, the table below reflects the loan portfolio at the amortized cost basis to include net deferred loan fees of $3.90 million and $5.06 million and unamortized discount related to loans acquired of $4.50 million and $5.41 million million for June 30, 2022, and December 31, 2021, respectively. Accrued interest receivable (AIR) of $7.11 million as of June 30, 2022, and $7.54 million as of December 31, 2021, is accounted for separately and reported in Interest Receivable on the Consolidated Balance Sheet.

	*June 30, 2022*					*December 31, 2021*
(Amounts in thousands)	*Amount*		*Percent*			*Amount*		*Percent*
Loans held for investment
Commercial loans
Construction, development, and other land	$	92,840		4.04	%	$	65,806		3.04	%
Commercial and industrial		139,792		6.08	%		133,630		6.17	%
Multi-family residential		124,274		5.40	%		100,402		4.64	%
Single family non-owner occupied		195,113		8.48	%		198,778		9.18	%
Non-farm, non-residential		752,369		32.72	%		707,506		32.67	%
Agricultural		9,987		0.43	%		9,341		0.43	%
Farmland		12,833		0.56	%		15,013		0.69	%
Total commercial loans		1,327,208		57.71	%		1,230,476		56.82	%
Consumer real estate loans
Home equity lines		78,999		3.44	%		79,857		3.69	%
Single family owner occupied		722,370		31.41	%		703,864		32.50	%
Owner occupied construction		17,331		0.75	%		16,910		0.78	%
Total consumer real estate loans		818,700		35.60	%		800,631		36.97	%
Consumer and other loans
Consumer loans		148,741		6.47	%		129,794		5.99	%
Other		5,149		0.22	%		4,668		0.22	%
Total consumer and other loans		153,890		6.69	%		134,462		6.21	%
Total loans held for investment, net of unearned income	$	2,299,798		100.00	%	$	2,165,569		100.00	%

The Company began participating as a Small Business Administration Paycheck Protection Program lender during the second quarter of 2020. At June 30, 2022, the PPP loans had a current balance of $2.07 million, compared to $20.64 million at December 31, 2021, and were included in commercial and industrial loan balances. Deferred remaining loan origination fees related to the PPP loans, net of deferred loan origination costs, totaled $80 thousand at June 30, 2022, and $733 thousand at December 31, 2021. During the second quarter of 2022, the Company recorded amortization of net deferred loan origination fees of $319 thousand on PPP loans and recorded $654 thousand in amortization for the six month period of 2022 . The Company recorded amortization of net deferred loan origination fees on PPP loans of $608 thousand and $1.53 million in amortization for the same periods, respectively, of 2021. The remaining net deferred loan origination fees will be amortized over the expected life of the respective loans, or until forgiven by the SBA, and will be recognized in net interest income.