LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
Receivables [Abstract] |
|
Categories of Loans |
The following table lists categories of loans at December 31, 2018 and 2017.
|
|
2018 |
|
|
2017 |
|
Commercial real estate |
|
$ |
1,251,992 |
|
|
$ |
987,661 |
|
Commercial and industrial |
|
|
582,527 |
|
|
|
521,510 |
|
Residential real estate |
|
|
444,540 |
|
|
|
376,705 |
|
Agricultural real estate |
|
|
139,332 |
|
|
|
86,486 |
|
Consumer |
|
|
62,894 |
|
|
|
49,361 |
|
Agricultural |
|
|
94,123 |
|
|
|
95,547 |
|
Total loans |
|
|
2,575,408 |
|
|
|
2,117,270 |
|
Allowance for loan losses |
|
|
(11,454 |
) |
|
|
(8,498 |
) |
Net loans |
|
$ |
2,563,954 |
|
|
$ |
2,108,772 |
|
|
Schedule of Allowance for Loan Losses by Portfolio Segment Allowance |
The following tables present the activity in the allowance for loan losses by class for the years ended December 31, 2018, 2017 and 2016.
December 31, 2018 |
|
Commercial
Real Estate |
|
|
Commercial
and
Industrial |
|
|
Residential
Real
Estate |
|
|
Agricultural
Real
Estate |
|
|
Consumer |
|
|
Agricultural |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
2,740 |
|
|
$ |
2,136 |
|
|
$ |
2,262 |
|
|
$ |
319 |
|
|
$ |
768 |
|
|
$ |
273 |
|
|
$ |
8,498 |
|
Provision for loan losses |
|
|
1,832 |
|
|
|
636 |
|
|
|
97 |
|
|
|
146 |
|
|
|
1,188 |
|
|
|
62 |
|
|
|
3,961 |
|
Loans charged-off |
|
|
(1,779 |
) |
|
|
(118 |
) |
|
|
(293 |
) |
|
|
(93 |
) |
|
|
(1,431 |
) |
|
|
(43 |
) |
|
|
(3,757 |
) |
Recoveries |
|
|
1,869 |
|
|
|
53 |
|
|
|
254 |
|
|
|
19 |
|
|
|
545 |
|
|
|
12 |
|
|
|
2,752 |
|
Total ending allowance balance |
|
$ |
4,662 |
|
|
$ |
2,707 |
|
|
$ |
2,320 |
|
|
$ |
391 |
|
|
$ |
1,070 |
|
|
$ |
304 |
|
|
$ |
11,454 |
|
December 31, 2017 |
|
Commercial
Real Estate |
|
|
Commercial
and
Industrial |
|
|
Residential
Real
Estate |
|
|
Agricultural
Real
Estate |
|
|
Consumer |
|
|
Agricultural |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
2,420 |
|
|
$ |
1,881 |
|
|
$ |
1,765 |
|
|
$ |
35 |
|
|
$ |
266 |
|
|
$ |
65 |
|
|
$ |
6,432 |
|
Provision for loan losses |
|
|
(69 |
) |
|
|
651 |
|
|
|
604 |
|
|
|
287 |
|
|
|
1,236 |
|
|
|
244 |
|
|
|
2,953 |
|
Loans charged-off |
|
|
(271 |
) |
|
|
(431 |
) |
|
|
(350 |
) |
|
|
(16 |
) |
|
|
(1,025 |
) |
|
|
(42 |
) |
|
|
(2,135 |
) |
Recoveries |
|
|
660 |
|
|
|
35 |
|
|
|
243 |
|
|
|
13 |
|
|
|
291 |
|
|
|
6 |
|
|
|
1,248 |
|
Total ending allowance balance |
|
$ |
2,740 |
|
|
$ |
2,136 |
|
|
$ |
2,262 |
|
|
$ |
319 |
|
|
$ |
768 |
|
|
$ |
273 |
|
|
$ |
8,498 |
|
December 31, 2016 |
|
Commercial
Real Estate |
|
|
Commercial
and
Industrial |
|
|
Residential
Real
Estate |
|
|
Agricultural
Real
Estate |
|
|
Consumer |
|
|
Agricultural |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
2,051 |
|
|
$ |
1,366 |
|
|
$ |
1,824 |
|
|
$ |
29 |
|
|
$ |
187 |
|
|
$ |
49 |
|
|
$ |
5,506 |
|
Provision for loan losses |
|
|
725 |
|
|
|
700 |
|
|
|
75 |
|
|
|
6 |
|
|
|
567 |
|
|
|
46 |
|
|
|
2,119 |
|
Loans charged-off |
|
|
(557 |
) |
|
|
(226 |
) |
|
|
(299 |
) |
|
|
(23 |
) |
|
|
(584 |
) |
|
|
(31 |
) |
|
|
(1,720 |
) |
Recoveries |
|
|
201 |
|
|
|
41 |
|
|
|
165 |
|
|
|
23 |
|
|
|
96 |
|
|
|
1 |
|
|
|
527 |
|
Total ending allowance balance |
|
$ |
2,420 |
|
|
$ |
1,881 |
|
|
$ |
1,765 |
|
|
$ |
35 |
|
|
$ |
266 |
|
|
$ |
65 |
|
|
$ |
6,432 |
|
|
Schedule of Loans Evaluated for Impairment |
The following tables present the recorded investment in loans and the balance in the allowance for loan losses by portfolio and class based on impairment method as of December 31, 2018 and 2017.
December 31, 2018 |
|
Commercial
Real Estate |
|
|
Commercial
and
Industrial |
|
|
Residential
Real
Estate |
|
|
Agricultural
Real
Estate |
|
|
Consumer |
|
|
Agricultural |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
242 |
|
|
$ |
185 |
|
|
$ |
391 |
|
|
$ |
22 |
|
|
$ |
62 |
|
|
$ |
10 |
|
|
$ |
912 |
|
Collectively evaluated for impairment |
|
|
3,695 |
|
|
|
2,493 |
|
|
|
1,861 |
|
|
|
367 |
|
|
|
925 |
|
|
|
293 |
|
|
|
9,634 |
|
Purchased credit impaired loans |
|
|
725 |
|
|
|
29 |
|
|
|
68 |
|
|
|
2 |
|
|
|
83 |
|
|
|
1 |
|
|
|
908 |
|
Total |
|
$ |
4,662 |
|
|
$ |
2,707 |
|
|
$ |
2,320 |
|
|
$ |
391 |
|
|
$ |
1,070 |
|
|
$ |
304 |
|
|
$ |
11,454 |
|
Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
23,323 |
|
|
$ |
5,020 |
|
|
$ |
4,434 |
|
|
$ |
856 |
|
|
$ |
678 |
|
|
$ |
2,252 |
|
|
$ |
36,563 |
|
Collectively evaluated for impairment |
|
|
1,215,173 |
|
|
|
571,171 |
|
|
|
437,219 |
|
|
|
133,415 |
|
|
|
61,978 |
|
|
|
89,194 |
|
|
|
2,508,150 |
|
Purchased credit impaired loans |
|
|
13,496 |
|
|
|
6,336 |
|
|
|
2,887 |
|
|
|
5,061 |
|
|
|
238 |
|
|
|
2,677 |
|
|
|
30,695 |
|
Total |
|
$ |
1,251,992 |
|
|
$ |
582,527 |
|
|
$ |
444,540 |
|
|
$ |
139,332 |
|
|
$ |
62,894 |
|
|
$ |
94,123 |
|
|
$ |
2,575,408 |
|
December 31, 2017 |
|
Commercial
Real Estate |
|
|
Commercial
and
Industrial |
|
|
Residential
Real
Estate |
|
|
Agricultural
Real
Estate |
|
|
Consumer |
|
|
Agricultural |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
130 |
|
|
$ |
87 |
|
|
$ |
386 |
|
|
$ |
46 |
|
|
$ |
56 |
|
|
$ |
36 |
|
|
$ |
741 |
|
Collectively evaluated for impairment |
|
|
2,582 |
|
|
|
2,028 |
|
|
|
1,815 |
|
|
|
190 |
|
|
|
712 |
|
|
|
236 |
|
|
|
7,563 |
|
Purchased credit impaired loans |
|
|
28 |
|
|
|
21 |
|
|
|
61 |
|
|
|
83 |
|
|
— |
|
|
|
1 |
|
|
|
194 |
|
Total |
|
$ |
2,740 |
|
|
$ |
2,136 |
|
|
$ |
2,262 |
|
|
$ |
319 |
|
|
$ |
768 |
|
|
$ |
273 |
|
|
$ |
8,498 |
|
Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
2,728 |
|
|
$ |
7,886 |
|
|
$ |
4,829 |
|
|
$ |
533 |
|
|
$ |
556 |
|
|
$ |
1,050 |
|
|
$ |
17,582 |
|
Collectively evaluated for impairment |
|
|
971,376 |
|
|
|
507,894 |
|
|
|
369,471 |
|
|
|
82,493 |
|
|
|
48,802 |
|
|
|
90,795 |
|
|
|
2,070,831 |
|
Purchased credit impaired loans |
|
|
13,557 |
|
|
|
5,730 |
|
|
|
2,405 |
|
|
|
3,460 |
|
|
|
3 |
|
|
|
3,702 |
|
|
|
28,857 |
|
Total |
|
$ |
987,661 |
|
|
$ |
521,510 |
|
|
$ |
376,705 |
|
|
$ |
86,486 |
|
|
$ |
49,361 |
|
|
$ |
95,547 |
|
|
$ |
2,117,270 |
|
|
Impaired Loans, Segregated by Class of Loans |
The following table presents information related to impaired loans, excluding those purchased credit impaired loans which have not deteriorated since acquisition, by class of loans as of and for the year ended December 31, 2018.
December 31, 2018 |
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment |
|
|
Allowance for
Loan Losses
Allocated |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
20,940 |
|
|
$ |
20,902 |
|
|
$ |
— |
|
|
$ |
5,652 |
|
|
$ |
150 |
|
Commercial and industrial |
|
|
3,446 |
|
|
|
3,396 |
|
|
|
— |
|
|
|
5,629 |
|
|
|
66 |
|
Residential real estate |
|
|
533 |
|
|
|
527 |
|
|
|
— |
|
|
|
744 |
|
|
|
20 |
|
Agricultural real estate |
|
|
2,038 |
|
|
|
2,035 |
|
|
|
— |
|
|
|
1,364 |
|
|
|
18 |
|
Consumer |
|
|
61 |
|
|
|
55 |
|
|
|
— |
|
|
|
32 |
|
|
|
2 |
|
Agricultural |
|
|
756 |
|
|
|
756 |
|
|
|
— |
|
|
|
411 |
|
|
|
18 |
|
Subtotal |
|
|
27,774 |
|
|
|
27,671 |
|
|
|
— |
|
|
|
13,832 |
|
|
|
274 |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
8,700 |
|
|
|
7,179 |
|
|
|
967 |
|
|
|
2,913 |
|
|
|
142 |
|
Commercial and industrial |
|
|
2,255 |
|
|
|
1,911 |
|
|
|
214 |
|
|
|
1,068 |
|
|
|
53 |
|
Residential real estate |
|
|
4,934 |
|
|
|
4,582 |
|
|
|
459 |
|
|
|
4,188 |
|
|
|
74 |
|
Agricultural real estate |
|
|
261 |
|
|
|
242 |
|
|
|
24 |
|
|
|
429 |
|
|
|
2 |
|
Consumer |
|
|
1,144 |
|
|
|
859 |
|
|
|
145 |
|
|
|
568 |
|
|
|
33 |
|
Agricultural |
|
|
162 |
|
|
|
106 |
|
|
|
11 |
|
|
|
418 |
|
|
|
4 |
|
Subtotal |
|
|
17,456 |
|
|
|
14,879 |
|
|
|
1,820 |
|
|
|
9,584 |
|
|
|
308 |
|
Total |
|
$ |
45,230 |
|
|
$ |
42,550 |
|
|
$ |
1,820 |
|
|
$ |
23,416 |
|
|
$ |
582 |
|
The above table presents interest income for the twelve months ended December 31, 2018. Interest income recognized in the above table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.
The following table presents information related to impaired loans, excluding purchased credit impaired loans which have not deteriorated since acquisition, by portfolio and class of loans as of and for the year ended December 31, 2017.
December 31, 2017 |
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment |
|
|
Allowance for
Loan Losses
Allocated |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,878 |
|
|
$ |
1,567 |
|
|
$ |
— |
|
|
$ |
1,426 |
|
|
$ |
267 |
|
Commercial and industrial |
|
|
8,679 |
|
|
|
8,020 |
|
|
|
— |
|
|
|
4,572 |
|
|
|
252 |
|
Residential real estate |
|
|
1,230 |
|
|
|
969 |
|
|
|
— |
|
|
|
587 |
|
|
|
29 |
|
Agricultural real estate |
|
|
52 |
|
|
|
52 |
|
|
|
— |
|
|
|
270 |
|
|
|
12 |
|
Consumer |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Agricultural |
|
|
7 |
|
|
|
7 |
|
|
|
— |
|
|
|
83 |
|
|
|
73 |
|
Subtotal |
|
|
11,847 |
|
|
|
10,615 |
|
|
|
— |
|
|
|
6,938 |
|
|
|
634 |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
4,049 |
|
|
|
1,597 |
|
|
|
158 |
|
|
|
1,813 |
|
|
|
16 |
|
Commercial and industrial |
|
|
1,310 |
|
|
|
1,113 |
|
|
|
108 |
|
|
|
663 |
|
|
|
51 |
|
Residential real estate |
|
|
4,868 |
|
|
|
4,468 |
|
|
|
447 |
|
|
|
3,916 |
|
|
|
95 |
|
Agricultural real estate |
|
|
1,266 |
|
|
|
1,034 |
|
|
|
129 |
|
|
|
527 |
|
|
|
16 |
|
Consumer |
|
|
677 |
|
|
|
559 |
|
|
|
56 |
|
|
|
448 |
|
|
|
15 |
|
Agricultural |
|
|
1,798 |
|
|
|
1,444 |
|
|
|
37 |
|
|
|
469 |
|
|
|
2 |
|
Subtotal |
|
|
13,968 |
|
|
|
10,215 |
|
|
|
935 |
|
|
|
7,836 |
|
|
|
195 |
|
Total |
|
$ |
25,815 |
|
|
$ |
20,830 |
|
|
$ |
935 |
|
|
$ |
14,774 |
|
|
$ |
829 |
|
|
Schedule of Aging of Recorded Investment in Past Due Loans by Segment and Class of Loans |
The following tables present the aging of the recorded investment in past due loans as of December 31, 2018 and 2017, by portfolio and class of loans.
December 31, 2018 |
|
30 – 59
Days
Past Due |
|
|
60 – 89
Days
Past Due |
|
|
Greater Than
90 Days Past
Due Still On
Accrual |
|
|
Nonaccrual |
|
|
Loans Not
Past Due |
|
|
Total |
|
Commercial real estate |
|
$ |
1,302 |
|
|
$ |
259 |
|
|
$ |
— |
|
|
$ |
12,768 |
|
|
$ |
1,237,663 |
|
|
$ |
1,251,992 |
|
Commercial and industrial |
|
|
509 |
|
|
|
2,467 |
|
|
|
— |
|
|
|
6,954 |
|
|
|
572,597 |
|
|
|
582,527 |
|
Residential real estate |
|
|
782 |
|
|
|
2,188 |
|
|
|
18 |
|
|
|
5,257 |
|
|
|
436,295 |
|
|
|
444,540 |
|
Agricultural real estate |
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
4,857 |
|
|
|
134,445 |
|
|
|
139,332 |
|
Consumer |
|
|
501 |
|
|
|
157 |
|
|
|
— |
|
|
|
914 |
|
|
|
61,322 |
|
|
|
62,894 |
|
Agricultural |
|
|
186 |
|
|
|
3 |
|
|
|
— |
|
|
|
2,453 |
|
|
|
91,481 |
|
|
|
94,123 |
|
Total |
|
$ |
3,280 |
|
|
$ |
5,104 |
|
|
$ |
18 |
|
|
$ |
33,203 |
|
|
$ |
2,533,803 |
|
|
$ |
2,575,408 |
|
December 31, 2017 |
|
30 – 59
Days
Past Due |
|
|
60 – 89
Days
Past Due |
|
|
Greater Than
90 Days Past
Due Still On
Accrual |
|
|
Nonaccrual |
|
|
Loans Not
Past Due |
|
|
Total |
|
Commercial real estate |
|
$ |
1,284 |
|
|
$ |
22 |
|
|
$ |
— |
|
|
$ |
11,607 |
|
|
$ |
974,748 |
|
|
$ |
987,661 |
|
Commercial and industrial |
|
|
251 |
|
|
|
6 |
|
|
|
— |
|
|
|
13,217 |
|
|
|
508,036 |
|
|
|
521,510 |
|
Residential real estate |
|
|
1,457 |
|
|
|
1,176 |
|
|
— |
|
|
|
6,148 |
|
|
|
367,924 |
|
|
|
376,705 |
|
Agricultural real estate |
|
|
123 |
|
|
|
— |
|
|
|
— |
|
|
|
3,993 |
|
|
|
82,370 |
|
|
|
86,486 |
|
Consumer |
|
|
359 |
|
|
|
112 |
|
|
|
— |
|
|
|
559 |
|
|
|
48,331 |
|
|
|
49,361 |
|
Agricultural |
|
|
415 |
|
|
|
— |
|
|
|
— |
|
|
|
4,752 |
|
|
|
90,380 |
|
|
|
95,547 |
|
Total |
|
$ |
3,889 |
|
|
$ |
1,316 |
|
|
$ |
— |
|
|
$ |
40,276 |
|
|
$ |
2,071,789 |
|
|
|
2,117,270 |
|
|
Summary of Risk Category of Loans by Class of Loans |
The risk category of loans by class of loans is as follows as of December 31, 2018 and 2017.
December 31, 2018 |
|
Unclassified |
|
|
Classified |
|
|
Total |
|
Commercial real estate |
|
$ |
1,215,015 |
|
|
$ |
36,977 |
|
|
$ |
1,251,992 |
|
Commercial and industrial |
|
|
553,045 |
|
|
|
29,482 |
|
|
|
582,527 |
|
Residential real estate |
|
|
439,184 |
|
|
|
5,356 |
|
|
|
444,540 |
|
Agricultural real estate |
|
|
129,285 |
|
|
|
10,047 |
|
|
|
139,332 |
|
Consumer |
|
|
61,976 |
|
|
|
918 |
|
|
|
62,894 |
|
Agricultural |
|
|
90,848 |
|
|
|
3,275 |
|
|
|
94,123 |
|
Total |
|
$ |
2,489,353 |
|
|
$ |
86,055 |
|
|
|
2,575,408 |
|
December 31, 2017 |
|
Unclassified |
|
|
Classified |
|
|
Total |
|
Commercial real estate |
|
$ |
971,458 |
|
|
$ |
16,203 |
|
|
$ |
987,661 |
|
Commercial and industrial |
|
|
500,141 |
|
|
|
21,369 |
|
|
|
521,510 |
|
Residential real estate |
|
|
370,151 |
|
|
|
6,554 |
|
|
|
376,705 |
|
Agricultural real estate |
|
|
77,084 |
|
|
|
9,402 |
|
|
|
86,486 |
|
Consumer |
|
|
48,777 |
|
|
|
584 |
|
|
|
49,361 |
|
Agricultural |
|
|
88,261 |
|
|
|
7,286 |
|
|
|
95,547 |
|
Total |
|
$ |
2,055,872 |
|
|
$ |
61,398 |
|
|
|
2,117,270 |
|
|
Schedule of Recorded Investments in Purchased Credit Impaired Loans |
. The recorded investments in purchased credit impaired loans as of December 31, 2018, 2017 and 2016 were as follows.
|
|
2018 |
|
|
2017 |
|
|
2016 |
|
Contractually required principal payments |
|
$ |
40,772 |
|
|
$ |
41,349 |
|
|
$ |
27,413 |
|
Discount |
|
|
(10,077 |
) |
|
|
(12,492 |
) |
|
|
(8,914 |
) |
Recorded investment |
|
$ |
30,695 |
|
|
$ |
28,857 |
|
|
$ |
18,499 |
|
|