Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

Loans Held-for-Investment by Class of Financing Receivables

Loans held-for-investment by class of financing receivables are as follows (in thousands):


	March 31,				December 31,
	2016		2015		2015
Commercial	$	669,525	$	651,723	$	696,163
Agricultural		87,490		90,610		102,351
Real estate		2,150,132		1,826,579		2,136,233
Consumer		375,052		359,564		382,303


Total loans held-for-investment	$	3,282,199	$	2,928,476	$	3,317,050

Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans

The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):


	March 31,				December 31,
	2016		2015		2015
Non-accrual loans*	$	27,175	$	18,935	$	28,601
Loans still accruing and past due 90 days or more		59		184		341
Troubled debt restructured loans**		973		177		199


Total	$	28,207	$	19,296	$	29,141

*	Includes $1,970,000, $2,037,000 and $2,178,000 of purchased credit impaired loans as of March 31, 2016 and 2015, and December 31, 2015, respectively.

**	Troubled debt restructured loans of $8,527,000, $8,431,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, respectively.

Recorded Investment in Impaired Loans and Related Valuation Allowance

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):


March 31, 2016				March 31, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	27,175	$	5,262	$	18,935	$	3,860	$	28,601	$	5,071

Schedule of Non-Accrual Loans

2016 and 2015, and December 31, 2015, respectively. Non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):


	March 31,				December 31,
	2016		2015		2015
Commercial	$	7,392	$	3,098	$	8,761
Agricultural		19		197		97
Real estate		18,473		14,983		18,766
Consumer		1,291		657		977


Total	$	27,175	$	18,935	$	28,601

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of March 31, 2016 and 2015, and December 31, 2015, are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.


March 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	8,309	$	1,227	$	6,165	$	7,392	$	2,165	$	6,812
Agricultural		19		—		19		19		7		11
Real Estate		23,740		5,746		12,727		18,473		2,658		18,504
Consumer		1,478		210		1,081		1,291		432		1,085

Total	$	33,546	$	7,183	$	19,992	$	27,175	$	5,262	$	26,412

*	Includes $1,970,000 of purchased credit impaired loans.


March 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,696	$	373	$	2,725	$	3,098	$	1,079	$	3,200
Agricultural		213		—		197		197		55		207
Real Estate		20,865		4,519		10,464		14,983		2,617		16,179
Consumer		870		406		251		657		109		677

Total	$	25,644	$	5,298	$	13,637	$	18,935	$	3,860	$	20,263

*	Includes $2,037,000 of purchased credit impaired loans.


December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664


Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

*	Includes $2,178,000 of purchased credit impaired loans.

Schedule of Internal Ratings of Loans

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same, at March 31, 2016 and 2015, and December 31, 2015 (in thousands):


March 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,466	$	7,378	$	50,681	$	—	$	669,525
Agricultural		84,555		350		2,585		—		87,490
Real Estate		2,072,210		23,359		54,563		—		2,150,132
Consumer		371,826		399		2,827		—		375,052

Total	$	3,140,057	$	31,486	$	110,656	$	—	$	3,282,199


March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	631,100	$	9,384	$	11,239	$	—	$	651,723
Agricultural		90,030		164		416		—		90,610
Real Estate		1,771,889		20,809		33,782		99		1,826,579
Consumer		357,709		517		1,338		—		359,564

Total	$	2,850,728	$	30,874	$	46,775	$	99	$	2,928,476


December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303

Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

Schedule of Past Due Loans

At March 31, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):


March 31, 2016	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	3,338	$	1,228	$	1,498	$	6,064	$	663,461	$	669,525	$	42
Agricultural		320		—		—		320		87,170		87,490		—
Real Estate		10,979		1,560		3,684		16,223		2,133,909		2,150,132		—
Consumer		1,677		336		162		2,175		372,877		375,052		17

Total	$	16,314	$	3,124	$	5,344	$	24,782	$	3,257,417	$	3,282,199	$	59


March 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,514	$	283	$	208	$	5,005	$	646,718	$	651,723	$	—
Agricultural		485		35		—		520		90,090		90,610		—
Real Estate		13,077		1,116		1,368		15,561		1,811,018		1,826,579		144
Consumer		1,679		390		218		2,287		357,277		359,564		40

Total	$	19,755	$	1,824	$	1,794	$	23,373	$	2,905,103	$	2,928,476	$	184


December 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70

Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

*	The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due.

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table details the allowance for loan losses at March 31, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2016 and 2015, and December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,165	$	7	$	2,658	$	432	$	5,262
Loans collectively evaluated for impairment		10,740		1,248		23,441		3,381		38,810

Total	$	12,905	$	1,255	$	26,099	$	3,813	$	44,072


March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,079	$	55	$	2,617	$	109	$	3,860
Loans collectively evaluated for impairment		9,296		418		22,622		1,632		33,968

Total	$	10,375	$	473	$	25,239	$	1,741	$	37,828


December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loans collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806

Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):


Three months ended March 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		847			196			832			453			2,328
Recoveries		286			11			1,227			125			1,649
Charge-offs		(872	)		(143	)		(335	)		(432	)		(1,782	)


Ending balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072


Three months ended March 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		2,465			(32	)		(1,467	)		324			1,290
Recoveries		80			2			71			71			224
Charge-offs		(160	)		(24	)		(22	)		(304	)		(510	)


Ending balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828

Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology

The Company’s recorded investment in loans as of March 31, 2016 and 2015, and December 31, 2015 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $1,970,000, $2,037,000 and $2,178,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.


March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,392	$	19	$	18,473	$	1,291	$	27,175
Loans collectively evaluated for impairment		662,133		87,471		2,131,659		373,761		3,255,024

Total	$	669,525	$	87,490	$	2,150,132	$	375,052	$	3,282,199


March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,098	$	197	$	14,983	$	657	$	18,935
Loans collectively evaluated for impairment		648,625		90,413		1,811,596		358,907		2,909,541

Total	$	651,723	$	90,610	$	1,826,579	$	359,564	$	2,928,476


December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loans collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449

Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three months ended March 31, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):


	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		7	$	2,640	$	2,640		3	$	128	$	128
Agricultural		—		—		—		—		—		—
Real Estate		2		463		463		—		—		—
Consumer		2		20		20		1		24		24

Total		11	$	3,123	$	3,123		4	$	152	$	152

Schedule of How Loans Were Modified as Troubled Debt Restructured Loans

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three months ended March 31, 2016 and 2015 (in thousands):


	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	2,237	$	403	$	—	$	128	$	—
Agricultural		—		—		—		—		—		—
Real Estate		—		113		350		—		—		—
Consumer		—		4		16		—		—		24

Total	$	—	$	2,354	$	769	$	—	$	128	$	24

Schedule of Troubled Debt Restructurings

foreclosure and repossession of the applicable collateral. The loans with payment default are as follows (dollars in thousands):


	Three Months Ended March 31, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—

Total		1	$	111