Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans Held-for-Investment by Class of Financing Receivables

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

	September 30,				December 31,
	2016		2015		2015
Commercial	$	663,581	$	698,406	$	696,163
Agricultural		84,716		99,232		102,351
Real estate		2,191,260		2,088,002		2,136,233
Consumer		398,236		381,177		382,303
Total loans held-for-investment	$	3,337,793	$	3,266,817	$	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):

	September 30,				December 31,
	2016		2015		2015
Non-accrual loans*	$	33,712	$	21,788	$	28,601
Loans still accruing and past due 90 days or more		107		49		341
Troubled debt restructured loans**		750		204		199
Total	$	34,569	$	22,041	$	29,141

* Includes $1,853,000, $2,422,000 and $2,178,000 of purchased credit impaired loans as of September 30, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $7,513,000, $6,462,000 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 September 30, 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):

September 30, 2016				September 30, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	33,712	$	7,042	$	21,788	$	4,645	$	28,601	$	5,071

Schedule of Non-Accrual Loans

Non-accrual loans at September 30, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):

	September 30,				December 31,
	2016		2015		2015
Commercial	$	12,714	$	5,077	$	8,761
Agricultural		167		75		97
Real estate		19,582		16,124		18,766
Consumer		1,249		512		977
Total	$	33,712	$	21,788	$	28,601

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of September 30, 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.

September 30, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-Month Average Recorded Investment
Commercial	$	21,696	$	1,067	$	11,647	$	12,714	$	3,983	$	8,421	$	14,238
Agricultural		168		—		167		167		41		83		84
Real Estate		24,130		5,626		13,956		19,582		2,566		17,021		19,436
Consumer		1,479		324		925		1,249		452		989		1,166
Total	$	47,473	$	7,017	$	26,695	$	33,712	$	7,042	$	26,514	$	34,924

* Includes $1,853,000 of purchased credit impaired loans.

September 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	6,351	$	413	$	4,664	$	5,077	$	1,666	$	4,037	$	4,316
Agricultural		121		—		75		75		47		55		85
Real Estate		22,796		4,341		11,783		16,124		2,844		15,222		15,114
Consumer		698		343		169		512		88		441		511
Total	$	29,966	$	5,097	$	16,691	$	21,788	$	4,645	$	19,755	$	20,026

* Includes $2,422,000 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 September 30, 2016 and 2015, and December 31, 2015 (in thousands):

September 30, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	614,900	$	6,108	$	42,573	$	—	$	663,581
Agricultural		82,400		—		2,316		—		84,716
Real Estate		2,118,807		19,064		53,389		—		2,191,260
Consumer		395,086		316		2,832		2		398,236
Total	$	3,211,193	$	25,488	$	101,110	$	2	$	3,337,793
September 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	656,566	$	19,242	$	22,598	$	—	$	698,406
Agricultural		98,180		148		904		—		99,232
Real Estate		2,020,556		23,542		43,846		58		2,088,002
Consumer		379,397		352		1,424		4		381,177
Total	$	3,154,699	$	43,284	$	68,772	$	62	$	3,266,817

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 September 30, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):

September 30, 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	$	4,707	$	841	$	6,950	$	12,498	$	651,083	$	663,581	$	61
Agricultural		523		63		—		586		84,130		84,716		—
Real Estate		13,444		1,496		3,376		18,316		2,172,944		2,191,260		34
Consumer		1,418		314		180		1,912		396,324		398,236		12
Total	$	20,092	$	2,714	$	10,506	$	33,312	$	3,304,481	$	3,337,793	$	107

September 30, 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	$	11,554	$	1,043	$	202	$	12,799	$	685,607	$	698,406	$	—
Agricultural		169		28		33		230		99,002		99,232		—
Real Estate		19,392		1,267		2,328		22,987		2,065,015		2,088,002		21
Consumer		1,657		467		53		2,177		379,000		381,177		28
Total	$	32,772	$	2,805	$	2,616	$	38,193	$	3,228,624	$	3,266,817	$	49

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 September 30, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at September 30, 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.

September 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,983	$	41	$	2,566	$	452	$	7,042
Loans collectively evaluated for impairment		9,733		1,027		23,655		3,841		38,256
Total	$	13,716	$	1,068	$	26,221	$	4,293	$	45,298

September 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,666	$	47	$	2,844	$	88	$	4,645
Loans collectively evaluated for impairment		10,195		867		20,954		3,759		35,775
Total	$	11,861	$	914	$	23,798	$	3,847	$	40,420

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 and nine months ended September 30, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):

Three months ended September 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	14,026		$	1,451		$	25,644		$	3,939		$	45,060
Provision for loan losses		3,248			(358	)		296			647			3,833
Recoveries		298			4			367			108			777
Charge-offs		(3,856	)		(29	)		(86	)		(401	)		(4,372	)
Ending balance	$	13,716		$	1,068		$	26,221		$	4,293		$	45,298

Three months ended September 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999
Provision for loan losses		1,283			544			(369	)		1,206			2,664
Recoveries		52			—			65			117			234
Charge-offs		(930	)		(22	)		(240	)		(285	)		(1,477	)
Ending balance	$	11,861		$	914		$	23,798		$	3,847		$	40,420

Nine months ended September 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		6,239			41			367			1,572			8,219
Recoveries		839			20			1,957			427			3,243
Charge-offs		(6,006	)		(184	)		(478	)		(1,373	)		(8,041	)
Ending balance	$	13,716		$	1,068		$	26,221		$	4,293		$	45,298
Nine months ended September 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		5,072			486			(2,884	)		2,834			5,508
Recoveries		249			2			438			329			1,018
Charge-offs		(1,450	)		(101	)		(413	)		(966	)		(2,930	)
Ending balance	$	11,861		$	914		$	23,798		$	3,847		$	40,420

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 September 30, 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 $1,853,000, $2,422,000 and $2,178,000 at September 30, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.

September 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	12,714	$	167	$	19,582	$	1,249	$	33,712
Loans collectively evaluated for impairment		650,867		84,549		2,171,678		396,987		3,304,081
Total	$	663,581	$	84,716	$	2,191,260	$	398,236	$	3,337,793
September 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	5,077	$	75	$	16,124	$	512	$	21,788
Loans collectively evaluated for impairment		693,329		99,157		2,071,878		380,665		3,245,029
Total	$	698,406	$	99,232	$	2,088,002	$	381,177	$	3,266,817
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 and nine months ended September 30, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		3	$	230	$	230		14	$	3,156	$	3,156
Agricultural		—		—		—		—		—		—
Real Estate		3		706		706		5		1,169		1,169
Consumer		1		44		44		5		162		162
Total		7	$	980	$	980		24	$	4,487	$	4,487

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		1	$	66	$	66		3	$	139	$	139
Agricultural		—		—		—		3		129		129
Real Estate		1		149		149		2		228		228
Consumer		2		32		32		5		60		60
Total		4	$	247	$	247		13	$	556	$	556

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 and nine months ended September 30, 2016 and 2015 (in thousands):

	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	112	$	118		—	$	2,561	$	595
Agricultural		—		—		—		—		—		—
Real Estate		—		185		521		—		298		871
Consumer		—		—		44		—		43		119
Total	$	—	$	297	$	683		—	$	2,902	$	1,585
	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	66	$	—	$	—	$	139	$	—
Agricultural		—		—		—		—		129		—
Real Estate		—		149		—		—		149		79
Consumer		—		32		—		—		36		24
Total	$	—	$	247	$	—	$	—	$	453	$	103

Schedule of Troubled Debt Restructurings

The loans with payment default are as follows (dollars in thousands):

	Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
	Number		Balance		Number		Balance
Commercial		1	$	62		1	$	62
Agriculture		—		—		—		—
Real Estate		1		112		2		462
Consumer		—		—		—		—
Total		2	$	174		3	$	524

	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Number		Balance		Number		Balance
Commercial		—	$	—		1	$	111
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		—		—		—		—
Total		—	$	—		1	$	111