Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

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):

	June 30,				December 31,
	2017		2016		2016
Commercial	$	668,049	$	661,659	$	674,410
Agricultural		77,342		80,812		84,021
Real estate		2,271,100		2,154,388		2,189,844
Consumer		422,861		386,796		409,032
Total loans held-for-investment	$	3,439,352	$	3,283,655	$	3,357,307

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):

	June 30,				December 31,
	2017		2016		2016
Non-accrual loans*	$	21,489	$	38,904	$	27,371
Loans still accruing and past due 90 days or more		314		237		284
Troubled debt restructured loans**		672		961		701
Total	$	22,475	$	40,102	$	28,356

*Includes $889,000, $1,654,000 and $1,256,000 of purchased credit impaired loans as of June 30, 2017 and 2016, and December 31, 2016, respectively.

**Troubled debt restructured loans of $5,417,000, $7,454,000 and $6,863,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2017 and 2016, and December 31, 2016, 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):

June 30, 2017		June 30, 2016		December 31, 2016
Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance
$21,489	$4,543	$38,904	$7,102	$27,371	$5,012

Schedule of Non-Accrual Loans

Non-accrual loans at June 30, 2017 and 2016, and December 31, 2016, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2017		2016		2016
Commercial	$	5,404	$	17,254	$	7,284
Agricultural		61		20		99
Real estate		14,801		20,435		18,754
Consumer		1,223		1,195		1,234
Total	$	21,489	$	38,904	$	27,371

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of June 30, 2017 and 2016, and December 31, 2016, 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.

June 30, 2017	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	$	9,362	$	708	$	4,696	$	5,404	$	1,683	$	13,590	$	7,985
Agricultural		66		—		61		61		17		69		66
Real Estate		19,071		3,755		11,046		14,801		2,369		17,769		15,473
Consumer		1,432		309		914		1,223		474		1,457		1,294
Total	$	29,931	$	4,772	$	16,717	$	21,489	$	4,543	$	32,885	$	24,818

*Includes $889,000 of purchased credit impaired loans.

June 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	$	19,571	$	1,103	$	16,151	$	17,254	$	4,144	$	16,970	$	17,319
Agricultural		20		—		20		20		20		22		21
Real Estate		25,241		7,427		13,008		20,435		2,565		20,856		21,227
Consumer		1,375		254		941		1,195		373		1,148		1,288
Total	$	46,207	$	8,784	$	30,120	$	38,904	$	7,102	$	38,996	$	39,855

*Includes $1,654,000 of purchased credit impaired loans.

December 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	13,389	$	1,148	$	6,136	$	7,284	$	2,128	$	4,921
Agricultural		103		—		99		99		25		50
Real Estate		23,466		6,229		12,525		18,754		2,428		16,170
Consumer		1,421		280		954		1,234		431		914
Total	$	38,379	$	7,657	$	19,714	$	27,371	$	5,012	$	22,055

*Includes $1,256,000 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 June 30, 2017 and 2016, and December 31, 2016 (in thousands):

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	627,812	$	5,965	$	34,272	$	—	$	668,049
Agricultural		73,727		859		2,756		—		77,342
Real Estate		2,200,067		20,978		50,055		—		2,271,100
Consumer		420,138		197		2,526		—		422,861
Total	$	3,321,744	$	27,999	$	89,609	$	—	$	3,439,352
June 30, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	608,758	$	5,027	$	47,874	$	—	$	661,659
Agricultural		77,870		—		2,942		—		80,812
Real Estate		2,080,544		20,852		52,992		—		2,154,388
Consumer		383,818		246		2,732		—		386,796
Total	$	3,150,990	$	26,125	$	106,540	$	—	$	3,283,655

December 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	629,756	$	5,769	$	38,885	$	—	$	674,410
Agricultural		81,620		715		1,686		—		84,021
Real Estate		2,111,947		18,091		59,806		—		2,189,844
Consumer		406,182		212		2,638		—		409,032
Total	$	3,229,505	$	24,787	$	103,015	$	—	$	3,357,307

Schedule of Past Due Loans

At June 30, 2017 and 2016, and December 31, 2016, the Company’s past due loans are as follows (in thousands):

June 30, 2017	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	$	3,026	$	872	$	2,673	$	6,571	$	661,478	$	668,049	$	150
Agricultural		633		—		8		641		76,701		77,342		8
Real Estate		12,794		1,713		4,661		19,168		2,251,932		2,271,100		99
Consumer		1,134		414		99		1,647		421,214		422,861		57
Total	$	17,587	$	2,999	$	7,441	$	28,027	$	3,411,325	$	3,439,352	$	314
June 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	$	13,948	$	1,032	$	937	$	15,917	$	645,742	$	661,659	$	—
Agricultural		350		2		—		352		80,460		80,812		—
Real Estate		14,640		984		3,784		19,408		2,134,980		2,154,388		187
Consumer		1,786		262		182		2,230		384,566		386,796		50
Total	$	30,724	$	2,280	$	4,903	$	37,907	$	3,245,748	$	3,283,655	$	237
December 31, 2016	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	$	3,908	$	1,122	$	2,220	$	7,250	$	667,160	$	674,410	$	10
Agricultural		185		—		—		185		83,836		84,021		—
Real Estate		13,172		1,301		5,268		19,741		2,170,103		2,189,844		272
Consumer		1,845		368		122		2,335		406,697		409,032		2
Total	$	19,110	$	2,791	$	7,610	$	29,511	$	3,327,796	$	3,357,307	$	284

*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 June 30, 2017 and 2016, and December 31, 2016, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2017 and 2016, and December 31, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,683	$	17	$	2,369	$	474	$	4,543
Loans collectively evaluated for impairment		10,252		1,110		25,654		5,851		42,867
Total	$	11,935	$	1,127	$	28,023	$	6,325	$	47,410
June 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	4,144	$	20	$	2,565	$	373	$	7,102
Loans collectively evaluated for impairment		9,882		1,431		23,079		3,566		37,958
Total	$	14,026	$	1,451	$	25,644	$	3,939	$	45,060
December 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,128	$	25	$	2,428	$	431	$	5,012
Loans collectively evaluated for impairment		9,579		1,076		24,436		5,676		40,767
Total	$	11,707	$	1,101	$	26,864	$	6,107	$	45,779

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three and six months ended June 30, 2017 and 2016, are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,682		$	946		$	27,279		$	6,285		$	46,192
Provision for loan losses		(76	)		207			1,359			235			1,725
Recoveries		522			2			39			104			667
Charge-offs		(193	)		(28	)		(654	)		(299	)		(1,174	)
Ending balance	$	11,935		$	1,127		$	28,023		$	6,325		$	47,410
Three months ended June 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072
Provision for loan losses		2,142			203			(760	)		473			2,058
Recoveries		255			5			363			195			818
Charge-offs		(1,276	)		(12	)		(58	)		(542	)		(1,888	)
Ending balance	$	14,026		$	1,451		$	25,644		$	3,939		$	45,060
Six months ended June 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,707		$	1,101		$	26,864		$	6,107		$	45,779
Provision for loan losses		927			54			2,132			562			3,675
Recoveries		749			8			91			309			1,157
Charge-offs		(1,448	)		(36	)		(1,064	)		(653	)		(3,201	)
Ending balance	$	11,935		$	1,127		$	28,023		$	6,325		$	47,410

Six months ended June 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		2,989			400			71			926			4,386
Recoveries		542			15			1,590			319			2,466
Charge-offs		(2,149	)		(155	)		(392	)		(973	)		(3,669	)
Ending balance	$	14,026		$	1,451		$	25,644		$	3,939		$	45,060

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 June 30, 2017 and 2016, and December 31, 2016 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 $889,000, $1,654,000 and $1,256,000 at June 30, 2017 and 2016, and December 31, 2016, respectively, are included in loans individually evaluated for impairment.

June 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	5,404	$	61	$	14,801	$	1,223	$	21,489
Loans collectively evaluated for impairment		662,645		77,281		2,256,299		421,638		3,417,863
Total	$	668,049	$	77,342	$	2,271,100	$	422,861	$	3,439,352
June 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	17,254	$	20	$	20,435	$	1,195	$	38,904
Loans collectively evaluated for impairment		644,405		80,792		2,133,953		385,601		3,244,751
Total	$	661,659	$	80,812	$	2,154,388	$	386,796	$	3,283,655
December 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,284	$	99	$	18,754	$	1,234	$	27,371
Loan collectively evaluated for impairment		667,126		83,922		2,171,090		407,798		3,329,936
Total	$	674,410	$	84,021	$	2,189,844	$	409,032	$	3,357,307

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three and six months ended June 30, 2017 and 2016 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		2	$	90	$	90		6	$	324	$	324
Agricultural		—		—		—		—		—		—
Real Estate		1		161		161		2		217		217
Consumer		1		25		25		1		25		25
Total		4	$	276	$	276		9	$	566	$	566

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		4	$	286	$	286		11	$	2,926	$	2,926
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		2		463		463
Consumer		2		98		98		4		118		118
Total		6	$	384	$	384		17	$	3,507	$	3,507

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 six months ended June 30, 2017 and 2016 (in thousands):

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	90	$	—	$	—	$	180	$	144
Agricultural		—		—		—		—		—		—
Real Estate		—		—		161		—		56		161
Consumer		—		25		—		—		25		—
Total	$	—	$	115	$	161	$	—	$	261	$	305
	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	212	$	74	$	—	$	2,449	$	477
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		—		113		350
Consumer		—		39		59		—		43		75
Total	$	—	$	251	$	133	$	—	$	2,605	$	902

Schedule of Troubled Debt Restructurings

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

	Six Months Ended June 30, 2017
	Number		Balance
Commercial		1	$	53
Agriculture		—		—
Real Estate		1		63
Consumer		—		—
Total		2	$	116

	Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		1		350		1		350
Consumer		—		—		—		—
Total		1	$	350		1	$	350