Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 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):    

	September 30,				December 31,
	2017		2016		2016
Commercial	$	674,947	$	663,581	$	674,410
Agricultural		83,005		84,716		84,021
Real estate		2,297,556		2,191,260		2,189,844
Consumer		416,719		398,236		409,032
Total loans held-for-investment	$	3,472,227	$	3,337,793	$	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):

	September 30,				December 31,
	2017		2016		2016
Non-accrual loans*	$	18,750	$	33,712	$	27,371
Loans still accruing and past due 90 days or more		257		107		284
Troubled debt restructured loans**		668		750		701
Total	$	19,675	$	34,569	$	28,356

*Includes $736,000, $1,853,000 and $1,256,000 of purchased credit impaired loans as of September 30, 2017 and 2016, and December 31, 2016, respectively.

**Troubled debt restructured loans of $5,277,000, $7,513,000 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 September 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):

September 30, 2017		September 30, 2016		December 31, 2016
Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance
$18,750	$4,177	$33,712	$7,042	$27,371	$5,012

Schedule of Non-Accrual Loans

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

	September 30,				December 31,
	2017		2016		2016
Commercial	$	4,133	$	12,714	$	7,284
Agricultural		60		167		99
Real estate		13,386		19,582		18,754
Consumer		1,171		1,249		1,234
Total	$	18,750	$	33,712	$	27,371

Schedule of Impaired Loans and Related Allowance

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

September 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	$	10,989	$	617	$	3,516	$	4,133	$	1,671	$	7,313	$	5,866
Agricultural		66		—		60		60		17		66		60
Real Estate		17,306		3,742		9,644		13,386		1,984		14,279		13,829
Consumer		1,388		262		909		1,171		505		1,341		1,238
Total	$	29,749	$	4,621	$	14,129	$	18,750	$	4,177	$	22,999	$	20,993

*Includes $736,000 of purchased credit impaired loans.

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.

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 September 30, 2017 and 2016, and December 31, 2016 (in thousands):

September 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	632,693	$	7,997	$	34,257	$	—	$	674,947
Agricultural		79,227		841		2,937		—		83,005
Real Estate		2,224,970		26,231		46,355		—		2,297,556
Consumer		414,043		168		2,508		—		416,719
Total	$	3,350,933	$	35,237	$	86,057	$	—	$	3,472,227
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
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 September 30, 2017 and 2016, and December 31, 2016, the Company’s past due loans are as follows (in thousands):

September 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	$	3,288	$	585	$	1,495	$	5,368	$	669,579	$	674,947	$	212
Agricultural		322		—		—		322		82,683		83,005		—
Real Estate		12,636		984		2,293		15,913		2,281,643		2,297,556		—
Consumer		1,211		457		176		1,844		414,875		416,719		45
Total	$	17,457	$	2,026	$	3,964	$	23,447	$	3,448,780	$	3,472,227	$	257
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
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 September 30, 2017 and 2016, and December 31, 2016, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at September 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.

September 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,671	$	17	$	1,984	$	505	$	4,177
Loans collectively evaluated for impairment		10,201		1,284		26,484		5,776		43,745
Total	$	11,872	$	1,301	$	28,468	$	6,281	$	47,922
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

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 nine months ended September 30, 2017 and 2016, are summarized as follows by portfolio segment (in thousands):

Three months ended September 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,935		$	1,127		$	28,023		$	6,325		$	47,410
Provision for loan losses		557			157			424			277			1,415
Recoveries		119			17			50			91			277
Charge-offs		(739	)		—			(29	)		(412	)		(1,180	)
Ending balance	$	11,872		$	1,301		$	28,468		$	6,281		$	47,922
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
Nine months ended September 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,707		$	1,101		$	26,864		$	6,107		$	45,779
Provision for loan losses		1,485			211			2,556			838			5,090
Recoveries		868			25			141			400			1,434
Charge-offs		(2,188	)		(36	)		(1,093	)		(1,064	)		(4,381	)
Ending balance	$	11,872		$	1,301		$	28,468		$	6,281		$	47,922
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

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, 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 $736,000, $1,853,000 and $1,256,000 at September 30, 2017 and 2016, and December 31, 2016, respectively, are included in loans individually evaluated for impairment.

September 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	4,133	$	60	$	13,386	$	1,171	$	18,750
Loans collectively evaluated for impairment		670,814		82,945		2,284,170		415,548		3,453,477
Total	$	674,947	$	83,005	$	2,297,556	$	416,719	$	3,472,227
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
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 nine months ended September 30, 2017 and 2016 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended September 30, 2017						Nine Months Ended September 30, 2017
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		3	$	514	$	514		9	$	838	$	838
Agricultural		—		—		—		—		—		—
Real Estate		1		256		256		3		473		473
Consumer		—		—		—		1		25		25
Total		4	$	770	$	770		13	$	1,336	$	1,336
	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded 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

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, 2017 and 2016 (in thousands):

	Three Months Ended September 30, 2017						Nine Months Ended September 30, 2017
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	—	$	514		—	$	181	$	657
Agricultural		—		—		—		—		—		—
Real Estate		—		256		—		—		312		161
Consumer		—		—		—		—		25		—
Total	$	—	$	256	$	514		—	$	518	$	818
	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

Schedule of Troubled Debt Restructurings

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

	Three Months Ended September 30, 2017				Nine Months Ended September 30, 2017
	Number		Balance		Number		Balance
Commercial		2	$	88		3	$	141
Agriculture		—		—		—		—
Real Estate		—		—		1		62
Consumer		—		—		—		—
Total		2	$	88		4	$	203
	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