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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2013
Receivables [Abstract]  
Summary of Loans
Loans are stated at the principal amount outstanding net of unearned discounts, unearned income and allowance for loan losses.  Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method.  Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at March 31, 2013 and December 31, 2012 follows (in thousands):

 
March 31,
2013
 
December 31,
2012
Construction and land development
$
25,522

 
$
31,341

Agricultural real estate
94,152

 
86,256

1-4 Family residential properties
183,661

 
186,205

Multifamily residential properties
45,328

 
44,863

Commercial real estate
331,729

 
317,321

Loans secured by real estate
680,392

 
665,986

Agricultural loans
44,106

 
60,948

Commercial and industrial loans
154,032

 
160,193

Consumer loans
15,538

 
16,264

All other loans
8,705

 
8,206

Gross loans
902,773

 
911,597

Less:
 

 
 

Net deferred loan fees, premiums and discounts
626

 
744

Allowance for loan losses
11,984

 
11,776

Net loans
$
890,163

 
$
899,077
Allowance for Loan Losses and Recorded Investment in Loans
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three-months ended March 31, 2013 and 2012 and for the year ended December 31, 2012 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential 
Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
9,301

 
$
558

 
$
726

 
$
403

 
$
788

 
$
11,776

Provision charged to expense
244

 
(142
)
 
52

 
29

 
297

 
480

Losses charged off
(269
)
 
—

 
(67
)
 
(46
)
 
—

 
(382
)
Recoveries
65

 
1

 
8

 
36

 
—

 
110

Balance, end of period
$
9,341

 
$
417

 
$
719

 
$
422

 
$
1,085

 
$
11,984

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
569

 
$
9

 
$
—

 
$
—

 
$
—

 
$
578

Collectively evaluated for impairment
$
8,772

 
$
408

 
$
719

 
$
422

 
$
1,085

 
$
11,406

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
561,523

 
$
138,252

 
$
187,651

 
$
15,539

 
$
—

 
$
902,965

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,873

 
$
1,110

 
$
—

 
$
—

 
$
—

 
$
6,983

Collectively evaluated for impairment
$
555,650

 
$
137,142

 
$
187,651

 
$
15,539

 
$
—

 
$
895,982

 

 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
8,791

 
$
546

 
$
636

 
$
378

 
$
769

 
$
11,120

Provision charged to expense
295

 
24

 
223

 
25

 
48

 
615

Losses charged off
(303
)
 
—

 
(161
)
 
(48
)
 
—

 
(512
)
Recoveries
27

 
—

 
12

 
31

 
—

 
70

Balance, end of period
$
8,810

 
$
570

 
$
710

 
$
386

 
$
817

 
$
11,293

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
841

 
$
—

 
$
—

 
$
—

 
$
—

 
$
841

Collectively evaluated for impairment
$
7,969

 
$
570

 
$
710

 
$
386

 
$
817

 
$
10,452

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
494,964

 
$
122,002

 
$
185,507

 
$
15,694

 
$
22,668

 
$
840,835

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,029

 
$
1,149

 
$
—

 
$
—

 
$
—

 
$
6,178

Collectively evaluated for impairment
$
489,935

 
$
120,853

 
$
185,507

 
$
15,694

 
$
22,668

 
$
834,657

Year ended December 31, 2012
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
8,791

 
$
546

 
$
636

 
$
378

 
$
769

 
$
11,120

Provision charged to expense
1,979

 
(47
)
 
580

 
116

 
19

 
2,647

Losses charged off
(1,586
)
 
(12
)
 
(524
)
 
(249
)
 
—

 
(2,371
)
Recoveries
117

 
71

 
34

 
158

 
—

 
380

Balance, end of year
$
9,301

 
$
558

 
$
726

 
$
403

 
$
788

 
$
11,776

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
457

 
$
54

 
$
—

 
$
—

 
$
—

 
$
511

Collectively evaluated for impairment
$
8,844

 
$
504

 
$
726

 
$
403

 
$
788

 
$
11,265

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
569,717

 
$
145,695

 
$
179,309

 
$
16,066

 
$
278

 
$
911,065

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,334

 
$
1,230

 
$
—

 
$
—

 
$
—

 
$
6,564

Collectively evaluated for impairment
$
564,383

 
$
144,465

 
$
179,309

 
$
16,066

 
$
278

 
$
904,501
Credit Risk Profile of the Company's Loan Portfolio
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of March 31, 2013 and December 31, 2012 (in thousands):

 
Construction &
Land Development
 
Agricultural real estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Pass
$
21,598

 
$
27,217

 
$
90,848

 
$
82,516

 
$
182,310

 
$
183,880

 
$
45,328

 
$
44,863

Watch
2,116

 
2,135

 
2,649

 
2,662

 
418

 
424

 
—

 
—

Substandard
1,808

 
1,989

 
673

 
1,093

 
1,832

 
2,194

 
—

 
—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
25,522

 
$
31,341

 
$
94,170

 
$
86,271

 
$
184,560

 
$
186,498

 
$
45,328

 
$
44,863


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Pass
$
304,367

 
$
287,794

 
$
41,203

 
$
56,899

 
$
151,183

 
$
157,461

 
$
15,457

 
$
16,236

Watch
22,895

 
24,213

 
1,370

 
958

 
1,672

 
1,588

 
—

 
14

Substandard
3,562

 
4,315

 
1,607

 
3,157

 
1,295

 
1,250

 
81

 
14

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
330,824

 
$
316,322

 
$
44,180

 
$
61,014

 
$
154,150

 
$
160,299

 
$
15,538

 
$
16,264


 
All Other Loans
 
Total Loans
 
2013
 
2012
 
2013
 
2012
Pass
$
8,693

 
$
8,193

 
$
860,987

 
$
865,059

Watch
—

 
—

 
31,120

 
31,994

Substandard
—

 
—

 
10,858

 
14,012

Doubtful
—

 
—

 
—

 
—

Total
$
8,693

 
$
8,193

 
$
902,965

 
$
911,065
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at March 31, 2013 and December 31, 2012 (in thousands): 
 
30-59 days Past Due
 
60-89 days Past Due
 
90 Days
or More Past Due
 
Total
Past Due
 
Current
 
Total Loans Receivable
 
Total Loans > 90 days & Accruing
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
13

 
$
—

 
$
13

 
$
25,509

 
$
25,522

 
$
—

Agricultural real estate
22

 
110

 
397

 
529

 
93,641

 
94,170

 
—

1-4 Family residential properties
658

 
165

 
988

 
1,811

 
182,749

 
184,560

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
45,328

 
45,328

 
—

Commercial real estate
414

 
83

 
61

 
558

 
330,266

 
330,824

 
—

Loans secured by real estate
1,094

 
371

 
1,446

 
2,911

 
677,493

 
680,404

 
—

Agricultural loans
352

 
—

 
406

 
758

 
43,422

 
44,180

 
—

Commercial and industrial loans
932

 
306

 
85

 
1,323

 
152,827

 
154,150

 
—

Consumer loans
58

 
32

 
36

 
126

 
15,412

 
15,538

 
—

All other loans
—

 
—

 
—

 
—

 
8,693

 
8,693

 
—

Total loans
$
2,436

 
$
709

 
$
1,973

 
$
5,118

 
$
897,847

 
$
902,965

 
$
—

December 31, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
53

 
$
—

 
$
53

 
$
31,288

 
$
31,341

 
$
—

Agricultural real estate
592

 
—

 
293

 
885

 
85,386

 
86,271

 
—

1-4 Family residential properties
1,351

 
40

 
944

 
2,335

 
184,163

 
186,498

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
44,863

 
44,863

 
—

Commercial real estate
262

 
911

 
255

 
1,428

 
314,894

 
316,322

 
—

Loans secured by real estate
2,205

 
1,004

 
1,492

 
4,701

 
660,594

 
665,295

 
—

Agricultural loans
—

 
—

 
620

 
620

 
60,394

 
61,014

 
—

Commercial and industrial loans
413

 
275

 
53

 
741

 
159,558

 
160,299

 
—

Consumer loans
119

 
24

 
39

 
182

 
16,082

 
16,264

 
—

All other loans
—

 
—

 
—

 
—

 
8,193

 
8,193

 
—

Total loans
$
2,737

 
$
1,303

 
$
2,204

 
$
6,244

 
$
904,821

 
$
911,065

 
$
—
Impaired Loans
The following tables present impaired loans as of March 31, 2013 and December 31, 2012 (in thousands):

 
March 31, 2013
 
December 31, 2012
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
1,451

 
$
2,152

 
$
189

 
$
1,114

 
$
1,529

 
$
295

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
593

 
809

 
131

 
636

 
723

 
162

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
893

 
893

 
96

 
—

 
—

 
—

Loans secured by real estate
2,937

 
3,854

 
416

 
1,750

 
2,252

 
457

Agricultural loans
204

 
204

 
9

 
310

 
310

 
54

Commercial and industrial loans
824

 
824

 
152

 
—

 
—

 
—

Consumer loans
13

 
13

 
1

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,978

 
$
4,895

 
$
578

 
$
2,060

 
$
2,562

 
$
511

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
8

 
$
—

 
$
408

 
$
694

 
$
—

Agricultural real estate
519

 
529

 
—

 
418

 
429

 
—

1-4 Family residential properties
1,210

 
1,640

 
—

 
1,269

 
1,792

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
1,499

 
1,585

 
—

 
2,063

 
2,253

 
—

Loans secured by real estate
3,228

 
3,762

 
—

 
4,158

 
5,168

 
—

Agricultural loans
503

 
503

 
—

 
620

 
1,568

 
—

Commercial and industrial loans
495

 
772

 
—

 
704

 
—

 
—

Consumer loans
57

 
63

 
—

 
51

 
58

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,283

 
$
5,100

 
$
—

 
$
5,533

 
$
6,794

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
1,451

 
$
2,160

 
$
189

 
$
1,522

 
$
2,223

 
$
295

Agricultural real estate
519

 
529

 
—

 
418

 
429

 
—

1-4 Family residential properties
1,803

 
2,449

 
131

 
1,905

 
2,515

 
162

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
2,392

 
2,478

 
96

 
2,063

 
2,253

 
—

Loans secured by real estate
6,165

 
7,616

 
416

 
5,908

 
7,420

 
457

Agricultural loans
707

 
707

 
9

 
930

 
1,878

 
54

Commercial and industrial loans
1,319

 
1,596

 
152

 
704

 
—

 
—

Consumer loans
70

 
76

 
1

 
51

 
58

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
8,261

 
$
9,995

 
$
578

 
$
7,593

 
$
9,356

 
$
511
Impaired loans by portfolio class
The following tables present average recorded investment and interest income recognized on impaired loans for the three- month periods ended March 31, 2013 and 2012 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
March 31, 2013
 
March 31, 2012
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
1,477

 
$
—

 
$
1,035

 
$
—

Agricultural real estate
519

 
—

 
530

 
—

1-4 Family residential properties
1,817

 
1

 
2,023

 
—

Multifamily residential properties
—

 
—

 
—

 
—

Commercial real estate
2,435

 
—

 
2,508

 
8

Loans secured by real estate
6,248

 
1

 
6,096

 
8

Agricultural loans
798

 
—

 
673

 
—

Commercial and industrial loans
1,366

 
—

 
953

 
3

Consumer loans
71

 
—

 
21

 
—

All other loans
—

 
—

 
—

 
—

Total loans
$
8,483

 
$
1

 
$
7,743

 
$
11
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as March 31, 2013 and December 31, 2012 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.

 
March 31,
2013
 
December 31,
2012
Construction and land development
$
1,451

 
$
1,522

Agricultural real estate
519

 
418

1-4 Family residential properties
1,724

 
1,899

Multifamily residential properties
—

 
—

Commercial real estate
2,392

 
2,063

Loans secured by real estate
6,086

 
5,902

Agricultural loans
707

 
930

Commercial and industrial loans
1,319

 
704

Consumer loans
48

 
37

All other loans
—

 
—

Total loans
$
8,160

 
$
7,573
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at March 31, 2013 and December 31, 2012 (in thousands).

Troubled debt restructurings:
March 31,
2013
 
December 31,
2012
Construction and land development
$
1,451

 
$
1,522

1-4 Family residential properties
503

 
445

Commercial real estate
913

 
950

Loans secured by real estate
2,867

 
2,917

Commercial and industrial loans
407

 
408

Consumer Loans
13

 
14

Total
$
3,287

 
$
3,339

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
79

 
$
6

Commercial real estate
—

 
—

Loans secured by real estate
79

 
6

Commercial and industrial loans
9

 
—

Consumer Loans
13

 
14

Total
$
101

 
$
20
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the three months ended March 31, 2013 and 2012, as a result of various modified loan factors (in thousands):

 
March 31, 2013
 
March 31, 2012
 
Number of Modifications
 
Recorded Investment
 
Number of Modifications
 
Recorded Investment
Construction and land development
—

 
$
—

 
—

 
$
—

1-4 Family residential properties
2

 
73

 
—

 
—

Commercial real estate
—

 
—

 
5

 
302

Loans secured by real estate
2

 
73

 
5

 
302

Commercial and industrial loans
1

 
9

 
—

 
—

Consumer Loans
—

 
—

 
—

 
—

Total
3

 
$
82

 
5

 
$
302