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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2016
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 June 30, 2016 and December 31, 2015 follows (in thousands):
 
June 30,
2016
 
December 31,
2015
Construction and land development
$
33,820

 
$
39,232

Agricultural real estate
122,384

 
122,579

1-4 Family residential properties
219,817

 
231,383

Multifamily residential properties
47,243

 
45,765

Commercial real estate
446,356

 
409,487

Loans secured by real estate
869,620

 
848,446

Agricultural loans
72,855

 
75,998

Commercial and industrial loans
301,873

 
305,851

Consumer loans
38,448

 
42,097

All other loans
33,719

 
11,317

Gross loans
1,316,515

 
1,283,709

Less:
 

 
 

Net deferred loan fees, premiums and discounts
2,674

 
2,788

Allowance for loan losses
15,164

 
14,576

Net loans
$
1,298,677

 
$
1,266,345
Allowance for Loan Losses and Recorded Investment in Loans
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 and six-months ended June 30, 2016 and 2015 and for the year ended December 31, 2015 (in thousands):
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
11,789

 
$
1,270

 
$
926

 
$
710

 
$
41

 
$
14,736

Provision charged to expense
388

 
179

 
56

 
88

 
22

 
733

Losses charged off
(572
)
 
—

 
(58
)
 
(109
)
 
—

 
(739
)
Recoveries
390

 
—

 
—

 
44

 
—

 
434

Balance, end of period
$
11,995

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
15,164

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
297

 
$
—

 
$
—

 
$
—

 
$
—

 
$
297

Collectively evaluated for impairment
$
11,698

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
14,867

Three months ended June 30, 2015
 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
11,459

 
$
1,291

 
$
753

 
$
386

 
$
217

 
$
14,106

Provision charged to expense
(123
)
 
20

 
(7
)
 
258

 
(5
)
 
143

Losses charged off
(62
)
 
—

 
(15
)
 
(304
)
 
—

 
(381
)
Recoveries
20

 
1

 
—

 
42

 
—

 
63

Balance, end of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
537

 
$
—

 
$
—

 
$
—

 
$
—

 
$
537

Collectively evaluated for impairment
$
10,757

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,394

Six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
11,379

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,576

Provision charged to expense
613

 
111

 
72

 
211

 
(161
)
 
846

Losses charged off
(612
)
 
—

 
(142
)
 
(222
)
 
—

 
(976
)
Recoveries
615

 
1

 
—

 
102

 
—

 
718

Balance, end of period
$
11,995

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
15,164

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
297

 
$
—

 
$
—

 
$
—

 
$
—

 
$
297

Collectively evaluated for impairment
$
11,698

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
14,867

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
857,150

 
$
194,814

 
$
221,546

 
$
41,677

 
$
—

 
$
1,315,187

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,555

 
$
430

 
$
—

 
$
21

 
$
—

 
$
2,006

Collectively evaluated for impairment
$
855,595

 
$
194,384

 
$
221,546

 
$
41,656

 
$
—

 
$
1,313,181

 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Six months ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
235

 
(49
)
 
(20
)
 
262

 
(20
)
 
408

Losses charged off
(71
)
 
—

 
(40
)
 
(360
)
 
—

 
(471
)
Recoveries
216

 
1

 
1

 
94

 
—

 
312

Balance, end of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
537

 
$
—

 
$
—

 
$
—

 
$
—

 
$
537

Collectively evaluated for impairment
$
10,757

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,394

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
696,596

 
$
171,376

 
$
175,680

 
$
15,451

 
$
—

 
$
1,059,103

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,766

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,766

Collectively evaluated for impairment
$
694,830

 
$
171,376

 
$
175,680

 
$
15,451

 
$
—

 
$
1,057,337

Year ended December 31, 2015
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
10,914

 
1,360

 
790

 
386

 
232

 
13,682

Provision charged to expense
451

 
(25
)
 
267

 
633

 
(8
)
 
1,318

Losses charged off
(289
)
 
—

 
(64
)
 
(553
)
 
—

 
(906
)
Recoveries
303

 
2

 
1

 
176

 
—

 
482

Balance, end of year
11,379

 
1,337

 
994

 
642

 
224

 
14,576

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
134

 
$
—

 
$
—

 
$
—

 
$
—

 
$
134

Collectively evaluated for impairment
$
11,245

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,442

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
807,736

 
$
198,066

 
$
232,348

 
$
43,739

 
$
—

 
$
1,281,889

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
744

 
$
430

 
$
—

 
$
—

 
$
—

 
$
1,174

Collectively evaluated for impairment
$
806,992

 
$
197,636

 
$
232,348

 
$
43,739

 
$
—

 
$
1,280,715
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 June 30, 2016 and December 31, 2015 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Pass
$
33,578

 
$
39,067

 
$
114,113

 
$
118,103

 
$
213,926

 
$
224,552

 
$
46,671

 
$
45,180

Watch
—

 
—

 
6,017

 
2,282

 
1,059

 
1,454

 
240

 
243

Substandard
234

 
142

 
2,181

 
2,089

 
5,502

 
5,565

 
304

 
317

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
33,812

 
$
39,209

 
$
122,311

 
$
122,474

 
$
220,487

 
$
231,571

 
$
47,215

 
$
45,740


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Pass
$
424,934

 
$
386,769

 
$
70,878

 
$
75,437

 
$
295,484

 
$
298,633

 
$
37,696

 
$
41,278

Watch
9,565

 
10,498

 
1,849

 
210

 
3,695

 
4,686

 
19

 
—

Substandard
11,333

 
11,905

 
49

 
239

 
1,908

 
1,741

 
334

 
301

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
445,832

 
$
409,172

 
$
72,776

 
$
75,886

 
$
301,087

 
$
305,060

 
$
38,049

 
$
41,579


 
All Other Loans
 
Total Loans
 
2016
 
2015
 
2016
 
2015
Pass
$
33,618

 
$
11,198

 
$
1,270,898

 
$
1,240,217

Watch
—

 
—

 
22,444

 
19,373

Substandard
—

 
—

 
21,845

 
22,299

Doubtful
—

 
—

 
—

 
—

Total
$
33,618

 
$
11,198

 
$
1,315,187

 
$
1,281,889
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at June 30, 2016 and December 31, 2015 (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
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
189

 
$
—

 
$
189

 
$
33,623

 
$
33,812

 
$
—

Agricultural real estate
131

 
430

 
—

 
561

 
121,750

 
122,311

 
—

1-4 Family residential properties
371

 
554

 
225

 
1,150

 
219,337

 
220,487

 
—

Multifamily residential properties
240

 
—

 
—

 
240

 
46,975

 
47,215

 
—

Commercial real estate
52

 
—

 
469

 
521

 
445,311

 
445,832

 
—

Loans secured by real estate
794

 
1,173

 
694

 
2,661

 
866,996

 
869,657

 
—

Agricultural loans
20

 
—

 
—

 
20

 
72,756

 
72,776

 
—

Commercial and industrial loans
108

 
114

 
282

 
504

 
300,583

 
301,087

 
—

Consumer loans
52

 
7

 
1

 
60

 
37,989

 
38,049

 
—

All other loans
437

 
—

 
10

 
447

 
33,171

 
33,618

 
—

Total loans
$
1,411

 
$
1,294

 
$
987

 
$
3,692

 
$
1,311,495

 
$
1,315,187

 
$
—

December 31, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
39,209

 
$
39,209

 
$
—

Agricultural real estate
106

 
—

 
—

 
106

 
122,368

 
122,474

 
—

1-4 Family residential properties
1,059

 
742

 
154

 
1,955

 
229,616

 
231,571

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
45,740

 
45,740

 
—

Commercial real estate
251

 
67

 
31

 
349

 
408,823

 
409,172

 
—

Loans secured by real estate
1,416

 
809

 
185

 
2,410

 
845,756

 
848,166

 
—

Agricultural loans
65

 
74

 
—

 
139

 
75,747

 
75,886

 
—

Commercial and industrial loans
65

 
476

 
196

 
737

 
304,323

 
305,060

 
—

Consumer loans
137

 
42

 
13

 
192

 
41,387

 
41,579

 
—

All other loans
—

 
—

 
—

 
—

 
11,198

 
11,198

 
—

Total loans
$
1,683

 
$
1,401

 
$
394

 
$
3,478

 
$
1,278,411

 
$
1,281,889

 
$
—
Impaired Loans
The following tables present impaired loans as of June 30, 2016 and December 31, 2015 (in thousands):

 
June 30, 2016
 
December 31, 2015
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
430

 
430

 
—

 
430

 
430

 
—

1-4 Family residential properties
—

 
—

 
—

 
—

 
—

 
—

Multifamily residential properties
304

 
304

 
—

 
316

 
316

 
—

Commercial real estate
848

 
848

 
208

 
—

 
—

 
—

Loans secured by real estate
1,582

 
1,582

 
208

 
746

 
746

 
—

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
403

 
818

 
89

 
405

 
405

 
134

Consumer loans
21

 
21

 
—

 
23

 
23

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
2,006

 
$
2,421

 
$
297

 
$
1,174

 
$
1,174

 
$
134

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
234

 
$
485

 
$
—

 
$
142

 
$
707

 
$
—

Agricultural real estate
20

 
23

 
—

 
24

 
28

 
—

1-4 Family residential properties
1,198

 
1,372

 
—

 
1,373

 
1,688

 
—

Multifamily residential properties
—

 
—

 
—

 
1

 
1

 
—

Commercial real estate
283

 
304

 
—

 
304

 
325

 
—

Loans secured by real estate
1,735

 
2,184

 
—

 
1,844

 
2,749

 
—

Agricultural loans
15

 
15

 
—

 
79

 
79

 
—

Commercial and industrial loans
633

 
831

 
—

 
670

 
932

 
—

Consumer loans
231

 
235

 
—

 
242

 
256

 
—

All other loans
10

 
10

 
—

 
—

 
—

 
—

Total loans
$
2,624

 
$
3,275

 
$
—

 
$
2,835

 
$
4,016

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
234

 
$
485

 
$
—

 
$
142

 
$
707

 
$
—

Agricultural real estate
450

 
453

 
—

 
454

 
458

 
—

1-4 Family residential properties
1,198

 
1,372

 
—

 
1,373

 
1,688

 
—

Multifamily residential properties
304

 
304

 
—

 
317

 
317

 
—

Commercial real estate
1,131

 
1,152

 
208

 
304

 
325

 
—

Loans secured by real estate
3,317

 
3,766

 
208

 
2,590

 
3,495

 
—

Agricultural loans
15

 
15

 
—

 
79

 
79

 
—

Commercial and industrial loans
1,036

 
1,649

 
89

 
1,075

 
1,337

 
134

Consumer loans
252

 
256

 
—

 
265

 
279

 
—

All other loans
10

 
10

 
—

 
—

 
—

 
—

Total loans
$
4,630

 
$
5,696

 
$
297

 
$
4,009

 
$
5,190

 
$
134
Impaired loans by portfolio class
The following tables present average recorded investment and interest income recognized on impaired loans for the three and six-month periods ended June 30, 2016 and 2015 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
June 30, 2016
 
June 30, 2015
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
580

 
$
—

 
$
154

 
$
—

Agricultural real estate
450

 
—

 
93

 
1

1-4 Family residential properties
1,244

 
4

 
1,163

 
2

Multifamily residential properties
305

 
—

 
—

 
—

Commercial real estate
1,132

 
1

 
655

 
1

Loans secured by real estate
3,711

 
5

 
2,065

 
4

Agricultural loans
15

 
—

 
—

 
—

Commercial and industrial loans
1,100

 
—

 
584

 
1

Consumer loans
260

 
—

 
448

 
1

All other loans
10

 
—

 
—

 
—

Total loans
$
5,096

 
$
5

 
$
3,097

 
$
6

 
For the six months ended
 
June 30, 2016
 
June 30, 2015
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
632

 
$
—

 
$
154

 
$
—

Agricultural real estate
450

 
—

 
94

 
2

1-4 Family residential properties
1,264

 
8

 
1,188

 
3

Multifamily residential properties
307

 
—

 
—

 
—

Commercial real estate
1,133

 
1

 
659

 
1

Loans secured by real estate
3,786

 
9

 
2,095

 
6

Commercial and industrial loans
1,143

 
—

 
594

 
3

Consumer loans
264

 
—

 
448

 
1

Total loans
$
5,219

 
$
9

 
$
3,137

 
$
10
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2016 and December 31, 2015 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
June 30,
2016
 
December 31,
2015
Construction and land development
$
234

 
$
142

Agricultural real estate
450

 
454

1-4 Family residential properties
945

 
975

Multifamily residential properties
304

 
317

Commercial real estate
1,097

 
269

Loans secured by real estate
3,030

 
2,157

Agricultural loans
15

 
79

Commercial and industrial loans
1,014

 
928

Consumer loans
242

 
248

All other loans
10

 
—

Total loans
$
4,311

 
$
3,412
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2016 and December 31, 2015 (in thousands).
Troubled debt restructurings:
June 30,
2016
 
December 31,
2015
Construction and land development
$
234

 
$
142

Agricultural real estate
232

 
232

1-4 Family residential properties
413

 
515

Commercial real estate
118

 
124

Loans secured by real estate
997

 
1,013

Commercial and industrial loans
415

 
491

Consumer loans
214

 
239

Total
$
1,626

 
$
1,743

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
253

 
$
397

Commercial real estate
34

 
36

Loans secured by real estate
287

 
433

Commercial and industrial loans
22

 
147

Consumer loans
10

 
21

Total
$
319

 
$
601
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the six months ended June 30, 2016 and 2015, as a result of various modified loan factors (in thousands):
 
June 30, 2016
 
June 30, 2015
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
Construction and land development
1

 
$
234

 
(b)(c)
 
—


$
—

 

Farm Loans
—

 
—

 

 
1

 
23

 
(b)
1-4 Family residential properties
1

 
48

 
(c)
 
4

 
79

 
(b)(c)
Loans secured by real estate
2

 
282

 
 
 
5

 
102

 
 
Commercial and industrial loans
3

 
75

 
(b)(c)
 
2

 
227

 
(b)(c)
Consumer Loans
—

 
—

 

 
3

 
439

 
(b)(c)
Total
5

 
$
357

 
 
 
10

 
$
768