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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 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 September 30, 2016 and December 31, 2015 follows (in thousands):
 
September 30,
2016
 
December 31,
2015
Construction and land development
$
49,305

 
$
39,232

Agricultural real estate
128,954

 
122,579

1-4 Family residential properties
344,190

 
232,351

Multifamily residential properties
83,987

 
45,765

Commercial real estate
641,134

 
409,487

Loans secured by real estate
1,247,570

 
849,414

Agricultural loans
81,474

 
75,998

Commercial and industrial loans
375,824

 
305,851

Consumer loans
41,313

 
42,097

All other loans
72,875

 
11,317

Total Gross loans
1,819,056

 
1,284,677

Less: Loans held for sale
3,584

 
968

 
1,815,472

 
1,283,709

Less:
 

 
 

Net deferred loan fees, premiums and discounts
12,311

 
2,788

Allowance for loan losses
16,161

 
14,576

Net loans
$
1,787,000

 
$
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 nine-months ended September 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 September 30, 2016
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
12,025

 
$
1,419

 
$
924

 
$
733

 
$
63

 
$
15,164

Provision charged to expense
445

 
476

 
(36
)
 
248

 
(52
)
 
1,081

Losses charged off
—

 
—

 
—

 
(271
)
 
—

 
(271
)
Recoveries
128

 
2

 
1

 
56

 
—

 
187

Balance, end of period
$
12,598

 
$
1,897

 
$
889

 
$
766

 
$
11

 
$
16,161

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
272

 
$
329

 
$
—

 
$
—

 
$
—

 
$
601

Collectively evaluated for impairment
$
12,326

 
$
1,568

 
$
889

 
$
766

 
$
11

 
$
15,560

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—



 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended September 30, 2015
 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Provision charged to expense
84

 
84

 
97

 
305

 
(89
)
 
481

Losses charged off
(174
)
 
—

 
(24
)
 
(72
)
 
—

 
(270
)
Recoveries
47

 
—

 
—

 
39

 
—

 
86

Balance, end of period
$
11,251

 
$
1,396

 
$
804

 
$
654

 
$
123

 
$
14,228

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
148

 
$
—

 
$
—

 
$
194

 
$
—

 
$
342

Collectively evaluated for impairment
$
11,103

 
$
1,396

 
$
804

 
$
460

 
$
123

 
$
13,886

Loans acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

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

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,576

Provision charged to expense
1,058

 
587

 
36

 
459

 
(213
)
 
1,927

Losses charged off
(582
)
 
(30
)
 
(142
)
 
(493
)
 
—

 
(1,247
)
Recoveries
743

 
3

 
1

 
158

 
—

 
905

Balance, end of period
$
12,598

 
$
1,897

 
$
889

 
$
766

 
$
11

 
$
16,161

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
272

 
$
329

 
$
—

 
$
—

 
$
—

 
$
601

Collectively evaluated for impairment
$
12,326

 
$
1,568

 
$
889

 
$
766

 
$
11

 
$
15,560

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,753

 
$
1,170

 
$
471

 
$
20

 
$
—

 
$
3,414

Collectively evaluated for impairment
$
1,162,399

 
$
208,775

 
$
378,749

 
$
44,740

 
$
—

 
$
1,794,663

Acquired with deteriorated credit quality
$
3,929

 
$
—

 
$
4,739

 
$
—

 
$
—

 
$
8,668

Ending balance
$
1,168,081

 
$
209,945

 
$
383,959

 
$
44,760

 
$
—

 
$
1,806,745

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

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
319

 
35

 
77

 
567

 
(109
)
 
889

Losses charged off
(245
)
 
—

 
(64
)
 
(432
)
 
—

 
(741
)
Recoveries
263

 
1

 
1

 
133

 
—

 
398

Balance, end of period
$
11,251

 
$
1,396

 
$
804

 
$
654

 
$
123

 
$
14,228

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
148

 
$
—

 
$
—

 
$
194

 
$
—

 
$
342

Collectively evaluated for impairment
$
11,103

 
$
1,396

 
$
804

 
$
460

 
$
123

 
$
13,886

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,248

 
$
—

 
$
411

 
$
224

 
$
—

 
$
1,883

Collectively evaluated for impairment
$
771,140

 
$
185,275

 
$
234,350

 
$
44,101

 
$
—

 
$
1,234,866

Loans acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Ending balance
$
772,388

 
$
185,275

 
$
234,761

 
$
44,325

 
$
—

 
$
1,236,749

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 acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
744

 
$
430

 
$
—

 
$
—

 
$
—

 
$
1,174

Collectively evaluated for impairment
806,992

 
197,636

 
232,348

 
43,739

 
—

 
1,280,715

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
807,736

 
$
198,066

 
$
232,348

 
$
43,739

 
$
—

 
$
1,281,889
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 September 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
$
48,788

 
$
39,067

 
$
121,170

 
$
118,103

 
$
334,422

 
$
224,552

 
$
81,490

 
$
45,180

Watch
—

 
—

 
5,248

 
2,282

 
1,178

 
1,454

 
1,668

 
243

Substandard
231

 
142

 
2,411

 
2,089

 
6,300

 
5,565

 
539

 
317

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
49,019

 
$
39,209

 
$
128,829

 
$
122,474

 
$
341,900

 
$
231,571

 
$
83,697

 
$
45,740


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Pass
$
615,977

 
$
386,769

 
$
76,605

 
$
75,437

 
$
360,601

 
$
298,633

 
$
40,470

 
$
41,278

Watch
3,500

 
10,498

 
3,937

 
210

 
9,179

 
4,686

 
18

 
—

Substandard
17,209

 
11,905

 
872

 
239

 
2,020

 
1,741

 
393

 
301

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
636,686

 
$
409,172

 
$
81,414

 
$
75,886

 
$
371,800

 
$
305,060

 
$
40,881

 
$
41,579


 
All Other Loans
 
Total Loans
 
2016
 
2015
 
2016
 
2015
Pass
$
69,664

 
$
11,198

 
$
1,749,187

 
$
1,240,217

Watch
2,855

 
—

 
27,583

 
19,373

Substandard
—

 
—

 
29,975

 
22,299

Doubtful
—

 
—

 
—

 
—

Total
$
72,519

 
$
11,198

 
$
1,806,745

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

 
$
—

 
$
—

 
$
—

 
$
49,019

 
$
49,019

 
$
—

Agricultural real estate
35

 
188

 
535

 
758

 
128,071

 
128,829

 
—

1-4 Family residential properties
877

 
937

 
1,183

 
2,997

 
338,903

 
341,900

 
299

Multifamily residential properties
—

 
—

 
240

 
240

 
83,457

 
83,697

 
—

Commercial real estate
461

 
787

 
577

 
1,825

 
634,861

 
636,686

 
—

Loans secured by real estate
1,373

 
1,912

 
2,535

 
5,820

 
1,234,311

 
1,240,131

 
299

Agricultural loans
131

 
36

 
1

 
168

 
81,246

 
81,414

 
—

Commercial and industrial loans
355

 
—

 
334

 
689

 
371,111

 
371,800

 
—

Consumer loans
115

 
26

 
1

 
142

 
40,739

 
40,881

 
—

All other loans
—

 
—

 
—

 
—

 
72,519

 
72,519

 
—

Total loans
$
1,974

 
$
1,974

 
$
2,871

 
$
6,819

 
$
1,799,926

 
$
1,806,745

 
$
299

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 September 30, 2016 and December 31, 2015 (in thousands):

 
September 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
471

 
471

 
—

 
—

 
—

 
—

Multifamily residential properties
535

 
535

 
—

 
316

 
316

 
—

Commercial real estate
841

 
841

 
203

 
—

 
—

 
—

Loans secured by real estate
2,277

 
2,277

 
203

 
746

 
746

 
—

Agricultural loans
740

 
740

 
329

 
—

 
—

 
—

Commercial and industrial loans
377

 
388

 
69

 
405

 
405

 
134

Consumer loans
20

 
20

 
—

 
23

 
23

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,414

 
$
3,425

 
$
601

 
$
1,174

 
$
1,174

 
$
134

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
231

 
$
231

 
$
—

 
$
142

 
$
707

 
$
—

Agricultural real estate
44

 
47

 
—

 
24

 
28

 
—

1-4 Family residential properties
3,275

 
3,606

 
—

 
1,373

 
1,688

 
—

Multifamily residential properties
3,430

 
3,430

 
—

 
1

 
1

 
—

Commercial real estate
4,460

 
4,543

 
—

 
304

 
325

 
—

Loans secured by real estate
11,440

 
11,857

 
—

 
1,844

 
2,749

 
—

Agricultural loans
15

 
44

 
—

 
79

 
79

 
—

Commercial and industrial loans
510

 
740

 
—

 
670

 
932

 
—

Consumer loans
408

 
426

 
—

 
242

 
256

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
12,373

 
$
13,067

 
$
—

 
$
2,835

 
$
4,016

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
231

 
$
231

 
$
—

 
$
142

 
$
707

 
$
—

Agricultural real estate
474

 
477

 
—

 
454

 
458

 
—

1-4 Family residential properties
3,746

 
4,077

 
—

 
1,373

 
1,688

 
—

Multifamily residential properties
3,965

 
3,965

 
—

 
317

 
317

 
—

Commercial real estate
5,301

 
5,384

 
203

 
304

 
325

 
—

Loans secured by real estate
13,717

 
14,134

 
203

 
2,590

 
3,495

 
—

Agricultural loans
755

 
784

 
329

 
79

 
79

 
—

Commercial and industrial loans
887

 
1,128

 
69

 
1,075

 
1,337

 
134

Consumer loans
428

 
446

 
—

 
265

 
279

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
15,787

 
$
16,492

 
$
601

 
$
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 nine-month periods ended September 30, 2016 and 2015 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
September 30, 2016
 
September 30, 2015
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
231

 
$
—

 
$
148

 
$
—

Agricultural real estate
474

 
—

 
25

 
—

1-4 Family residential properties
1,572

 
3

 
1,160

 
2

Multifamily residential properties
535

 
—

 
326

 
—

Commercial real estate
1,097

 
1

 
777

 
1

Loans secured by real estate
3,909

 
4

 
2,436

 
3

Agricultural loans
755

 
—

 
—

 
—

Commercial and industrial loans
744

 
1

 
1,157

 
3

Consumer loans
306

 
—

 
296

 
1

All other loans
10

 
—

 
—

 
—

Total loans
$
5,724

 
$
5

 
$
3,889

 
$
7

 
For the nine months ended
 
September 30, 2016
 
September 30, 2015
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
231

 
$
—

 
$
148

 
$
—

Agricultural real estate
476

 
—

 
92

 
2

1-4 Family residential properties
1,344

 
10

 
1,197

 
11

Multifamily residential properties
539

 
—

 
328

 
—

Commercial real estate
1,064

 
2

 
784

 
2

Loans secured by real estate
3,654

 
12

 
2,549

 
15

Agricultural loans
696

 
—

 
—

 
—

Commercial and industrial loans
777

 
1

 
1,293

 
6

Consumer loans
388

 
—

 
308

 
2

Total loans
$
5,515

 
$
13

 
$
4,150

 
$
23
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as September 30, 2016 and December 31, 2015 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
September 30,
2016
 
December 31,
2015
Construction and land development
$
231

 
$
142

Agricultural real estate
474

 
454

1-4 Family residential properties
3,232

 
975

Multifamily residential properties
535

 
317

Commercial real estate
3,149

 
269

Loans secured by real estate
7,621

 
2,157

Agricultural loans
755

 
79

Commercial and industrial loans
841

 
928

Consumer loans
419

 
248

Total loans
$
9,636

 
$
3,412
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The amount of these loans at September 30, 2016 are as follows (in thousands):

 
September 30,
2016
 
December 31,
2015
1-4 Family residential properties
$
1,310

 
$
—

Multifamily residential properties
3,430

 
—

Commercial real estate
3,897

 
—

Loans secured by real estate
8,637

 
—

Commercial and industrial loans
31

 
—

 Carrying amount
8,668

 
—

Allowance for loan losses
—

 
—

Carrying amount, net of allowance
$
8,668

 
$
—
Acquired Receivables With Credit Deterioration, Values at Acquisition [Table Text Block]
The PCI loans acquired during the nine months ended September 30, 2016 for which it was probable that all contractually required payments would not be collected were as follows (in thousands):
 
First Clover Leaf
Contractually required payments
$
10,650

Non-accretable difference
(1,962
)
Cash flows expected to be collected at acquisition
8,688

Accretable yield
—

Fair value of acquired loans at acquisition
$
8,688
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2016 and December 31, 2015 (in thousands).
Troubled debt restructurings:
September 30,
2016
 
December 31,
2015
Construction and land development
$
231

 
$
142

Agricultural real estate
232

 
232

1-4 Family residential properties
1,982

 
515

Multifamily residential properties
3,430

 
—

Commercial real estate
4,207

 
124

Loans secured by real estate
10,082

 
1,013

Commercial and industrial loans
575

 
491

Consumer loans
339

 
239

Total
$
10,996

 
$
1,743

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
514

 
$
397

Multifamily residential properties
3,430

 
—

Commercial real estate
2,152

 
36

Loans secured by real estate
6,096

 
433

Commercial and industrial loans
46

 
147

Consumer loans
9

 
21

Total
$
6,151

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

 
$
231

 
(b)(c)
 
—


$
—

 

1-4 Family residential properties
1

 
47

 
(c)
 
4

 
61

 
(b)(c)
Commercial real estate
1

 
43

 
(b)(c)
 
1

 
34

 
(b)(c)
Loans secured by real estate
3

 
321

 
 
 
5

 
95

 
 
Commercial and industrial loans
6

 
405

 
(b)(c)
 
4

 
507

 
(b)(c)
Consumer Loans
1

 
20

 
(c)
 
3

 
237

 
(b)(c)
Total
10

 
$
746

 
 
 
12

 
$
839