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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2016 and 2015 follows (in thousands):
 
2016
 
2015
Construction and land development
$
49,366

 
$
39,232

Farm loans
126,216

 
122,579

1-4 Family residential properties
328,119

 
232,351

Multifamily residential properties
83,478

 
45,765

Commercial real estate
633,694

 
409,487

Loans secured by real estate
1,220,873

 
849,414

Agricultural loans
86,735

 
75,998

Commercial and industrial loans
412,637

 
305,851

Consumer loans
38,404

 
42,097

All other loans
77,602

 
11,317

Gross loans
1,836,251

 
1,284,677

Less: Loans held for sale
1,175

 
968

 
1,835,076

 
1,283,709

Less:
 

 
 

Net deferred loan fees, premiums and discounts
10,259

 
2,788

Allowance for loan losses
16,753

 
14,576

Net loans
$
1,808,064

 
$
1,266,345
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 as of December 31, 2016, 2015 and 2014 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
11,379

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,576

Provision charged to expense
1,467

 
933

 
113

 
501

 
(188
)
 
2,826

Losses charged off
(747
)
 
(30
)
 
(234
)
 
(664
)
 
—

 
(1,675
)
Recoveries
802

 
9

 
1

 
214

 
—

 
1,026

Balance, end of period
$
12,901

 
$
2,249

 
$
874

 
$
693

 
$
36

 
$
16,753

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
192

 
$
660

 
$
6

 
$
—

 
$
—

 
$
858

Collectively evaluated for impairment
$
12,695

 
$
1,589

 
$
868

 
$
693

 
$
36

 
$
15,881

Loans acquired with deteriorated credit quality
$
14

 
$
—

 
$
—

 
$
—

 
$
—

 
$
14

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
1,204,799

 
$
212,513

 
$
366,823

 
$
41,857

 
$
—

 
$
1,825,992

Ending Balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,956

 
$
1,345

 
$
1,752

 
$
213

 
$
—

 
$
5,266

Collectively evaluated for impairment
$
1,199,003

 
$
211,168

 
$
360,825

 
$
41,644

 
$
—

 
$
1,812,640

Loans acquired with deteriorated credit quality
$
3,840

 
$
—

 
$
4,246

 
$
—

 
$
—

 
$
8,086


 

 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
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 period
$
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

December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
10,646

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Provision charged to expense
192

 
825

 
135

 
167

 
(690
)
 
629

Losses charged off
(86
)
 
—

 
(140
)
 
(311
)
 
—

 
(537
)
Recoveries
162

 
2

 
24

 
153

 
—

 
341

Balance, end of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
263

 
$
—

 
$
—

 
$
—

 
$
—

 
$
263

Collectively evaluated for impairment
$
10,651

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,419

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
684,552

 
$
178,091

 
$
184,661

 
$
15,102

 
$
—

 
$
1,062,406

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
3,301

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,301

Collectively evaluated for impairment
$
681,251

 
$
178,091

 
$
184,661

 
$
15,102

 
$
—

 
$
1,059,105
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 December 31, 2016 and 2015 (in thousands):

 
Construction &
Land Development
 
Farm Loans
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Pass
$
48,877

 
$
39,067

 
$
118,934

 
$
118,103

 
$
318,921

 
$
224,552

 
$
81,018

 
$
45,180

Watch
—

 
—

 
5,190

 
2,282

 
918

 
1,454

 
1,651

 
243

Substandard
227

 
142

 
1,984

 
2,089

 
6,576

 
5,565

 
531

 
317

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
49,104

 
$
39,209

 
$
126,108

 
$
122,474

 
$
326,415

 
$
231,571

 
$
83,200

 
$
45,740


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Pass
$
610,025

 
$
386,769

 
$
81,922

 
$
75,437

 
$
397,762

 
$
298,633

 
$
37,624

 
$
41,278

Watch
5,229

 
10,498

 
3,271

 
210

 
8,485

 
4,686

 
17

 
—

Substandard
14,881

 
11,905

 
1,492

 
239

 
2,786

 
1,741

 
387

 
301

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
630,135

 
$
409,172

 
$
86,685

 
$
75,886

 
$
409,033

 
$
305,060

 
$
38,028

 
$
41,579


 
All Other Loans
 
Total Loans
 
2016
 
2015
 
2016
 
2015
Pass
$
74,377

 
$
11,198

 
$
1,769,460

 
$
1,240,217

Watch
2,892

 
—

 
27,653

 
19,373

Substandard
15

 
—

 
28,879

 
22,299

Doubtful
—

 
—

 
—

 
—

Total
$
77,284

 
$
11,198

 
$
1,825,992

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

 
$
—

 
$
—

 
$
—

 
$
49,104

 
$
49,104

 
$
—

Farm loans
—

 
131

 
293

 
424

 
125,684

 
126,108

 
—

1-4 Family residential properties
1,854

 
713

 
1,008

 
3,575

 
322,840

 
326,415

 
105

Multifamily residential properties
—

 
—

 
240

 
240

 
82,960

 
83,200

 
—

Commercial real estate
1,662

 
716

 
43

 
2,421

 
627,714

 
630,135

 
—

Loans secured by real estate
3,516

 
1,560

 
1,584

 
6,660

 
1,208,302

 
1,214,962

 
105

Agricultural loans
365

 
84

 
37

 
486

 
86,199

 
86,685

 
—

Commercial and industrial loans
395

 
155

 
249

 
799

 
408,234

 
409,033

 
—

Consumer loans
192

 
37

 
11

 
240

 
37,788

 
38,028

 
—

All other loans
—

 
—

 
—

 
—

 
77,284

 
77,284

 
—

Total loans
$
4,468

 
$
1,836

 
$
1,881

 
$
8,185

 
$
1,817,807

 
$
1,825,992

 
$
105

December 31, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
39,209

 
$
39,209

 
$
—

Farm loans
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 December 31, 2016 and 2015 (in thousands):

 
2016
 
2015
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
227

 
$
227

 
$
—

 
$
—

 
$
—

 
$
—

Farm loans
—

 
—

 
—

 
430

 
430

 
—

1-4 Family residential properties
997

 
997

 
6

 
—

 
—

 
—

Multifamily residential properties
528

 
528

 
—

 
316

 
316

 
—

Commercial real estate
863

 
884

 
—

 
—

 
—

 
—

Loans secured by real estate
2,615

 
2,636

 
6

 
746

 
746

 
—

Agricultural loans
1,345

 
1,345

 
660

 
—

 
—

 
—

Commercial and industrial loans
1,093

 
1,191

 
192

 
405

 
405

 
134

Consumer loans
213

 
213

 
—

 
23

 
23

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
5,266

 
$
5,385

 
$
858

 
$
1,174

 
$
1,174

 
$
134

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
142

 
$
707

 
$
—

Farm loans
205

 
207

 
—

 
24

 
28

 
—

1-4 Family residential properties
2,497

 
3,207

 
—

 
1,373

 
1,688

 
—

Multifamily residential properties
3,419

 
3,547

 
—

 
1

 
1

 
—

Commercial real estate
6,224

 
6,802

 
—

 
304

 
325

 
—

Loans secured by real estate
12,345

 
13,763

 
—

 
1,844

 
2,749

 
—

Agricultural loans
43

 
66

 
—

 
79

 
79

 
—

Commercial and industrial loans
378

 
572

 
—

 
670

 
932

 
—

Consumer loans
206

 
211

 
—

 
242

 
256

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
12,972

 
$
14,612

 
$
—

 
$
2,835

 
$
4,016

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
227

 
$
227

 
$
—

 
$
142

 
$
707

 
$
—

Farm loans
205

 
207

 
—

 
454

 
458

 
—

1-4 Family residential properties
3,494

 
4,204

 
6

 
1,373

 
1,688

 
—

Multifamily residential properties
3,947

 
4,075

 
—

 
317

 
317

 
—

Commercial real estate
7,087

 
7,686

 
—

 
304

 
325

 
—

Loans secured by real estate
14,960

 
16,399

 
6

 
2,590

 
3,495

 
—

Agricultural loans
1,388

 
1,411

 
660

 
79

 
79

 
—

Commercial and industrial loans
1,471

 
1,763

 
192

 
1,075

 
1,337

 
134

Consumer loans
419

 
424

 
—

 
265

 
279

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
18,238

 
$
19,997

 
$
858

 
$
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 years ended December 31, 2016, 2015 and 2014 (in thousands):
 
2016
 
2015
 
2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
229

 
$
—

 
$
142

 
$
—

 
$
933

 
$
—

Farm loans
207

 
—

 
527

 
2

 
78

 
2

1-4 Family residential properties
2,988

 
22

 
1,440

 
14

 
1,276

 
12

Multifamily residential properties
3,824

 
55

 
323

 
—

 
—

 
—

Commercial real estate
6,675

 
36

 
310

 
2

 
2,205

 
2

Loans secured by real estate
13,923

 
113

 
2,742

 
18

 
4,492

 
16

Agricultural loans
1,394

 
—

 
82

 
—

 
—

 
—

Commercial and industrial loans
1,485

 
4

 
1,569

 
8

 
429

 
—

Consumer loans
557

 
2

 
319

 
2

 
25

 
1

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
17,359

 
$
119

 
$
4,712

 
$
28

 
$
4,946

 
$
17



The amount of interest income recognized by the Company within the periods stated above was due to loans modified in a troubled debt restructuring that remained on accrual status.  The balance of loans modified in a troubled debt restructuring included in the impaired loans stated above that were still accruing was $603,000 of 1-4 Family residential properties, $41,000 of commercial & industrial, $3,419,000 of multifamily residential properties, $2,116,000 of commercial real estate, and $6,000 of consumer loans at December 31, 2016 and $397,000 of 1-4 Family residential properties, $36,000 of commercial real estate loans, $147,000 of commercial and industrial loans and $21,000 of consumer loans at December 31, 2015. For the years ended December 31, 2016, 2015 and 2014, the amount of interest income recognized using a cash-basis method of accounting during the period that the loans were impaired was not material.
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans at December 31, 2016 and December 31, 2015 (in thousands). This table excludes purchased credit-impaired loans and performing troubled debt restructurings.
 
2016
 
2015
Construction and land development
$
227

 
$
142

Farm loans
205

 
454

1-4 Family residential properties
2,890

 
975

Multifamily residential properties
528

 
317

Commercial real estate
4,971

 
269

Loans secured by real estate
8,821

 
2,157

Agricultural loans
1,388

 
79

Commercial and industrial loans
1,430

 
928

Consumer loans
414

 
248

All other loans
—

 
—

Total loans
$
12,053

 
$
3,412
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The Company acquired certain loans considered to be credit-impaired in its business combination with First Clover Leaf during the third quarter of 2016. At acquisition, these loans evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these loans is included in the consolidated balance sheet amounts for Loans. The Company had no PCI loans prior to the First Clover Leaf acquisition. The amount of these loans at December 31, 2016 are as follows (in thousands):
 
December 31, 2016

1-4 Family residential properties
$
622

Multifamily residential properties
1,011

Commercial real estate
3,723

Loans secured by real estate
5,356

Commercial and industrial loans
2,730

 Carrying amount
8,086

Allowance for loan losses
14

Carrying amount, net of allowance
$
8,072
Acquired Receivables With Credit Deterioration, Values at Acquisition [Table Text Block]
The PCI loans acquired during the twelve months ended December 31, 2016 for which it was probable that all contractually required payments would not be collected were as follows (in thousands):
 
December 31,
2016
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 December 31, 2016 and 2015 (in thousands).
Troubled debt restructurings:
2016
 
2015
Construction and land development
$
227

 
$
142

Farm Loans
—

 
232

1-4 Family residential properties
1,753

 
515

Multifamily residential properties
3,419

 
—

Commercial real estate
4,125

 
124

Loans secured by real estate
9,524

 
1,013

Commercial and industrial loans
1,040

 
491

 Consumer Loans
325

 
239

Total
$
10,889

 
$
1,743

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
603

 
$
397

Multifamily residential properties
3,419

 
—

Farm Loans
—

 
—

Commercial real estate
2,116

 
36

Loans secured by real estate
6,138

 
433

Commercial and industrial loans
41

 
147

 Consumer Loans
6

 
21

Total
$
6,185

 
$
601