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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2017
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, 2017 and December 31, 2016 follows (in thousands):
 
September 30,
2017
 
December 31,
2016
Construction and land development
$
77,325

 
$
49,366

Agricultural real estate
126,164

 
126,216

1-4 Family residential properties
302,889

 
328,119

Multifamily residential properties
72,491

 
83,478

Commercial real estate
650,059

 
633,694

Loans secured by real estate
1,228,928

 
1,220,873

Agricultural loans
81,367

 
86,735

Commercial and industrial loans
444,836

 
412,637

Consumer loans
30,394

 
38,404

All other loans
89,117

 
77,602

Total Gross loans
1,874,642

 
1,836,251

Less: Loans held for sale
2,079

 
1,175

 
1,872,563

 
1,835,076

Less:
 

 
 

Net deferred loan fees, premiums and discounts
7,080

 
10,259

Allowance for loan losses
18,589

 
16,753

Net loans
$
1,846,894

 
$
1,808,064
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 and nine-months ended September 30, 2017 and 2016 and for the year ended December 31, 2016 (in thousands):
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
14,747

 
$
1,743

 
$
969

 
$
716

 
$
34

 
$
18,209

Provision charged to expense
1,440

 
(57
)
 
(2
)
 
72

 
36

 
1,489

Losses charged off
(1,242
)
 
—

 
(7
)
 
(160
)
 
—

 
(1,409
)
Recoveries
158

 
1

 
78

 
63

 
—

 
300

Balance, end of period
$
15,103

 
$
1,687

 
$
1,038

 
$
691

 
$
70

 
$
18,589

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
168

 
$
—

 
$
125

 
$
2

 
$
—

 
$
295

Collectively evaluated for impairment
$
14,935

 
$
1,687

 
$
913

 
$
689

 
$
70

 
$
18,294

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
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
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
12,901

 
$
2,249

 
$
874

 
$
693

 
$
36

 
$
16,753

Provision charged to expense
4,573

 
98

 
167

 
179

 
34

 
5,051

Losses charged off
(2,725
)
 
(662
)
 
(106
)
 
(397
)
 
—

 
(3,890
)
Recoveries
354

 
2

 
103

 
216

 
—

 
675

Balance, end of period
$
15,103

 
$
1,687

 
$
1,038

 
$
691

 
$
70

 
$
18,589

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
168

 
$
—

 
$
125

 
$
2

 
$
—

 
$
295

Collectively evaluated for impairment
$
14,935

 
$
1,687

 
$
913

 
$
689

 
$
70

 
$
18,294

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
7,635

 
$
513

 
$
1,418

 
$
210

 
$
—

 
$
9,776

Collectively evaluated for impairment
1,287,821

 
206,669

 
324,920

 
32,892

 
$
—

 
1,852,302

Acquired with deteriorated credit quality
5,484

 
—

 
—

 
—

 
$
—

 
5,484

Ending balance
$
1,300,940

 
$
207,182

 
$
326,338

 
$
33,102

 
$
—

 
$
1,867,562

 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
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
1,162,386

 
208,775

 
378,742

 
44,740

 
—

 
1,794,643

Acquired with deteriorated credit quality
3,942

 
—

 
4,746

 
—

 
—

 
8,688

Ending balance
$
1,168,081

 
$
209,945

 
$
383,959

 
$
44,760

 
$
—

 
$
1,806,745

Year ended 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 year
$
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

Acquired with deteriorated credit quality
$
14

 
$
—

 
$
—

 
$
—

 
$
—

 
$
14

Loans:
 

 
 

 
 

 
 

 
 

 
 

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

Acquired with deteriorated credit quality
3,840

 
—

 
4,246

 
—

 
—

 
8,086

Ending balance
$
1,204,799

 
$
212,513

 
$
366,823

 
$
41,857

 
$
—

 
$
1,825,992
Credit Risk Profile of the Company's Loan Portfolio
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, 2017 and December 31, 2016 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
76,913

 
$
48,877

 
$
119,958

 
$
118,934

 
$
290,989

 
$
318,921

 
$
64,938

 
$
81,018

Special Mention
—

 
—

 
4,862

 
5,190

 
2,359

 
918

 
89

 
1,651

Substandard
266

 
227

 
1,276

 
1,984

 
8,549

 
6,576

 
7,296

 
531

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
77,179

 
$
49,104

 
$
126,096

 
$
126,108

 
$
301,897

 
$
326,415

 
$
72,323

 
$
83,200


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
609,203

 
$
610,025

 
$
78,356

 
$
81,922

 
$
424,306

 
$
397,762

 
$
29,669

 
$
37,624

Special Mention
20,082

 
5,229

 
2,128

 
3,271

 
17,560

 
8,485

 
13

 
17

Substandard
17,899

 
14,881

 
899

 
1,492

 
1,607

 
2,786

 
392

 
387

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
647,184

 
$
630,135

 
$
81,383

 
$
86,685

 
$
443,473

 
$
409,033

 
$
30,074

 
$
38,028


 
All Other Loans
 
Total Loans
 
2017
 
2016
 
2017
 
2016
Pass
$
85,239

 
$
74,377

 
$
1,779,571

 
$
1,769,460

Special Mention
2,714

 
2,892

 
49,807

 
27,653

Substandard
—

 
15

 
38,184

 
28,879

Doubtful
—

 
—

 
—

 
—

Total
$
87,953

 
$
77,284

 
$
1,867,562

 
$
1,825,992
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at September 30, 2017 and December 31, 2016 (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, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
267

 
$
267

 
$
76,912

 
$
77,179

 
$
—

Agricultural real estate
—

 
—

 
396

 
396

 
125,700

 
126,096

 
—

1-4 Family residential properties
1,542

 
282

 
2,146

 
3,970

 
297,927

 
301,897

 
—

Multifamily residential properties
—

 
4,494

 
56

 
4,550

 
67,773

 
72,323

 
—

Commercial real estate
968

 
1,129

 
1,130

 
3,227

 
643,957

 
647,184

 
—

Loans secured by real estate
2,510

 
5,905

 
3,995

 
12,410

 
1,212,269

 
1,224,679

 
—

Agricultural loans
14

 
41

 
178

 
233

 
81,150

 
81,383

 
—

Commercial and industrial loans
613

 
407

 
592

 
1,612

 
441,861

 
443,473

 
—

Consumer loans
188

 
6

 
3

 
197

 
29,877

 
30,074

 
—

All other loans
—

 
—

 
—

 
—

 
87,953

 
87,953

 
—

Total loans
$
3,325

 
$
6,359

 
$
4,768

 
$
14,452

 
$
1,853,110

 
$
1,867,562

 
$
—

December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
49,104

 
$
49,104

 
$
—

Agricultural real estate
—

 
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
Impaired Loans
The following tables present impaired loans as of September 30, 2017 and December 31, 2016 (in thousands):

 
September 30, 2017
 
December 31, 2016
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
266

 
$
607

 
$
—

 
$
227

 
$
227

 
$
—

Agricultural real estate
276

 
276

 
—

 
—

 
—

 
—

1-4 Family residential properties
1,417

 
1,738

 
125

 
997

 
997

 
6

Multifamily residential properties
7,425

 
7,425

 
11

 
528

 
528

 
—

Commercial real estate
4,391

 
4,547

 
29

 
863

 
884

 
—

Loans secured by real estate
13,775

 
14,593

 
165

 
2,615

 
2,636

 
6

Agricultural loans
237

 
1,080

 
—

 
1,345

 
1,345

 
660

Commercial and industrial loans
1,038

 
1,456

 
128

 
1,093

 
1,191

 
192

Consumer loans
210

 
210

 
2

 
213

 
213

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
15,260

 
$
17,339

 
$
295

 
$
5,266

 
$
5,385

 
$
858

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
15

 
15

 
—

 
205

 
207

 
—

1-4 Family residential properties
1,623

 
2,106

 
—

 
2,497

 
3,207

 
—

Multifamily residential properties
—

 
—

 
—

 
3,419

 
3,547

 
—

Commercial real estate
1,297

 
1,474

 
—

 
6,224

 
6,802

 
—

Loans secured by real estate
2,935

 
3,595

 
—

 
12,345

 
13,763

 
—

Agricultural loans
597

 
7

 
—

 
43

 
66

 
—

Commercial and industrial loans
911

 
1,218

 
—

 
378

 
572

 
—

Consumer loans
85

 
95

 
—

 
206

 
211

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,528

 
$
4,915

 
$
—

 
$
12,972

 
$
14,612

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
266

 
$
607

 
$
—

 
$
227

 
$
227

 
$
—

Agricultural real estate
291

 
291

 
—

 
205

 
207

 
—

1-4 Family residential properties
3,040

 
3,844

 
125

 
3,494

 
4,204

 
6

Multifamily residential properties
7,425

 
7,425

 
11

 
3,947

 
4,075

 
—

Commercial real estate
5,688

 
6,021

 
29

 
7,087

 
7,686

 
—

Loans secured by real estate
16,710

 
18,188

 
165

 
14,960

 
16,399

 
6

Agricultural loans
834

 
1,087

 
—

 
1,388

 
1,411

 
660

Commercial and industrial loans
1,949

 
2,674

 
128

 
1,471

 
1,763

 
192

Consumer loans
295

 
305

 
2

 
419

 
424

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
19,788

 
$
22,254

 
$
295

 
$
18,238

 
$
19,997

 
$
858
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, 2017 and 2016 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
September 30, 2017
 
September 30, 2016
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
267

 
$
—

 
$
231

 
$
—

Agricultural real estate
291

 
—

 
474

 
—

1-4 Family residential properties
3,047

 
5

 
1,572

 
3

Multifamily residential properties
8,017

 
80

 
535

 
—

Commercial real estate
5,762

 
6

 
1,097

 
1

Loans secured by real estate
17,384

 
91

 
3,909

 
4

Agricultural loans
834

 
—

 
755

 
—

Commercial and industrial loans
2,075

 
2

 
744

 
1

Consumer loans
296

 
—

 
306

 
—

All other loans
—

 
—

 
10

 
—

Total loans
$
20,589

 
$
93

 
$
5,724

 
$
5

 
For the nine months ended
 
September 30, 2017
 
September 30, 2016
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
98

 
$
—

 
$
231

 
$
—

Agricultural real estate
293

 
—

 
476

 
—

1-4 Family residential properties
3,003

 
16

 
1,344

 
10

Multifamily residential properties
10,839

 
229

 
539

 
—

Commercial real estate
4,638

 
14

 
1,064

 
2

Loans secured by real estate
18,871

 
259

 
3,654

 
12

Agricultural loans
900

 
—

 
696

 
—

Commercial and industrial loans
2,216

 
6

 
777

 
1

Consumer loans
307

 
—

 
388

 
—

Total loans
$
22,294

 
$
265

 
$
5,515

 
$
13
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as September 30, 2017 and December 31, 2016 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
September 30,
2017
 
December 31,
2016
Construction and land development
$
266

 
$
227

Agricultural real estate
291

 
205

1-4 Family residential properties
2,630

 
2,890

Multifamily residential properties
2,208

 
528

Commercial real estate
5,341

 
4,971

Loans secured by real estate
10,736

 
8,821

Agricultural loans
834

 
1,388

Commercial and industrial loans
1,920

 
1,430

Consumer loans
294

 
414

Total loans
$
13,784

 
$
12,053
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The amount of these loans at September 30, 2017 and December 31, 2016 are as follows (in thousands):

 
September 30,
2017
 
December 31,
2016
1-4 Family residential properties
$
—

 
$
827

Multifamily residential properties
3,387

 
3,419

Commercial real estate
2,085

 
3,816

Loans secured by real estate
5,472

 
8,062

Commercial and industrial loans
12

 
24

 Carrying amount
5,484

 
8,086

Allowance for loan losses
—

 
14

Carrying amount, net of allowance
$
5,484

 
$
8,072
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2017 and December 31, 2016 (in thousands).
Troubled debt restructurings:
September 30,
2017
 
December 31,
2016
Construction and land development
$
—

 
$
227

1-4 Family residential properties
843

 
1,753

Multifamily residential properties
5,217

 
3,419

Commercial real estate
671

 
4,125

Loans secured by real estate
6,731

 
9,524

Agricultural loans
828

 
—

Commercial and industrial loans
849

 
1,040

Consumer loans
210

 
325

Total
$
8,618

 
$
10,889

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
410

 
$
603

Multifamily residential properties
5,217

 
3,419

Commercial real estate
347

 
2,116

Loans secured by real estate
5,974

 
6,138

Commercial and industrial loans
29

 
41

Consumer loans
1

 
6

Total
$
6,004

 
$
6,185
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, 2017 and 2016, as a result of various modified loan factors (in thousands):
 
September 30, 2017
 
September 30, 2016
 
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

 
17

 
(c)
 
1

 
47

 
(c)
Commercial real estate
—

 
—

 

 
1

 
43

 
(b)(c)
Loans secured by real estate
1

 
17

 
 
 
3

 
321

 
 
Agricultural loans
4

 
828

 
(b)(c)(d)
 
—

 
—

 

Commercial and industrial loans
1

 
27

 
(c)
 
6

 
405

 
(b)(c)
Consumer Loans
—

 
—

 

 
1

 
20

 
(c)
Total
6

 
$
872

 
 
 
10

 
$
746