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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2017 and 2016 follows (in thousands):
 
2017
 
2016
Construction and land development
$
107,721

 
$
49,366

Farm loans
127,232

 
126,216

1-4 Family residential properties
294,483

 
328,119

Multifamily residential properties
61,966

 
83,478

Commercial real estate
684,639

 
633,694

Loans secured by real estate
1,276,041

 
1,220,873

Agricultural loans
86,602

 
86,735

Commercial and industrial loans
445,378

 
412,637

Consumer loans
30,070

 
38,404

All other loans
108,023

 
77,602

Gross loans
1,946,114

 
1,836,251

Less: Loans held for sale
1,025

 
1,175

 
1,945,089

 
1,835,076

Less:
 

 
 

Net deferred loan fees, premiums and discounts
6,613

 
10,259

Allowance for loan losses
19,977

 
16,753

Net loans
$
1,918,499

 
$
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 as of December 31, 2017, 2016 and 2015 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
12,901

 
$
2,249

 
$
874

 
$
693

 
$
36

 
$
16,753

Provision charged to expense
6,884

 
153

 
100

 
361

 
(36
)
 
7,462

Losses charged off
(3,795
)
 
(662
)
 
(217
)
 
(521
)
 
—

 
(5,195
)
Recoveries
556

 
2

 
129

 
270

 
—

 
957

Balance, end of period
$
16,546

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
586

 
$
2

 
$
25

 
$
1

 
$
—

 
$
614

Collectively evaluated for impairment
$
15,951

 
$
1,740

 
$
861

 
$
802

 
$
—

 
$
19,354

Loans acquired with deteriorated credit quality
$
9

 
$
—

 
$
—

 
$
—

 
$
—

 
$
9

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
1,371,787

 
$
213,521

 
$
315,123

 
$
39,070

 
$
—

 
$
1,939,501

Ending Balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
11,372

 
$
488

 
$
1,026

 
$
200

 
$
—

 
$
13,086

Collectively evaluated for impairment
$
1,360,156

 
$
213,033

 
$
314,097

 
$
38,870

 
$
—

 
$
1,926,156

Loans acquired with deteriorated credit quality
$
259

 
$
—

 
$
—

 
$
—

 
$
—

 
$
259


 

 
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:
 

 
 

 
 

 
 

 
 

 
 

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

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 December 31, 2017 and 2016 (in thousands):

 
Construction &
Land Development
 
Farm Loans
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
107,140

 
$
48,877

 
$
120,767

 
$
118,934

 
$
282,441

 
$
318,921

 
$
60,954

 
$
81,018

Special Mention
454

 
—

 
4,829

 
5,190

 
2,654

 
918

 
476

 
1,651

Substandard
—

 
227

 
1,587

 
1,984

 
8,572

 
6,576

 
368

 
531

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
107,594

 
$
49,104

 
$
127,183

 
$
126,108

 
$
293,667

 
$
326,415

 
$
61,798

 
$
83,200


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
647,208

 
$
610,025

 
$
83,469

 
$
81,922

 
$
425,846

 
$
397,762

 
$
29,375

 
$
37,624

Special Mention
16,941

 
5,229

 
2,304

 
3,271

 
11,492

 
8,485

 
5

 
17

Substandard
17,608

 
14,881

 
858

 
1,492

 
6,925

 
2,786

 
369

 
387

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
681,757

 
$
630,135

 
$
86,631

 
$
86,685

 
$
444,263

 
$
409,033

 
$
29,749

 
$
38,028


 
All Other Loans
 
Total Loans
 
2017
 
2016
 
2017
 
2016
Pass
$
103,339

 
$
74,377

 
$
1,860,539

 
$
1,769,460

Special Mention
3,520

 
2,892

 
42,675

 
27,653

Substandard
—

 
15

 
36,287

 
28,879

Doubtful
—

 
—

 
—

 
—

Total
$
106,859

 
$
77,284

 
$
1,939,501

 
$
1,825,992
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at December 31, 2017 and 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
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
26

 
$
48

 
$
—

 
$
74

 
$
107,520

 
$
107,594

 
$
—

Farm loans
—

 
—

 
396

 
396

 
126,787

 
127,183

 
—

1-4 Family residential properties
3,023

 
538

 
1,767

 
5,328

 
288,339

 
293,667

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
61,798

 
61,798

 
—

Commercial real estate
90

 
38

 
3,566

 
3,694

 
678,063

 
681,757

 
—

Loans secured by real estate
3,139

 
624

 
5,729

 
9,492

 
1,262,507

 
1,271,999

 
—

Agricultural loans
—

 
32

 
158

 
190

 
86,441

 
86,631

 
—

Commercial and industrial loans
192

 
3

 
770

 
965

 
443,298

 
444,263

 
—

Consumer loans
178

 
67

 
27

 
272

 
29,477

 
29,749

 
—

All other loans
—

 
—

 
—

 
—

 
106,859

 
106,859

 
—

Total loans
$
3,509

 
$
726

 
$
6,684

 
$
10,919

 
$
1,928,582

 
$
1,939,501

 
$
—

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

 
2017
 
2016
 
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
276

 
276

 
—

 
—

 
—

 
—

1-4 Family residential properties
1,026

 
1,347

 
25

 
997

 
997

 
6

Multifamily residential properties
313

 
313

 
—

 
528

 
528

 
—

Commercial real estate
5,544

 
5,565

 
531

 
863

 
884

 
—

Loans secured by real estate
7,159

 
7,501

 
556

 
2,615

 
2,636

 
6

Agricultural loans
212

 
1,009

 
2

 
1,345

 
1,345

 
660

Commercial and industrial loans
5,774

 
6,037

 
64

 
1,093

 
1,191

 
192

Consumer loans
200

 
200

 
1

 
213

 
213

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
13,345

 
$
14,747

 
$
623

 
$
5,266

 
$
5,385

 
$
858

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Farm loans
15

 
15

 
—

 
205

 
207

 
—

1-4 Family residential properties
2,239

 
2,664

 
—

 
2,497

 
3,207

 
—

Multifamily residential properties
55

 
55

 
—

 
3,419

 
3,547

 
—

Commercial real estate
303

 
368

 
—

 
6,224

 
6,802

 
—

Loans secured by real estate
2,612

 
3,102

 
—

 
12,345

 
13,763

 
—

Agricultural loans
545

 
—

 
—

 
43

 
66

 
—

Commercial and industrial loans
909

 
1,249

 
—

 
378

 
572

 
—

Consumer loans
102

 
119

 
—

 
206

 
211

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,168

 
$
4,470

 
$
—

 
$
12,972

 
$
14,612

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
227

 
$
227

 
$
—

Farm loans
291

 
291

 
—

 
205

 
207

 
—

1-4 Family residential properties
3,265

 
4,011

 
25

 
3,494

 
4,204

 
6

Multifamily residential properties
368

 
368

 
—

 
3,947

 
4,075

 
—

Commercial real estate
5,847

 
5,933

 
531

 
7,087

 
7,686

 
—

Loans secured by real estate
9,771

 
10,603

 
556

 
14,960

 
16,399

 
6

Agricultural loans
757

 
1,009

 
2

 
1,388

 
1,411

 
660

Commercial and industrial loans
6,683

 
7,286

 
64

 
1,471

 
1,763

 
192

Consumer loans
302

 
319

 
1

 
419

 
424

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
17,513

 
$
19,217

 
$
623

 
$
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 years ended December 31, 2017, 2016 and 2015 (in thousands):
 
2017
 
2016
 
2015
 
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

 
$
—

Farm loans
293

 
—

 
207

 
—

 
527

 
2

1-4 Family residential properties
3,267

 
29

 
2,988

 
22

 
1,440

 
14

Multifamily residential properties
377

 
1

 
3,824

 
55

 
323

 
—

Commercial real estate
5,457

 
13

 
6,675

 
36

 
310

 
2

Loans secured by real estate
9,394

 
43

 
13,923

 
113

 
2,742

 
18

Agricultural loans
878

 
—

 
1,394

 
—

 
82

 
—

Commercial and industrial loans
6,586

 
8

 
1,485

 
4

 
1,569

 
8

Consumer loans
325

 
—

 
557

 
2

 
319

 
2

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
17,183

 
$
51

 
$
17,359

 
$
119

 
$
4,712

 
$
28



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 $578,000 of 1-4 Family residential properties, $251,000 of commercial real estate, and $25,000 of commercial and industrial loans at December 31, 2017 and $603,000 of 1-4 Family residential properties, $3,419,000 of multifamily residential properties, $2,116,000 of commercial real estate loans, $41,000 of commercial and industrial loans and $6,000 of consumer loans at December 31, 2016. For the years ended December 31, 2017, 2016 and 2015, 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, 2017 and December 31, 2016 (in thousands). This table excludes purchased credit-impaired loans and performing troubled debt restructurings.
 
2017
 
2016
Construction and land development
$
—

 
$
227

Farm loans
291

 
205

1-4 Family residential properties
2,687

 
2,890

Multifamily residential properties
368

 
528

Commercial real estate
5,596

 
4,971

Loans secured by real estate
8,942

 
8,821

Agricultural loans
757

 
1,388

Commercial and industrial loans
6,658

 
1,430

Consumer loans
302

 
414

All other loans
—

 
—

Total loans
$
16,659

 
$
12,053
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, 2017 are as follows (in thousands):
 
December 31, 2017

December 31, 2016

1-4 Family residential properties
$
—

$
622

Multifamily residential properties
—

1,011

Commercial real estate
251

3,723

Loans secured by real estate
251

5,356

Commercial and industrial loans
8

2,730

 Carrying amount
259

8,086

Allowance for loan losses
9

14

Carrying amount, net of allowance
$
250

$
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, 2017 and 2016 (in thousands).
Troubled debt restructurings:
2017
 
2016
Construction and land development
$
—

 
$
227

Farm Loans
—

 
—

1-4 Family residential properties
874

 
1,753

Multifamily residential properties
—

 
3,419

Commercial real estate
1,376

 
4,125

Loans secured by real estate
2,250

 
9,524

Agricultural loans
757

 
—

Commercial and industrial loans
5,690

 
1,040

 Consumer Loans
201

 
325

Total
$
8,898

 
$
10,889

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
578

 
$
603

Multifamily residential properties
—

 
3,419

Commercial real estate
251

 
2,116

Loans secured by real estate
829

 
6,138

Commercial and industrial loans
25

 
41

 Consumer Loans
—

 
6

Total
$
854

 
$
6,185