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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2018
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, 2018 and 2017 follows (in thousands):
 
2018
 
2017
Construction and land development
$
51,013

 
$
107,721

Farm loans
232,409

 
127,232

1-4 Family residential properties
374,751

 
294,483

Multifamily residential properties
186,393

 
61,966

Commercial real estate
911,656

 
684,639

Loans secured by real estate
1,756,222

 
1,276,041

Agricultural loans
136,125

 
86,602

Commercial and industrial loans
559,120

 
445,378

Consumer loans
92,744

 
30,070

All other loans
113,925

 
108,023

Gross loans
2,658,136

 
1,946,114

Less: Loans held for sale
1,508

 
1,025

 
2,656,628

 
1,945,089

Less:
 

 
 

Net deferred loan fees, premiums and discounts
13,617

 
6,613

Allowance for loan losses
26,189

 
19,977

Net loans
$
2,616,822

 
$
1,918,499
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, 2018, 2017 and 2016 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
16,546

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Provision charged to expense
6,070

 
548

 
1,447

 
602

 
—

 
8,667

Losses charged off
(1,227
)
 
(93
)
 
(886
)
 
(787
)
 
—

 
(2,993
)
Recoveries
167

 
—

 
57

 
314

 
—

 
538

Balance, end of period
$
21,556

 
$
2,197

 
$
1,504

 
$
932

 
$
—

 
$
26,189

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,816

 
$
—

 
$
225

 
$
3

 
$
—

 
$
2,044

Collectively evaluated for impairment
$
18,514

 
$
2,197

 
$
1,270

 
$
929

 
$
—

 
$
22,910

Loans acquired with deteriorated credit quality
$
1,226

 
$
—

 
$
9

 
$
—

 
$
—

 
$
1,235

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
1,784,741

 
$
367,211

 
$
392,526

 
$
100,041

 
$
—

 
$
2,644,519

Ending Balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
14,422

 
$
32

 
$
2,360

 
$
166

 
$
—

 
$
16,980

Collectively evaluated for impairment
$
1,756,908

 
$
367,175

 
$
387,961

 
$
99,872

 
$
—

 
$
2,611,916

Loans acquired with deteriorated credit quality
$
13,411

 
$
4

 
$
2,205

 
$
3

 
$
—

 
$
15,623


 

 
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

 
0

 
0

 
0

 
0

 
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

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

      Loans acquired with deteriorated credit quality
14

 
0

 
0

 
0

 
0

 
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
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, 2018 and 2017 (in thousands):

 
Construction &
Land Development
 
Farm Loans
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
49,794

 
$
107,140

 
$
221,047

 
$
120,767

 
$
352,583

 
$
282,441

 
$
163,845

 
$
60,954

Special Mention
471

 
454

 
7,805

 
4,829

 
5,526

 
2,654

 
8,144

 
476

Substandard
354

 
—

 
2,848

 
1,587

 
15,409

 
8,572

 
12,062

 
368

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
50,619

 
$
107,594

 
$
231,700

 
$
127,183

 
$
373,518

 
$
293,667

 
$
184,051

 
$
61,798


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
861,086

 
$
647,208

 
$
127,863

 
$
83,469

 
$
535,186

 
$
425,846

 
$
90,133

 
$
29,375

Special Mention
16,035

 
16,941

 
7,581

 
2,304

 
9,967

 
11,492

 
177

 
5

Substandard
29,729

 
17,608

 
433

 
858

 
11,858

 
6,925

 
1,206

 
369

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
906,850

 
$
681,757

 
$
135,877

 
$
86,631

 
$
557,011

 
$
444,263

 
$
91,516

 
$
29,749


 
All Other Loans
 
Total Loans
 
2018
 
2017
 
2018
 
2017
Pass
$
110,352

 
$
103,339

 
$
2,511,889

 
$
1,860,539

Special Mention
3,010

 
3,520

 
58,716

 
42,675

Substandard
15

 
—

 
73,914

 
36,287

Doubtful
—

 
—

 
—

 
—

Total
$
113,377

 
$
106,859

 
$
2,644,519

 
$
1,939,501
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at December 31, 2018 and 2017 (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, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
460

 
$
43

 
$
—

 
$
503

 
$
50,116

 
$
50,619

 
$
—

Farm loans
—

 
804

 
—

 
804

 
230,896

 
231,700

 
—

1-4 Family residential properties
3,347

 
3,051

 
4,080

 
10,478

 
363,040

 
373,518

 
—

Multifamily residential properties
1,149

 
—

 
1,955

 
3,104

 
180,947

 
184,051

 
—

Commercial real estate
1,349

 
89

 
4,058

 
5,496

 
901,354

 
906,850

 
—

Loans secured by real estate
6,305

 
3,987

 
10,093

 
20,385

 
1,726,353

 
1,746,738

 
—

Agricultural loans
63

 
—

 
20

 
83

 
135,794

 
135,877

 
—

Commercial and industrial loans
1,417

 
10

 
3,902

 
5,329

 
551,682

 
557,011

 
—

Consumer loans
888

 
356

 
299

 
1,543

 
89,973

 
91,516

 
—

All other loans
697

 
—

 
—

 
697

 
112,680

 
113,377

 
—

Total loans
$
9,370

 
$
4,353

 
$
14,314

 
$
28,037

 
$
2,616,482

 
$
2,644,519

 
$
—

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

 
$
—
Impaired Loans
The following tables present impaired loans as of December 31, 2018 and 2017 (in thousands):

 
2018
 
2017
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
2,559

 
$
2,559

 
$
14

 
$
—

 
$
—

 
$
—

Farm loans
—

 
—

 
—

 
276

 
276

 
—

1-4 Family residential properties
4,565

 
4,952

 
234

 
1,026

 
1,347

 
25

Multifamily residential properties
4,465

 
4,465

 
—

 
313

 
313

 
—

Commercial real estate
12,517

 
12,804

 
1,553

 
5,544

 
5,565

 
531

Loans secured by real estate
24,106

 
24,780

 
1,801

 
7,159

 
7,501

 
556

Agricultural loans
36

 
504

 
—

 
212

 
1,009

 
2

Commercial and industrial loans
8,292

 
8,723

 
1,475

 
5,774

 
6,037

 
64

Consumer loans
169

 
171

 
3

 
200

 
200

 
1

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
32,603

 
$
34,178

 
$
3,279

 
$
13,345

 
$
14,747

 
$
623

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
48

 
$
48

 
$
—

 
$
—

 
$
—

 
$
—

Farm loans
309

 
309

 
—

 
15

 
15

 
—

1-4 Family residential properties
3,680

 
4,769

 
—

 
2,239

 
2,664

 
—

Multifamily residential properties
7,597

 
7,597

 
—

 
55

 
55

 
—

Commercial real estate
983

 
1,201

 
—

 
303

 
368

 
—

Loans secured by real estate
12,617

 
13,924

 
—

 
2,612

 
3,102

 
—

Agricultural loans
631

 
163

 
—

 
545

 
—

 
—

Commercial and industrial loans
1,660

 
2,027

 
—

 
909

 
1,249

 
—

Consumer loans
471

 
1,006

 
—

 
102

 
119

 
—

All other loans
6

 
6

 
—

 
—

 
—

 
—

Total loans
$
15,385

 
$
17,126

 
$
—

 
$
4,168

 
$
4,470

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
2,607

 
$
2,607

 
$
14

 
$
—

 
$
—

 
$
—

Farm loans
309

 
309

 
—

 
291

 
291

 
—

1-4 Family residential properties
8,245

 
9,721

 
234

 
3,265

 
4,011

 
25

Multifamily residential properties
12,062

 
12,062

 
—

 
368

 
368

 
—

Commercial real estate
13,500

 
14,005

 
1,553

 
5,847

 
5,933

 
531

Loans secured by real estate
36,723

 
38,704

 
1,801

 
9,771

 
10,603

 
556

Agricultural loans
667

 
667

 
—

 
757

 
1,009

 
2

Commercial and industrial loans
9,952

 
10,750

 
1,475

 
6,683

 
7,286

 
64

Consumer loans
640

 
1,177

 
3

 
302

 
319

 
1

All other loans
6

 
6

 
—

 
—

 
—

 
—

Total loans
$
47,988

 
$
51,304

 
$
3,279

 
$
17,513

 
$
19,217

 
$
623
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, 2018, 2017 and 2016 (in thousands):
 
2018
 
2017
 
2016
 
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
$
2,558

 
$
37

 
$
—

 
$
—

 
$
229

 
$
—

Farm loans
415

 
—

 
293

 
—

 
207

 
—

1-4 Family residential properties
6,297

 
144

 
3,267

 
29

 
2,988

 
22

Multifamily residential properties
9,666

 
137

 
377

 
1

 
3,824

 
55

Commercial real estate
9,818

 
271

 
5,457

 
13

 
6,675

 
36

Loans secured by real estate
28,754

 
589

 
9,394

 
43

 
13,923

 
113

Agricultural loans
727

 
23

 
878

 
—

 
1,394

 
—

Commercial and industrial loans
9,003

 
6

 
6,586

 
8

 
1,485

 
4

Consumer loans
131

 
1

 
325

 
—

 
557

 
2

All other loans
3

 
—

 
—

 
—

 
—

 
—

Total loans
$
38,618

 
$
619

 
$
17,183

 
$
51

 
$
17,359

 
$
119



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 $7,237,000 of multifamily residential properties, $1,945,000 of construction & land development, $1,769,000 of 1-4 Family residential properties, $676,000 of commercial real estate, and $962,000 of commercial and industrial loans at December 31, 2018 and $578,000 of 1-4 Family residential properties, $251,000 of commercial real estate loans, and $25,000 of commercial and industrial loans at December 31, 2017. For the years ended December 31, 2018, 2017 and 2016, 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, 2018 and December 31, 2017 (in thousands). This table excludes purchased credit-impaired loans and performing troubled debt restructurings.
 
2018
 
2017
Construction and land development
$
377

 
$
—

Farm loans
309

 
291

1-4 Family residential properties
5,762

 
2,687

Multifamily residential properties
2,105

 
368

Commercial real estate
8,457

 
5,596

Loans secured by real estate
17,010

 
8,942

Agricultural loans
667

 
757

Commercial and industrial loans
8,990

 
6,658

Consumer loans
625

 
302

All other loans
6

 
—

Total loans
$
27,298

 
$
16,659
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, First Bank & Trust during the second quarter of 2018 and Soy Capital during the fourth quarter of 2018. 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, 2018 and 2017 are as follows (in thousands):
 
December 31, 2018

December 31, 2017

Construction and land development
$
2,872

$
—

1-4 Family residential properties
$
2,206

$
—

Multifamily residential properties
3,891

—

Commercial real estate
6,946

251

Loans secured by real estate
15,915

251

Agricultural loans
4

—

Commercial and industrial loans
15

8

Consumer loans
3

—

 Carrying amount
15,937

259

Allowance for loan losses
(1,235
)
(9
)
Carrying amount, net of allowance
$
14,702

$
250
Acquired Receivables With Credit Deterioration, Values at Acquisition [Table Text Block]
The PCI loans acquired during the twelve months ended December 31, 2018 for which it was probable that all contractually required payments would not be collected were as follows (in thousands):
 
First Bank
Soy Capital
Contractually required payments
$
20,357

$
3,282

Non-accretable difference
(4,231
)
(688
)
Cash flows expected to be collected at acquisition
16,126

2,594

Accretable yield
—

—

Fair value of acquired loans at acquisition
$
16,126

$
2,594
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at December 31, 2018 and 2017 (in thousands).
Troubled debt restructurings:
2018
 
2017
Construction and land development
$
—

 
$
—

1-4 Family residential properties
2,472

 
874

Multifamily residential properties
—

 
—

Commercial real estate
1,706

 
1,376

Loans secured by real estate
4,178

 
2,250

Agricultural loans
499

 
757

Commercial and industrial loans
5,112

 
5,690

 Consumer Loans
167

 
201

Total
$
9,956

 
$
8,898

Performing troubled debt restructurings:
 

 
 

Construction and Land Development
$
—

 
$
—

1-4 Family residential properties
1,769

 
578

Multifamily residential properties
—

 
—

Commercial real estate
676

 
251

Loans secured by real estate
2,445

 
829

Commercial and industrial loans
—

 
25

 Consumer Loans
6

 
—

Total
$
2,451

 
$
854