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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 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 June 30, 2017 and December 31, 2016 follows (in thousands):
 
June 30,
2017
 
December 31,
2016
Construction and land development
$
68,847

 
$
49,366

Agricultural real estate
123,508

 
126,216

1-4 Family residential properties
311,699

 
328,119

Multifamily residential properties
72,660

 
83,478

Commercial real estate
635,420

 
633,694

Loans secured by real estate
1,212,134

 
1,220,873

Agricultural loans
79,763

 
86,735

Commercial and industrial loans
422,982

 
412,637

Consumer loans
33,132

 
38,404

All other loans
85,338

 
77,602

Total Gross loans
1,833,349

 
1,836,251

Less: Loans held for sale
1,932

 
1,175

 
1,831,417

 
1,835,076

Less:
 

 
 

Net deferred loan fees, premiums and discounts
7,715

 
10,259

Allowance for loan losses
18,209

 
16,753

Net loans
$
1,805,493

 
$
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 six-months ended June 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 June 30, 2017
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
13,771

 
$
2,319

 
$
978

 
$
751

 
$
27

 
$
17,846

Provision charged to expense
1,667

 
86

 
23

 
57

 
7

 
1,840

Losses charged off
(871
)
 
(662
)
 
(50
)
 
(135
)
 
—

 
(1,718
)
Recoveries
180

 
—

 
18

 
43

 
—

 
241

Balance, end of period
$
14,747

 
$
1,743

 
$
969

 
$
716

 
$
34

 
$
18,209

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
194

 
$
—

 
$
47

 
$
1

 
$
—

 
$
242

Collectively evaluated for impairment
$
14,553

 
$
1,743

 
$
922

 
$
715

 
$
34

 
$
17,967

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2016
 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
11,789

 
$
1,270

 
$
926

 
$
710

 
$
41

 
$
14,736

Provision charged to expense
388

 
179

 
56

 
88

 
22

 
733

Losses charged off
(572
)
 
—

 
(58
)
 
(109
)
 
—

 
(739
)
Recoveries
390

 
—

 
—

 
44

 
—

 
434

Balance, end of period
$
11,995

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
15,164

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
297

 
$
—

 
$
—

 
$
—

 
$
—

 
$
297

Collectively evaluated for impairment
$
11,698

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
14,867

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

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

 
$
2,249

 
$
874

 
$
693

 
$
36

 
$
16,753

Provision charged to expense
3,133

 
155

 
169

 
107

 
(2
)
 
3,562

Losses charged off
(1,483
)
 
(662
)
 
(99
)
 
(237
)
 
—

 
(2,481
)
Recoveries
196

 
1

 
25

 
153

 
—

 
375

Balance, end of period
$
14,747

 
$
1,743

 
$
969

 
$
716

 
$
34

 
$
18,209

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
194

 
$
—

 
$
47

 
$
1

 
$
—

 
$
242

Collectively evaluated for impairment
$
14,553

 
$
1,743

 
$
922

 
$
715

 
$
34

 
$
17,967

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,653

 
$
261

 
$
1,494

 
$
248

 
$
—

 
$
7,656

Collectively evaluated for impairment
1,241,763

 
202,620

 
331,874

 
35,611

 
$
—

 
1,811,868

Acquired with deteriorated credit quality
6,110

 
—

 
—

 
—

 
$
—

 
6,110

Ending balance
$
1,253,526

 
$
202,881

 
$
333,368

 
$
35,859

 
$
—

 
$
1,825,634

 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
11,379

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,576

Provision charged to expense
613

 
111

 
72

 
211

 
(161
)
 
846

Losses charged off
(612
)
 
—

 
(142
)
 
(222
)
 
—

 
(976
)
Recoveries
615

 
1

 
—

 
102

 
—

 
718

Balance, end of period
$
11,995

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
15,164

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
297

 
$
—

 
$
—

 
$
—

 
$
—

 
$
297

Collectively evaluated for impairment
$
11,698

 
$
1,449

 
$
924

 
$
733

 
$
63

 
$
14,867

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,555

 
$
430

 
$
—

 
$
21

 
$
—

 
$
2,006

Collectively evaluated for impairment
855,595

 
194,384

 
221,546

 
41,656

 
—

 
1,313,181

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
857,150

 
$
194,814

 
$
221,546

 
$
41,677

 
$
—

 
$
1,315,187

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
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 June 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
$
68,088

 
$
48,877

 
$
117,180

 
$
118,934

 
$
299,314

 
$
318,921

 
$
67,002

 
$
81,018

Special Mention
—

 
—

 
5,213

 
5,190

 
2,623

 
918

 
1,618

 
1,651

Substandard
593

 
227

 
1,027

 
1,984

 
8,585

 
6,576

 
3,872

 
531

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
68,681

 
$
49,104

 
$
123,420

 
$
126,108

 
$
310,522

 
$
326,415

 
$
72,492

 
$
83,200


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Pass
$
594,806

 
$
610,025

 
$
74,333

 
$
81,922

 
$
401,352

 
$
397,762

 
$
32,366

 
$
37,624

Special Mention
17,160

 
5,229

 
2,534

 
3,271

 
17,648

 
8,485

 
14

 
17

Substandard
20,526

 
14,881

 
2,892

 
1,492

 
2,280

 
2,786

 
434

 
387

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
632,492

 
$
630,135

 
$
79,759

 
$
86,685

 
$
421,280

 
$
409,033

 
$
32,814

 
$
38,028


 
All Other Loans
 
Total Loans
 
2017
 
2016
 
2017
 
2016
Pass
$
81,418

 
$
74,377

 
$
1,735,859

 
$
1,769,460

Special Mention
2,756

 
2,892

 
49,566

 
27,653

Substandard
—

 
15

 
40,209

 
28,879

Doubtful
—

 
—

 
—

 
—

Total
$
84,174

 
$
77,284

 
$
1,825,634

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

 
$
—

 
$
—

 
$
—

 
$
68,681

 
$
68,681

 
$
—

Agricultural real estate
237

 
299

 
104

 
640

 
122,780

 
123,420

 
—

1-4 Family residential properties
1,462

 
57

 
1,235

 
2,754

 
307,768

 
310,522

 
—

Multifamily residential properties
—

 
98

 
—

 
98

 
72,394

 
72,492

 
—

Commercial real estate
1,720

 
304

 
1,196

 
3,220

 
629,272

 
632,492

 
—

Loans secured by real estate
3,419

 
758

 
2,535

 
6,712

 
1,200,895

 
1,207,607

 
—

Agricultural loans
931

 
199

 
—

 
1,130

 
78,629

 
79,759

 
—

Commercial and industrial loans
455

 
49

 
176

 
680

 
420,600

 
421,280

 
—

Consumer loans
160

 
3

 
88

 
251

 
32,563

 
32,814

 
—

All other loans
—

 
—

 
—

 
—

 
84,174

 
84,174

 
—

Total loans
$
4,965

 
$
1,009

 
$
2,799

 
$
8,773

 
$
1,816,861

 
$
1,825,634

 
$
—

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 June 30, 2017 and December 31, 2016 (in thousands):

 
June 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
$
593

 
$
593

 
$
—

 
$
227

 
$
227

 
$
—

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
1,494

 
1,762

 
47

 
997

 
997

 
6

Multifamily residential properties
605

 
605

 
—

 
528

 
528

 
—

Commercial real estate
3,589

 
3,703

 
78

 
863

 
884

 
—

Loans secured by real estate
6,281

 
6,663

 
125

 
2,615

 
2,636

 
6

Agricultural loans
261

 
1,071

 
—

 
1,345

 
1,345

 
660

Commercial and industrial loans
866

 
1,051

 
116

 
1,093

 
1,191

 
192

Consumer loans
248

 
248

 
1

 
213

 
213

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
7,656

 
$
9,033

 
$
242

 
$
5,266

 
$
5,385

 
$
858

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
16

 
17

 
—

 
205

 
207

 
—

1-4 Family residential properties
1,403

 
1,869

 
—

 
2,497

 
3,207

 
—

Multifamily residential properties
3,395

 
3,395

 
—

 
3,419

 
3,547

 
—

Commercial real estate
2,924

 
3,154

 
—

 
6,224

 
6,802

 
—

Loans secured by real estate
7,738

 
8,435

 
—

 
12,345

 
13,763

 
—

Agricultural loans
565

 
7

 
—

 
43

 
66

 
—

Commercial and industrial loans
1,086

 
1,374

 
—

 
378

 
572

 
—

Consumer loans
80

 
90

 
—

 
206

 
211

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
9,469

 
$
9,906

 
$
—

 
$
12,972

 
$
14,612

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
593

 
$
593

 
$
—

 
$
227

 
$
227

 
$
—

Agricultural real estate
16

 
17

 
—

 
205

 
207

 
—

1-4 Family residential properties
2,897

 
3,631

 
47

 
3,494

 
4,204

 
6

Multifamily residential properties
4,000

 
4,000

 
—

 
3,947

 
4,075

 
—

Commercial real estate
6,513

 
6,857

 
78

 
7,087

 
7,686

 
—

Loans secured by real estate
14,019

 
15,098

 
125

 
14,960

 
16,399

 
6

Agricultural loans
826

 
1,078

 
—

 
1,388

 
1,411

 
660

Commercial and industrial loans
1,952

 
2,425

 
116

 
1,471

 
1,763

 
192

Consumer loans
328

 
338

 
1

 
419

 
424

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
17,125

 
$
18,939

 
$
242

 
$
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 six-month periods ended June 30, 2017 and 2016 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
June 30, 2017
 
June 30, 2016
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
594

 
$
—

 
$
580

 
$
—

Agricultural real estate
16

 
—

 
450

 
—

1-4 Family residential properties
2,929

 
106

 
1,244

 
4

Multifamily residential properties
4,129

 
51

 
305

 
—

Commercial real estate
7,068

 
31

 
1,132

 
1

Loans secured by real estate
14,736

 
188

 
3,711

 
5

Agricultural loans
826

 
—

 
15

 
—

Commercial and industrial loans
1,781

 
2

 
1,100

 
—

Consumer loans
625

 
—

 
260

 
—

All other loans
—

 
—

 
10

 
—

Total loans
$
17,968

 
$
190

 
$
5,096

 
$
5

 
For the six months ended
 
June 30, 2017
 
June 30, 2016
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
347

 
$
—

 
$
632

 
$
—

Agricultural real estate
17

 
—

 
450

 
—

1-4 Family residential properties
3,121

 
117

 
1,264

 
8

Multifamily residential properties
4,133

 
94

 
307

 
—

Commercial real estate
5,316

 
62

 
1,133

 
1

Loans secured by real estate
12,934

 
273

 
3,786

 
9

Agricultural loans
930

 
—

 
16

 
—

Commercial and industrial loans
1,841

 
4

 
1,143

 
—

Consumer loans
628

 
—

 
264

 
—

Total loans
$
16,333

 
$
277

 
$
5,219

 
$
9
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2017 and December 31, 2016 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
June 30,
2017
 
December 31,
2016
Construction and land development
$
593

 
$
227

Agricultural real estate
16

 
205

1-4 Family residential properties
2,302

 
2,890

Multifamily residential properties
605

 
528

Commercial real estate
4,426

 
4,971

Loans secured by real estate
7,942

 
8,821

Agricultural loans
826

 
1,388

Commercial and industrial loans
1,622

 
1,430

Consumer loans
624

 
414

Total loans
$
11,014

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

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

 
$
827

Multifamily residential properties
3,396

 
3,419

Commercial real estate
2,698

 
3,816

Loans secured by real estate
6,094

 
8,062

Commercial and industrial loans
16

 
24

 Carrying amount
6,110

 
8,086

Allowance for loan losses
—

 
14

Carrying amount, net of allowance
$
6,110

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

 
$
227

1-4 Family residential properties
909

 
1,753

Multifamily residential properties
3,395

 
3,419

Commercial real estate
3,032

 
4,125

Loans secured by real estate
7,336

 
9,524

Agricultural loans
819

 
—

Commercial and industrial loans
920

 
1,040

Consumer loans
248

 
325

Total
$
9,323

 
$
10,889

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
594

 
$
603

Multifamily residential properties
3,395

 
3,419

Commercial real estate
2,087

 
2,116

Loans secured by real estate
6,076

 
6,138

Commercial and industrial loans
33

 
41

Consumer loans
2

 
6

Total
$
6,111

 
$
6,185
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the six months ended June 30, 2017 and 2016, as a result of various modified loan factors (in thousands):
 
June 30, 2017
 
June 30, 2016
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
Construction and land development
—

 
$
—

 

 
1


$
234

 
(b)(c)
1-4 Family residential properties
—

 
—

 

 
1

 
48

 
(c)
Loans secured by real estate
—

 
—

 
 
 
2

 
282

 
 
Agricultural loans
1

 
819

 
(b)(c)
 
—

 
—

 

Commercial and industrial loans
—

 
—

 

 
3

 
75

 
(b)(c)
Total
1

 
$
819

 
 
 
5

 
$
357