XML 32 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Summary of Loans
A summary of loans at June 30, 2018 and December 31, 2017 follows (in thousands):
 
June 30,
2018
 
December 31,
2017
Construction and land development
$
88,945

 
$
107,721

Agricultural real estate
185,217

 
127,232

1-4 Family residential properties
380,302

 
294,483

Multifamily residential properties
106,728

 
61,966

Commercial real estate
807,630

 
684,639

Loans secured by real estate
1,568,822

 
1,276,041

Agricultural loans
113,823

 
86,602

Commercial and industrial loans
503,423

 
445,378

Consumer loans
59,932

 
30,070

All other loans
141,345

 
108,023

Total Gross loans
2,387,345

 
1,946,114

Less: Loans held for sale
2,454

 
1,025

 
2,384,891

 
1,945,089

Less:
 

 
 

Net deferred loan fees, premiums and discounts
10,662

 
6,613

Allowance for loan losses
22,045

 
19,977

Net loans
$
2,352,184

 
$
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 for the three and six-months ended June 30, 2018 and 2017 and for the year ended December 31, 2017 (in thousands):
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
17,368

 
$
1,581

 
$
961

 
$
861

 
$
—

 
$
20,771

Provision charged to expense
1,334

 
319

 
92

 
132

 
—

 
1,877

Losses charged off
(536
)
 
—

 
(55
)
 
(128
)
 
—

 
(719
)
Recoveries
—

 
—

 
53

 
63

 
—

 
116

Balance, end of period
$
18,166

 
$
1,900

 
$
1,051

 
$
928

 
$
—

 
$
22,045

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
493

 
$
30

 
$
19

 
$
—

 
$
—

 
$
542

Collectively evaluated for impairment
$
17,673

 
$
1,870

 
$
1,032

 
$
928

 
$
—

 
$
21,503

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
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
Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
16,546

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Provision charged to expense
2,270

 
158

 
269

 
235

 
—

 
2,932

Losses charged off
(773
)
 
—

 
(158
)
 
(264
)
 
—

 
(1,195
)
Recoveries
123

 
—

 
54

 
154

 
—

 
331

Balance, end of period
$
18,166

 
$
1,900

 
$
1,051

 
$
928

 
$
—

 
$
22,045

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
493

 
$
30

 
$
19

 
$
—

 
$
—

 
$
542

Collectively evaluated for impairment
$
17,673

 
$
1,870

 
$
1,032

 
$
928

 
$
—

 
$
21,503

Acquired with deteriorated credit quality
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
12,163

 
$
150

 
$
2,743

 
$
153

 
$
—

 
$
15,209

Collectively evaluated for impairment
1,593,116

 
294,768

 
383,791

 
73,773

 
$
—

 
2,345,448

Acquired with deteriorated credit quality
12,300

 
238

 
3,482

 
6

 
$
—

 
16,026

Ending balance
$
1,617,579

 
$
295,156

 
$
390,016

 
$
73,932

 
$
—

 
$
2,376,683

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

Year ended 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 year
$
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

Acquired with deteriorated credit quality
$
9

 
$
—

 
$
—

 
$
—

 
$
—

 
$
9

Loans:
 

 
 

 
 

 
 

 
 

 
 

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

Acquired with deteriorated credit quality
259

 
—

 
—

 
—

 
—

 
259

Ending balance
$
1,371,787

 
$
213,521

 
$
315,123

 
$
39,070

 
$
—

 
$
1,939,501
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 June 30, 2018 and December 31, 2017 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
87,955

 
$
107,140

 
$
175,635

 
$
120,767

 
$
360,561

 
$
282,441

 
$
103,653

 
$
60,954

Special Mention
444

 
454

 
6,628

 
4,829

 
3,342

 
2,654

 
464

 
476

Substandard
82

 
—

 
2,624

 
1,587

 
14,670

 
8,572

 
1,831

 
368

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
88,481

 
$
107,594

 
$
184,887

 
$
127,183

 
$
378,573

 
$
293,667

 
$
105,948

 
$
61,798


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
766,400

 
$
647,208

 
$
109,985

 
$
83,469

 
$
489,913

 
$
425,846

 
$
58,377

 
$
29,375

Special Mention
14,079

 
16,941

 
2,622

 
2,304

 
4,112

 
11,492

 
9

 
5

Substandard
22,702

 
17,608

 
926

 
858

 
8,186

 
6,925

 
704

 
369

Doubtful
181

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
803,362

 
$
681,757

 
$
113,533

 
$
86,631

 
$
502,211

 
$
444,263

 
$
59,090

 
$
29,749


 
All Other Loans
 
Total Loans
 
2018
 
2017
 
2018
 
2017
Pass
$
137,824

 
$
103,339

 
$
2,290,303

 
$
1,860,539

Special Mention
2,743

 
3,520

 
34,443

 
42,675

Substandard
31

 
—

 
51,756

 
36,287

Doubtful
—

 
—

 
181

 
—

Total
$
140,598

 
$
106,859

 
$
2,376,683

 
$
1,939,501
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at June 30, 2018 and December 31, 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
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
44

 
$
44

 
$
88,437

 
$
88,481

 
$
—

Agricultural real estate
640

 
—

 
—

 
640

 
184,247

 
184,887

 
—

1-4 Family residential properties
2,396

 
977

 
882

 
4,255

 
374,318

 
378,573

 
—

Multifamily residential properties
281

 
—

 
—

 
281

 
105,667

 
105,948

 
—

Commercial real estate
3,445

 
1,495

 
2,532

 
7,472

 
795,890

 
803,362

 
—

Loans secured by real estate
6,762

 
2,472

 
3,458

 
12,692

 
1,548,559

 
1,561,251

 
—

Agricultural loans
365

 
11

 
110

 
486

 
113,047

 
113,533

 
—

Commercial and industrial loans
1,891

 
1,140

 
2,105

 
5,136

 
497,075

 
502,211

 
—

Consumer loans
784

 
313

 
2

 
1,099

 
57,991

 
59,090

 
—

All other loans
—

 
—

 
—

 
—

 
140,598

 
140,598

 
—

Total loans
$
9,802

 
$
3,936

 
$
5,675

 
$
19,413

 
$
2,357,270

 
$
2,376,683

 
$
—

December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
26

 
$
48

 
$
—

 
$
74

 
$
107,520

 
$
107,594

 
$
—

Agricultural real estate
—

 
—

 
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 June 30, 2018 and December 31, 2017 (in thousands):
 
June 30, 2018
 
December 31, 2017
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
—

 
—

 
—

 
276

 
276

 
—

1-4 Family residential properties
3,540

 
3,912

 
19

 
1,026

 
1,347

 
25

Multifamily residential properties
301

 
301

 
—

 
313

 
313

 
—

Commercial real estate
8,160

 
8,160

 
429

 
5,544

 
5,565

 
531

Loans secured by real estate
12,001

 
12,373

 
448

 
7,159

 
7,501

 
556

Agricultural loans
154

 
1,002

 
30

 
212

 
1,009

 
2

Commercial and industrial loans
6,414

 
6,921

 
64

 
5,774

 
6,037

 
64

Consumer loans
159

 
159

 
—

 
200

 
200

 
1

Total loans
$
18,728

 
$
20,455

 
$
542

 
$
13,345

 
$
14,747

 
$
623

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
58

 
$
58

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
235

 
235

 
—

 
15

 
15

 
—

1-4 Family residential properties
3,178

 
3,270

 
—

 
2,239

 
2,664

 
—

Multifamily residential properties
—

 
—

 
—

 
55

 
55

 
—

Commercial real estate
432

 
493

 
—

 
303

 
368

 
—

Loans secured by real estate
3,903

 
4,056

 
—

 
2,612

 
3,102

 
—

Agricultural loans
955

 
359

 
—

 
545

 
—

 
—

Commercial and industrial loans
953

 
968

 
—

 
909

 
1,249

 
—

Consumer loans
170

 
195

 
—

 
102

 
119

 
—

All other loans
21

 
21

 
—

 
—

 
—

 
—

Total loans
$
6,002

 
$
5,599

 
$
—

 
$
4,168

 
$
4,470

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
58

 
$
58

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
235

 
235

 
—

 
291

 
291

 
—

1-4 Family residential properties
6,718

 
7,182

 
19

 
3,265

 
4,011

 
25

Multifamily residential properties
301

 
301

 
—

 
368

 
368

 
—

Commercial real estate
8,592

 
8,653

 
429

 
5,847

 
5,933

 
531

Loans secured by real estate
15,904

 
16,429

 
448

 
9,771

 
10,603

 
556

Agricultural loans
1,109

 
1,361

 
30

 
757

 
1,009

 
2

Commercial and industrial loans
7,367

 
7,889

 
64

 
6,683

 
7,286

 
64

Consumer loans
329

 
354

 
—

 
302

 
319

 
1

All other loans
21

 
21

 
—

 
—

 
—

 
—

Total loans
$
24,730

 
$
26,054

 
$
542

 
$
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 three and six-month periods ended June 30, 2018 and 2017 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
June 30, 2018
 
June 30, 2017
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
44

 
$
—

 
$
594

 
$
—

Agricultural real estate
235

 
—

 
16

 
—

1-4 Family residential properties
6,719

 
22

 
2,929

 
106

Multifamily residential properties
301

 
—

 
4,129

 
51

Commercial real estate
8,675

 
3

 
7,068

 
31

Loans secured by real estate
15,974

 
25

 
14,736

 
188

Agricultural loans
1,109

 
—

 
826

 
—

Commercial and industrial loans
7,672

 
—

 
1,781

 
2

Consumer loans
329

 
—

 
625

 
—

All other loans
21

 
—

 
—

 
—

Total loans
$
25,105

 
$
25

 
$
17,968

 
$
190

 
For the six months ended
 
June 30, 2018
 
June 30, 2017
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
44

 
$
—

 
$
347

 
$
—

Agricultural real estate
235

 
—

 
17

 
—

1-4 Family residential properties
6,777

 
28

 
3,121

 
117

Multifamily residential properties
302

 
—

 
4,133

 
94

Commercial real estate
8,680

 
6

 
5,316

 
62

Loans secured by real estate
16,038

 
34

 
12,934

 
273

Agricultural loans
1,061

 
—

 
930

 
—

Commercial and industrial loans
7,892

 
2

 
1,841

 
4

Consumer loans
349

 
—

 
628

 
—

All other loans
21

 
—

 
—

 
—

Total loans
$
25,361

 
$
36

 
$
16,333

 
$
277
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2018 and December 31, 2017 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
June 30,
2018
 
December 31,
2017
Construction and land development
$
58

 
$
—

Agricultural real estate
235

 
291

1-4 Family residential properties
4,323

 
2,687

Multifamily residential properties
301

 
368

Commercial real estate
7,909

 
5,596

Loans secured by real estate
12,826

 
8,942

Agricultural loans
1,109

 
757

Commercial and industrial loans
7,365

 
6,658

Consumer loans
329

 
302

All other loans
21

 
—

Total loans
$
21,650

 
$
16,659
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The PCI loans acquired from First Bank & Trust during the second quarter of 2018 for which it was probable that all contractually required payments would not be collected were as follows:

Contractually required payments
$
20,357

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

Accretable yield
—

Fair value of acquired loans at acquisition
$
16,126



The amount of these loans at June 30, 2018 and December 31, 2017 are as follows (in thousands):
 
June 30,
2018
 
December 31,
2017
Construction and land development
$
299

 
$
—

Agricultural real estate
121

 
—

1-4 Family residential properties
$
3,183

 
$
—

Multifamily residential properties
3,951

 
—

Commercial real estate
7,780

 
251

Loans secured by real estate
15,334

 
251

Agricultural loans
117

 
—

Commercial and industrial loans
569

 
8

Consumer loans
6

 
—

 Carrying amount
16,026

 
259

Allowance for loan losses
—

 
9

Carrying amount, net of allowance
$
16,026

 
$
250
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2018 and December 31, 2017 (in thousands).
Troubled debt restructurings:
June 30, 2018
 
December 31, 2017
1-4 Family residential properties
2,883

 
874

Commercial real estate
1,897

 
1,376

Loans secured by real estate
4,780

 
2,250

Agricultural loans
745

 
757

Commercial and industrial loans
4,933

 
5,690

Consumer loans
153

 
201

Total
$
10,611

 
$
8,898

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
2,396

 
$
578

Commercial real estate
683

 
251

Loans secured by real estate
3,079

 
829

Commercial and industrial loans
—

 
25

Total
$
3,079

 
$
854
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, 2018 and 2017, as a result of various modified loan factors (in thousands):
 
June 30, 2018
 
June 30, 2017
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
1-4 Family residential properties
1

 
161

 
(b)
 
—

 
—

 

Agricultural loans
—

 
—

 

 
1

 
819

 
(b)(c)
Total
1

 
$
161

 
 
 
1

 
$
819