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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Summary of Loans
A summary of loans at September 30, 2018 and December 31, 2017 follows (in thousands):
 
September 30,
2018
 
December 31,
2017
Construction and land development
$
91,768

 
$
107,721

Agricultural real estate
191,812

 
127,232

1-4 Family residential properties
368,759

 
294,483

Multifamily residential properties
100,881

 
61,966

Commercial real estate
818,093

 
684,639

Loans secured by real estate
1,571,313

 
1,276,041

Agricultural loans
120,812

 
86,602

Commercial and industrial loans
541,099

 
445,378

Consumer loans
57,788

 
30,070

All other loans
117,031

 
108,023

Total Gross loans
2,408,043

 
1,946,114

Less: Loans held for sale
940

 
1,025

 
2,407,103

 
1,945,089

Less:
 

 
 

Net deferred loan fees, premiums and discounts
7,883

 
6,613

Allowance for loan losses
23,839

 
19,977

Net loans
$
2,375,381

 
$
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 nine-months ended September 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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
18,663

 
$
1,900

 
$
554

 
$
928

 
$
—

 
$
22,045

Provision charged to expense
1,197

 
247

 
942

 
165

 
—

 
2,551

Losses charged off
(439
)
 
(93
)
 
(181
)
 
(133
)
 
—

 
(846
)
Recoveries
5

 
—

 
2

 
82

 
—

 
89

Balance, end of period
$
19,426

 
$
2,054

 
$
1,317

 
$
1,042

 
$
—

 
$
23,839

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
858

 
$
—

 
$
249

 
$
1

 
$
—

 
$
1,108

Collectively evaluated for impairment
$
18,157

 
$
2,054

 
$
1,068

 
$
1,041

 
$
—

 
$
22,320

Acquired with deteriorated credit quality
$
411

 
$
—

 
$
—

 
$
—

 
$
—

 
$
411

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

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Provision charged to expense
3,467

 
405

 
1,211

 
400

 
—

 
5,483

Losses charged off
(715
)
 
(93
)
 
(836
)
 
(397
)
 
—

 
(2,041
)
Recoveries
128

 
—

 
56

 
236

 
—

 
420

Balance, end of period
$
19,426

 
$
2,054

 
$
1,317

 
$
1,042

 
$
—

 
$
23,839

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
858

 
$
—

 
$
249

 
$
1

 
$
—

 
$
1,108

Collectively evaluated for impairment
$
18,157

 
$
2,054

 
$
1,068

 
$
1,041

 
$
—

 
$
22,320

Acquired with deteriorated credit quality
$
411

 
$
—

 
$
—

 
$
—

 
$
—

 
$
411

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
14,924

 
$
42

 
$
2,708

 
$
159

 
$
—

 
$
17,833

Collectively evaluated for impairment
1,605,717

 
312,145

 
381,012

 
69,048

 
$
—

 
2,367,922

Acquired with deteriorated credit quality
11,435

 
4

 
2,961

 
5

 
$
—

 
14,405

Ending balance
$
1,632,076

 
$
312,191

 
$
386,681

 
$
69,212

 
$
—

 
$
2,400,160

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

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 September 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
$
90,552

 
$
107,140

 
$
180,273

 
$
120,767

 
$
345,527

 
$
282,441

 
$
90,751

 
$
60,954

Special Mention
439

 
454

 
9,500

 
4,829

 
7,142

 
2,654

 
4,900

 
476

Substandard
364

 
—

 
1,951

 
1,587

 
14,674

 
8,572

 
4,717

 
368

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
91,355

 
$
107,594

 
$
191,724

 
$
127,183

 
$
367,343

 
$
293,667

 
$
100,368

 
$
61,798


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Pass
$
772,696

 
$
647,208

 
$
111,903

 
$
83,469

 
$
524,649

 
$
425,846

 
$
55,865

 
$
29,375

Special Mention
16,716

 
16,941

 
8,048

 
2,304

 
5,841

 
11,492

 
200

 
5

Substandard
25,162

 
17,608

 
819

 
858

 
9,897

 
6,925

 
1,183

 
369

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
814,574

 
$
681,757

 
$
120,770

 
$
86,631

 
$
540,387

 
$
444,263

 
$
57,248

 
$
29,749


 
All Other Loans
 
Total Loans
 
2018
 
2017
 
2018
 
2017
Pass
$
113,630

 
$
103,339

 
$
2,285,846

 
$
1,860,539

Special Mention
2,746

 
3,520

 
55,532

 
42,675

Substandard
15

 
—

 
58,782

 
36,287

Doubtful
—

 
—

 
—

 
—

Total
$
116,391

 
$
106,859

 
$
2,400,160

 
$
1,939,501
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at September 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
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
773

 
$
—

 
$
61

 
$
834

 
$
90,521

 
$
91,355

 
$
—

Agricultural real estate
42

 
—

 
1,066

 
1,108

 
190,616

 
191,724

 
—

1-4 Family residential properties
5,777

 
2,313

 
2,002

 
10,092

 
357,251

 
367,343

 
—

Multifamily residential properties
—

 
305

 
229

 
534

 
99,834

 
100,368

 
—

Commercial real estate
3,535

 
1,285

 
3,010

 
7,830

 
806,744

 
814,574

 
—

Loans secured by real estate
10,127

 
3,903

 
6,368

 
20,398

 
1,544,966

 
1,565,364

 
—

Agricultural loans
170

 
—

 
522

 
692

 
120,078

 
120,770

 
—

Commercial and industrial loans
809

 
467

 
3,989

 
5,265

 
535,122

 
540,387

 
—

Consumer loans
989

 
447

 
304

 
1,740

 
55,508

 
57,248

 
—

All other loans
—

 
—

 
—

 
—

 
116,391

 
116,391

 
—

Total loans
$
12,095

 
$
4,817

 
$
11,183

 
$
28,095

 
$
2,372,065

 
$
2,400,160

 
$
—

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 September 30, 2018 and December 31, 2017 (in thousands):
 
September 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
$
292

 
$
292

 
$
21

 
$
—

 
$
—

 
$
—

Agricultural real estate
—

 
—

 
—

 
276

 
276

 
—

1-4 Family residential properties
5,670

 
6,057

 
249

 
1,026

 
1,347

 
25

Multifamily residential properties
4,488

 
4,488

 
—

 
313

 
313

 
—

Commercial real estate
13,032

 
13,053

 
783

 
5,544

 
5,565

 
531

Loans secured by real estate
23,482

 
23,890

 
1,053

 
7,159

 
7,501

 
556

Agricultural loans
46

 
609

 
—

 
212

 
1,009

 
2

Commercial and industrial loans
8,546

 
9,228

 
465

 
5,774

 
6,037

 
64

Consumer loans
164

 
164

 
1

 
200

 
200

 
1

Total loans
$
32,238

 
$
33,891

 
$
1,519

 
$
13,345

 
$
14,747

 
$
623

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
67

 
$
67

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
171

 
171

 
—

 
15

 
15

 
—

1-4 Family residential properties
3,343

 
4,465

 
—

 
2,239

 
2,664

 
—

Multifamily residential properties
229

 
229

 
—

 
55

 
55

 
—

Commercial real estate
975

 
1,046

 
—

 
303

 
368

 
—

Loans secured by real estate
4,785

 
5,978

 
—

 
2,612

 
3,102

 
—

Agricultural loans
717

 
154

 
—

 
545

 
—

 
—

Commercial and industrial loans
923

 
958

 
—

 
909

 
1,249

 
—

Consumer loans
447

 
959

 
—

 
102

 
119

 
—

All other loans
6

 
6

 
—

 
—

 
—

 
—

Total loans
$
6,878

 
$
8,055

 
$
—

 
$
4,168

 
$
4,470

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
359

 
$
359

 
$
21

 
$
—

 
$
—

 
$
—

Agricultural real estate
171

 
171

 
—

 
291

 
291

 
—

1-4 Family residential properties
9,013

 
10,522

 
249

 
3,265

 
4,011

 
25

Multifamily residential properties
4,717

 
4,717

 
—

 
368

 
368

 
—

Commercial real estate
14,007

 
14,099

 
783

 
5,847

 
5,933

 
531

Loans secured by real estate
28,267

 
29,868

 
1,053

 
9,771

 
10,603

 
556

Agricultural loans
763

 
763

 
—

 
757

 
1,009

 
2

Commercial and industrial loans
9,469

 
10,186

 
465

 
6,683

 
7,286

 
64

Consumer loans
611

 
1,123

 
1

 
302

 
319

 
1

All other loans
6

 
6

 
—

 
—

 
—

 
—

Total loans
$
39,116

 
$
41,946

 
$
1,519

 
$
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 nine-month periods ended September 30, 2018 and 2017 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
September 30, 2018
 
September 30, 2017
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
395

 
$
22

 
$
267

 
$
—

Agricultural real estate
620

 
—

 
291

 
—

1-4 Family residential properties
7,574

 
137

 
3,047

 
5

Multifamily residential properties
3,164

 
126

 
8,017

 
80

Commercial real estate
11,932

 
188

 
5,762

 
6

Loans secured by real estate
23,685

 
473

 
17,384

 
91

Agricultural loans
752

 
—

 
834

 
—

Commercial and industrial loans
8,909

 
5

 
2,075

 
2

Consumer loans
234

 
—

 
296

 
—

All other loans
8

 
—

 
—

 
—

Total loans
$
33,588

 
$
478

 
$
20,589

 
$
93

 
For the nine months ended
 
September 30, 2018
 
September 30, 2017
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
167

 
$
29

 
$
98

 
$
—

Agricultural real estate
182

 
—

 
293

 
—

1-4 Family residential properties
5,672

 
188

 
3,003

 
16

Multifamily residential properties
1,414

 
169

 
10,839

 
229

Commercial real estate
8,595

 
256

 
4,638

 
14

Loans secured by real estate
16,030

 
642

 
18,871

 
259

Agricultural loans
642

 
—

 
900

 
—

Commercial and industrial loans
8,109

 
7

 
2,216

 
6

Consumer loans
—

 
—

 
307

 
—

All other loans
—

 
—

 
—

 
—

Total loans
$
24,781

 
$
649

 
$
22,294

 
$
265
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as September 30, 2018 and December 31, 2017 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
September 30,
2018
 
December 31,
2017
Construction and land development
$
67

 
$
—

Agricultural real estate
171

 
291

1-4 Family residential properties
4,682

 
2,687

Multifamily residential properties
805

 
368

Commercial real estate
8,769

 
5,596

Loans secured by real estate
14,494

 
8,942

Agricultural loans
763

 
757

Commercial and industrial loans
9,473

 
6,658

Consumer loans
598

 
302

All other loans
6

 
—

Total loans
$
25,334

 
$
16,659
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The amount of these loans at September 30, 2018 and December 31, 2017 are as follows (in thousands):
 
September 30,
2018
 
December 31,
2017
Construction and land development
$
292

 
$
—

Agricultural real estate
—

 
—

1-4 Family residential properties
$
2,961

 
$
—

Multifamily residential properties
3,912

 
—

Commercial real estate
7,164

 
251

Loans secured by real estate
14,329

 
251

Agricultural loans
4

 
—

Commercial and industrial loans
67

 
8

Consumer loans
5

 
—

 Carrying amount
14,405

 
259

Allowance for loan losses
411

 
9

Carrying amount, net of allowance
$
13,994

 
$
250

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 (in thousands):

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
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2018 and December 31, 2017 (in thousands).
Troubled debt restructurings:
September 30, 2018
 
December 31, 2017
1-4 Family residential properties
2,494

 
874

Commercial real estate
1,883

 
1,376

Loans secured by real estate
4,377

 
2,250

Agricultural loans
606

 
757

Commercial and industrial loans
5,208

 
5,690

Consumer loans
150

 
201

Total
$
10,341

 
$
8,898

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
1,908

 
$
578

Commercial real estate
679

 
251

Loans secured by real estate
2,587

 
829

Commercial and industrial loans
—

 
25

Consumer loans
4

 
—

Total
$
2,591

 
$
854
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, 2018 and 2017, as a result of various modified loan factors (in thousands):
 
September 30, 2018
 
September 30, 2017
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
1-4 Family residential properties
15

 
604

 
(b)(c)
 
1

 
17

 
(c)
Commercial real estate
1

 
437

 
(b)(d)
 
—

 
—

 

Loans secured by real estate
16

 
1,041

 
 
 
1

 
17

 
 
Agricultural loans
—

 
—

 

 
4

 
828

 
(b)(c)(d)
Commercial and industrial loans
2

 
99

 
(b)(c)
 
1

 
27

 
(c)
Consumer Loans
1

 
4

 
(b)(c)
 
—

 
—

 

Total
19

 
$
1,144

 
 
 
6

 
$
872