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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Summary of Loans
A summary of loans at June 30, 2019 and December 31, 2018 follows (in thousands):
 
June 30,
2019
 
December 31,
2018
Construction and land development
$
57,410

 
$
51,013

Agricultural real estate
230,421

 
232,409

1-4 Family residential properties
355,922

 
374,751

Multifamily residential properties
169,370

 
186,393

Commercial real estate
892,269

 
911,656

Loans secured by real estate
1,705,392

 
1,756,222

Agricultural loans
118,150

 
136,125

Commercial and industrial loans
530,749

 
559,120

Consumer loans
85,630

 
92,744

All other loans
114,792

 
113,925

Total Gross loans
2,554,713

 
2,658,136

Less: Loans held for sale
1,717

 
1,508

 
2,552,996

 
2,656,628

Less:
 

 
 

Net deferred loan fees, premiums and discounts
8,170

 
13,617

Allowance for loan losses
26,359

 
26,189

Net loans
$
2,518,467

 
$
2,616,822
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, 2019 and 2018 and for the year ended December 31, 2018 (in thousands):
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
Total
Three months ended June 30, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
Balance, beginning of period
$
21,947

 
$
2,412

 
$
1,341

 
$
1,004

 
$
—

26,704

Provision charged to expense
(1,042
)
 
545

 
370

 
218

 
—

91

Losses charged off
(258
)
 
—

 
(67
)
 
(217
)
 
—

(542
)
Recoveries
16

 
—

 
5

 
85

 
—

106

Balance, end of period
$
20,663

 
$
2,957

 
$
1,649

 
$
1,090

 
$
—

$
26,359

Ending balance:
 

 
 

 
 

 
 

 
 

 

Individually evaluated for impairment
$
981

 
$
—

 
$
504

 
$
2

 
$
—

1,487

Collectively evaluated for impairment
$
18,899

 
$
2,957

 
$
1,138

 
$
1,088

 
$
—

$
24,082

Acquired with deteriorated credit quality
$
783

 
$
—

 
$
7

 
$
—

 
$
—

$
790

 
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
Six months ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
21,556

 
$
2,197

 
$
1,504

 
$
932

 
$
—

 
$
26,189

Provision charged to expense
(458
)
 
781

 
254

 
461

 
—

 
1,038

Losses charged off
(473
)
 
(30
)
 
(119
)
 
(488
)
 
—

 
(1,110
)
Recoveries
38

 
9

 
10

 
185

 
—

 
242

Balance, end of period
$
20,663

 
$
2,957

 
$
1,649

 
$
1,090

 
$
—

 
$
26,359

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
981

 
$
—

 
$
504

 
$
2

 
$
—

 
$
1,487

Collectively evaluated for impairment
18,899

 
2,957

 
1,138

 
1,088

 
—

 
24,082

Acquired with deteriorated credit quality
783

 
—

 
7

 
—

 
—

 
790

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
11,253

 
$
103

 
$
3,186

 
$
166

 
$
—

 
$
14,708

Collectively evaluated for impairment
1,717,655

 
347,611

 
365,253

 
92,326

 
—

 
2,522,845

Acquired with deteriorated credit quality
7,186

 
—

 
1,804

 
—

 
—

 
8,990

Ending balance
$
1,736,094

 
$
347,714

 
$
370,243

 
$
92,492

 
$
—

 
$
2,546,543

 
 
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

Year ended 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 year
$
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

Acquired with deteriorated credit quality
1,226

 
—

 
9

 
—

 
—

 
1,235

Loans:
 

 
 

 
 

 
 

 
 

 
 

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

Acquired with deteriorated credit quality
13,411

 
4

 
2,205

 
3

 
—

 
15,623

Ending balance
$
1,784,741

 
$
367,211

 
$
392,526

 
$
100,041

 
$
—

 
$
2,644,519
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, 2019 and December 31, 2018 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Pass
$
56,274

 
$
49,794

 
$
217,643

 
$
221,047

 
$
334,059

 
$
352,583

 
$
150,014

 
$
163,845

Special Mention
459

 
471

 
10,481

 
7,805

 
5,518

 
5,526

 
7,792

 
8,144

Substandard
336

 
354

 
1,800

 
2,848

 
15,566

 
15,409

 
9,903

 
12,062

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
57,069

 
$
50,619

 
$
229,924

 
$
231,700

 
$
355,143

 
$
373,518

 
$
167,709

 
$
184,051


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Pass
$
849,840

 
$
861,086

 
$
108,270

 
$
127,863

 
$
514,790

 
$
535,186

 
$
83,485

 
$
90,133

Special Mention
12,665

 
16,035

 
4,964

 
7,581

 
6,055

 
9,967

 
145

 
177

Substandard
26,206

 
29,729

 
4,982

 
433

 
9,560

 
11,858

 
1,277

 
1,206

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
888,711

 
$
906,850

 
$
118,216

 
$
135,877

 
$
530,405

 
$
557,011

 
$
84,907

 
$
91,516


 
All Other Loans
 
Total Loans
 
2019
 
2018
 
2019
 
2018
Pass
$
111,827

 
$
110,352

 
$
2,426,202

 
$
2,511,889

Special Mention
2,632

 
3,010

 
50,711

 
58,716

Substandard
—

 
15

 
69,630

 
73,914

Doubtful
—

 
—

 
—

 
—

Total
$
114,459

 
$
113,377

 
$
2,546,543

 
$
2,644,519
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at June 30, 2019 and December 31, 2018 (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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
482

 
$
—

 
$
—

 
$
482

 
$
56,587

 
$
57,069

 
$
—

Agricultural real estate
—

 
205

 
47

 
252

 
229,672

 
229,924

 
—

1-4 Family residential properties
4,916

 
1,860

 
4,459

 
11,235

 
343,908

 
355,143

 
—

Multifamily residential properties
3,604

 
—

 
1,748

 
5,352

 
162,357

 
167,709

 
—

Commercial real estate
2,021

 
361

 
4,245

 
6,627

 
882,084

 
888,711

 
—

Loans secured by real estate
11,023

 
2,426

 
10,499

 
23,948

 
1,674,608

 
1,698,556

 
—

Agricultural loans
903

 
—

 
70

 
973

 
117,243

 
118,216

 
—

Commercial and industrial loans
522

 
307

 
3,446

 
4,275

 
526,130

 
530,405

 
—

Consumer loans
584

 
218

 
276

 
1,078

 
83,829

 
84,907

 
—

All other loans
—

 
—

 
—

 
—

 
114,459

 
114,459

 
—

Total loans
$
13,032

 
$
2,951

 
$
14,291

 
$
30,274

 
$
2,516,269

 
$
2,546,543

 
$
—

December 31, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
460

 
$
43

 
$
—

 
$
503

 
$
50,116

 
$
50,619

 
$
—

Agricultural real estate
—

 
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

 
$
—
Impaired Loans
The following tables present impaired loans as of June 30, 2019 and December 31, 2018 (in thousands):
 
June 30, 2019
 
December 31, 2018
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
270

 
$
270

 
$
—

 
$
2,559

 
$
2,559

 
$
14

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
4,990

 
5,061

 
511

 
4,565

 
4,952

 
234

Multifamily residential properties
2,567

 
2,567

 
—

 
4,465

 
4,465

 
—

Commercial real estate
9,687

 
10,070

 
1,180

 
12,517

 
12,804

 
1,553

Loans secured by real estate
17,514

 
17,968

 
1,691

 
24,106

 
24,780

 
1,801

Agricultural loans
104

 
688

 
—

 
36

 
504

 
—

Commercial and industrial loans
5,914

 
6,236

 
584

 
8,292

 
8,723

 
1,475

Consumer loans
166

 
166

 
2

 
169

 
171

 
3

Total loans
$
23,698

 
$
25,058

 
$
2,277

 
$
32,603

 
$
34,178

 
$
3,279

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
46

 
$
46

 
$
—

 
$
48

 
$
48

 
$
—

Agricultural real estate
291

 
291

 
—

 
309

 
309

 
—

1-4 Family residential properties
3,893

 
4,108

 
—

 
3,680

 
4,769

 
—

Multifamily residential properties
130

 
130

 
—

 
7,597

 
7,597

 
—

Commercial real estate
1,538

 
1,394

 
—

 
983

 
1,201

 
—

Loans secured by real estate
5,898

 
5,969

 
—

 
12,617

 
13,924

 
—

Agricultural loans
734

 
150

 
—

 
631

 
163

 
—

Commercial and industrial loans
741

 
2,310

 
—

 
1,660

 
2,027

 
—

Consumer loans
534

 
731

 
—

 
471

 
1,006

 
—

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
7,907

 
$
9,160

 
$
—

 
$
15,385

 
$
17,126

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
316

 
$
316

 
$
—

 
$
2,607

 
$
2,607

 
$
14

Agricultural real estate
291

 
291

 
—

 
309

 
309

 
—

1-4 Family residential properties
8,883

 
9,169

 
511

 
8,245

 
9,721

 
234

Multifamily residential properties
2,697

 
2,697

 
—

 
12,062

 
12,062

 
—

Commercial real estate
11,225

 
11,464

 
1,180

 
13,500

 
14,005

 
1,553

Loans secured by real estate
23,412

 
23,937

 
1,691

 
36,723

 
38,704

 
1,801

Agricultural loans
838

 
838

 
—

 
667

 
667

 
—

Commercial and industrial loans
6,655

 
8,546

 
584

 
9,952

 
10,750

 
1,475

Consumer loans
700

 
897

 
2

 
640

 
1,177

 
3

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
31,605

 
$
34,218

 
$
2,277

 
$
47,988

 
$
51,304

 
$
3,279
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, 2019 and 2018 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
June 30, 2019
 
June 30, 2018
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
629

 
$
8

 
$
44

 
$
—

Agricultural real estate
956

 
—

 
235

 
—

1-4 Family residential properties
9,543

 
26

 
6,719

 
22

Multifamily residential properties
4,522

 
32

 
301

 
—

Commercial real estate
14,414

 
82

 
8,675

 
3

Loans secured by real estate
30,064

 
148

 
15,974

 
25

Agricultural loans
823

 
1

 
1,109

 
—

Commercial and industrial loans
9,929

 
1

 
7,672

 
—

Consumer loans
742

 
—

 
329

 
—

All other loans
—

 
—

 
21

 
—

Total loans
$
41,558

 
$
150

 
$
25,105

 
$
25

 
For the six months ended
 
June 30, 2019
 
June 30, 2018
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
632

 
$
16

 
$
44

 
$
—

Agricultural real estate
957

 
—

 
235

 
—

1-4 Family residential properties
9,973

 
51

 
6,777

 
28

Multifamily residential properties
4,804

 
61

 
302

 
—

Commercial real estate
14,844

 
160

 
8,680

 
6

Loans secured by real estate
31,210

 
288

 
16,038

 
34

Agricultural loans
773

 
1

 
1,061

 
—

Commercial and industrial loans
10,059

 
2

 
7,892

 
2

Consumer loans
781

 
—

 
349

 
—

All other loans
—

 
—

 
21

 
—

Total loans
$
42,823

 
$
291

 
$
25,361

 
$
36
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as of June 30, 2019 and December 31, 2018 (in thousands). This table excludes performing troubled debt restructurings and purchased impaired loans.
 
June 30,
2019
 
December 31,
2018
Construction and land development
$
46

 
$
377

Agricultural real estate
291

 
309

1-4 Family residential properties
7,150

 
5,762

Multifamily residential properties
1,574

 
2,105

Commercial real estate
5,876

 
8,457

Loans secured by real estate
14,937

 
17,010

Agricultural loans
778

 
667

Commercial and industrial loans
6,584

 
8,990

Consumer loans
695

 
625

All other loans
—

 
6

Total loans
$
22,994

 
$
27,298
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The amount of these loans at June 30, 2019 and December 31, 2018 are as follows (in thousands):
 
June 30,
2019
 
December 31,
2018
Construction and land development
$
270

 
$
2,558

Agricultural real estate
—

 
—

1-4 Family residential properties
1,804

 
2,206

Multifamily residential properties
2,294

 
3,891

Commercial real estate
4,622

 
6,946

Loans secured by real estate
8,990

 
15,601

Agricultural loans
—

 
4

Commercial and industrial loans
—

 
15

Consumer loans
—

 
3

 Carrying amount
8,990

 
15,623

Allowance for loan losses
(790
)
 
(1,235
)
Carrying amount, net of allowance
$
8,200

 
$
14,388
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2019 and December 31, 2018 (in thousands).
Troubled debt restructurings:
June 30, 2019
 
December 31, 2018
1-4 Family residential properties
$
2,207

 
$
2,472

Commercial real estate
2,505

 
1,706

Loans secured by real estate
4,712

 
4,178

Agricultural loans
688

 
499

Commercial and industrial loans
2,029

 
5,112

Consumer loans
166

 
167

Total
$
7,595

 
$
9,956

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
1,595

 
$
1,769

Commercial real estate
1,050

 
676

Loans secured by real estate
2,645

 
2,445

Agricultural Loans
59

 
—

Commercial and industrial loans
70

 
—

Consumer loans
5

 
6

Total
$
2,779

 
$
2,451
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, 2019 and 2018, as a result of various modified loan factors (in thousands):
 
June 30, 2019
 
June 30, 2018
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
1-4 Family residential properties
1

 
$
46

 
(b)(c)
 
1

 
$
161

 
(b)
Commercial real estate
3

 
1,533

 
(b)(c)(d)
 
—

 
—

 

Loans secured by real estate
4

 
1,579

 
 
 
1

 
161

 
 
Agricultural loans
1

 
59

 
(b)
 
—

 
—

 

Commercial and industrial loans
2

 
70

 
(b)(c)(d)
 


 


 

Consumer Loans
1

 
12

 
(c)
 
—

 
—

 

Total
8

 
$
1,720

 
 
 
1

 
$
161