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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Summary of Loans
A summary of loans at September 30, 2019 and December 31, 2018 follows (in thousands):
 
September 30,
2019
 
December 31,
2018
Construction and land development
$
69,153

 
$
51,013

Agricultural real estate
230,068

 
232,409

1-4 Family residential properties
347,797

 
374,751

Multifamily residential properties
156,209

 
186,393

Commercial real estate
957,422

 
911,656

Loans secured by real estate
1,760,649

 
1,756,222

Agricultural loans
121,569

 
136,125

Commercial and industrial loans
543,976

 
559,120

Consumer loans
83,703

 
92,744

All other loans
119,305

 
113,925

Total Gross loans
2,629,202

 
2,658,136

Less: Loans held for sale
4,603

 
1,508

 
2,624,599

 
2,656,628

Less:
 

 
 

Net deferred loan fees, premiums and discounts
5,644

 
13,617

Allowance for loan losses
26,741

 
26,189

Net loans
$
2,592,214

 
$
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 nine-months ended September 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 September 30, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
Balance, beginning of period
$
20,663

 
$
2,957

 
$
1,649

 
$
1,090

 
$
—

26,359

Provision charged to expense
1,351

 
766

 
427

 
114

 
—

2,658

Losses charged off
(1,745
)
 
(15
)
 
(353
)
 
(347
)
 
—

(2,460
)
Recoveries
56

 
—

 
55

 
73

 
—

184

Balance, end of period
$
20,325

 
$
3,708

 
$
1,778

 
$
930

 
$
—

$
26,741

Ending balance:
 

 
 

 
 

 
 

 
 

 

Individually evaluated for impairment
$
400

 
$
—

 
$
480

 
$
1

 
$
—

881

Collectively evaluated for impairment
19,236

 
3,708

 
1,292

 
929

 
—

25,165

Acquired with deteriorated credit quality
689

 
—

 
6

 
—

 
—

695

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

 
$
2,197

 
$
1,504

 
$
932

 
$
—

 
$
26,189

Provision charged to expense
893

 
1,547

 
681

 
575

 
—

 
3,696

Losses charged off
(2,218
)
 
(45
)
 
(472
)
 
(835
)
 
—

 
(3,570
)
Recoveries
94

 
9

 
65

 
258

 
—

 
426

Balance, end of period
$
20,325

 
$
3,708

 
$
1,778

 
$
930

 
$
—

 
$
26,741

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
400

 
$
—

 
$
480

 
$
1

 
$
—

 
$
881

Collectively evaluated for impairment
19,236

 
3,708

 
1,292

 
929

 
—

 
25,165

Acquired with deteriorated credit quality
689

 
—

 
6

 
—

 
—

 
695

Loans:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
9,229

 
$
104

 
$
3,834

 
$
138

 
$
—

 
$
13,305

Collectively evaluated for impairment
1,805,283

 
350,917

 
356,227

 
91,140

 
—

 
2,603,567

Acquired with deteriorated credit quality
5,021

 
—

 
1,665

 
—

 
—

 
6,686

Ending balance
$
1,819,533

 
$
351,021

 
$
361,726

 
$
91,278

 
$
—

 
$
2,623,558

 
 
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

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 September 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
$
67,941

 
$
49,794

 
$
217,562

 
$
221,047

 
$
323,757

 
$
352,583

 
$
138,351

 
$
163,845

Special Mention
418

 
471

 
10,260

 
7,805

 
5,584

 
5,526

 
5,619

 
8,144

Substandard
462

 
354

 
1,893

 
2,848

 
18,029

 
15,409

 
10,889

 
12,062

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
68,821

 
$
50,619

 
$
229,715

 
$
231,700

 
$
347,370

 
$
373,518

 
$
154,859

 
$
184,051


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Pass
$
923,345

 
$
861,086

 
$
113,116

 
$
127,863

 
$
527,005

 
$
535,186

 
$
81,828

 
$
90,133

Special Mention
8,783

 
16,035

 
3,980

 
7,581

 
3,504

 
9,967

 
148

 
177

Substandard
22,542

 
29,729

 
4,554

 
433

 
13,428

 
11,858

 
1,198

 
1,206

Doubtful
322

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
954,992

 
$
906,850

 
$
121,650

 
$
135,877

 
$
543,937

 
$
557,011

 
$
83,174

 
$
91,516


 
All Other Loans
 
Total Loans
 
2019
 
2018
 
2019
 
2018
Pass
$
116,286

 
$
110,352

 
$
2,509,191

 
$
2,511,889

Special Mention
2,754

 
3,010

 
41,050

 
58,716

Substandard
—

 
15

 
72,995

 
73,914

Doubtful
—

 
—

 
322

 
—

Total
$
119,040

 
$
113,377

 
$
2,623,558

 
$
2,644,519
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at September 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
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
68,821

 
$
68,821

 
$
—

Agricultural real estate
758

 
1,962

 
801

 
3,521

 
226,194

 
229,715

 
—

1-4 Family residential properties
4,848

 
1,131

 
4,509

 
10,488

 
336,882

 
347,370

 
—

Multifamily residential properties
47

 
—

 
1,292

 
1,339

 
153,520

 
154,859

 
—

Commercial real estate
674

 
—

 
2,946

 
3,620

 
951,372

 
954,992

 
—

Loans secured by real estate
6,327

 
3,093

 
9,548

 
18,968

 
1,736,789

 
1,755,757

 
—

Agricultural loans
459

 
137

 
307

 
903

 
120,747

 
121,650

 
—

Commercial and industrial loans
434

 
1,173

 
2,824

 
4,431

 
539,506

 
543,937

 
—

Consumer loans
423

 
100

 
193

 
716

 
82,458

 
83,174

 
—

All other loans
—

 
—

 
—

 
—

 
119,040

 
119,040

 
—

Total loans
$
7,643

 
$
4,503

 
$
12,872

 
$
25,018

 
$
2,598,540

 
$
2,623,558

 
$
—

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 September 30, 2019 and December 31, 2018 (in thousands):
 
September 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
$
263

 
$
263

 
$
—

 
$
2,559

 
$
2,559

 
$
14

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
5,499

 
5,696

 
486

 
4,565

 
4,952

 
234

Multifamily residential properties
2,556

 
2,556

 
—

 
4,465

 
4,465

 
—

Commercial real estate
6,039

 
6,643

 
928

 
12,517

 
12,804

 
1,553

Loans secured by real estate
14,357

 
15,158

 
1,414

 
24,106

 
24,780

 
1,801

Agricultural loans
104

 
688

 
—

 
36

 
504

 
—

Commercial and industrial loans
5,392

 
6,249

 
161

 
8,292

 
8,723

 
1,475

Consumer loans
138

 
138

 
1

 
169

 
171

 
3

Total loans
$
19,991

 
$
22,233

 
$
1,576

 
$
32,603

 
$
34,178

 
$
3,279

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
180

 
$
180

 
$
—

 
$
48

 
$
48

 
$
—

Agricultural real estate
289

 
289

 
—

 
309

 
309

 
—

1-4 Family residential properties
3,676

 
4,051

 
—

 
3,680

 
4,769

 
—

Multifamily residential properties
—

 
—

 
—

 
7,597

 
7,597

 
—

Commercial real estate
1,533

 
1,284

 
—

 
983

 
1,201

 
—

Loans secured by real estate
5,678

 
5,804

 
—

 
12,617

 
13,924

 
—

Agricultural loans
752

 
169

 
—

 
631

 
163

 
—

Commercial and industrial loans
856

 
2,447

 
—

 
1,660

 
2,027

 
—

Consumer loans
521

 
716

 
—

 
471

 
1,006

 
—

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
7,807

 
$
9,136

 
$
—

 
$
15,385

 
$
17,126

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
443

 
$
443

 
$
—

 
$
2,607

 
$
2,607

 
$
14

Agricultural real estate
289

 
289

 
—

 
309

 
309

 
—

1-4 Family residential properties
9,175

 
9,747

 
486

 
8,245

 
9,721

 
234

Multifamily residential properties
2,556

 
2,556

 
—

 
12,062

 
12,062

 
—

Commercial real estate
7,572

 
7,927

 
928

 
13,500

 
14,005

 
1,553

Loans secured by real estate
20,035

 
20,962

 
1,414

 
36,723

 
38,704

 
1,801

Agricultural loans
856

 
857

 
—

 
667

 
667

 
—

Commercial and industrial loans
6,248

 
8,696

 
161

 
9,952

 
10,750

 
1,475

Consumer loans
659

 
854

 
1

 
640

 
1,177

 
3

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
27,798

 
$
31,369

 
$
1,576

 
$
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 nine-month periods ended September 30, 2019 and 2018 (in thousands):
 
 
 
 
 
 
 
 
 
For the three months ended
 
September 30, 2019
 
September 30, 2018
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
755

 
$
8

 
$
395

 
$
22

Agricultural real estate
932

 
—

 
620

 
—

1-4 Family residential properties
9,521

 
21

 
7,574

 
137

Multifamily residential properties
1,559

 
14

 
3,164

 
126

Commercial real estate
6,232

 
43

 
11,932

 
188

Loans secured by real estate
18,999

 
86

 
23,685

 
473

Agricultural loans
852

 
1

 
752

 
—

Commercial and industrial loans
6,479

 
4

 
8,909

 
5

Consumer loans
698

 
—

 
234

 
—

All other loans
—

 
—

 
8

 
—

Total loans
$
27,028

 
$
91

 
$
33,588

 
$
478

 
For the nine months ended
 
September 30, 2019
 
September 30, 2018
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
765

 
$
24

 
$
167

 
$
29

Agricultural real estate
935

 
—

 
182

 
—

1-4 Family residential properties
9,629

 
63

 
5,672

 
188

Multifamily residential properties
1,561

 
42

 
1,414

 
169

Commercial real estate
7,522

 
128

 
8,595

 
256

Loans secured by real estate
20,412

 
257

 
16,030

 
642

Agricultural loans
800

 
2

 
642

 
—

Commercial and industrial loans
7,897

 
7

 
8,109

 
7

Consumer loans
764

 
1

 
—

 
—

All other loans
—

 
—

 
—

 
—

Total loans
$
29,873

 
$
267

 
$
24,781

 
$
649
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as of September 30, 2019 and December 31, 2018 (in thousands). This table excludes performing troubled debt restructurings and purchased impaired loans.
 
September 30,
2019
 
December 31,
2018
Construction and land development
$
180

 
$
377

Agricultural real estate
289

 
309

1-4 Family residential properties
7,631

 
5,762

Multifamily residential properties
1,437

 
2,105

Commercial real estate
4,324

 
8,457

Loans secured by real estate
13,861

 
17,010

Agricultural loans
797

 
667

Commercial and industrial loans
6,117

 
8,990

Consumer loans
654

 
625

All other loans
—

 
6

Total loans
$
21,429

 
$
27,298
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The amount of these loans at September 30, 2019 and December 31, 2018 are as follows (in thousands):
 
September 30,
2019
 
December 31,
2018
Construction and land development
$
263

 
$
2,558

Agricultural real estate
—

 
—

1-4 Family residential properties
1,665

 
2,206

Multifamily residential properties
2,289

 
3,891

Commercial real estate
2,469

 
6,946

Loans secured by real estate
6,686

 
15,601

Agricultural loans
—

 
4

Commercial and industrial loans
—

 
15

Consumer loans
—

 
3

 Carrying amount
6,686

 
15,623

Allowance for loan losses
(695
)
 
(1,235
)
Carrying amount, net of allowance
$
5,991

 
$
14,388
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2019 and December 31, 2018 (in thousands).
Troubled debt restructurings:
September 30, 2019
 
December 31, 2018
1-4 Family residential properties
$
1,979

 
$
2,472

Commercial real estate
1,708

 
1,706

Loans secured by real estate
3,687

 
4,178

Agricultural loans
688

 
499

Commercial and industrial loans
1,431

 
5,112

Consumer loans
138

 
167

Total
$
5,944

 
$
9,956

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
1,478

 
$
1,769

Commercial real estate
1,101

 
676

Loans secured by real estate
2,579

 
2,445

Agricultural Loans
59

 
—

Commercial and industrial loans
131

 
—

Consumer loans
5

 
6

Total
$
2,774

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

 
$
44

 
(b)(c)
 
15

 
$
604

 
(b)(c)
Commercial real estate
3

 
1,462

 
(b)(c)(d)
 
1

 
437

 
(b)(d)
Loans secured by real estate
4

 
1,506

 
 
 
16

 
1,041

 
 
Agricultural loans
1

 
59

 
(b)
 
—

 
—

 

Commercial and industrial loans
4

 
131

 
(b)(c)(d)
 
2

 
99

 
(b)(c)
Consumer Loans
1

 
12

 
(c)
 
1

 
4

 
(b)(c)
Total
10

 
$
1,708

 
 
 
19

 
$
1,144