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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Summary of Loan Portfolio by Type of Loan
The following table summarizes the Company’s loan portfolio by type of loan as of:
 
June 30, 2017
 
December 31, 2016
Commercial and industrial
$
217,497

 
$
223,997

Real estate:
 
 
 
Construction and development
177,600

 
129,366

Commercial real estate
378,722

 
367,656

Farmland
63,839

 
62,362

1-4 family residential
356,457

 
362,952

Multi-family residential
28,833

 
26,079

Consumer
51,677

 
53,505

Agricultural
21,854

 
18,901

Overdrafts
364

 
317

Total loans
1,296,843

 
1,245,135

Less:
 
 
 
Allowance for loan losses
12,525

 
11,484

Total net loans
$
1,284,318

 
$
1,233,651
Schedule of Allowance for Loan Losses Activity
The following table presents the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the six months ended June 30, 2017, for the year ended December 31, 2016 and for the six months ended June 30, 2016:
For the six months ended June 30, 2017
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,592

 
$
1,161

 
$
3,264

 
$
482

 
$
3,960

 
$
281

 
$
585

 
$
153

 
$
6

 
$
11,484

Provision for loan losses
464

 
393

 
284

 
59

 
(69
)
 
(12
)
 
66

 
222

 
43

 
1,450

Loans charged-off
(48
)
 
—

 
(84
)
 
—

 
(186
)
 
—

 
(158
)
 
(4
)
 
(70
)
 
(550
)
Recoveries
—

 
—

 
—

 
—

 
21

 
—

 
92

 
—

 
28

 
141

Ending balance
$
2,008

 
$
1,554

 
$
3,464

 
$
541

 
$
3,726

 
$
269

 
$
585

 
$
371

 
$
7

 
$
12,525

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
246

 
$
—

 
$
31

 
$
92

 
$
139

 
$
—

 
$
—

 
$
225

 
$
—

 
$
733

Collectively evaluated for impairment
1,762

 
1,554

 
3,433

 
449

 
3,587

 
269

 
585

 
146

 
7

 
11,792

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
1,174

 
—

 
3,751

 
170

 
2,726

 
241

 
192

 
789

 
—

 
9,043

Collectively evaluated for impairment
216,323

 
177,600

 
374,971

 
63,669

 
353,731

 
28,592

 
51,485

 
21,065

 
364

 
1,287,800

Ending balance
$
217,497

 
$
177,600

 
$
378,722

 
$
63,839

 
$
356,457

 
$
28,833

 
$
51,677

 
$
21,854

 
$
364

 
$
1,296,843

For the year ended December 31, 2016
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,878

 
$
1,004

 
$
2,106

 
$
400

 
$
2,839

 
$
325

 
$
562

 
$
138

 
$
11

 
$
9,263

Provision for loan losses
910

 
162

 
1,158

 
82

 
1,117

 
(44
)
 
171

 
15

 
69

 
3,640

Loans charged-off
(1,213
)
 
(9
)
 
—

 
—

 
(71
)
 
—

 
(269
)
 
—

 
(200
)
 
(1,762
)
Recoveries
17

 
4

 
—

 
—

 
75

 
—

 
121

 
—

 
126

 
343

Ending balance
$
1,592

 
$
1,161

 
$
3,264

 
$
482

 
$
3,960

 
$
281

 
$
585

 
$
153

 
$
6

 
$
11,484

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
64

 
$
—

 
$
—

 
$
47

 
$
108

 
$
—

 
$
34

 
$
—

 
$
—

 
$
253

Collectively evaluated for impairment
1,528

 
1,161

 
3,264

 
435

 
3,852

 
281

 
551

 
153

 
6

 
11,231

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
231

 
1,825

 
1,196

 
258

 
2,588

 
5

 
200

 
15

 
—

 
6,318

Collectively evaluated for impairment
223,766

 
127,541

 
366,460

 
62,104

 
360,364

 
26,074

 
53,305

 
18,886

 
317

 
1,238,817

Ending balance
$
223,997

 
$
129,366

 
$
367,656

 
$
62,362

 
$
362,952

 
$
26,079

 
$
53,505

 
$
18,901

 
$
317

 
$
1,245,135


For the six months ended June 30, 2016
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,878

 
$
1,004

 
$
2,106

 
$
400

 
$
2,839

 
$
325

 
$
562

 
$
138

 
$
11

 
$
9,263

Provision for loan losses
1,201

 
35

 
433

 
112

 
512

 
58

 
17

 
(7
)
 
39

 
2,400

Loans charged-off
(11
)
 
—

 
—

 
—

 
(22
)
 
—

 
(89
)
 
—

 
(67
)
 
(189
)
Recoveries
13

 
4

 
—

 
—

 
—

 
—

 
77

 
—

 
38

 
132

Ending balance
$
3,081

 
$
1,043

 
$
2,539

 
$
512

 
$
3,329

 
$
383

 
$
567

 
$
131

 
$
21

 
$
11,606

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,773

 
$
—

 
$
—

 
$
47

 
$
93

 
$
—

 
$
70

 
$
—

 
$
—

 
$
1,983

Collectively evaluated for impairment
1,308

 
1,043

 
2,539

 
465

 
3,236

 
383

 
497

 
131

 
21

 
9,623

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
8,476

 
39

 
1,116

 
302

 
2,168

 
—

 
200

 
58

 
—

 
12,359

Collectively evaluated for impairment
209,921

 
108,659

 
346,316

 
65,872

 
332,401

 
36,860

 
52,827

 
19,386

 
560

 
1,172,802

Ending balance
$
218,397

 
$
108,698

 
$
347,432

 
$
66,174

 
$
334,569

 
$
36,860

 
$
53,027

 
$
19,444

 
$
560

 
$
1,185,161
Summary of Credit Exposure by Internally Assigned Grade
The following tables summarize the credit exposure in the consumer and commercial loan portfolios as of:
June 30, 2017
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer and Overdrafts
 
Agricultural
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
212,162

 
$
177,333

 
$
373,861

 
$
63,035

 
$
348,212

 
$
28,592

 
$
50,917

 
$
20,396

 
$
1,274,508

Special mention
3,977

 
267

 
1,063

 
543

 
3,376

 
—

 
434

 
656

 
10,316

Substandard
1,358

 
—

 
3,798

 
261

 
4,869

 
241

 
690

 
802

 
12,019

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
217,497

 
$
177,600

 
$
378,722

 
$
63,839

 
$
356,457

 
$
28,833

 
$
52,041

 
$
21,854

 
$
1,296,843

December 31, 2016
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer and Overdrafts
 
Agricultural
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
218,975

 
$
127,537

 
$
360,264

 
$
61,713

 
$
353,483

 
$
25,871

 
$
52,648

 
$
17,965

 
$
1,218,456

Special mention
4,299

 
4

 
1,927

 
248

 
4,311

 
—

 
524

 
478

 
11,791

Substandard
706

 
1,825

 
5,465

 
401

 
5,121

 
208

 
568

 
458

 
14,752

Doubtful
17

 
—

 
—

 
—

 
37

 
—

 
82

 
—

 
136

Total
$
223,997

 
$
129,366

 
$
367,656

 
$
62,362

 
$
362,952

 
$
26,079

 
$
53,822

 
$
18,901

 
$
1,245,135
Summary of Payment Status of Loans
The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans, loans 90 days or more past due continuing to accrue interest and loans classified as nonperforming as of:
June 30, 2017
30 to 59 Days Past Due
 
60 to 89 Days Past Due
 
90 Days and Greater Past Due
 
Total Past Due
 
Current
 
Total
Loans
 
Recorded Investment > 90 Days and Accruing
Commercial and industrial
$
168

 
$
142

 
$
451

 
$
761

 
$
216,736

 
$
217,497

 
$
—

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
   Construction and development
135

 
—

 
—

 
135

 
177,465

 
177,600

 
—

   Commercial real estate
677

 
16

 
—

 
693

 
378,029

 
378,722

 
—

   Farmland
145

 
122

 
—

 
267

 
63,572

 
63,839

 
—

   1-4 family residential
3,107

 
644

 
1,092

 
4,843

 
351,614

 
356,457

 
—

   Multi-family residential
—

 
—

 
192

 
192

 
28,641

 
28,833

 
—

Consumer
531

 
139

 
126

 
796

 
50,881

 
51,677

 
—

Agricultural
344

 
—

 
—

 
344

 
21,510

 
21,854

 
—

Overdrafts
—

 
—

 
—

 
—

 
364

 
364

 
—

Total
$
5,107

 
$
1,063

 
$
1,861

 
$
8,031

 
$
1,288,812

 
$
1,296,843

 
$
—


December 31, 2016
30 to 59 Days Past Due
 
60 to 89 Days Past Due
 
90 Days and Greater Past Due
 
Total Past Due
 
Current
 
Total
Loans
 
Recorded Investment > 90 Days and Accruing
Commercial and industrial
$
941

 
$
105

 
$
25

 
$
1,071

 
$
222,926

 
$
223,997

 
$
—

Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
   Construction and development
73

 
—

 
1,825

 
1,898

 
127,468

 
129,366

 
—

   Commercial real estate
1,629

 
32

 
134

 
1,795

 
365,861

 
367,656

 
—

   Farmland
100

 
26

 
7

 
133

 
62,229

 
62,362

 
—

   1-4 family residential
3,724

 
803

 
1,041

 
5,568

 
357,384

 
362,952

 
—

   Multi-family residential
207

 
49

 
—

 
256

 
25,823

 
26,079

 
—

Consumer
613

 
205

 
87

 
905

 
52,600

 
53,505

 
—

Agricultural
59

 
—

 
15

 
74

 
18,827

 
18,901

 
—

Overdrafts
—

 
—

 
—

 
—

 
317

 
317

 
—

Total
$
7,346

 
$
1,220

 
$
3,134

 
$
11,700

 
$
1,233,435

 
$
1,245,135

 
$
—
Schedule of Nonaccrual Loans
The following table presents information regarding nonaccrual loans as of:
 
June 30, 2017
 
December 31, 2016
Commercial and industrial
$
480

 
$
82

Real estate:
 
 
 
   Construction and development
—

 
1,825

   Commercial real estate
708

 
415

   Farmland
163

 
176

   1-4 family residential
1,839

 
1,699

   Multi-family residential
241

 
5

Consumer
215

 
192

Agricultural
312

 
15

Total
$
3,958

 
$
4,409
Summary of Troubled Debt Restructuring
The outstanding balances of TDRs are shown below:
 
June 30, 2017
 
December 31, 2016
Nonaccrual TDRs
$
—

 
$
43

Performing TDRs
323

 
462

Total
$
323

 
$
505

Specific reserves on TDRs
$
21

 
$
4

Six Months Ended June 30, 2016
Number
of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Commercial real estate
1

 
$
796

 
$
796

Consumer
4
 
32

 
24

   1-4 family residential
2
 
189

 
189

Total
7
 
$
1,017

 
$
1,009

The following tables present loans by class modified as TDRs that occurred during the six months ended June 30, 2017 and 2016:
Six Months Ended June 30, 2017
Number
of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Commercial and industrial
1
 
$
34

 
$
13

1-4 family residential
1
 
11

 
11

Total
2
 
$
45

 
$
24
Summary of Impaired Loans
The following table presents information about the Company’s impaired loans as of:
June 30, 2017
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Average
Recorded
Investment
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
$
712

 
$
712

 
$
—

 
$
345

Real estate:
 
 
 
 
 
 
 
Construction and development
—

 
—

 
—

 
608

Commercial real estate
3,468

 
3,468

 
—

 
5,177

Farmland
7

 
7

 
—

 
90

1-4 family residential
1,785

 
1,785

 
—

 
1,566

Multi-family residential
241

 
241

 
—

 
172

Consumer
192

 
192

 
—

 
91

Agricultural
490

 
490

 
—

 
387

Subtotal
6,895

 
6,895

 
—

 
8,436

With allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
462

 
462

 
246

 
533

Real estate:
 
 
 
 
 
 
 
Commercial real estate
283

 
283

 
31

 
173

Farmland
163

 
163

 
92

 
109

1-4 family residential
941

 
941

 
139

 
505

Consumer
—

 
—

 
—

 
50

Agricultural
299

 
299

 
225

 
82

Subtotal
2,148

 
2,148

 
733

 
1,452

Total
$
9,043

 
$
9,043

 
$
733

 
$
9,888

The following table presents information about the Company’s impaired loans as of:
December 31, 2016
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Average
Recorded
Investment
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
$
28

 
$
28

 
$
—

 
$
809

Real estate:
 
 
 
 
 
 
 
Construction and development
1,825

 
1,825

 
—

 
172

Commercial real estate
1,196

 
1,196

 
—

 
871

Farmland
89

 
89

 
—

 
109

1-4 family residential
1,799

 
1,799

 
—

 
1,575

Multi-family residential
5

 
5

 
—

 
2

Consumer
105

 
105

 
—

 
89

Agricultural
15

 
15

 
—

 
68

Subtotal
5,062

 
5,062

 
—

 
3,695

With allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
203

 
203

 
64

 
3,153

Real estate:
 
 
 
 
 
 
 
Farmland
169

 
169

 
47

 
169

1-4 family residential
789

 
789

 
108

 
639

Consumer
95

 
95

 
34

 
155

Agricultural
—

 
—

 
—

 
2

Subtotal
1,256

 
1,256

 
253

 
4,118

Total
$
6,318

 
$
6,318

 
$
253

 
$
7,813