Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans Held-for-Investment by Class of Financing Receivables

Major classifications of loans held-for-investment by class of financing receivables are as follows (in thousands):

	December 31,
	2014		2013
Commercial	$	639,954	$	596,730
Agricultural		105,694		75,928
Real estate		1,822,854		1,678,514
Consumer		360,686		333,113
Total loans held-for-investment	$	2,929,188	$	2,684,285

Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans

The Company’s non-accrual loans, loan still accruing and past due 90 days or more and restructured loans are as follows (in thousands):

	December 31,
	2014		2013
Non-accrual loans*	$	20,194	$	27,926
Loans still accruing and past due 90 days or more		261		133
Troubled debt restructured loans**		226		—
Total	$	20,681	$	28,059

* Includes $2,151,000 and $2,707,000, respectively, of purchased credit impaired loans as of December 31, 2014 and 2013. There were no purchase credit impaired loan balances in prior periods.

** Troubled debt restructured loans of $9,073,000 and $13,298,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans as of December 31, 2014 and 2013, respectively.

Recorded Investment in Impaired Loans and Related Valuation Allowance

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):

December 31, 2014				December 31, 2013
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	20,194	$	4,213	$	27,926	$	5,338

Schedule of Non-Accrual Loans

Non-accrual loans totaled $20,194,000 and $27,926,000 at December 31, 2014 and 2013, respectively, and consisted of the following amounts by type (in thousands):

	December 31,
	2014		2013
Commercial	$	3,193	$	4,281
Agricultural		165		131
Real Estate		16,218		22,548
Consumer		618		966
Total	$	20,194	$	27,926

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of December 31, 2014 and 2013 is summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

December 31, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,749	$	287	$	2,906	$	3,193	$	1,171	$	3,698
Agricultural		177		—		165		165		57		179
Real Estate		22,177		4,859		11,359		16,218		2,867		19,837
Consumer		838		420		198		618		118		783
Total	$	26,941	$	5,566	$	14,628	$	20,194	$	4,213	$	24,497

* Includes $2,151,000 of purchased credit impaired loans.

December 31, 2013	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	4,764	$	934	$	3,347	$	4,281	$	1,079	$	5,017
Agricultural		139		17		114		131		41		144
Real Estate		31,704		5,794		16,754		22,548		4,006		25,060
Consumer		1,117		545		421		966		212		1,072
Total	$	37,724	$	7,290	$	20,636	$	27,926	$	5,338	$	31,293

* Includes $2,707,000 of purchases credit impaired loans.

Schedule of Internal Ratings of Loans

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which classes are the same, at December 31, 2014 and 2013 (in thousands):

December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	626,266	$	3,853	$	9,835	$	—	$	639,954
Agricultural		105,101		91		502		—		105,694
Real Estate		1,765,886		15,106		41,722		140		1,822,854
Consumer		358,953		403		1,329		1		360,686
Total	$	2,856,206	$	19,453	$	53,388	$	141	$	2,929,188

December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	584,547	$	3,032	$	9,151	$	—	$	596,730
Agricultural		75,382		245		298		3		75,928
Real Estate		1,609,242		20,773		48,352		147		1,678,514
Consumer		330,870		639		1,595		9		333,113
Total	$	2,600,041	$	24,689	$	59,396	$	159	$	2,684,285

Schedule of Past Due Loans

At December 31, 2014 and 2013, the Company’s past due loans are as follows (in thousands):

December 31, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	4,611	$	94	$	175	$	4,880	$	635,074	$	639,954	$	24
Agricultural		437		42		—		479		105,215		105,694		—
Real Estate		12,002		707		1,868		14,577		1,808,277		1,822,854		207
Consumer		2,322		496		134		2,952		357,734		360,686		30
Total	$	19,372	$	1,339	$	2,177	$	22,888	$	2,906,300	$	2,929,188	$	261

December 31, 2013	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	5,303	$	287	$	420	$	6,010	$	590,720	$	596,730	$	—
Agricultural		355		—		—		355		75,573		75,928		—
Real Estate		13,787		2,489		1,876		18,152		1,660,362		1,678,514		55
Consumer		2,708		582		277		3,567		329,546		333,113		78
Total	$	22,153	$	3,358	$	2,573	$	28,084	$	2,656,201	$	2,684,285	$	133

* The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due.

Allowance for Loan Losses by Estimating Losses in Various Categories of Loan Portfolio

The allowance for loan losses as of December 31, 2014 and 2013, is presented below. Management has evaluated the appropriateness of the allowance for loan losses by estimating the probable losses in various categories of the loan portfolio, which are identified below (in thousands):

	2014		2013
Allowance for loan losses provided for:
Loans specifically evaluated as impaired	$	4,213	$	5,338
Remaining portfolio		32,611		28,562
Total allowance for loan losses	$	36,824	$	33,900

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table details the allowance for loan losses at December 31, 2014 and 2013 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at December 31, 2014 or 2013. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,877	$	199	$	6,591	$	309	$	9,976
Loan collectively evaluated for impairment		5,113		328		20,066		1,341		26,848
Total	$	7,990	$	527	$	26,657	$	1,650	$	36,824

December 31, 2013	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,755	$	125	$	7,215	$	378	$	10,473
Loan collectively evaluated for impairment		3,685		258		17,725		1,759		23,427
Total	$	6,440	$	383	$	24,940	$	2,137	$	33,900

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the years ended December 31, 2014 and 2013 are summarized as follows (in thousands):

December 31, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		1,787			128			2,287			263			4,465
Recoveries		346			18			505			472			1,341
Charge-offs		(583	)		(2	)		(1,075	)		(1,222	)		(2,882	)
Ending balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824

December 31, 2013	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,343		$	1,541		$	24,063		$	1,892		$	34,839
Provision (credit) for loan losses		220			(1,066	)		3,288			1,311			3,753
Recoveries		402			39			239			337			1,017
Charge-offs		(1,283	)		(100	)		(1,970	)		(1,268	)		(4,621	)
Transfer of off balance sheet exposure to other liabilities		(242	)		(31	)		(680	)		(135	)		(1,088	)
Ending balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900

Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology

The Company’s recorded investment in loans as of December 31, 2014 and 2013 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $2,151,000 and $2,707,000, respectively, at December 31, 2014 and 2013 are included in loans individually evaluated for impairment.

December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	13,688	$	593	$	56,968	$	1,733	$	72,982
Loan collectively evaluated for impairment		626,266		105,101		1,765,886		358,953		2,856,206
Total	$	639,954	$	105,694	$	1,822,854	$	360,686	$	2,929,188

December 31, 2013	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	12,183	$	546	$	69,272	$	2,243	$	84,244
Loan collectively evaluated for impairment		584,547		75,382		1,609,242		330,870		2,600,041
Total	$	596,730	$	75,928	$	1,678,514	$	333,113	$	2,684,285

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the years ended December 31, 2014 and 2013, and considered a troubled debt restructuring are as follows (in thousands):

	Year Ended December 31, 2014						Year Ended December 31, 2013
	Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		7	$	668	$	668		4	$	253	$	253
Agricultural		1		39		39		1		24		24
Real Estate		5		630		630		11		3,958		3,958
Consumer		3		11		11		6		138		138
Total		16	$	1,348	$	1,348		22	$	4,373	$	4,373

Schedule of How Loans Were Modified as Troubled Debt Restructured Loans

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the year ended December 31, 2014 and 2013 (in thousands):

	Year Ended December 31, 2014						Year Ended December 31, 2013
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	366	$	302	$	—	$	218	$	35
Agricultural		—		—		39		—		24		—
Real Estate		—		118		512		420		433		3,105
Consumer		—		8		3		—		134		4
Total	$	—	$	492	$	856	$	420	$	809	$	3,144

Schedule of Troubled Debt Restructurings

The loans are as follows (dollars in thousands):

	Year Ended December 31, 2014				Year Ended December 31, 2013
	Number		Balance		Number		Balance
Commercial		—	$	—		6	$	316
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		1		32		2		18
Total		1	$	32		8	$	334

Analysis of Changes in Loans to Officers, Directors, Principal Shareholders, or Associates of Such Persons

An analysis of the changes in loans to officers, directors, principal shareholders, or associates of such persons for the year ended December 31, 2014 (determined as of each respective year-end) follows (in thousands):

	Beginning Balance		Additional Loans		Payments		Ending Balance
Year ended December 31, 2014	$	47,299	$	132,118	$	124,620	$	54,797