Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2015

Loans Held-for-Investment by Class of Financing Receivables

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


	March 31,				December 31,
	2015		2014		2014
Commercial	$	651,723	$	607,281	$	639,954
Agricultural		90,610		65,121		105,694
Real estate		1,826,579		1,680,807		1,822,854
Consumer		359,564		335,079		360,686


Total loans held-for-investment	$	2,928,476	$	2,688,288	$	2,929,188

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

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


	March 31,				December 31,
	2015		2014		2014
Non-accrual loans*	$	18,935	$	24,710	$	20,194
Loans still accruing and past due 90 days or more		184		30		261
Troubled debt restructured loans**		177		—		226


Total	$	19,296	$	24,740	$	20,681

*	Includes $2,037,000, $2,605,000 and $2,151,000 of purchased credit impaired loans as of March 31, 2015 and 2014, and December 31, 2014, respectively.

**	Troubled debt restructured loans of $8,431,000, $11,449,000 and $9,073,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2015 and 2014, and December 31, 2014, 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):


March 31, 2015				March 31, 2014				December 31, 2014
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	18,935	$	3,860	$	24,710	$	5,283	$	20,194	$	4,213

Schedule of Non-Accrual Loans

Non-accrual loans at March 31, 2015 and 2014, and December 31, 2014, consisted of the following by class of financing receivables (in thousands):


	March 31,				December 31,
	2015		2014		2014
Commercial	$	3,098	$	2,809	$	3,193
Agricultural		197		109		165
Real estate		14,983		20,921		16,218
Consumer		657		871		618


Total	$	18,935	$	24,710	$	20,194

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of March 31, 2015 and 2014, and December 31, 2014, are 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.


March 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,696	$	373	$	2,725	$	3,098	$	1,079	$	3,200
Agricultural		213		—		197		197		55		207
Real Estate		20,865		4,519		10,464		14,983		2,617		16,179
Consumer		870		406		251		657		109		677

Total	$	25,644	$	5,298	$	13,637	$	18,935	$	3,860	$	20,263

*	Includes $2,037,000 of purchased credit impaired loans.


March 31, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,250	$	258	$	2,551	$	2,809	$	1,200	$	2,956
Agricultural		123		15		94		109		36		111
Real Estate		28,028		5,387		15,534		20,921		3,865		22,764
Consumer		1,062		494		377		871		182		939

Total	$	32,463	$	6,154	$	18,556	$	24,710	$	5,283	$	26,770

*	Includes $2,605,000 of purchased credit impaired loans.


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.

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 are the same, at March 31, 2015 and December 31, 2014 (in thousands):


March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	631,100	$	9,384	$	11,239	$	—	$	651,723
Agricultural		90,030		164		416		—		90,610
Real Estate		1,771,889		20,809		33,782		99		1,826,579
Consumer		357,709		517		1,338		—		359,564

Total	$	2,850,728	$	30,874	$	46,775	$	99	$	2,928,476


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

Schedule of Past Due Loans

At March 31, 2015 and December 31, 2014, the Company’s past due loans are as follows (in thousands):


March 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,514	$	283	$	208	$	5,005	$	646,718	$	651,723	$	—
Agricultural		485		35		—		520		90,090		90,610		—
Real Estate		13,077		1,116		1,368		15,561		1,811,018		1,826,579		144
Consumer		1,679		390		218		2,287		357,277		359,564		40

Total	$	19,755	$	1,824	$	1,794	$	23,373	$	2,905,103	$	2,928,476	$	184


December 31, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		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

*	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.

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table details the allowance for loan losses at March 31, 2015 and December 31, 2014 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2015 or December 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total

Loans individually evaluated for impairment	$	1,079	$	55	$	2,617	$	109	$	3,860
Loans collectively evaluated for impairment		9,296		418		22,622		1,632		33,968

Total	$	10,375	$	473	$	25,239	$	1,741	$	37,828


December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total

Loans individually evaluated for impairment	$	1,171	$	57	$	2,867	$	118	$	4,213
Loans collectively evaluated for impairment		6,819		470		23,790		1,532		32,611

Total	$	7,990	$	527	$	26,657	$	1,650	$	36,824

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three months ended March 31, 2015 and 2014 are summarized as follows by portfolio segment (in thousands):


Three months ended March 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		2,465			(32	)		(1,467	)		324			1,290
Recoveries		80			2			71			71			224
Charge-offs		(160	)		(24	)		(22	)		(304	)		(510	)


Ending balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828


Three months ended March 31, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		335			(99	)		1,233			221			1,690
Recoveries		88			3			187			122			400
Charge-offs		(218	)		(2	)		(731	)		(346	)		(1,297	)


Ending balance	$	6,645		$	285		$	25,629		$	2,134		$	34,693

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 March 31, 2015 and December 31, 2014 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 $2,037,000 and $2,151,000 at March 31, 2015 and December 31, 2014, respectively, are included in loans individually evaluated for impairment.


March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total

Loans individually evaluated for impairment	$	3,098	$	197	$	14,983	$	657	$	18,935
Loans collectively evaluated for impairment		648,625		90,413		1,811,596		358,907		2,909,541

Total	$	651,723	$	90,610	$	1,826,579	$	359,564	$	2,928,476


December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total

Loans individually evaluated for impairment	$	3,193	$	165	$	16,218	$	618	$	20,194
Loans collectively evaluated for impairment		636,761		105,529		1,806,636		360,068		2,908,994

Total	$	639,954	$	105,694	$	1,822,854	$	360,686	$	2,929,188

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three months ended March 31, 2015 and 2014 and considered troubled debt restructurings are as follows (in thousands):


	Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		3	$	128	$	128		4	$	97	$	97
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		1		76		76
Consumer		1		24		24		3		11		11

Total		4	$	152	$	152		8	$	184	$	184

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 three months ended March 31, 2015 and 2014 (in thousands):


	Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	128	$	—	$	—	$	97	$	—
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		—		76		—
Consumer		—		—		24		—		8		3

Total	$	—	$	128	$	24	$	—	$	181	$	3

Schedule of Troubled Debt Restructurings

The loans with payment default are as follows (dollars in thousands):


	Three Months Ended March 31, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—

Total		1	$	111