Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans Held-for-Investment by Class of Financing Receivables

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

	September 30,				December 31,
	2015		2014		2014
Commercial	$	698,406	$	612,092	$	639,954
Agricultural		99,232		86,718		105,694
Real estate		2,088,002		1,774,639		1,822,854
Consumer		381,177		354,981		360,686
Total loans held-for-investment	$	3,266,817	$	2,828,430	$	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):

	September 30,				December 31,
	2015		2014		2014
Non-accrual loans*	$	21,788	$	22,093	$	20,194
Loans still accruing and past due 90 days or more		49		263		261
Troubled debt restructured loans**		204		—		226
Total	$	22,041	$	22,356	$	20,681

* Includes $2,422,000, $2,383,000 and $2,151,000 of purchased credit impaired loans as of September 30, 2015 and 2014, and December 31, 2014, respectively.

** Troubled debt restructured loans of $6,462,000, $10,114,000 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 September 30, 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):

September 30, 2015		September 30, 2014		December 31, 2014
Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance
$ 21,788	$4,645	$22,093	$4,634	$20,194	$4,213

Schedule of Non-Accrual Loans

 Non-accrual loans at September 30, 2015 and 2014, and December 31, 2014, consisted of the following by class of financing receivables (in thousands):

	September 30,				December 31,
	2015		2014		2014
Commercial	$	5,077	$	3,481	$	3,193
Agricultural		75		102		165
Real estate		16,124		17,712		16,218
Consumer		512		798		618
Total	$	21,788	$	22,093	$	20,194

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of September 30, 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.

September 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	6,351	$	413	$	4,664	$	5,077	$	1,666	$	4,037	$	4,316
Agricultural		121		—		75		75		47		55		85
Real Estate		22,796		4,341		11,783		16,124		2,844		15,222		15,114
Consumer		698		343		169		512		88		441		511
Total	$	29,966	$	5,097	$	16,691	$	21,788	$	4,645	$	19,755	$	20,026

* Includes $2,422,000 of purchased credit impaired loans.

September 30, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	3,928	$	278	$	3,203	$	3,481	$	1,160	$	3,990	$	3,713
Agricultural		113		—		102		102		37		113		104
Real Estate		23,559		5,546		12,166		17,712		3,256		21,510		20,212
Consumer		977		467		331		798		181		911		864
Total	$	28,577	$	6,291	$	15,802	$	22,093	$	4,634	$	26,524	$	24,893

* Includes $2,383,000 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 September 30, 2015 and 2014, and December 31, 2014 (in thousands):

September 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	656,566	$	19,242	$	22,598	$	—	$	698,406
Agricultural		98,180		148		904		—		99,232
Real Estate		2,020,556		23,542		43,846		58		2,088,002
Consumer		379,397		352		1,424		4		381,177
Total	$	3,154,699	$	43,284	$	68,772	$	62	$	3,266,817
September 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	597,717	$	3,649	$	10,726	$	—	$	612,092
Agricultural		86,272		93		353		—		86,718
Real Estate		1,710,201		18,741		45,613		84		1,774,639
Consumer		352,850		601		1,527		3		354,981
Total	$	2,747,040	$	23,084	$	58,219	$	87	$	2,828,430
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 September 30, 2015 and 2014, and December 31, 2014, the Company’s past due loans are as follows (in thousands):

September 30, 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	$	11,554	$	1,043	$	202	$	12,799	$	685,607	$	698,406	$	—
Agricultural		169		28		33		230		99,002		99,232		—
Real Estate		19,392		1,267		2,328		22,987		2,065,015		2,088,002		21
Consumer		1,657		467		53		2,177		379,000		381,177		28
Total	$	32,772	$	2,805	$	2,616	$	38,193	$	3,228,624	$	3,266,817	$	49
September 30, 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	$	2,726	$	110	$	316	$	3,152	$	608,940	$	612,092	$	111
Agricultural		294		59		—		353		86,365		86,718		—
Real Estate		15,404		930		2,216		18,550		1,756,089		1,774,639		102
Consumer		1,742		292		297		2,331		352,650		354,981		50
Total	$	20,166	$	1,391	$	2,829	$	24,386	$	2,804,044	$	2,828,430	$	263

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 September 30, 2015 and 2014, and December 31, 2014 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at September 30, 2015 and 2014, 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.

September 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,666	$	47	$	2,844	$	88	$	4,645
Loans collectively evaluated for impairment		10,195		867		20,954		3,759		35,775
Total	$	11,861	$	914	$	23,798	$	3,847	$	40,420
September 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,160	$	37	$	3,256	$	181	$	4,634
Loans collectively evaluated for impairment		6,326		348		23,043		2,037		31,754
Total	$	7,486	$	385	$	26,299	$	2,218	$	36,388
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 and nine months ended September 30, 2015 and 2014 are summarized as follows by portfolio segment (in thousands):

Three months ended September 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999
Provision for loan losses		1,283			544			(369	)		1,206			2,664
Recoveries		52			—			65			117			234
Charge-offs		(930	)		(22	)		(240	)		(285	)		(1,477	)
Ending balance	$	11,861		$	914		$	23,798		$	3,847		$	40,420

Three months ended September 30, 2014	Commercial			Agricultural		Real Estate			Consumer			Total
Beginning balance	$	6,861		$	364	$	26,561		$	2,106		$	35,892
Provision for loan losses		635			7		(80	)		334			896
Recoveries		72			14		42			86			214
Charge-offs		(82	)		—		(224	)		(308	)		(614	)
Ending balance	$	7,486		$	385	$	26,299		$	2,218		$	36,388

Nine months ended September 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		5,072			486			(2,884	)		2,834			5,508
Recoveries		249			2			438			329			1,018
Charge-offs		(1,450	)		(101	)		(413	)		(966	)		(2,930	)
Ending balance	$	11,861		$	914		$	23,798		$	3,847		$	40,420

Nine months ended September 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		1,189			(14	)		1,988			547			3,710
Recoveries		225			17			361			386			989
Charge-offs		(368	)		(1	)		(990	)		(852	)		(2,211	)
Ending balance	$	7,486		$	385		$	26,299		$	2,218		$	36,388

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 September 30, 2015 and 2014, 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 $2,422,000, $2,383,000 and $2,151,000 at September 30, 2015 and 2014, and December 31, 2014, respectively, are included in loans individually evaluated for impairment.

September 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	5,077	$	75	$	16,124	$	512	$	21,788
Loans collectively evaluated for impairment		693,329		99,157		2,071,878		380,665		3,245,029
Total	$	698,406	$	99,232	$	2,088,002	$	381,177	$	3,266,817

September 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,481	$	102	$	17,712	$	798	$	22,093
Loans collectively evaluated for impairment		608,611		86,616		1,756,927		354,183		2,806,337
Total	$	612,092	$	86,718	$	1,774,639	$	354,981	$	2,828,430

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 and nine months ended September 30, 2015 and 2014 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		1	$	66	$	66		3	$	139	$	139
Agricultural		—		—		—		3		129		129
Real Estate		1		149		149		2		228		228
Consumer		2		32		32		5		60		60
Total		4	$	247	$	247		13	$	556	$	556

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
	Number		Pre- Modification Recorded Investment		Combined Rate and Maturity		Number		Pre- Modification Recorded Investment		Combined Rate and Maturity
Commercial		1	$	158	$	158		6	$	557	$	557
Agricultural		—		—		—		1		39		39
Real Estate		1		40		40		5		630		630
Consumer		—		—		—		3		11		11
Total		2	$	198	$	198		15	$	1,237	$	1,237

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 and nine months ended September 30, 2015 and 2014 (in thousands):

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	66	$	—	$	—	$	139	$	—
Agricultural		—		—		—		—		129		—
Real Estate		—		149		—		—		149		79
Consumer		—		32		—		—		36		24
Total	$	—	$	247	$	—	$	—	$	453	$	103

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	158	$	—	$	—	$	255	$	302
Agricultural		—		—		—		—		—		39
Real Estate		—		—		40		—		118		512
Consumer		—		—		—		—		8		3
Total	$	—	$	158	$	40	$	—	$	381	$	856

Schedule of Troubled Debt Restructurings

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

	Nine Months Ended September 30, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

	Nine Months Ended September 30, 2014
	Number		Balance
Commercial		—	$	—
Agriculture		—		—
Real Estate		—		—
Consumer		1		32
Total		1	$	32