Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

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):

	December 31,
	2016		2015
Commercial	$	674,410	$	696,163
Agricultural		84,021		102,351
Real estate		2,189,844		2,136,233
Consumer		409,032		382,303
Total loans held-for-investment	$	3,357,307	$	3,317,050

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,
	2016		2015
Non-accrual loans*	$	27,371	$	28,601
Loans still accruing and past due 90 days or more		284		341
Troubled debt restructured loans**		701		199
Total	$	28,356	$	29,141

* Includes $1,256,000 and $2,178,000, respectively, of purchased credit impaired loans as of December 31, 2016 and 2015.

** Our troubled debt restructured loans of $6,863,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans as of December 31, 2016 and 2015, 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, 2016				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	27,371	$	5,012	$	28,601	$	5,071

Schedule of Non-Accrual Loans

Non-accrual loans totaled $27,371,000 and $28,601,000 at December 31, 2016 and 2015, respectively, and consisted of the following amounts by type (in thousands):

	December 31,
	2016		2015
Commercial	$	7,284	$	8,761
Agricultural		99		97
Real Estate		18,754		18,766
Consumer		1,234		977
Total	$	27,371	$	28,601

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of December 31, 2016 and 2015 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.

December 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		12 Month Average Recorded Investment
Commercial	$	13,389	$	1,148	$	6,136	$	7,284	$	2,128	$	4,921
Agricultural		103		—		99		99		25		50
Real Estate		23,466		6,229		12,525		18,754		2,428		16,170
Consumer		1,421		280		954		1,234		431		914
Total	$	38,379	$	7,657	$	19,714	$	27,371	$	5,012	$	22,055

* Includes $1,256,000 of purchased credit impaired loans.

December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		12 Month Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664
Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

* Includes $2,178,000 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 classes are the same, at December 31, 2016 and 2015 (in thousands):

December 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	629,756	$	5,769	$	38,885	$	—	$	674,410
Agricultural		81,620		715		1,686		—		84,021
Real Estate		2,111,947		18,091		59,806		—		2,189,844
Consumer		406,182		212		2,638		—		409,032
Total	$	3,229,505	$	24,787	$	103,015	$	—	$	3,357,307

December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303
Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

Schedule of Past Due Loans

At December 31, 2016 and 2015, the Company’s past due loans are as follows (in thousands):

December 31, 2016	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	$	3,908	$	1,122	$	2,220	$	7,250	$	667,160	$	674,410	$	10
Agricultural		185		—		—		185		83,836		84,021		—
Real Estate		13,172		1,301		5,268		19,741		2,170,103		2,189,844		272
Consumer		1,845		368		122		2,335		406,697		409,032		2
Total	$	19,110	$	2,791	$	7,610	$	29,511	$	3,327,796	$	3,357,307	$	284

December 31, 2015	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	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70
Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

* 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 December 31, 2016 and 2015 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at December 31, 2016 or 2015. 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, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,128	$	25	$	2,428	$	431	$	5,012
Loan collectively evaluated for impairment		9,579		1,076		24,436		5,676		40,767
Total	$	11,707	$	1,101	$	26,864	$	6,107	$	45,779

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loan collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806
Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the years ended December 31, 2016 and 2015 are summarized as follows (in thousands):

December 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		5,101			104			1,150			3,857			10,212
Recoveries		952			25			2,021			508			3,506
Charge-offs		(6,990	)		(219	)		(682	)		(1,925	)		(9,816	)
Ending balance	$	11,707		$	1,101		$	26,864		$	6,107		$	45,779

December 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		8,044			773			(2,399	)		3,267			9,685
Recoveries		344			55			558			450			1,407
Charge-offs		(3,734	)		(164	)		(441	)		(1,700	)		(6,039	)
Ending balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877

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, 2016 and 2015 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 $1,256,000 and $2,178,000, respectively, at December 31, 2016 and 2015 are included in loans individually evaluated for impairment.

December 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,284	$	99	$	18,754	$	1,234	$	27,371
Loan collectively evaluated for impairment		667,126		83,922		2,171,090		407,798		3,329,936
Total	$	674,410	$	84,021	$	2,189,844	$	409,032	$	3,357,307

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loan collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449
Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the years ended December 31, 2016 and 2015, and considered troubled debt restructurings are as follows (in thousands):

	Year Ended December 31, 2016						Year Ended December 31, 2015
	Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre-Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		15	$	3,208	$	3,208		8	$	447	$	447
Agricultural		—		—		—		3		128		128
Real Estate		6		1,460		1,460		5		598		598
Consumer		7		189		189		7		255		255
Total		28	$	4,857	$	4,857		23	$	1,428	$	1,428

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 years ended December 31, 2016 and 2015 (in thousands):

	Year Ended December 31, 2016						Year Ended December 31, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	2,560	$	648	$	—	$	182	$	265
Agricultural		—		—		—		—		128		—
Real Estate		—		298		1,162		15		150		433
Consumer		—		70		119		—		56		199
Total	$	—	$	2,928	$	1,929	$	15	$	516	$	897

Schedule of Troubled Debt Restructurings

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

	Year Ended December 31, 2016				Year Ended December 31, 2015
	Number		Balance		Number		Balance
Commercial		4	$	1,690		1	$	66
Agriculture		—		—		—		—
Real Estate		3		921		1		15
Consumer		—		—		2		32
Total		7	$	2,611		4	$	113

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, 2016 (determined as of each respective year-end) follows (in thousands):

	Beginning Balance		Additional Loans		Payments		Ending Balance
Year ended December 31, 2016	$	65,729	$	49,674	$	70,974	$	44,429