Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2017

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):

	March 31,				December 31,
	2017		2016		2016
Commercial	$	666,687	$	669,525	$	674,410
Agricultural		79,237		87,490		84,021
Real estate		2,209,021		2,150,132		2,189,844
Consumer		417,567		375,052		409,032
Total loans held-for-investment	$	3,372,512	$	3,282,199	$	3,357,307

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,
	2017		2016		2016
Non-accrual loans*	$	28,080	$	27,175	$	27,371
Loans still accruing and past due 90 days or more		190		59		284
Troubled debt restructured loans**		695		973		701
Total	$	28,965	$	28,207	$	28,356

* Includes $937,000, $1,970,000 and $1,256,000 of purchased credit impaired loans as of March 31, 2017 and 2016, and December 31, 2016, respectively.

** Troubled debt restructured loans of $6,073,000, $8,527,000 and $6,863,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2017 and 2016, and December 31, 2016, 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, 2017			March 31, 2016				December 31, 2016
Recorded Investment	Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$28,080	$	5,072	$	27,175	$	5,262	$	27,371	$	5,012

Schedule of Non-Accrual Loans

Non-accrual loans at March 31, 2017 and 2016, and December 31, 2016, consisted of the following by class of financing receivables (in thousands):

	March 31,				December 31,
	2017		2016		2016
Commercial	$	6,953	$	7,392	$	7,284
Agricultural		72		19		99
Real estate		19,763		18,473		18,754
Consumer		1,292		1,291		1,234
Total	$	28,080	$	27,175	$	27,371

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of March 31, 2017 and 2016, and December 31, 2016, 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, 2017	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three-Month Average Recorded Investment
Commercial	$	15,986	$	770	$	6,183	$	6,953	$	2,017	$	9,069
Agricultural		76		—		72		72		17		72
Real Estate		24,748		6,609		13,154		19,763		2,605		18,935
Consumer		1,496		346		946		1,292		433		1,210
Total	$	42,306	$	7,725	$	20,355	$	28,080	$	5,072	$	29,286

* Includes $937,000 of purchased credit impaired loans.

March 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three-Month Average Recorded Investment
Commercial	$	8,309	$	1,227	$	6,165	$	7,392	$	2,165	$	6,812
Agricultural		19		—		19		19		7		11
Real Estate		23,740		5,746		12,727		18,473		2,658		18,504
Consumer		1,478		210		1,081		1,291		432		1,085
Total	$	33,546	$	7,183	$	19,992	$	27,175	$	5,262	$	26,412

* Includes $1,970,000 of purchased credit impaired loans.

December 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year 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.

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, 2017 and 2016, and December 31, 2016 (in thousands):

March 31, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	623,429	$	5,135	$	38,123	$	—	$	666,687
Agricultural		77,050		730		1,457		—		79,237
Real Estate		2,134,703		17,310		57,008		—		2,209,021
Consumer		414,709		166		2,692		—		417,567
Total	$	3,249,891	$	23,341	$	99,280	$	—	$	3,372,512
March 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,466	$	7,378	$	50,681	$	—	$	669,525
Agricultural		84,555		350		2,585		—		87,490
Real Estate		2,072,210		23,359		54,563		—		2,150,132
Consumer		371,826		399		2,827		—		375,052
Total	$	3,140,057	$	31,486	$	110,656	$	—	$	3,282,199

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

Schedule of Past Due Loans

At March 31, 2017 and 2016, and December 31, 2016, the Company’s past due loans are as follows (in thousands):

March 31, 2017	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	$	5,452	$	376	$	2,450	$	8,278	$	658,409	$	666,687	$	—
Agricultural		626		31		27		684		78,553		79,237		15
Real Estate		13,434		1,870		5,085		20,389		2,188,632		2,209,021		151
Consumer		1,058		268		87		1,413		416,154		417,567		24
Total	$	20,570	$	2,545	$	7,649	$	30,764	$	3,341,748	$	3,372,512	$	190
March 31, 2016	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	$	3,338	$	1,228	$	1,498	$	6,064	$	663,461	$	669,525	$	42
Agricultural		320		—		—		320		87,170		87,490		—
Real Estate		10,979		1,560		3,684		16,223		2,133,909		2,150,132		—
Consumer		1,677		336		162		2,175		372,877		375,052		17
Total	$	16,314	$	3,124	$	5,344	$	24,782	$	3,257,417	$	3,282,199	$	59
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

* 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, 2017 and 2016, and December 31, 2016, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2017 and 2016, and December 31, 2016. 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, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,017	$	17	$	2,605	$	433	$	5,072
Loans collectively evaluated for impairment		9,665		929		24,674		5,852		41,120
Total	$	11,682	$	946	$	27,279	$	6,285	$	46,192
March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,165	$	7	$	2,658	$	432	$	5,262
Loans collectively evaluated for impairment		10,740		1,248		23,441		3,381		38,810
Total	$	12,905	$	1,255	$	26,099	$	3,813	$	44,072
December 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,128	$	25	$	2,428	$	431	$	5,012
Loans 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

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three months ended March 31, 2017 and 2016, are summarized as follows by portfolio segment (in thousands):

Three months ended March 31, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,707		$	1,101		$	26,864		$	6,107		$	45,779
Provision for loan losses		1,003			(153	)		773			327			1,950
Recoveries		227			6			52			204			489
Charge-offs		(1,255	)		(8	)		(410	)		(353	)		(2,026	)
Ending balance	$	11,682		$	946		$	27,279		$	6,285		$	46,192
Three months ended March 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		847			196			832			453			2,328
Recoveries		286			11			1,227			125			1,649
Charge-offs		(872	)		(143	)		(335	)		(432	)		(1,782	)
Ending balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072

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, 2017 and 2016, and December 31, 2016 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 $937,000, $1,970,000 and $1,256,000 at March 31, 2017 and 2016, and December 31, 2016, respectively, are included in loans individually evaluated for impairment.

March 31, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	6,953	$	72	$	19,763	$	1,292	$	28,080
Loans collectively evaluated for impairment		659,734		79,165		2,189,258		416,275		3,344,432
Total	$	666,687	$	79,237	$	2,209,021	$	417,567	$	3,372,512

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,392	$	19	$	18,473	$	1,291	$	27,175
Loans collectively evaluated for impairment		662,133		87,471		2,131,659		373,761		3,255,024
Total	$	669,525	$	87,490	$	2,150,132	$	375,052	$	3,282,199
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

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three months ended March 31, 2017 and 2016 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
			Pre-Modification		Post- Modification				Pre-Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		4	$	234	$	234		7	$	2,640	$	2,640
Agricultural		—		—		—		—		—		—
Real Estate		1		56		56		2		463		463
Consumer		—		—		—		2		20		20
Total		5	$	290	$	290		11	$	3,123	$	3,123

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, 2017 and 2016 (in thousands):

	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	90	$	144		—	$	2,237	$	403
Agricultural		—		—		—		—		—		—
Real Estate		—		56		—		—		113		350
Consumer		—		—		—		—		4		16
Total	$	—	$	146	$	144		—	$	2,354	$	769

Schedule of Troubled Debt Restructurings

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

	Three Months Ended March 31, 2017
	Number		Balance
Commercial		1	$	53
Agriculture		—		—
Real Estate		1		63
Consumer		—		—
Total		2	$	116