Loans Held for Investment and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

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):

	June 30,				December 31,
	2018		2017		2017
Commercial	$	775,010	$	668,049	$	684,099
Agricultural		92,583		77,342		94,543
Real estate		2,567,878		2,271,100		2,302,998
Consumer		396,009		422,861		403,929
Total loans held-for-investment	$	3,831,480	$	3,439,352	$	3,485,569

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):

	June 30,				December 31,
	2018		2017		2017
Non-accrual loans*	$	26,685	$	21,489	$	17,670
Loans still accruing and past due 90 days or more		200		314		288
Troubled debt restructured loans**		514		672		627
Total	$	27,399	$	22,475	$	18,585

* Includes $2,813,000, $889,000 and $618,000 of purchased credit impaired loans as of June 30, 2018 and 2017, and December 31, 2017, respectively.

** Troubled debt restructured loans of $4,329,000, $5,417,000 and $4,629,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2018 and 2017, and December 31, 2017, 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):

June 30, 2018			June 30, 2017				December 31, 2017
Recorded	Valuation		Recorded		Valuation		Recorded		Valuation
Investment	Allowance		Investment		Allowance		Investment		Allowance
$26,685	$	4,823	$	21,489	$	4,543	$	17,670	$	3,996

Schedule of Non-Accrual Loans

Non-accrual loans at June 30, 2018 and 2017, and December 31, 2017, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2018		2017		2017
Commercial	$	7,580	$	5,404	$	3,612
Agricultural		1,259		61		134
Real estate		16,715		14,801		12,838
Consumer		1,131		1,223		1,086
Total	$	26,685	$	21,489	$	17,670

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance 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.

June 30, 2018	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	$	9,432	$	3,264	$	4,316	$	7,580	$	1,379	$	8,485	$	8,226
Agricultural		1,278		50		1,209		1,259		368		1,670		1,589
Real Estate		22,358		3,569		13,146		16,715		2,645		18,441		18,019
Consumer		1,344		169		962		1,131		431		1,240		1,192
Total	$	34,412	$	7,052	$	19,633	$	26,685	$	4,823	$	29,836	$	29,026

* Includes $2,813,000 of purchased credit impaired loans.

June 30, 2017	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	$	9,362	$	708	$	4,696	$	5,404	$	1,683	$	13,590	$	7,985
Agricultural		66		—		61		61		17		69		66
Real Estate		19,071		3,755		11,046		14,801		2,369		17,769		15,473
Consumer		1,432		309		914		1,223		474		1,457		1,294
Total	$	29,931	$	4,772	$	16,717	$	21,489	$	4,543	$	32,885	$	24,818

* Includes $889,000 of purchased credit impaired loans.

December 31, 2017	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		12 Month Average Recorded Investment
Commercial	$	5,597	$	518	$	3,094	$	3,612	$	1,194	$	4,849
Agricultural		147		—		134		134		31		120
Real Estate		16,823		2,348		10,490		12,838		2,316		13,835
Consumer		1,284		143		943		1,086		455		1,258
Total	$	23,851	$	3,009	$	14,661	$	17,670	$	3,996	$	20,062

* Includes $618,000 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 (in thousands):

June 30, 2018	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	749,387	$	6,439	$	19,184	$	—	$	775,010
Agricultural		87,768		1,568		3,247		—		92,583
Real Estate		2,487,399		26,182		54,297		—		2,567,878
Consumer		393,200		368		2,441		—		396,009
Total	$	3,717,754	$	34,557	$	79,169	$	—	$	3,831,480

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	627,812	$	5,965	$	34,272	$	—	$	668,049
Agricultural		73,727		859		2,756		—		77,342
Real Estate		2,200,067		20,978		50,055		—		2,271,100
Consumer		420,138		197		2,526		—		422,861
Total	$	3,321,744	$	27,999	$	89,609	$	—	$	3,439,352

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	649,166	$	6,282	$	28,651	$	—	$	684,099
Agricultural		90,457		1,527		2,559		—		94,543
Real Estate		2,227,302		29,089		46,607		—		2,302,998
Consumer		401,434		181		2,314		—		403,929
Total	$	3,368,359	$	37,079	$	80,131	$	—	$	3,485,569

Schedule of Past Due Loans

The Company’s past due loans are as follows (in thousands):

June 30, 2018	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	$	4,950	$	1,085	$	3,029	$	9,064	$	765,946	$	775,010	$	74
Agricultural		626		159		—		785		91,798		92,583		—
Real Estate		13,441		474		532		14,447		2,553,431		2,567,878		70
Consumer		919		232		76		1,227		394,782		396,009		56
Total	$	19,936	$	1,950	$	3,637	$	25,523	$	3,805,957	$	3,831,480	$	200

June 30, 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	$	3,026	$	872	$	2,673	$	6,571	$	661,478	$	668,049	$	150
Agricultural		633		—		8		641		76,701		77,342		8
Real Estate		12,794		1,713		4,661		19,168		2,251,932		2,271,100		99
Consumer		1,134		414		99		1,647		421,214		422,861		57
Total	$	17,587	$	2,999	$	7,441	$	28,027	$	3,411,325	$	3,439,352	$	314

December 31, 2017	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	$	2,039	$	1,104	$	1,081	$	4,224	$	679,875	$	684,099	$	7
Agricultural		640		—		—		640		93,903		94,543		—
Real Estate		12,308		511		1,198		14,017		2,288,981		2,302,998		216
Consumer		1,360		361		135		1,856		402,073		403,929		65
Total	$	16,347	$	1,976	$	2,414	$	20,737	$	3,464,832	$	3,485,569	$	288

* 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 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2018 and 2017, and December 31, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2018	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,379	$	368	$	2,645	$	431	$	4,823
Loans collectively evaluated for impairment		7,839		1,034		30,598		5,657		45,128
Total	$	9,218	$	1,402	$	33,243	$	6,088	$	49,951

June 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,683	$	17	$	2,369	$	474	$	4,543
Loans collectively evaluated for impairment		10,252		1,110		25,654		5,851		42,867
Total	$	11,935	$	1,127	$	28,023	$	6,325	$	47,410

December 31, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,194	$	31	$	2,316	$	455	$	3,996
Loans collectively evaluated for impairment		9,671		1,274		27,580		5,635		44,160
Total	$	10,865	$	1,305	$	29,896	$	6,090	$	48,156

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2018	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	9,277		$	1,512		$	32,539		$	6,171		$	49,499
Provision for loan losses		335			(115	)		799			86			1,105
Recoveries		126			5			18			147			296
Charge-offs		(520	)		—			(113	)		(316	)		(949	)
Ending balance	$	9,218		$	1,402		$	33,243		$	6,088		$	49,951

Three months ended June 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,682		$	946		$	27,279		$	6,285		$	46,192
Provision for loan losses		(76	)		207			1,359			235			1,725
Recoveries		522			2			39			104			667
Charge-offs		(193	)		(28	)		(654	)		(299	)		(1,174	)
Ending balance	$	11,935		$	1,127		$	28,023		$	6,325		$	47,410

Six months ended June 30, 2018	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	10,865		$	1,305		$	29,896		$	6,090		$	48,156
Provision for loan losses		(1,292	)		88			3,233			386			2,415
Recoveries		284			9			260			247			800
Charge-offs		(639	)		—			(146	)		(635	)		(1,420	)
Ending balance	$	9,218		$	1,402		$	33,243		$	6,088		$	49,951
Six months ended June 30, 2017	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	11,707		$	1,101		$	26,864		$	6,107		$	45,779
Provision for loan losses		927			54			2,132			562			3,675
Recoveries		749			8			91			309			1,157
Charge-offs		(1,448	)		(36	)		(1,064	)		(653	)		(3,201	)
Ending balance	$	11,935		$	1,127		$	28,023		$	6,325		$	47,410

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 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows (in thousands). Purchased credit impaired loans of $3,061,000, $889,000 and $618,000 at June 30, 2018 and 2017, and December 31, 2017, respectively, are included in loans individually evaluated for impairment.

June 30, 2018	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,580	$	1,259	$	16,715	$	1,131	$	26,685
Loans collectively evaluated for impairment		767,430		91,324		2,551,163		394,878		3,804,795
Total	$	775,010	$	92,583	$	2,567,878	$	396,009	$	3,831,480

June 30, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	5,404	$	61	$	14,801	$	1,223	$	21,489
Loans collectively evaluated for impairment		662,645		77,281		2,256,299		421,638		3,417,863
Total	$	668,049	$	77,342	$	2,271,100	$	422,861	$	3,439,352

December 31, 2017	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,612	$	134	$	12,838	$	1,086	$	17,670
Loan collectively evaluated for impairment		680,487		94,409		2,290,160		402,843		3,467,899
Total	$	684,099	$	94,543	$	2,302,998	$	403,929	$	3,485,569

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		1	$	279	$	279		1	$	279	$	279
Agricultural		—		—		—		1		4		4
Real Estate		2		162		162		4		525		525
Consumer		3		39		39		6		113		113
Total		6	$	480	$	480		12	$	921	$	921

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		2	$	90	$	90		6	$	324	$	324
Agricultural		—		—		—		—		—		—
Real Estate		1		161		161		2		217		217
Consumer		1		25		25		1		25		25
Total		4	$	276	$	276		9	$	566	$	566

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 (in thousands):

	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	—	$	279		—	$	—	$	279
Agricultural		—		—		—		—		—		4
Real Estate		—		162		—		—		162		363
Consumer		—		—		39		—		—		113
Total	$	—	$	162	$	318		—	$	162	$	759

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	90	$	—		—	$	180	$	144
Agricultural		—		—		—		—		—		—
Real Estate		—		—		161		—		56		161
Consumer		—		25		—		—		25		—
Total	$	—	$	115	$	161		—	$	261	$	305

Schedule of Troubled Debt Restructurings

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

	Three Months Ended June 30, 2018				Six Months Ended June 30, 2018
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		—		—		—		—
Total		—	$	—		—	$	—

	Three Months Ended June 30, 2017				Six Months Ended June 30, 2017
	Number		Balance		Number		Balance
Commercial		—	$	—		1	$	53
Agriculture		—		—		—		—
Real Estate		—		—		1		63
Consumer		—		—		—		—
Total		—	$	—		2	$	116