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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Summary of Loans
Loans are stated at the principal amount outstanding net of unearned discounts, unearned income and allowance for loan losses.  Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method.  Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at March 31, 2015 and December 31, 2014 follows (in thousands):
 
March 31,
2015
 
December 31,
2014
Construction and land development
$
27,152

 
$
21,627

Agricultural real estate
109,419

 
110,158

1-4 Family residential properties
174,246

 
179,886

Multifamily residential properties
52,682

 
53,129

Commercial real estate
376,136

 
380,173

Loans secured by real estate
739,635

 
744,973

Agricultural loans
56,898

 
68,225

Commercial and industrial loans
233,192

 
223,633

Consumer loans
15,025

 
15,118

All other loans
8,718

 
8,736

Gross loans
1,053,468

 
1,060,685

Less:
 

 
 

Net deferred loan fees, premiums and discounts
180

 
237

Allowance for loan losses
14,106

 
13,682

Net loans
$
1,039,182

 
$
1,046,766
Allowance for Loan Losses and Recorded Investment in Loans
following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three-months ended March 31, 2015 and 2014 and for the year ended December 31, 2014 (in thousands):
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential 
Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
358

 
(69
)
 
(13
)
 
4

 
(15
)
 
265

Losses charged off
(9
)
 
—

 
(25
)
 
(56
)
 
—

 
(90
)
Recoveries
196

 
—

 
1

 
52

 
—

 
249

Balance, end of period
$
11,459

 
$
1,291

 
$
753

 
$
386

 
$
217

 
$
14,106

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
625

 
$
—

 
$
—

 
$
—

 
$
—

 
$
625

Collectively evaluated for impairment
$
10,834

 
$
1,291

 
$
753

 
$
386

 
$
217

 
$
13,481

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
694,836

 
$
165,927

 
$
178,038

 
$
15,355

 
$
—

 
$
1,054,156

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
3,392

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,392

Collectively evaluated for impairment
$
691,444

 
$
165,927

 
$
178,038

 
$
15,355

 
$
—

 
$
1,050,764

 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended March 31, 2014
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,646

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Provision charged to expense
(125
)
 
(31
)
 
5

 
9

 
465

 
323

Losses charged off
(4
)
 
—

 
(31
)
 
(45
)
 
—

 
(80
)
Recoveries
64

 
1

 
15

 
31

 
—

 
111

Balance, end of period
$
10,581

 
$
503

 
$
760

 
$
372

 
$
1,387

 
$
13,603

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
359

 
$
—

 
$
—

 
$
—

 
$
—

 
$
359

Collectively evaluated for impairment
$
10,222

 
$
503

 
$
760

 
$
372

 
$
1,387

 
$
13,244

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
631,172

 
$
158,052

 
$
188,007

 
$
14,500

 
$
—

 
$
991,731

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
4,357

 
$
—

 
$
—

 
$
—

 
$
—

 
$
4,357

Collectively evaluated for impairment
$
626,815

 
$
158,052

 
$
188,007

 
$
14,500

 
$
—

 
$
987,374

Year ended December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
10,646

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Provision charged to expense
192

 
825

 
135

 
167

 
(690
)
 
629

Losses charged off
(86
)
 
—

 
(140
)
 
(311
)
 
—

 
(537
)
Recoveries
162

 
2

 
24

 
153

 
—

 
341

Balance, end of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
263

 
$
—

 
$
—

 
$
—

 
$
—

 
$
263

Collectively evaluated for impairment
$
10,651

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,419

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
684,552

 
$
178,091

 
$
184,661

 
$
15,102

 
$
—

 
$
1,062,406

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
3,301

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,301

Collectively evaluated for impairment
$
681,251

 
$
178,091

 
$
184,661

 
$
15,102

 
$
—

 
$
1,059,105
Credit Risk Profile of the Company's Loan Portfolio
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans.

The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of March 31, 2015 and December 31, 2014 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
26,733

 
$
20,842

 
$
106,383

 
$
107,976

 
$
171,059

 
$
177,764

 
$
52,100

 
$
52,793

Watch
—

 
—

 
1,908

 
1,036

 
1,128

 
1,187

 
251

 
—

Substandard
419

 
785

 
1,163

 
1,181

 
3,005

 
2,970

 
331

 
336

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
27,152

 
$
21,627

 
$
109,454

 
$
110,193

 
$
175,192

 
$
181,921

 
$
52,682

 
$
53,129


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
354,391

 
$
357,873

 
$
55,578

 
$
67,619

 
$
228,260

 
$
218,193

 
$
14,764

 
$
15,105

Watch
18,372

 
18,817

 
501

 
—

 
3,689

 
4,647

 
8

 
9

Substandard
2,854

 
2,914

 
896

 
679

 
1,392

 
940

 
253

 
4

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
375,617

 
$
379,604

 
$
56,975

 
$
68,298

 
$
233,341

 
$
223,780

 
$
15,025

 
$
15,118


 
All Other Loans
 
Total Loans
 
2015
 
2014
 
2015
 
2014
Pass
$
8,718

 
$
8,736

 
$
1,017,986

 
$
1,026,901

Watch
—

 
—

 
25,857

 
25,696

Substandard
—

 
—

 
10,313

 
9,809

Doubtful
—

 
—

 
—

 
—

Total
$
8,718

 
$
8,736

 
$
1,054,156

 
$
1,062,406
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at March 31, 2015 and December 31, 2014 (in thousands):
 
30-59 days Past Due
 
60-89 days Past Due
 
90 Days
or More Past Due
 
Total
Past Due
 
Current
 
Total Loans Receivable
 
Total Loans > 90 days & Accruing
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
27,152

 
$
27,152

 
$
—

Agricultural real estate
106

 
—

 
—

 
106

 
109,348

 
109,454

 
—

1-4 Family residential properties
384

 
77

 
394

 
855

 
174,337

 
175,192

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
52,682

 
52,682

 
—

Commercial real estate
1,408

 
—

 
891

 
2,299

 
373,318

 
375,617

 
—

Loans secured by real estate
1,898

 
77

 
1,285

 
3,260

 
736,837

 
740,097

 
—

Agricultural loans
10

 
—

 
—

 
10

 
56,965

 
56,975

 
—

Commercial and industrial loans
181

 
1

 
118

 
300

 
233,041

 
233,341

 
—

Consumer loans
52

 
254

 
2

 
308

 
14,717

 
15,025

 
—

All other loans
—

 
—

 
—

 
—

 
8,718

 
8,718

 
—

Total loans
$
2,141

 
$
332

 
$
1,405

 
$
3,878

 
$
1,050,278

 
$
1,054,156

 
$
—

December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
297

 
$
25

 
$
—

 
$
322

 
$
21,305

 
$
21,627

 
$
—

Agricultural real estate
—

 
—

 
—

 
—

 
110,193

 
110,193

 
—

1-4 Family residential properties
201

 
224

 
385

 
810

 
181,111

 
181,921

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
53,129

 
53,129

 
—

Commercial real estate
60

 
32

 
945

 
1,037

 
378,567

 
379,604

 
—

Loans secured by real estate
558

 
281

 
1,330

 
2,169

 
744,305

 
746,474

 
—

Agricultural loans
16

 
20

 
—

 
36

 
68,262

 
68,298

 
—

Commercial and industrial loans
228

 
10

 
98

 
336

 
223,444

 
223,780

 
—

Consumer loans
331

 
10

 
5

 
346

 
14,772

 
15,118

 
—

All other loans
—

 
—

 
—

 
—

 
8,736

 
8,736

 
—

Total loans
$
1,133

 
$
321

 
$
1,433

 
$
2,887

 
$
1,059,519

 
$
1,062,406

 
$
—
Impaired Loans
The following tables present impaired loans as of March 31, 2015 and December 31, 2014 (in thousands):

 
March 31, 2015
 
December 31, 2014
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
419

 
$
984

 
$
33

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
203

 
203

 
14

 
67

 
134

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
470

 
470

 
134

 
472

 
986

 
136

Loans secured by real estate
1,092

 
1,657

 
181

 
1,324

 
4,080

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
203

 
203

 
193

 
83

 
181

 
84

Consumer loans
251

 
251

 
251

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,546

 
$
2,111

 
$
625

 
$
1,407

 
$
4,261

 
$
263

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
96

 
101

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,063

 
2,915

 
—

 
1,156

 
2,866

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
1,605

 
4,189

 
—

 
1,640

 
3,808

 
—

Loans secured by real estate
2,764

 
7,205

 
—

 
2,869

 
6,909

 
—

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
305

 
1,199

 
—

 
249

 
933

 
—

Consumer loans
42

 
361

 
—

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,111

 
$
8,765

 
$
—

 
$
3,133

 
$
7,902

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
419

 
$
984

 
$
33

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
96

 
101

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,266

 
3,118

 
14

 
1,223

 
3,000

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
2,075

 
4,659

 
134

 
2,112

 
4,794

 
136

Loans secured by real estate
3,856

 
8,862

 
181

 
4,193

 
10,989

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
508

 
1,402

 
193

 
332

 
1,114

 
84

Consumer loans
293

 
612

 
251

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,657

 
$
10,876

 
$
625

 
$
4,540

 
$
12,163

 
$
263
Impaired loans by portfolio class
The following tables present average recorded investment and interest income recognized on impaired loans for the three-month periods ended March 31, 2015 and 2014 (in thousands):
 
 
For the three months ended
 
March 31, 2015
 
March 31, 2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
419

 
$
—

 
$
1,446

 
$
—

Agricultural real estate
96

 
1

 
101

 
—

1-4 Family residential properties
1,292

 
2

 
1,083

 
2

Commercial real estate
2,084

 
1

 
2,185

 
1

Loans secured by real estate
3,891

 
4

 
4,815

 
3

Commercial and industrial loans
514

 
—

 
674

 
2

Consumer loans
294

 
1

 
34

 
—

Total loans
$
4,699

 
$
5

 
$
5,523

 
$
5
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as March 31, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
March 31,
2015
 
December 31,
2014
Construction and land development
$
418

 
$
785

Agricultural real estate
29

 
29

1-4 Family residential properties
922

 
878

Commercial real estate
2,038

 
2,074

Loans secured by real estate
3,407

 
3,766

Agricultural loans
—

 
—

Commercial and industrial loans
508

 
332

Consumer loans
253

 
7

Total loans
$
4,168

 
$
4,105
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at March 31, 2015 and December 31, 2014 (in thousands).
Troubled debt restructurings:
March 31,
2015
 
December 31,
2014
Construction and land development
$
419

 
$
785

Agricultural real estate
67

 
44

1-4 Family residential properties
422

 
503

Commercial real estate
1,261

 
1,283

Loans secured by real estate
2,169

 
2,615

Commercial and industrial loans
293

 
236

Consumer loans
40

 
9

Total
$
2,502

 
$
2,860

Performing troubled debt restructurings:
 

 
 

Agricultural real estate
$
67

 
$
44

1-4 Family residential properties
344

 
$
345

Commercial real estate
37

 
37

Loans secured by real estate
448

 
426

Commercial and industrial loans
—

 
—

Consumer loans
40

 
9

Total
$
488

 
$
435
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the three months ended March 31, 2015 and 2014, as a result of various modified loan factors (in thousands):
 
March 31, 2015
 
March 31, 2014
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
Farm Loans
1

 
23

 
(b)
 
—

 
$
—

 
 
1-4 Family residential properties
1

 
11

 
(b)
 
2

 
$
207

 
(c)
Loans secured by real estate
2

 
34

 
 
 
2

 
207

 
 
Consumer Loans
2

 
32

 
(b)(c)
 
—

 
—

 

Total
4

 
$
66

 
 
 
2

 
$
207