XML 30 R17.htm IDEA: XBRL DOCUMENT v3.2.0.727
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2015 and December 31, 2014 follows (in thousands):
 
June 30,
2015
 
December 31,
2014
Construction and land development
$
27,420

 
$
21,627

Agricultural real estate
112,270

 
110,158

1-4 Family residential properties
170,697

 
179,886

Multifamily residential properties
52,422

 
53,129

Commercial real estate
372,213

 
380,173

Loans secured by real estate
735,022

 
744,973

Agricultural loans
59,641

 
68,225

Commercial and industrial loans
238,981

 
223,633

Consumer loans
14,560

 
15,118

All other loans
8,453

 
8,736

Gross loans
1,056,657

 
1,060,685

Less:
 

 
 

Net deferred loan fees, premiums and discounts
130

 
237

Allowance for loan losses
13,931

 
13,682

Net loans
$
1,042,596

 
$
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 and six-months ended June 30, 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 June 30, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
11,459

 
$
1,291

 
$
753

 
$
386

 
$
217

 
$
14,106

Provision charged to expense
(123
)
 
20

 
(7
)
 
258

 
(5
)
 
143

Losses charged off
(62
)
 
—

 
(15
)
 
(304
)
 
—

 
(381
)
Recoveries
20

 
1

 
—

 
42

 
—

 
63

Balance, end of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
537

 
$
—

 
$
—

 
$
—

 
$
—

 
$
537

Collectively evaluated for impairment
$
10,757

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,394

Three months ended June 30, 2014
 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
10,581

 
$
503

 
$
760

 
$
372

 
$
1,387

 
$
13,603

Provision charged to expense
200

 
21

 
6

 
27

 
(126
)
 
128

Losses charged off
(28
)
 
—

 
(14
)
 
(60
)
 
—

 
(102
)
Recoveries
18

 
—

 
5

 
29

 
—

 
52

Balance, end of period
$
10,771

 
$
524

 
$
757

 
$
368

 
$
1,261

 
$
13,681

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
322

 
$
—

 
$
—

 
$
—

 
$
—

 
$
322

Collectively evaluated for impairment
$
10,449

 
$
524

 
$
757

 
$
368

 
$
1,261

 
$
13,359

Six months ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
235

 
(49
)
 
(20
)
 
262

 
(20
)
 
408

Losses charged off
(71
)
 
—

 
(40
)
 
(360
)
 
—

 
(471
)
Recoveries
216

 
1

 
1

 
94

 
—

 
312

Balance, end of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
537

 
$
—

 
$
—

 
$
—

 
$
—

 
$
537

Collectively evaluated for impairment
$
10,757

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,394

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
696,596

 
$
171,376

 
$
175,680

 
$
15,451

 
$
—

 
$
1,059,103

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,766

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,766

Collectively evaluated for impairment
$
694,830

 
$
171,376

 
$
175,680

 
$
15,451

 
$
—

 
$
1,057,337

 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
Six months ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,646

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Provision charged to expense
75

 
(10
)
 
11

 
36

 
339

 
451

Losses charged off
(32
)
 
—

 
(45
)
 
(105
)
 
—

 
(182
)
Recoveries
82

 
1

 
20

 
60

 
—

 
163

Balance, end of period
$
10,771

 
$
524

 
$
757

 
$
368

 
$
1,261

 
$
13,681

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
322

 
$
—

 
$
—

 
$
—

 
$
—

 
$
322

Collectively evaluated for impairment
$
10,449

 
$
524

 
$
757

 
$
368

 
$
1,261

 
$
13,359

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
657,352

 
$
164,841

 
$
185,754

 
$
14,304

 
$
—

 
$
1,022,251

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
3,648

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,648

Collectively evaluated for impairment
$
653,704

 
$
164,841

 
$
185,754

 
$
14,304

 
$
—

 
$
1,018,603

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 June 30, 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
$
27,266

 
$
20,842

 
$
109,463

 
$
107,976

 
$
169,911

 
$
177,764

 
$
51,842

 
$
52,793

Watch
—

 
—

 
1,767

 
1,036

 
925

 
1,187

 
249

 
—

Substandard
154

 
785

 
1,072

 
1,181

 
2,516

 
2,970

 
331

 
336

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
27,420

 
$
21,627

 
$
112,302

 
$
110,193

 
$
173,352

 
$
181,921

 
$
52,422

 
$
53,129


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
349,417

 
$
357,873

 
$
58,798

 
$
67,619

 
$
233,151

 
$
218,193

 
$
14,152

 
$
15,105

Watch
21,456

 
18,817

 
228

 
—

 
4,790

 
4,647

 
—

 
9

Substandard
879

 
2,914

 
693

 
679

 
1,182

 
940

 
408

 
4

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
371,752

 
$
379,604

 
$
59,719

 
$
68,298

 
$
239,123

 
$
223,780

 
$
14,560

 
$
15,118


 
All Other Loans
 
Total Loans
 
2015
 
2014
 
2015
 
2014
Pass
$
8,453

 
$
8,736

 
$
1,022,453

 
$
1,026,901

Watch
—

 
—

 
29,415

 
25,696

Substandard
—

 
—

 
7,235

 
9,809

Doubtful
—

 
—

 
—

 
—

Total
$
8,453

 
$
8,736

 
$
1,059,103

 
$
1,062,406
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at June 30, 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
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
27,420

 
$
27,420

 
$
—

Agricultural real estate
147

 
—

 
—

 
147

 
112,155

 
112,302

 
—

1-4 Family residential properties
398

 
176

 
182

 
756

 
172,596

 
173,352

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
52,422

 
52,422

 
—

Commercial real estate
3

 
126

 
395

 
524

 
371,228

 
371,752

 
—

Loans secured by real estate
548

 
302

 
577

 
1,427

 
735,821

 
737,248

 
—

Agricultural loans
—

 
—

 
—

 
—

 
59,719

 
59,719

 
—

Commercial and industrial loans
559

 
35

 
145

 
739

 
238,384

 
239,123

 
—

Consumer loans
37

 
18

 
5

 
60

 
14,500

 
14,560

 
—

All other loans
—

 
—

 
—

 
—

 
8,453

 
8,453

 
—

Total loans
$
1,144

 
$
355

 
$
727

 
$
2,226

 
$
1,056,877

 
$
1,059,103

 
$
—

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 June 30, 2015 and December 31, 2014 (in thousands):

 
June 30, 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
$
154

 
$
719

 
$
26

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
416

 
416

 
—

 
67

 
134

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
536

 
607

 
29

 
472

 
986

 
136

Loans secured by real estate
1,106

 
1,742

 
55

 
1,324

 
4,080

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
252

 
387

 
103

 
83

 
181

 
84

Consumer loans
408

 
408

 
379

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,766

 
$
2,537

 
$
537

 
$
1,407

 
$
4,261

 
$
263

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
93

 
98

 
—

 
73

 
235

 
—

1-4 Family residential properties
734

 
1,073

 
—

 
1,156

 
2,866

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
116

 
117

 
—

 
1,640

 
3,808

 
—

Loans secured by real estate
943

 
1,288

 
—

 
2,869

 
6,909

 
—

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
321

 
478

 
—

 
249

 
933

 
—

Consumer loans
39

 
48

 
—

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,303

 
$
1,814

 
$
—

 
$
3,133

 
$
7,902

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
154

 
$
719

 
$
26

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
93

 
98

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,150

 
1,489

 
—

 
1,223

 
3,000

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
652

 
724

 
29

 
2,112

 
4,794

 
136

Loans secured by real estate
2,049

 
3,030

 
55

 
4,193

 
10,989

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
573

 
865

 
103

 
332

 
1,114

 
84

Consumer loans
447

 
456

 
379

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,069

 
$
4,351

 
$
537

 
$
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 and six-month periods ended June 30, 2015 and 2014 (in thousands):
 
For the three months ended
 
June 30, 2015
 
June 30, 2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
154

 
$
—

 
$
1,112

 
$
—

Agricultural real estate
93

 
1

 
36

 
—

1-4 Family residential properties
1,163

 
2

 
1,058

 
4

Commercial real estate
655

 
1

 
2,293

 
1

Loans secured by real estate
2,065

 
4

 
4,499

 
5

Commercial and industrial loans
584

 
1

 
608

 
—

Consumer loans
448

 
1

 
35

 
—

Total loans
$
3,097

 
$
6

 
$
5,142

 
$
5

 
For the six months ended
 
June 30, 2015
 
June 30, 2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
154

 
$
—

 
$
1,126

 
$
—

Agricultural real estate
94

 
2

 
36

 
—

1-4 Family residential properties
1,188

 
3

 
1,067

 
6

Commercial real estate
659

 
1

 
2,303

 
1

Loans secured by real estate
2,095

 
6

 
4,532

 
7

Commercial and industrial loans
594

 
3

 
627

 
—

Consumer loans
448

 
1

 
37

 
1

Total loans
$
3,137

 
$
10

 
$
5,196

 
$
8
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
June 30,
2015
 
December 31,
2014
Construction and land development
$
154

 
$
785

Agricultural real estate
26

 
29

1-4 Family residential properties
808

 
878

Commercial real estate
616

 
2,074

Loans secured by real estate
1,604

 
3,766

Agricultural loans
—

 
—

Commercial and industrial loans
456

 
332

Consumer loans
408

 
7

Total loans
$
2,468

 
$
4,105
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2015 and December 31, 2014 (in thousands).
Troubled debt restructurings:
June 30,
2015
 
December 31,
2014
Construction and land development
$
153

 
$
785

Agricultural real estate
67

 
44

1-4 Family residential properties
481

 
503

Commercial real estate
256

 
1,283

Loans secured by real estate
957

 
2,615

Commercial and industrial loans
434

 
236

Consumer loans
447

 
9

Total
$
1,838

 
$
2,860

Performing troubled debt restructurings:
 

 
 

Agricultural real estate
$
67

 
$
44

1-4 Family residential properties
342

 
$
345

Commercial real estate
36

 
37

Loans secured by real estate
445

 
426

Commercial and industrial loans
117

 
—

Consumer loans
39

 
9

Total
$
601

 
$
435
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the six months ended June 30, 2015 and 2014, as a result of various modified loan factors (in thousands):
 
June 30, 2015
 
June 30, 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
4

 
79

 
(b)(c)
 
2

 
$
207

 
(c)
Commercial real estate
—

 
—

 

 
1

 
501

 
(b)(c)
Loans secured by real estate
5

 
102

 
 
 
3

 
708

 
 
Commercial and industrial loans
2

 
227

 
(b)(c)
 
—

 
—

 

Consumer Loans
3

 
439

 
(b)(c)
 
—

 
—

 

Total
10

 
$
768

 
 
 
3

 
$
708