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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 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 September 30, 2015 and December 31, 2014 follows (in thousands):
 
September 30,
2015
 
December 31,
2014
Construction and land development
$
33,426

 
$
21,627

Agricultural real estate
120,431

 
110,158

1-4 Family residential properties
234,273

 
179,886

Multifamily residential properties
54,961

 
53,129

Commercial real estate
378,665

 
380,173

Loans secured by real estate
821,756

 
744,973

Agricultural loans
65,520

 
68,225

Commercial and industrial loans
296,334

 
223,633

Consumer loans
44,041

 
15,118

All other loans
11,202

 
8,736

Gross loans
1,238,853

 
1,060,685

Less:
 

 
 

Net deferred loan fees, premiums and discounts
3,450

 
237

Allowance for loan losses
14,228

 
13,682

Net loans
$
1,221,175

 
$
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 nine-months ended September 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 September 30, 2015
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
11,294

 
$
1,312

 
$
731

 
$
382

 
$
212

 
$
13,931

Provision charged to expense
84

 
84

 
97

 
305

 
(89
)
 
481

Losses charged off
(174
)
 
—

 
(24
)
 
(72
)
 
—

 
(270
)
Recoveries
47

 
—

 
—

 
39

 
—

 
86

Balance, end of period
$
11,251

 
$
1,396

 
$
804

 
$
654

 
$
123

 
$
14,228

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
148

 
$
—

 
$
—

 
$
194

 
$
—

 
$
342

Collectively evaluated for impairment
$
11,103

 
$
1,396

 
$
804

 
$
460

 
$
123

 
$
13,886

Three months ended September 30, 2014
 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
10,771

 
$
524

 
$
757

 
$
368

 
$
1,261

 
$
13,681

Provision charged to expense
(267
)
 
775

 
87

 
58

 
(609
)
 
44

Losses charged off
(22
)
 
—

 
(30
)
 
(81
)
 
—

 
(133
)
Recoveries
66

 
1

 
4

 
42

 
—

 
113

Balance, end of period
$
10,548

 
$
1,300

 
$
818

 
$
387

 
$
652

 
$
13,705

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
293

 
$
—

 
$
14

 
$
—

 
$
—

 
$
307

Collectively evaluated for impairment
$
10,255

 
$
1,300

 
$
804

 
$
387

 
$
652

 
$
13,398

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

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
319

 
35

 
77

 
567

 
(109
)
 
889

Losses charged off
(245
)
 
—

 
(64
)
 
(432
)
 
—

 
(741
)
Recoveries
263

 
1

 
1

 
133

 
—

 
398

Balance, end of period
$
11,251

 
$
1,396

 
$
804

 
$
654

 
$
123

 
$
14,228

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
148

 
$
—

 
$
—

 
$
194

 
$
—

 
$
342

Collectively evaluated for impairment
$
11,103

 
$
1,396

 
$
804

 
$
460

 
$
123

 
$
13,886

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
772,388

 
$
185,275

 
$
234,761

 
$
44,325

 
$
—

 
$
1,236,749

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,248

 
$
—

 
$
411

 
$
224

 
$
—

 
$
1,883

Collectively evaluated for impairment
$
771,140

 
$
185,275

 
$
234,350

 
$
44,101

 
$
—

 
$
1,234,866

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

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Provision charged to expense
(192
)
 
765

 
98

 
94

 
(270
)
 
495

Losses charged off
(54
)
 
—

 
(75
)
 
(186
)
 
—

 
(315
)
Recoveries
148

 
2

 
24

 
102

 
—

 
276

Balance, end of period
$
10,548

 
$
1,300

 
$
818

 
$
387

 
$
652

 
$
13,705

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
293

 
$
—

 
$
14

 
$
—

 
$
—

 
$
307

Collectively evaluated for impairment
$
10,255

 
$
1,300

 
$
804

 
$
387

 
$
652

 
$
13,398

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
667,656

 
$
169,309

 
$
188,521

 
$
15,522

 
$
—

 
$
1,041,008

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
3,473

 
$
—

 
$
225

 
$
—

 
$
—

 
$
3,698

Collectively evaluated for impairment
$
664,183

 
$
169,309

 
$
188,296

 
$
15,522

 
$
—

 
$
1,037,310

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 September 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
$
33,241

 
$
20,842

 
$
115,928

 
$
107,976

 
$
229,991

 
$
177,764

 
$
54,363

 
$
52,793

Watch
—

 
—

 
2,231

 
1,036

 
2,591

 
1,187

 
246

 
—

Substandard
148

 
785

 
2,155

 
1,181

 
2,195

 
2,970

 
323

 
336

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
33,389

 
$
21,627

 
$
120,314

 
$
110,193

 
$
234,777

 
$
181,921

 
$
54,932

 
$
53,129


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
355,085

 
$
357,873

 
$
64,298

 
$
67,619

 
$
289,991

 
$
218,193

 
$
43,031

 
$
15,105

Watch
21,622

 
18,817

 
255

 
—

 
4,810

 
4,647

 
30

 
9

Substandard
1,199

 
2,914

 
1,043

 
679

 
534

 
940

 
243

 
4

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
377,906

 
$
379,604

 
$
65,596

 
$
68,298

 
$
295,335

 
$
223,780

 
$
43,304

 
$
15,118


 
All Other Loans
 
Total Loans
 
2015
 
2014
 
2015
 
2014
Pass
$
11,196

 
$
8,736

 
$
1,197,124

 
$
1,026,901

Watch
—

 
—

 
31,785

 
25,696

Substandard
—

 
—

 
7,840

 
9,809

Doubtful
—

 
—

 
—

 
—

Total
$
11,196

 
$
8,736

 
$
1,236,749

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

 
$
—

 
$
—

 
$
—

 
$
33,389

 
$
33,389

 
$
—

Agricultural real estate
—

 
—

 
106

 
106

 
120,208

 
120,314

 
—

1-4 Family residential properties
980

 
534

 
103

 
1,617

 
233,160

 
234,777

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
54,932

 
54,932

 
—

Commercial real estate
77

 
185

 
527

 
789

 
377,117

 
377,906

 
—

Loans secured by real estate
1,057

 
719

 
736

 
2,512

 
818,806

 
821,318

 
—

Agricultural loans
10

 
222

 
—

 
232

 
65,364

 
65,596

 
—

Commercial and industrial loans
409

 
191

 
127

 
727

 
294,608

 
295,335

 
—

Consumer loans
112

 
14

 
5

 
131

 
43,173

 
43,304

 
—

All other loans
—

 
—

 
—

 
—

 
11,196

 
11,196

 
—

Total loans
$
1,588

 
$
1,146

 
$
868

 
$
3,602

 
$
1,233,147

 
$
1,236,749

 
$
—

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

 
September 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
$
148

 
$
713

 
$
20

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
411

 
411

 
—

 
67

 
134

 
—

Multifamily residential properties
323

 
323

 
—

 
—

 
—

 
—

Commercial real estate
532

 
603

 
29

 
472

 
986

 
136

Loans secured by real estate
1,414

 
2,050

 
49

 
1,324

 
4,080

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
246

 
380

 
99

 
83

 
181

 
84

Consumer loans
223

 
223

 
194

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,883

 
$
2,653

 
$
342

 
$
1,407

 
$
4,261

 
$
263

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural real estate
25

 
29

 
—

 
73

 
235

 
—

1-4 Family residential properties
742

 
1,067

 
—

 
1,156

 
2,866

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
242

 
242

 
—

 
1,640

 
3,808

 
—

Loans secured by real estate
1,009

 
1,338

 
—

 
2,869

 
6,909

 
—

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
599

 
762

 
—

 
249

 
933

 
—

Consumer loans
20

 
29

 
—

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,628

 
$
2,129

 
$
—

 
$
3,133

 
$
7,902

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
148

 
$
713

 
$
20

 
$
785

 
$
2,960

 
$
43

Agricultural real estate
25

 
29

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,153

 
1,478

 
—

 
1,223

 
3,000

 
—

Multifamily residential properties
323

 
323

 
—

 
—

 
—

 
—

Commercial real estate
774

 
845

 
29

 
2,112

 
4,794

 
136

Loans secured by real estate
2,423

 
3,388

 
49

 
4,193

 
10,989

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
845

 
1,142

 
99

 
332

 
1,114

 
84

Consumer loans
243

 
252

 
194

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,511

 
$
4,782

 
$
342

 
$
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 nine-month periods ended September 30, 2015 and 2014 (in thousands):
 
For the three months ended
 
September 30, 2015
 
September 30, 2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
148

 
$
—

 
$
817

 
$
—

Agricultural real estate
25

 
—

 
34

 
—

1-4 Family residential properties
1,160

 
2

 
1,129

 
5

Multifamily residential properties
326

 
—

 
—

 
—

Commercial real estate
777

 
1

 
2,349

 
1

Loans secured by real estate
2,436

 
3

 
4,329

 
6

Commercial and industrial loans
1,157

 
3

 
653

 
—

Consumer loans
296

 
1

 
35

 
—

Total loans
$
3,889

 
$
7

 
$
5,017

 
$
6

 
For the nine months ended
 
September 30, 2015
 
September 30, 2014
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
148

 
$
—

 
$
1,004

 
$
—

Agricultural real estate
92

 
2

 
35

 
—

1-4 Family residential properties
1,197

 
11

 
1,156

 
12

Multifamily residential properties
328

 
—

 
—

 
—

Commercial real estate
784

 
2

 
2,379

 
2

Loans secured by real estate
2,549

 
15

 
4,574

 
14

Commercial and industrial loans
1,293

 
6

 
696

 
—

Consumer loans
308

 
2

 
39

 
1

Total loans
$
4,150

 
$
23

 
$
5,309

 
$
15
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as September 30, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
September 30,
2015
 
December 31,
2014
Construction and land development
$
148

 
$
785

Agricultural real estate
25

 
29

1-4 Family residential properties
814

 
878

Multifamily residential properties
323

 
—

Commercial real estate
738

 
2,074

Loans secured by real estate
2,048

 
3,766

Commercial and industrial loans
696

 
332

Consumer loans
223

 
7

Total loans
$
2,967

 
$
4,105
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2015 and December 31, 2014 (in thousands).
Troubled debt restructurings:
September 30,
2015
 
December 31,
2014
Construction and land development
$
148

 
$
785

Agricultural real estate
—

 
44

1-4 Family residential properties
460

 
503

Commercial real estate
288

 
1,283

Loans secured by real estate
896

 
2,615

Commercial and industrial loans
649

 
236

Consumer loans
243

 
9

Total
$
1,788

 
$
2,860

Performing troubled debt restructurings:
 

 
 

Agricultural real estate
$
—

 
$
44

1-4 Family residential properties
339

 
$
345

Commercial real estate
36

 
37

Loans secured by real estate
375

 
426

Commercial and industrial loans
149

 
—

Consumer loans
20

 
9

Total
$
544

 
$
435
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the nine months ended September 30, 2015 and 2014, as a result of various modified loan factors (in thousands):
 
September 30, 2015
 
September 30, 2014
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
Farm Loans
—

 
—

 

 
—

 
$
—

 
 
1-4 Family residential properties
4

 
61

 
(b)(c)
 
3

 
$
248

 
(c)
Commercial real estate
1

 
34

 
(b)(c)
 
1

 
501

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

 
95

 
 
 
4

 
749

 
 
Commercial and industrial loans
4

 
507

 
(b)(c)
 
—

 
—

 

Consumer Loans
3

 
237

 
(b)(c)
 
—

 
—

 

Total
12

 
$
839

 
 
 
4

 
$
749