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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 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 December 31, 2015 and 2014 follows (in thousands):
 
2015
 
2014
Construction and land development
$
39,232

 
$
21,627

Farm loans
122,579

 
110,158

1-4 Family residential properties
231,383

 
179,886

Multifamily residential properties
45,765

 
53,129

Commercial real estate
409,487

 
380,173

Loans secured by real estate
848,446

 
744,973

Agricultural loans
75,998

 
68,225

Commercial and industrial loans
305,851

 
223,633

Consumer loans
42,097

 
15,118

All other loans
11,317

 
8,736

Gross loans
1,283,709

 
1,060,685

Less:
 

 
 

Net deferred loan fees, premiums and discounts
2,788

 
237

Allowance for loan losses
14,576

 
13,682

Net loans
$
1,266,345

 
$
1,046,766
Allowance for Loan Losses and Recorded Investment in Loans
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2015, 2014 and 2013 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
10,914

 
$
1,360

 
$
790

 
$
386

 
$
232

 
$
13,682

Provision charged to expense
451

 
(25
)
 
267

 
633

 
(8
)
 
1,318

Losses charged off
(289
)
 
—

 
(64
)
 
(553
)
 
—

 
(906
)
Recoveries
303

 
2

 
1

 
176

 
—

 
482

Balance, end of period
$
11,379

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,576

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
134

 
$
—

 
$
—

 
$
—

 
$
—

 
$
134

Collectively evaluated for impairment
$
11,245

 
$
1,337

 
$
994

 
$
642

 
$
224

 
$
14,442

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
807,736

 
$
198,066

 
$
232,348

 
$
43,739

 
$
—

 
$
1,281,889

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
744

 
$
430

 
$
—

 
$
—

 
$
—

 
$
1,174

Collectively evaluated for impairment
$
806,992

 
$
197,636

 
$
232,348

 
$
43,739

 
$
—

 
$
1,280,715


 

 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
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 period
$
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

December 31, 2013
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
9,301

 
$
558

 
$
726

 
$
403

 
$
788

 
$
11,776

Provision charged to expense
1,861

 
(30
)
 
171

 
57

 
134

 
2,193

Losses charged off
(764
)
 
—

 
(141
)
 
(223
)
 
—

 
(1,128
)
Recoveries
248

 
5

 
15

 
140

 
—

 
408

Balance, end of year
$
10,646

 
$
533

 
$
771

 
$
377

 
$
922

 
$
13,249

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
604

 
$
—

 
$
—

 
$
—

 
$
—

 
$
604

Collectively evaluated for impairment
$
10,042

 
$
533

 
$
771

 
$
377

 
$
922

 
$
12,645

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
607,062

 
$
172,979

 
$
187,796

 
$
14,967

 
$
—

 
$
982,804

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,145

 
$
—

 
$
—

 
$
—

 
$
—

 
$
5,145

Collectively evaluated for impairment
$
601,917

 
$
172,979

 
$
187,796

 
$
14,967

 
$
—

 
$
977,659
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 December 31, 2015 and 2014 (in thousands):

 
Construction &
Land Development
 
Farm Loans
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
39,067

 
$
20,842

 
$
118,103

 
$
107,976

 
$
224,552

 
$
177,764

 
$
45,180

 
$
52,793

Watch
—

 
—

 
2,282

 
1,036

 
1,454

 
1,187

 
243

 
—

Substandard
142

 
785

 
2,089

 
1,181

 
5,565

 
2,970

 
317

 
336

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
39,209

 
$
21,627

 
$
122,474

 
$
110,193

 
$
231,571

 
$
181,921

 
$
45,740

 
$
53,129


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Pass
$
386,769

 
$
357,873

 
$
75,437

 
$
67,619

 
$
298,633

 
$
218,193

 
$
41,278

 
$
15,105

Watch
10,498

 
18,817

 
210

 
—

 
4,686

 
4,647

 
—

 
9

Substandard
11,905

 
2,914

 
239

 
679

 
1,741

 
940

 
301

 
4

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
409,172

 
$
379,604

 
$
75,886

 
$
68,298

 
$
305,060

 
$
223,780

 
$
41,579

 
$
15,118


 
All Other Loans
 
Total Loans
 
2015
 
2014
 
2015
 
2014
Pass
$
11,198

 
$
8,736

 
$
1,240,217

 
$
1,026,901

Watch
—

 
—

 
19,373

 
25,696

Substandard
—

 
—

 
22,299

 
9,809

Doubtful
—

 
—

 
—

 
—

Total
$
11,198

 
$
8,736

 
$
1,281,889

 
$
1,062,406
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at December 31, 2015 and 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
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
—

 
$
39,209

 
$
39,209

 
$
—

Farm loans
106

 
—

 
—

 
106

 
122,368

 
122,474

 
—

1-4 Family residential properties
1,059

 
742

 
154

 
1,955

 
229,616

 
231,571

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
45,740

 
45,740

 
—

Commercial real estate
251

 
67

 
31

 
349

 
408,823

 
409,172

 
—

Loans secured by real estate
1,416

 
809

 
185

 
2,410

 
845,756

 
848,166

 
—

Agricultural loans
65

 
74

 
—

 
139

 
75,747

 
75,886

 
—

Commercial and industrial loans
65

 
476

 
196

 
737

 
304,323

 
305,060

 
—

Consumer loans
137

 
42

 
13

 
192

 
41,387

 
41,579

 
—

All other loans
—

 
—

 
—

 
—

 
11,198

 
11,198

 
—

Total loans
$
1,683

 
$
1,401

 
$
394

 
$
3,478

 
$
1,278,411

 
$
1,281,889

 
$
—

December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
297

 
$
25

 
$
—

 
$
322

 
$
21,305

 
$
21,627

 
$
—

Farm loans
—

 
—

 
—

 
—

 
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 December 31, 2015 and 2014 (in thousands):

 
2015
 
2014
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
—

 
$
785

 
$
2,960

 
$
43

Farm loans
430

 
430

 
—

 
—

 
—

 
—

1-4 Family residential properties
—

 
—

 
—

 
67

 
134

 
—

Multifamily residential properties
316

 
316

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
472

 
986

 
136

Loans secured by real estate
746

 
746

 
—

 
1,324

 
4,080

 
179

Agricultural loans
—

 
—

 
—

 
—

 
—

 
—

Commercial and industrial loans
405

 
405

 
134

 
83

 
181

 
84

Consumer loans
23

 
23

 
—

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
1,174

 
$
1,174

 
$
134

 
$
1,407

 
$
4,261

 
$
263

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
142

 
$
707

 
$
—

 
$
—

 
$
—

 
$
—

Farm loans
24

 
28

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,373

 
1,688

 
—

 
1,156

 
2,866

 
—

Multifamily residential properties
1

 
1

 
—

 
—

 
—

 
—

Commercial real estate
304

 
325

 
—

 
1,640

 
3,808

 
—

Loans secured by real estate
1,844

 
2,749

 
—

 
2,869

 
6,909

 
—

Agricultural loans
79

 
79

 
—

 
—

 
—

 
—

Commercial and industrial loans
670

 
932

 
—

 
249

 
933

 
—

Consumer loans
242

 
256

 
—

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
2,835

 
$
4,016

 
$
—

 
$
3,133

 
$
7,902

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
142

 
$
707

 
$
—

 
$
785

 
$
2,960

 
$
43

Farm loans
454

 
458

 
—

 
73

 
235

 
—

1-4 Family residential properties
1,373

 
1,688

 
—

 
1,223

 
3,000

 
—

Multifamily residential properties
317

 
317

 
—

 
—

 
—

 
—

Commercial real estate
304

 
325

 
—

 
2,112

 
4,794

 
136

Loans secured by real estate
2,590

 
3,495

 
—

 
4,193

 
10,989

 
179

Agricultural loans
79

 
79

 
—

 
—

 
—

 
—

Commercial and industrial loans
1,075

 
1,337

 
134

 
332

 
1,114

 
84

Consumer loans
265

 
279

 
—

 
15

 
60

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,009

 
$
5,190

 
$
134

 
$
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 years ended December 31, 2015, 2014 and 2013 (in thousands):
 
2015
 
2014
 
2013
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
142

 
$
—

 
$
933

 
$
—

 
$
1,565

 
$
—

Farm loans
527

 
2

 
78

 
2

 
107

 
—

1-4 Family residential properties
1,440

 
14

 
1,276

 
12

 
1,248

 
5

Multifamily residential properties
323

 
—

 
—

 
—

 
—

 
—

Commercial real estate
310

 
2

 
2,205

 
2

 
2,895

 
3

Loans secured by real estate
2,742

 
18

 
4,492

 
16

 
5,815

 
8

Agricultural loans
82

 
—

 
—

 
—

 
16

 
1

Commercial and industrial loans
1,569

 
8

 
429

 
—

 
1,240

 
10

Consumer loans
319

 
2

 
25

 
1

 
47

 
12

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
4,712

 
$
28

 
$
4,946

 
$
17

 
$
7,118

 
$
31



The amount of interest income recognized by the Company within the periods stated above was due to loans modified in a troubled debt restructuring that remained on accrual status.  The balance of loans modified in a troubled debt restructuring included in the impaired loans stated above that were still accruing was $397,000 of 1-4 Family residential properties, $147,000 of commercial & industrial, $36,000 of commercial real estate, and $21,000 of consumer loans at December 31, 2015 and $345,000 of 1-4 Family residential properties, $37,000 of commercial real estate loans, $44,000 of farm loans and $9,000 of consumer loans at December 31, 2014. For the years ended December 31, 2015, 2014 and 2013, the amount of interest income recognized using a cash-basis method of accounting during the period that the loans were impaired was not material.
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans at December 31, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.
 
2015
 
2014
Construction and land development
$
142

 
$
785

Farm loans
454

 
29

1-4 Family residential properties
975

 
878

Multifamily residential properties
317

 
—

Commercial real estate
269

 
2,074

Loans secured by real estate
2,157

 
3,766

Agricultural loans
79

 
—

Commercial and industrial loans
928

 
332

Consumer loans
248

 
7

All other loans
—

 
—

Total loans
$
3,412

 
$
4,105
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at December 31, 2015 and 2014 (in thousands).
Troubled debt restructurings:
2015
 
2014
Construction and land development
$
142

 
$
785

Farm Loans
232

 
44

1-4 Family residential properties
515

 
503

Commercial real estate
124

 
1,283

Loans secured by real estate
1,013

 
2,615

Commercial and industrial loans
491

 
236

 Consumer Loans
239

 
9

Total
$
1,743

 
$
2,860

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
397

 
$
345

Farm Loans
—

 
44

Commercial real estate
36

 
37

Loans secured by real estate
433

 
426

Commercial and industrial loans
147

 
—

 Consumer Loans
21

 
9

Total
$
601

 
$
435