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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2019
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, 2019 and 2018 follows (in thousands):
 
2019
 
2018
Construction and land development
$
94,462

 
$
51,013

Farm loans
240,481

 
232,409

1-4 Family residential properties
336,553

 
374,751

Multifamily residential properties
155,132

 
186,393

Commercial real estate
997,175

 
911,656

Loans secured by real estate
1,823,803

 
1,756,222

Agricultural loans
136,023

 
136,125

Commercial and industrial loans
528,987

 
559,120

Consumer loans
83,544

 
92,744

All other loans
126,807

 
113,925

Gross loans
2,699,164

 
2,658,136

Less: Loans held for sale
1,820

 
1,508

 
2,697,344

 
2,656,628

Less:
 

 
 

Net deferred loan fees, premiums and discounts
3,817

 
13,617

Allowance for loan losses
26,911

 
26,189

Net loans
$
2,666,616

 
$
2,616,822
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, 2019, 2018 and 2017 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
21,556

 
$
2,197

 
$
1,504

 
$
932

 
$
—

 
$
26,189

Provision charged to expense
4,212

 
318

 
502

 
1,401

 
—

 
6,433

Losses charged off
(4,322
)
 
(45
)
 
(695
)
 
(1,264
)
 
—

 
(6,326
)
Recoveries
172

 
9

 
75

 
359

 
—

 
615

Balance, end of period
$
21,618

 
$
2,479

 
$
1,386

 
$
1,428

 
$
—

 
$
26,911

Ending balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
548

 
$
8

 
$
176

 
$
1

 
$
—

 
$
733

Collectively evaluated for impairment
$
20,711

 
$
2,471

 
$
1,204

 
$
1,427

 
$
—

 
$
25,813

Loans acquired with deteriorated credit quality
$
359

 
$
—

 
$
6

 
$
—

 
$
—

 
$
365

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
1,882,755

 
$
376,639

 
$
345,139

 
$
90,814

 
$
—

 
$
2,695,347

Ending Balance:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
13,487

 
$
85

 
$
4,783

 
$
134

 
$
—

 
$
18,489

Collectively evaluated for impairment
$
1,864,688

 
$
376,554

 
$
339,985

 
$
90,680

 
$
—

 
$
2,671,907

Loans acquired with deteriorated credit quality
$
4,580

 
$
—

 
$
371

 
$
—

 
$
—

 
$
4,951

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
16,546

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Provision charged to expense
6,070

 
548

 
1,447

 
602

 
—

 
8,667

Losses charged off
(1,227
)
 
(93
)
 
(886
)
 
(787
)
 
—

 
(2,993
)
Recoveries
167

 
—

 
57

 
314

 
—

 
538

Balance, end of period
$
21,556

 
$
2,197

 
$
1,504

 
$
932

 
$
—

 
$
26,189

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
1,816

 
$
—

 
$
225

 
$
3

 
$
—

 
$
2,044

Collectively evaluated for impairment
$
18,514

 
$
2,197

 
$
1,270

 
$
929

 
$
—

 
$
22,910

      Loans acquired with deteriorated credit quality
$
1,226

 
$
—

 
$
9

 
$
—

 
$
—

 
$
1,235

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
1,784,741

 
$
367,211

 
$
392,526

 
$
100,041

 
$
—

 
$
2,644,519

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
14,422

 
$
32

 
$
2,360

 
$
166

 
$
—

 
$
16,980

Collectively evaluated for impairment
$
1,756,908

 
$
367,175

 
$
387,961

 
$
99,872

 
$
—

 
$
2,611,916

Loans acquired with deteriorated credit quality
$
13,411

 
$
4

 
$
2,205

 
$
3

 
$
—

 
$
15,623


 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
12,901

 
$
2,249

 
$
874

 
$
693

 
$
36

 
$
16,753

Provision charged to expense
6,884

 
153

 
100

 
361

 
(36
)
 
7,462

Losses charged off
(3,795
)
 
(662
)
 
(217
)
 
(521
)
 
—

 
(5,195
)
Recoveries
556

 
2

 
129

 
270

 
—

 
957

Balance, end of year
$
16,546

 
$
1,742

 
$
886

 
$
803

 
$
—

 
$
19,977

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
586

 
$
2

 
$
25

 
$
1

 
$
—

 
$
614

Collectively evaluated for impairment
$
15,951

 
$
1,740

 
$
861

 
$
802

 
$
—

 
$
19,354

      Loans acquired with deteriorated credit quality
$
9

 
$
—

 
$
—

 
$
—

 
$
—

 
$
9

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
1,371,787

 
$
213,521

 
$
315,123

 
$
39,070

 
$
—

 
$
1,939,501

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
11,372

 
$
488

 
$
1,026

 
$
200

 
$
—

 
$
13,086

Collectively evaluated for impairment
$
1,360,156

 
$
213,033

 
$
314,097

 
$
38,870

 
$
—

 
$
1,926,156

Loans acquired with deteriorated credit quality
$
259

 
$
—

 
$
—

 
$
—

 
$
—

 
$
259
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, 2019 and 2018 (in thousands):

 
Construction &
Land Development
 
Farm Loans
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Pass
$
93,413

 
$
49,794

 
$
231,227

 
$
221,047

 
$
314,999

 
$
352,583

 
$
136,958

 
$
163,845

Special Mention
413

 
471

 
6,902

 
7,805

 
5,743

 
5,526

 
5,588

 
8,144

Substandard
316

 
354

 
2,112

 
2,848

 
15,685

 
15,409

 
11,402

 
12,062

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
94,142

 
$
50,619

 
$
240,241

 
$
231,700

 
$
336,427

 
$
373,518

 
$
153,948

 
$
184,051


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Pass
$
966,585

 
$
861,086

 
$
129,811

 
$
127,863

 
$
479,233

 
$
535,186

 
$
82,117

 
$
90,133

Special Mention
8,568

 
16,035

 
3,862

 
7,581

 
37,602

 
9,967

 
140

 
177

Substandard
20,549

 
29,729

 
2,451

 
433

 
12,138

 
11,858

 
926

 
1,206

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
995,702

 
$
906,850

 
$
136,124

 
$
135,877

 
$
528,973

 
$
557,011

 
$
83,183

 
$
91,516


 
All Other Loans
 
Total Loans
 
2019
 
2018
 
2019
 
2018
Pass
$
123,814

 
$
110,352

 
$
2,558,157

 
$
2,511,889

Special Mention
2,793

 
3,010

 
71,611

 
58,716

Substandard
—

 
15

 
65,579

 
73,914

Doubtful
—

 
—

 
—

 
—

Total
$
126,607

 
$
113,377

 
$
2,695,347

 
$
2,644,519
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at December 31, 2019 and 2018 (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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
235

 
$
—

 
$
—

 
$
235

 
$
93,907

 
$
94,142

 
$
—

Farm loans
1,595

 
—

 
47

 
1,642

 
238,599

 
240,241

 
—

1-4 Family residential properties
3,834

 
2,288

 
4,713

 
10,835

 
325,592

 
336,427

 
—

Multifamily residential properties
1,348

 
46

 
1,131

 
2,525

 
151,423

 
153,948

 
—

Commercial real estate
602

 
495

 
2,241

 
3,338

 
992,364

 
995,702

 
—

Loans secured by real estate
7,614

 
2,829

 
8,132

 
18,575

 
1,801,885

 
1,820,460

 
—

Agricultural loans
300

 
—

 
307

 
607

 
135,517

 
136,124

 
—

Commercial and industrial loans
767

 
855

 
5,989

 
7,611

 
521,362

 
528,973

 
—

Consumer loans
454

 
196

 
150

 
800

 
82,383

 
83,183

 
—

All other loans
—

 
—

 
—

 
—

 
126,607

 
126,607

 
—

Total loans
$
9,135

 
$
3,880

 
$
14,578

 
$
27,593

 
$
2,667,754

 
$
2,695,347

 
$
—

December 31, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
460

 
$
43

 
$
—

 
$
503

 
$
50,116

 
$
50,619

 
$
—

Farm loans
—

 
804

 
—

 
804

 
230,896

 
231,700

 
—

1-4 Family residential properties
3,347

 
3,051

 
4,080

 
10,478

 
363,040

 
373,518

 
—

Multifamily residential properties
1,149

 
—

 
1,955

 
3,104

 
180,947

 
184,051

 
—

Commercial real estate
1,349

 
89

 
4,058

 
5,496

 
901,354

 
906,850

 
—

Loans secured by real estate
6,305

 
3,987

 
10,093

 
20,385

 
1,726,353

 
1,746,738

 
—

Agricultural loans
63

 
—

 
20

 
83

 
135,794

 
135,877

 
—

Commercial and industrial loans
1,417

 
10

 
3,902

 
5,329

 
551,682

 
557,011

 
—

Consumer loans
888

 
356

 
299

 
1,543

 
89,973

 
91,516

 
—

All other loans
697

 
—

 
—

 
697

 
112,680

 
113,377

 
—

Total loans
$
9,370

 
$
4,353

 
$
14,314

 
$
28,037

 
$
2,616,482

 
$
2,644,519

 
$
—
Impaired Loans
The following tables present impaired loans as of December 31, 2019 and 2018 (in thousands):

 
2019
 
2018
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
256

 
$
256

 
$
—

 
$
2,559

 
$
2,559

 
$
14

Farm loans
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
5,154

 
5,351

 
182

 
4,565

 
4,952

 
234

Multifamily residential properties
4,254

 
4,254

 
19

 
4,465

 
4,465

 
—

Commercial real estate
5,904

 
6,408

 
587

 
12,517

 
12,804

 
1,553

Loans secured by real estate
15,568

 
16,269

 
788

 
24,106

 
24,780

 
1,801

Agricultural loans
85

 
669

 
8

 
36

 
504

 
—

Commercial and industrial loans
7,653

 
8,789

 
301

 
8,292

 
8,723

 
1,475

Consumer loans
134

 
134

 
1

 
169

 
171

 
3

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
23,440

 
$
25,861

 
$
1,098

 
$
32,603

 
$
34,178

 
$
3,279

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
41

 
$
41

 
$
—

 
$
48

 
$
48

 
$
—

Farm loans
479

 
479

 
—

 
309

 
309

 
—

1-4 Family residential properties
3,719

 
4,263

 
—

 
3,680

 
4,769

 
—

Multifamily residential properties
—

 
—

 
—

 
7,597

 
7,597

 
—

Commercial real estate
1,721

 
1,724

 
—

 
983

 
1,201

 
—

Loans secured by real estate
5,960

 
6,507

 
—

 
12,617

 
13,924

 
—

Agricultural loans
724

 
140

 
—

 
631

 
163

 
—

Commercial and industrial loans
916

 
3,065

 
—

 
1,660

 
2,027

 
—

Consumer loans
391

 
713

 
—

 
471

 
1,006

 
—

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
7,991

 
$
10,425

 
$
—

 
$
15,385

 
$
17,126

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
297

 
$
297

 
$
—

 
$
2,607

 
$
2,607

 
$
14

Farm loans
479

 
479

 
—

 
309

 
309

 
—

1-4 Family residential properties
8,873

 
9,614

 
182

 
8,245

 
9,721

 
234

Multifamily residential properties
4,254

 
4,254

 
19

 
12,062

 
12,062

 
—

Commercial real estate
7,625

 
8,132

 
587

 
13,500

 
14,005

 
1,553

Loans secured by real estate
21,528

 
22,776

 
788

 
36,723

 
38,704

 
1,801

Agricultural loans
809

 
809

 
8

 
667

 
667

 
—

Commercial and industrial loans
8,569

 
11,854

 
301

 
9,952

 
10,750

 
1,475

Consumer loans
525

 
847

 
1

 
640

 
1,177

 
3

All other loans
—

 
—

 
—

 
6

 
6

 
—

Total loans
$
31,431

 
$
36,286

 
$
1,098

 
$
47,988

 
$
51,304

 
$
3,279
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, 2019, 2018 and 2017 (in thousands):
 
2019
 
2018
 
2017
 
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
$
622

 
$
32

 
$
2,558

 
$
37

 
$
—

 
$
—

Farm loans
1,218

 
—

 
415

 
—

 
293

 
—

1-4 Family residential properties
9,659

 
80

 
6,297

 
144

 
3,267

 
29

Multifamily residential properties
6,490

 
89

 
9,666

 
137

 
377

 
1

Commercial real estate
12,189

 
234

 
9,818

 
271

 
5,457

 
13

Loans secured by real estate
30,178

 
435

 
28,754

 
589

 
9,394

 
43

Agricultural loans
808

 
3

 
727

 
23

 
878

 
—

Commercial and industrial loans
10,065

 
9

 
9,003

 
6

 
6,586

 
8

Consumer loans
649

 
1

 
131

 
1

 
325

 
—

All other loans
—

 
—

 
3

 
—

 
—

 
—

Total loans
$
41,700

 
$
448

 
$
38,618

 
$
619

 
$
17,183

 
$
51



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 $1,382,000 of 1-4 Family residential properties, $1,146,000 of commercial real estate, $128,000 of commercial and industrial loans, $40,000 of agricultural loans, and $5,000 of consumer loans at December 31, 2019 and $1,769,000 of 1-4 Family residential properties, $676,000 of commercial real estate loans, and $6,000 of consumer loans at December 31, 2018. For the years ended December 31, 2019, 2018 and 2017, 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, 2019 and December 31, 2018 (in thousands). This table excludes purchased credit-impaired loans and performing troubled debt restructurings.
 
2019
 
2018
Construction and land development
$
41

 
$
377

Farm loans
479

 
309

1-4 Family residential properties
7,379

 
5,762

Multifamily residential properties
3,137

 
2,105

Commercial real estate
4,351

 
8,457

Loans secured by real estate
15,387

 
17,010

Agricultural loans
769

 
667

Commercial and industrial loans
8,441

 
8,990

Consumer loans
521

 
625

All other loans
—

 
6

Total loans
$
25,118

 
$
27,298
Schedule of Acquired Receivables With Credit Deterioration [Table Text Block]
The Company acquired certain loans considered to be credit-impaired in its business combination with First Clover Leaf during the third quarter of 2016, First Bank & Trust during the second quarter of 2018 and Soy Capital during the fourth quarter of 2018. At acquisition, these loans evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these loans is included in the consolidated balance sheet amounts for Loans. The Company had no PCI loans prior to the First Clover Leaf acquisition. The amount of these loans at December 31, 2019 and 2018 are as follows (in thousands):
 
December 31, 2019

December 31, 2018

Construction and land development
$
256

$
872

1-4 Family residential properties
371

206

Multifamily residential properties
2,077

891

Commercial real estate
2,247

946

Loans secured by real estate
4,951

2,915

Agricultural loans
—

4

Commercial and industrial loans
—

15

Consumer loans
—

3

 Carrying amount
4,951

2,937

Allowance for loan losses
(365
)
(1,235
)
Carrying amount, net of allowance
$
4,586

$
1,702
Acquired Receivables With Credit Deterioration, Values at Acquisition [Table Text Block]
The PCI loans acquired during the twelve months ended December 31, 2018 for which it was probable that all contractually required payments would not be collected were as follows (in thousands):
 
First Bank
Soy Capital
Contractually required payments
$
20,357

$
3,282

Non-accretable difference
(4,231
)
(688
)
Cash flows expected to be collected at acquisition
16,126

2,594

Accretable yield
—

—

Fair value of acquired loans at acquisition
$
16,126

$
2,594
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at December 31, 2019 and 2018 (in thousands).
Troubled debt restructurings:
2019
 
2018
Construction and land development
$
—

 
$
—

1-4 Family residential properties
1,905

 
2,472

Multifamily residential properties
—

 
—

Commercial real estate
1,746

 
1,706

Loans secured by real estate
3,651

 
4,178

Agricultural loans
669

 
499

Commercial and industrial loans
1,349

 
5,112

 Consumer Loans
134

 
167

Total
$
5,803

 
$
9,956

Performing troubled debt restructurings:
 

 
 

Construction and Land Development
$
—

 
$
—

1-4 Family residential properties
1,382

 
1769

Multifamily residential properties
—

 
—

Commercial real estate
1,146

 
676

Loans secured by real estate
2,528

 
2,445

Agricultural Loans
40

 
—

Commercial and industrial loans
128

 
—

 Consumer Loans
5

 
6

Total
$
2,701

 
$
2,451