Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4: LOANS AND ALLOWANCE FOR LOAN LOSSES At December 31, 2016, $5.63 $4.92 December 31, 2015. (In thousands) 2016 2015 Consumer: Credit cards $ 184,591 $ 177,288 Other consumer 303,972 208,380 Total consumer 488,563 385,668 Real estate: Construction 336,759 279,740 Single family residential 904,245 696,180 Other commercial 1,787,075 1,229,072 Total real estate 3,028,079 2,204,992 Commercial: Commercial 639,525 500,116 Agricultural 150,378 148,563 Total commercial 789,903 648,679 Other 20,662 7,115 Loans 4,327,207 3,246,454 Loans acquired, net of discount and allowance (1) 1,305,683 1,672,901 Total loans $ 5,632,890 $ 4,919,355 __________________________________ (1) See Note 5, Loan Origination/Risk Management may seven Consumer Real estate tension tend one 84 Commercial one three Nonaccrual and Past Due Loans may may Nonaccrual loans, excluding loans acquired, at December 31, 2016 2015, (In thousands) 2016 2015 Consumer: Credit cards $ 373 $ 212 Other consumer 1,793 442 Total consumer 2,166 654 Real estate: Construction 3,411 4,955 Single family residential 12,139 5,453 Other commercial 12,385 4,420 Total real estate 27,935 14,828 Commercial: Commercial 7,765 1,968 Agricultural 1,238 264 Total commercial 9,003 2,232 Total $ 39,104 $ 17,714 85 An age analysis of past due loans, excluding loans acquired, segregated by class of loans, is as follows: (In thousands) Gross 90 Days Total Current Total 90 Days December 31, 2016 Consumer: Credit cards $ 716 $ 275 $ 991 $ 183,600 $ 184,591 $ 275 Other consumer 3,786 1,027 4,813 299,159 303,972 11 Total consumer 4,502 1,302 5,804 482,759 488,563 286 Real estate: Construction 1,420 1,246 2,666 334,093 336,759 -- Single family residential 6,310 5,927 12,237 892,008 904,245 14 Other commercial 4,212 6,722 10,934 1,776,141 1,787,075 -- Total real estate 11,942 13,895 25,837 3,002,242 3,028,079 14 Commercial: Commercial 2,040 5,296 7,336 632,189 639,525 -- Agricultural 121 1,215 1,336 149,042 150,378 -- Total commercial 2,161 6,511 8,672 781,231 789,903 -- Other -- -- -- 20,662 20,662 -- Total $ 18,605 $ 21,708 $ 40,313 $ 4,286,894 $ 4,327,207 $ 300 December 31, 2015 Consumer: Credit cards $ 639 $ 479 $ 1,118 $ 176,170 $ 177,288 $ 267 Other consumer 1,879 648 2,527 205,853 208,380 374 Total consumer 2,518 1,127 3,645 382,023 385,668 641 Real estate: Construction 1,328 4,511 5,839 273,901 279,740 -- Single family residential 4,856 3,342 8,198 687,982 696,180 364 Other commercial 869 3,302 4,171 1,224,901 1,229,072 25 Total real estate 7,053 11,155 18,208 2,186,784 2,204,992 389 Commercial: Commercial 3,427 637 4,064 496,052 500,116 90 Agricultural 285 243 528 148,035 148,563 56 Total commercial 3,712 880 4,592 644,087 648,679 146 Other 108 93 201 6,914 7,115 15 Total $ 13,391 $ 13,255 $ 26,646 $ 3,219,808 $ 3,246,454 $ 1,191 Impaired Loans 90 Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. Impaired loans, or portions thereof, are charged-off when deemed uncollectible. 86 Impaired loans, net of government guarantees and excluding loans acquired, segregated by class of loans, are as follows: (In thousands) Unpaid Recorded Recorded Total Related Average Interest December 31, 2016 Consumer: Credit cards $ 373 $ 373 $ -- $ 373 $ -- $ 346 $ 20 Other consumer 1,836 1,797 3 1,800 1 1,066 47 Total consumer 2,209 2,170 3 2,173 1 1,412 67 Real estate: Construction 4,275 1,038 2,374 3,412 156 4,436 196 Single family residential 12,970 10,630 1,753 12,383 162 9,486 419 Other commercial 20,993 6,891 7,315 14,206 99 14,932 659 Total real estate 38,238 18,559 11,442 30,001 417 28,854 1,274 Commercial: Commercial 11,848 2,734 7,573 10,307 262 4,666 206 Agricultural 2,226 1,215 -- 1,215 -- 1,046 46 Total commercial 14,074 3,949 7,573 11,522 262 5,712 252 Total $ 54,521 $ 24,678 $ 19,018 $ 43,696 $ 680 $ 35,978 $ 1,593 December 31, 2015 Consumer: Credit cards $ 479 $ 479 $ -- $ 479 $ 7 $ 411 $ 30 Other consumer 459 423 19 442 85 562 40 Total consumer 938 902 19 921 92 973 70 Real estate: Construction 5,678 1,636 3,318 4,954 441 5,417 390 Single family residential 5,938 4,702 945 5,647 1,034 5,148 370 Other commercial 5,688 4,328 88 4,416 832 3,147 227 Total real estate 17,304 10,666 4,351 15,017 2,307 13,712 987 Commercial: Commercial 2,656 1,654 334 1,988 387 1,736 125 Agricultural 264 264 -- 264 45 254 18 Total commercial 2,920 1,918 334 2,252 432 1,990 143 Total $ 21,162 $ 13,486 $ 4,704 $ 18,190 $ 2,831 $ 16,675 $ 1,200 At December 31, 2016, December 31, 2015, $43.7 $18.2 $680,000 $2.8 December 31, 2016 2015, $1.6 $1.2 $0.8 $36.0 $16.7 $17.5 2016, 2015 2014, 2016, 2015 2014 Included in certain impaired loan categories are troubled debt restructurings (“TDRs”). When the Company restructures a loan to a borrower that is experiencing financial difficulty and grants a concession that it would not otherwise consider, a “troubled debt restructuring” results and the Company classifies the loan as a TDR. The Company grants various types of concessions, primarily interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal. Under ASC Topic 310 10 35 Subsequent Measurement Once an obligation has been restructured because of such credit problems, it continues to be considered a TDR until paid in full; or, if an obligation yields a market interest rate and no longer has any concession regarding payment amount or amortization, then it is not considered a TDR at the beginning of the calendar year after the year in which the improvement takes place. The Company returns TDRs to accrual status only if (1) (2) six 87 The following table presents a summary of troubled debt restructurings, excluding loans acquired, segregated by class of loans. Accruing TDR Loans Nonaccrual TDR Loans Total TDR Loans (Dollars in thousands) Number Balance Number Balance Number Balance December 31, 2016 Consumer: Other consumer -- $ -- 1 $ 3 1 $ 3 Total consumer -- -- 1 3 1 3 Real estate: Construction -- -- 1 18 1 18 Single-family residential 3 167 29 2,078 32 2,245 Other commercial 23 9,048 2 780 25 9,828 Total real estate 26 9,215 32 2,876 58 12,091 Commercial: Commercial 15 1,783 5 297 20 2,080 Total commercial 15 1,783 5 297 20 2,080 Total 41 $ 10,998 38 $ 3,176 79 $ 14,174 December 31, 2015 Consumer: Other consumer -- $ -- 1 $ 13 1 $ 13 Total consumer -- -- 1 13 1 13 Real estate: Construction -- -- 1 253 1 253 Single-family residential 2 137 11 1,335 13 1,472 Other commercial 4 2,894 1 597 5 3,491 Total real estate 6 3,031 13 2,185 19 5,216 Commercial: Commercial -- -- 5 332 5 332 Total commercial -- -- 5 332 5 332 Total 6 $ 3,031 19 $ 2,530 25 $ 5,561 88 The following table presents loans that were restructured as TDRs during the years ended December 31, 2016 2015, Modification Type (Dollars in thousands) Number of Balance Prior Balance at Change in Change in Financial Impact Year Ended December 31, 2016 Consumer: Other consumer 2 $ 50 $ 11 $ 11 $ -- $ -- Total consumer 2 50 11 11 -- -- Real estate: Single-family residential 23 1,570 1,518 964 554 -- Other commercial 28 10,291 10,260 9,128 1,132 -- Total real estate 51 11,861 11,778 10,092 1,686 -- Commercial: Commercial 17 1,996 1,968 1,968 -- -- Total commercial 17 1,996 1,968 1,968 -- -- Total 70 $ 13,907 $ 13,757 $ 12,071 $ 1,686 $ -- Year Ended December 31, 2015 Consumer: Other consumer 1 $ 13 $ 13 $ 13 $ -- $ -- Total consumer 1 13 13 13 -- -- Real estate: Single-family residential 11 1,179 1,103 1,103 -- -- Other commercial 1 1,097 1,097 1,097 -- -- Total real estate 12 2,276 2,200 2,200 -- -- Commercial: Commercial 5 347 332 332 -- -- Total commercial 5 347 332 332 -- -- Total 18 $ 2,636 $ 2,545 $ 2,545 $ -- $ -- During year ended December 31, 2016, seventy $13.9 12 $402,000 December 31, 2016, fifteen $3.7 During year ended December 31, 2015, eighteen $2.6 12 $113,000 There was one December 31, 2016, 12 $39,000 one December 31, 2016, 12 $31,000 $69,000 no December 31, 2015, 12 90 In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $236,000 $167,000 December 31, 2016 2015, December 31, 2016 2015, $1,714,000 $1,064,000, December 31, 2016 2015, $5,094,000 $5,916,000, 89 Credit Quality Indicators The Company utilizes a risk rating matrix to assign a risk rate to each of its commercial and real estate loans. Loans are rated on a scale of 1 8. 8 · Risk Rate 1 · Risk Rate 2 · Risk Rate 3 · Risk Rate 4 may may first may one may one · Risk Rate 5 may may may · Risk Rate 6 may · Risk Rate 7 may 90 · Risk Rate 8 may Loans acquired are evaluated using this internal grading system. Loans acquired are evaluated individually and include purchased credit impaired loans of $17.8 $23.5 310 30 6) December 31, 2016 2015, 310 20, $47.8 $49.9 6, 7 8 December 31, 2016 2015, Loans acquired, covered by loss share agreements, had additional protection provided by the FDIC prior to the termination of the loss share agreements. During the 2014 $954,000 $0.4 December 31, 2014. 2015 2016. $954,000 5, Purchased credit impaired loans are loans that showed evidence of deterioration of credit quality prior to acquisition and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their fair value was initially based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the undiscounted cash flows expected at acquisition and the fair value at acquisition is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition are not recognized as a yield adjustment. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Classified loans for the Company include loans in Risk Ratings 6, 7 8. may one (1) 6 8 (2) 310 30, $166.0 $153.7 December 31, 2016 December 31, 2015, 91 The following table presents a summary of loans by credit risk rating, segregated by class of loans. Loans accounted for under ASC Topic 310 30 1 4 (In thousands) Risk Rate Risk Rate Risk Rate Risk Rate Risk Rate Total December 31, 2016 Consumer: Credit cards $ 183,943 $ -- $ 648 $ -- $ -- $ 184,591 Other consumer 301,632 26 2,314 -- -- 303,972 Total consumer 485,575 26 2,962 -- -- 488,563 Real estate: Construction 330,080 98 6,565 16 -- 336,759 Single family residential 875,603 4,024 24,460 158 -- 904,245 Other commercial 1,738,207 6,874 41,994 -- -- 1,787,075 Total real estate 2,943,890 10,996 73,019 174 -- 3,028,079 Commercial: Commercial 616,805 558 22,162 -- -- 639,525 Agricultural 148,218 104 2,033 -- 23 150,378 Total commercial 765,023 662 24,195 -- 23 789,903 Other 20,662 -- -- -- -- 20,662 Loans acquired 1,217,886 22,181 64,075 1,541 -- 1,305,683 Total $ 5,433,036 $ 33,865 $ 164,251 $ 1,715 $ 23 $ 5,632,890 (In thousands) Risk Rate Risk Rate Risk Rate Risk Rate Risk Rate Total December 31, 2015 Consumer: Credit cards $ 176,809 $ -- $ 479 $ -- $ -- $ 177,288 Other consumer 207,069 -- 1,262 49 -- 208,380 Total consumer 383,878 -- 1,741 49 -- 385,668 Real estate: Construction 270,386 319 9,019 16 -- 279,740 Single family residential 679,484 2,701 13,824 171 -- 696,180 Other commercial 1,178,817 5,404 44,261 590 -- 1,229,072 Total real estate 2,128,687 8,424 67,104 777 -- 2,204,992 Commercial: Commercial 487,563 2,760 9,787 6 -- 500,116 Agricultural 147,788 -- 775 -- -- 148,563 Total commercial 635,351 2,760 10,562 6 -- 648,679 Other 7,022 -- 93 -- -- 7,115 Loans acquired, not covered by FDIC loss share 1,590,384 9,150 69,219 3,689 459 1,672,901 Total $ 4,745,322 $ 20,334 $ 148,719 $ 4,521 $ 459 $ 4,919,355 92 Net (charge-offs)/recoveries for the years ended December 31, 2016 2015, (In thousands) 2016 2015 Consumer: Credit cards $ (2,288 ) $ (2,217 ) Other consumer (1,459 ) (1,134 ) Total consumer (3,747 ) (3,351 ) Real estate: Construction (16 ) (44 ) Single family residential (706 ) (407 ) Other commercial (6,444 ) (926 ) Total real estate (7,166 ) (1,377 ) Commercial: Commercial (1,255 ) (1,202 ) Agricultural (2,336 ) (33 ) Total commercial (3,591 ) (1,235 ) Total $ (14,504 ) $ (5,963 ) Allowance for Loan Losses Allowance for Loan Losses 310 10, Receivables 450 20, Loss Contingencies As mentioned above, allocations to the allowance for loan losses are categorized as either specific allocations or general allocations. A loan is considered impaired when it is probable that the Company will not receive all amounts due according to the contractual terms of the loan, including scheduled principal and interest payments. For a collateral dependent loan, the Company’s evaluation process includes a valuation by appraisal or other collateral analysis. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for loan losses as a specific allocation. If the loan is not collateral dependent, the measurement of loss is based on the difference between the expected and contractual future cash flows of the loan. The general allocation is calculated monthly based on management’s assessment of several factors such as (1) (2) (3) (4) (5) (6) (7) (8) one four 93 The following table details activity in the allowance for loan losses, excluding loans acquired, by portfolio segment for the year ended December 31, 2016. one (In thousands) Commercial Real Credit Other Total December 31, 2016 (1) Balance, beginning of year $ 5,985 $ 19,522 $ 3,893 $ 1,951 $ 31,351 Provision for loan losses (1) 5,345 9,461 2,174 2,459 19,439 Charge-offs (3,956 ) (7,517 ) (3,195 ) (1,975 ) (16,643 ) Recoveries 365 351 907 516 2,139 Net charge-offs (3,591 ) (7,166 ) (2,288 ) (1,459 ) (14,504 ) Balance, end of year (1) $ 7,739 $ 21,817 $ 3,779 $ 2,951 $ 36,286 Period-end amount allocated to: Loans individually evaluated for impairment $ 262 $ 417 $ -- $ 1 $ 680 Loans collectively evaluated for impairment 7,477 21,400 3,779 2,950 35,606 Balance, end of year (1) $ 7,739 $ 21,817 $ 3,779 $ 2,951 $ 36,286 December 31, 2015 (2) Balance, beginning of year $ 6,962 $ 15,161 $ 5,445 $ 1,460 $ 29,028 Provision for loan losses (1) 258 5,738 665 1,625 8,286 Charge-offs (1,415 ) (1,580 ) (3,107 ) (1,672 ) (7,774 ) Recoveries 180 203 890 538 1,811 Net charge-offs (1,235 ) (1,377 ) (2,217 ) (1,134 ) (5,963 ) Balance, end of year (2) $ 5,985 $ 19,522 $ 3,893 $ 1,951 $ 31,351 Period-end amount allocated to: Loans individually evaluated for impairment $ 432 $ 2,307 $ 7 $ 85 $ 2,831 Loans collectively evaluated for impairment 5,553 17,215 3,886 1,866 28,520 Balance, end of year (2) $ 5,985 $ 19,522 $ 3,893 $ 1,951 $ 31,351 (1) Provision for loan losses of $626,000 December 31, 2016 December 31, 2016 $20,065,000). $626,000 no $736,000 December 31, 2015 December 31, 2015 $9,022,000). (2) Allowance for loan losses at December 31, 2016, 2015 2014 $954,000 December 31, 2016, 2015 2014 $37,240,000, $32,305,000 $29,982,000, 94 Activity in the allowance for loan losses, excluding allowance on loans acquired, for the year ended December 31, 2014 (In thousands) Commercial Real Credit Other Total December 31, 2014 Balance, beginning of year $ 3,205 $ 16,885 $ 5,430 $ 1,922 $ 27,442 Provision for loan losses 4,475 (606 ) 2,307 706 6,882 Charge-offs (1,044 ) (2,684 ) (3,188 ) (1,638 ) (8,554 ) Recoveries 326 1,566 896 470 3,258 Net charge-offs (718 ) (1,118 ) (2,292 ) (1,168 ) (5,296 ) Balance, end of year $ 6,962 $ 15,161 $ 5,445 $ 1,460 $ 29,028 The Company’s recorded investment in loans, excluding loans acquired, as of December 31, 2016 2015 (In thousands) Commercial Real Credit Other Total December 31, 2016 Loans individually evaluated for impairment $ 11,522 $ 30,001 $ 373 $ 1,800 $ 43,696 Loans collectively evaluated for impairment 778,381 2,998,078 184,218 322,834 4,283,511 Balance, end of period $ 789,903 $ 3,028,079 $ 184,591 $ 324,634 $ 4,327,207 December 31, 2015 Loans individually evaluated for impairment $ 2,252 $ 15,017 $ 479 $ 442 $ 18,190 Loans collectively evaluated for impairment 646,427 2,189,975 176,809 215,053 3,228,264 Balance, end of period $ 648,679 $ 2,204,992 $ 177,288 $ 215,495 $ 3,246,454 |