Allowance For Loan Losses

The following tables present a summary of changes in the allowance for loan losses by portfolio segment for the periods indicated.



Three Months Ended June 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	89,128		$	7,212		$	18,380		$	1,182		$	—	$	115,902
Provision charged to operating expense	10,419			784			866			(69		)	—		12,000
Less loans charged-off	(22,350		)	(1,210		)	(3,180		)	(5		)	—		(26,745		)
Add back recoveries of loans previously charged-off	526			488			609			14			—		1,637
Ending balance	$	77,723		$	7,274		$	16,675		$	1,122		$	—	$	102,794

Six Months Ended June 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	87,396		$	8,594		$	15,325		$	1,266		$	—	$	112,581
Provision charged to operating expense	16,801			193			6,307			(51		)	—		23,250
Less loans charged-off	(27,506		)	(2,522		)	(5,692		)	(112		)	—		(35,832		)
Add back recoveries of loans previously charged-off	1,032			1,009			735			19			—		2,795
Ending balance	$	77,723		$	7,274		$	16,675		$	1,122		$	—	$	102,794

As of June 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	15,199		$	—		$	2,339		$	405		$	—	$	17,943
Loans collectively evaluated for impairment	62,524			7,274			14,336			717			—		84,851
Allowance for loan losses	$	77,723		$	7,274		$	16,675		$	1,122		$	—	$	102,794

As of June 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	150,026		$	—		$	11,974		$	500		$	—	$	162,500
Collectively evaluated for impairment	2,538,281			621,212			708,036			137,615			2,319		4,007,463
Total loans	$	2,688,307		$	621,212		$	720,010		$	138,115		$	2,319	$	4,169,963



Three Months Ended June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	92,350		$	8,992		$	21,790		$	1,314		$	—	$	124,446
Provision charged to operating expense	10,941			563			3,798			98			—		15,400
Less loans charged-off	(13,157		)	(1,499		)	(1,407		)	(39		)	—		(16,102		)
Add back recoveries of loans previously charged-off	109			470			253			3			—		835
Ending balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579



Six Months Ended June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	84,181		$	9,332		$	25,354		$	1,613		$	—	$	120,480
Provision charged to operating expense	23,096			1,251			6,255			(202		)	—		30,400
Less loans charged-off	(17,388		)	(2,959		)	(8,049		)	(45		)	—		(28,441		)
Add back recoveries of loans previously charged-off	354			902			874			10			—		2,140
Ending balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579

As of June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	29,903		$	—		$	13,740		$	249		$	—	$	43,892
Loans collectively evaluated for impairment	60,340			8,526			10,694			1,127			—		80,687
Allowance for loan losses	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579

As of June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	208,485		$	—		$	32,609		$	923		$	—	$	242,017
Collectively evaluated for impairment	2,585,238			626,184			691,549			132,975			3,297		4,039,243
Total loans	$	2,793,723		$	626,184		$	724,158		$	133,898		$	3,297	$	4,281,260

The Company performs a quarterly assessment of the adequacy of its allowance for loan losses in accordance with generally accepted accounting principles. The methodology used to assess the adequacy is consistently applied to the Company's loan portfolio and consists of three elements: (1) specific valuation allowances based on probable losses on impaired loans; (2) historical valuation allowances based on loan loss experience for similar loans with similar characteristics and trends; and (3) general valuation allowances determined based on changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, general economic conditions and other qualitative risk factors both internal and external to the Company.

Specific allowances are established for loans where management has determined that probability of a loss exists by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies and any relevant qualitative or environmental factors impacting the loan. Historical valuation allowances are determined by applying percentage loss factors to the credit exposures from outstanding loans. For commercial, agricultural and real estate loans, loss factors are applied based on the internal risk classifications of these loans. For consumer loans, loss factors are applied on a portfolio basis. For commercial, agriculture and real estate loans, loss factor percentages are based on a migration analysis of our historical loss experience, designed to account for credit deterioration. For consumer loans, loss factor percentages are based on a one-year loss history. General valuation allowances are determined by evaluating, on a quarterly basis, changes in the nature and volume of the loan portfolio, overall portfolio quality, industry concentrations, current economic and regulatory factors and the estimated impact of current economic, environmental and regulatory conditions on historical loss rates.