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 September 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	77,723		$	7,274		$	16,675		$	1,122		$	—	$	102,794
Provision charged to operating expense	5,371			192			4,222			(285		)	—		9,500
Less loans charged-off	(9,138		)	(1,340		)	(4,335		)	—			—		(14,813		)
Add back recoveries of loans previously charged-off	387			465			666			7			—		1,525
Ending balance	$	74,343		$	6,591		$	17,228		$	844		$	—	$	99,006

Nine Months Ended September 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	22,172			385			10,530			(337		)	—		32,750
Less loans charged-off	(36,645		)	(3,862		)	(10,028		)	(110		)	—		(50,645		)
Add back recoveries of loans previously charged-off	1,420			1,474			1,401			25			—		4,320
Ending balance	$	74,343		$	6,591		$	17,228		$	844		$	—	$	99,006

As of September 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	11,348		$	—		$	2,924		$	412		$	—	$	14,684
Loans collectively evaluated for impairment	62,995			6,591			14,304			432			—		84,322
Allowance for loan losses	$	74,343		$	6,591		$	17,228		$	844		$	—	$	99,006

As of September 30, 2012	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	140,460		$	—		$	13,408		$	590		$	—	$	154,458
Collectively evaluated for impairment	2,600,908			629,757			658,692			134,877			1,359		4,025,593
Total loans	$	2,741,368		$	629,757		$	672,100		$	135,467		$	1,359	$	4,180,051



Three Months Ended September 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579
Provision charged to operating expense	9,984			1,676			2,206			134			—		14,000
Less loans charged-off	(12,210		)	(1,682		)	(6,498		)	(15		)	—		(20,405		)
Add back recoveries of loans previously charged-off	1,386			453			287			3			—		2,129
Ending balance	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303



Nine Months Ended September 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	33,080			2,927			8,461			(68		)	—		44,400
Less loans charged-off	(29,598		)	(4,641		)	(14,547		)	(60		)	—		(48,846		)
Add back recoveries of loans previously charged-off	1,740			1,355			1,161			13			—		4,269
Ending balance	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303

As of September 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	27,344		$	—		$	9,422		$	239		$	—	$	37,005
Loans collectively evaluated for impairment	62,059			8,973			11,007			1,259			—		83,298
Allowance for loan losses	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303

As of September 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	223,386		$	—		$	31,470		$	880		$	—	$	255,736
Collectively evaluated for impairment	2,582,202			627,139			671,540			135,848			3,252		4,019,981
Total loans	$	2,805,588		$	627,139		$	703,010		$	136,728		$	3,252	$	4,275,717

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 economic 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 conditions and the estimated impact of these factors on historical loss rates.