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, 2014	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	59,830		$	5,377		$	15,701		$	463		$	—	$	81,371
Provision charged to operating expense	(2,011		)	346			(494		)	158			—		(2,001		)
Less loans charged-off	(1,158		)	(934		)	(534		)	—			—		(2,626		)
Add back recoveries of loans previously charged-off	651			558			313			—			—		1,522
Ending balance	$	57,312		$	5,347		$	14,986		$	621		$	—	$	78,266

Six Months Ended June 30, 2014	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	63,923		$	6,193		$	14,747		$	476		$	—	$	85,339
Provision charged to operating expense	(5,386		)	(232		)	(1,566		)	183			—		(7,001		)
Less loans charged-off	(2,243		)	(1,780		)	(1,330		)	(64		)	—		(5,417		)
Add back recoveries of loans previously charged-off	1,018			1,166			3,135			26			—		5,345
Ending balance	$	57,312		$	5,347		$	14,986		$	621		$	—	$	78,266

As of June 30, 2014	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	5,555		$	—		$	1,176		$	221		$	—	$	6,952
Loans collectively evaluated for impairment	51,757			5,347			13,810			400			—		71,314
Allowance for loan losses	$	57,312		$	5,347		$	14,986		$	621		$	—	$	78,266

As of June 30, 2014	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	80,273		$	—		$	13,388		$	741		$	—	$	94,402
Collectively evaluated for impairment	2,859,276			707,035			714,094			129,539			2,016		4,411,960
Total loans	$	2,939,549		$	707,035		$	727,482		$	130,280		$	2,016	$	4,506,362



Three Months Ended June 30, 2013	Real Estate			Consumer			Commercial			Agriculture		Other		Total
Allowance for loan losses:
Beginning balance	$	71,666		$	7,088		$	18,670		$	480	$	—	$	97,904
Provision charged to operating expense	(1,009		)	579			778			27		—		375
Less loans charged-off	(2,027		)	(1,299		)	(569		)	—		—		(3,895		)
Add back recoveries of loans previously charged-off	2,873			672			596			3		—		4,144
Ending balance	$	71,503		$	7,040		$	19,475		$	510	$	—	$	98,528



Six Months Ended June 30, 2013	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	75,782		$	7,140		$	17,085		$	504		$	—	$	100,511
Provision charged to operating expense	(2,044		)	1,116			1,799			4			—		875
Less loans charged-off	(6,170		)	(2,361		)	(1,380		)	(4		)	—		(9,915		)
Add back recoveries of loans previously charged-off	3,935			1,145			1,971			6			—		7,057
Ending balance	$	71,503		$	7,040		$	19,475		$	510		$	—	$	98,528

As of June 30, 2013	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	10,267		$	—		$	5,205		$	22		$	—	$	15,494
Loans collectively evaluated for impairment	61,236			7,040			14,270			488			—		83,034
Allowance for loan losses	$	71,503		$	7,040		$	19,475		$	510		$	—	$	98,528

As of June 30, 2013	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Total loans:
Individually evaluated for impairment	$	107,241		$	—		$	16,710		$	139		$	—	$	124,090
Collectively evaluated for impairment	2,732,400			652,944			666,539			121,391			—		4,173,274
Total loans	$	2,839,641		$	652,944		$	683,249		$	121,530		$	—	$	4,297,364

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.