Loans

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans

Loans

The following table presents loans by class as of the dates indicated:

	September 30, 2016		December 31, 2015
Real estate loans:
Commercial	$	1,843,120	$	1,793,258
Construction:
Land acquisition & development	212,680		224,066
Residential	137,014		111,763
Commercial	128,154		94,890
Total construction loans	477,848		430,719
Residential	1,047,150		1,032,851
Agricultural	172,949		156,234
Total real estate loans	3,541,067		3,413,062
Consumer:
Indirect consumer	731,901		622,529
Other consumer	153,624		153,717
Credit card	66,860		68,107
Total consumer loans	952,385		844,353
Commercial	814,392		792,416
Agricultural	152,800		142,151
Other, including overdrafts	2,292		1,339
Loans held for investment	5,462,936		5,193,321
Mortgage loans held for sale	67,979		52,875
Total loans	$	5,530,915	$	5,246,196

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following tables present the contractual aging of the Company’s recorded investment in past due loans by class as of the dates indicated:

							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of September 30, 2016	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Loans
Real estate
Commercial	$	8,023	$	484	$	727	$	9,234	$	1,806,929	$	26,957	$	1,843,120
Construction:
Land acquisition & development	500		424		50		974		206,388		5,318		212,680
Residential	592		—		237		829		135,919		266		137,014
Commercial	3,375		57		—		3,432		123,905		817		128,154
Total construction loans	4,467		481		287		5,235		466,212		6,401		477,848
Residential	4,019		1,870		2,837		8,726		1,035,626		2,798		1,047,150
Agricultural	10		—		830		840		168,773		3,336		172,949
Total real estate loans	16,519		2,835		4,681		24,035		3,477,540		39,492		3,541,067
Consumer:
Indirect consumer	5,707		1,735		622		8,064		723,048		789		731,901
Other consumer	1,029		329		20		1,378		151,886		360		153,624
Credit card	711		261		565		1,537		65,323		—		66,860
Total consumer loans	7,447		2,325		1,207		10,979		940,257		1,149		952,385
Commercial	2,366		640		1,915		4,921		782,378		27,093		814,392
Agricultural	219		88		17		324		148,741		3,735		152,800
Other, including overdrafts	—		—		311		311		1,981		—		2,292
Loans held for investment	26,551		5,888		8,131		40,570		5,350,897		71,469		5,462,936
Mortgage loans originated for sale	—		—		—		—		67,979		—		67,979
Total loans	$	26,551	$	5,888	$	8,131	$	40,570	$	5,418,876	$	71,469	$	5,530,915

							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of December 31, 2015	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Loans
Real estate
Commercial	$	6,051	$	724	$	418	$	7,193	$	1,762,294	$	23,771	$	1,793,258
Construction:
Land acquisition & development	3,190		163		1,325		4,678		212,757		6,631		224,066
Residential	1,288		—		—		1,288		110,182		293		111,763
Commercial	3,232		—		—		3,232		90,703		955		94,890
Total construction loans	7,710		163		1,325		9,198		413,642		7,879		430,719
Residential	5,991		1,196		2,063		9,250		1,018,359		5,242		1,032,851
Agricultural	176		17		—		193		150,686		5,355		156,234
Total real estate loans	19,928		2,100		3,806		25,834		3,344,981		42,247		3,413,062
Consumer:
Indirect consumer	6,675		1,089		210		7,974		614,029		526		622,529
Other consumer	1,312		331		34		1,677		151,381		659		153,717
Credit card	533		317		477		1,327		66,768		12		68,107
Total consumer loans	8,520		1,737		721		10,978		832,178		1,197		844,353
Commercial	8,493		1,060		699		10,252		759,851		22,313		792,416
Agricultural	879		152		62		1,093		140,430		628		142,151
Other, including overdrafts	—		—		314		314		1,025		—		1,339
Loans held for investment	37,820		5,049		5,602		48,471		5,078,465		66,385		5,193,321
Mortgage loans originated for sale	—		—		—		—		52,875		—		52,875
Total loans	$	37,820	$	5,049	$	5,602	$	48,471	$	5,131,340	$	66,385	$	5,246,196

Loans from business combinations included in the tables above include certain loans that had evidence of deterioration in credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected.

The following table displays the outstanding unpaid principal balance, accrued interest receivable and accrual status of loans acquired with credit impairment as of September 30, 2016 and 2015:    

As of September 30,	2016		2015
Outstanding balance	$	38,505	$	35,265
Carrying value
Loans on accrual status	23,665		22,867
Total carrying value	$	23,665	$	22,867

The following table summarizes changes in the accretable yield for loans acquired credit impaired for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Beginning balance	$	5,905		$	7,482		$	6,713		$	5,781
Additions	1,114			624			1,114			1,073
Accretion income	(670		)	(845		)	(1,899		)	(2,200		)
Reductions due to exit events	(595		)	(143		)	(900		)	(539		)
Reclassifications from nonaccretable differences	729			347			1,455			3,350
Ending balance	$	6,483		$	7,465		$	6,483		$	7,465

Acquired loans that met the criteria for nonaccrual of interest prior to acquisition were considered performing upon acquisition. If interest on non-accrual loans had been accrued, such income would have been approximately $820 and $828 for the three months ended September 30, 2016 and 2015, respectively, and approximately $2,492 and $2,331 for the nine months ended September 30, 2016 and 2015 respectively.

The Company considers impaired loans to include all originated and acquired loans, except consumer loans, that are risk rated as doubtful, or have been placed on non-accrual status or renegotiated in troubled debt restructurings. The following tables present information on the Company’s recorded investment in impaired loans as of dates indicated:

As of September 30, 2016	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Real estate:
Commercial	$	58,137	$	16,518	$	29,451	$	45,969	$	5,868
Construction:
Land acquisition & development	12,922		4,774		1,785		6,559		828
Residential	977		266		—		266		—
Commercial	1,154		232		703		935		737
Total construction loans	15,053		5,272		2,488		7,760		1,565
Residential	5,229		2,774		1,043		3,817		142
Agricultural	3,988		3,646		26		3,672		1
Total real estate loans	82,407		28,210		33,008		61,218		7,576
Commercial	39,349		15,296		18,893		34,189		10,912
Agricultural	3,925		3,294		441		3,735		77
Total	$	125,681	$	46,800	$	52,342	$	99,142	$	18,565

As of December 31, 2015	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Real estate:
Commercial	$	58,179	$	27,882	$	17,614	$	45,496	$	3,401
Construction:
Land acquisition & development	15,503		7,245		778		8,023		282
Residential	992		293		—		293		—
Commercial	1,264		340		739		1,079		739
Total construction loans	17,759		7,878		1,517		9,395		1,021
Residential	7,073		3,547		2,317		5,864		367
Agricultural	6,434		5,563		198		5,761		5
Total real estate loans	89,445		44,870		21,646		66,516		4,794
Commercial	29,593		10,744		13,727		24,471		6,487
Agricultural	1,349		622		356		978		294
Total	$	120,387	$	56,236	$	35,729	$	91,965	$	11,575

The following table presents the average recorded investment in and income recognized on impaired loans for the periods indicated:

	Three Months Ended September 30,
	2016				2015
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized
Real estate:
Commercial	$	33,408	$	100	$	36,075	$	226
Construction:
Land acquisition & development	6,797		13		9,325		29
Residential	274		—		330		—
Commercial	1,055		1		2,339		4
Total construction loans	8,126		14		11,994		33
Residential	3,282		4		2,607		4
Agricultural	4,786		2		8,578		27
Total real estate loans	49,602		120		59,254		290
Commercial	30,123		72		22,483		2
Agricultural	2,249		—		937		13
Total	$	81,974	$	192	$	82,674	$	305

	Nine Months Ended September 30,
	2016				2015
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized
Real estate:
Commercial	$	35,572	$	241	$	38,639	$	587
Construction:
Land acquisition & development	6,992		32		9,591		51
Residential	279		—		300		—
Commercial	1,007		3		1,902		6
Total construction loans	8,278		35		11,793		57
Residential	4,219		7		2,720		6
Agricultural	4,607		3		8,661		62
Total real estate loans	52,676		286		61,813		712
Commercial	27,781		128		18,175		122
Agricultural	2,341		—		848		26
Total	$	82,798	$	414	$	80,836	$	860

The amount of interest income recognized by the Company within the period that the loans were impaired was primarily related to loans modified in a troubled debt restructuring that remained on accrual status. Interest payments received on non-accrual impaired loans are applied to principal. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. If interest on impaired loans had been accrued, interest income on impaired loans would have been approximately $993 and $998 for the three months ended September 30, 2016 and 2015, respectively, and approximately $2,994 and $2,932 for the nine months ended September 30, 2016 and 2015, respectively.

Collateralized impaired loans are generally recorded at the fair value of the underlying collateral using discounted cash flows, independent appraisals and management estimates based upon current market conditions. For loans measured under the present value of cash flows method, the change in present value attributable to the passage of time, if applicable, is recognized in the provision for loan losses and thus no interest income is recognized.

Modifications of performing loans are made in the ordinary course of business and are completed on a case-by-case basis as negotiated with the borrower. Loan modifications typically include interest rate concessions, interest only periods of less than twelve months, short-term payment deferrals and extension of amortization periods to provide payment relief. A loan modification is considered a troubled debt restructuring if the borrower is experiencing financial difficulties and the Company, for economic or legal reasons, grants a concession to the borrower that it would not otherwise consider. Certain troubled debt restructurings are on non-accrual status at the time of restructuring and are typically returned to accrual status after considering the borrower's sustained repayment performance in accordance with the restructuring agreement for a period of at least six months and management is reasonably assured of future performance. If the troubled debt restructuring meets these performance criteria and the interest rate granted at the modification is equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk, then the loan will return to performing status and the accrual of interest will resume.

The Company had loans renegotiated in troubled debt restructurings of $44,704 as of September 30, 2016, of which $27,541 were included in non-accrual loans and $17,163 were on accrual status. The Company had loans renegotiated in troubled debt restructurings of $40,330 as of December 31, 2015, of which $24,911 were included in non-accrual loans and $15,419 were on accrual status.

The following table presents information on the Company's troubled debt restructurings that occurred during the three and nine months ended September 30, 2016:

	Number of Notes	Type of Concession								Principal Balance at Restructure Date
Three Months Ended September 30, 2016		Interest only period		Extension of terms or maturity		Interest rate adjustment		Other (1)
Commercial real estate	4	$	—	$	841	$	—	$	983	$	1,824
Residential real estate	1	—		64		—		—		64
Agriculture	1	—		121		—		—		121
Total loans restructured during period	6	$	—	$	1,026	$	—	$	983	$	2,009

	Number of Notes	Type of Concession								Principal Balance at Restructure Date
Nine Months Ended September 30, 2016		Interest only period		Extension of terms or maturity		Interest rate adjustment		Other (1)
Commercial real estate	11	$	689	$	1,166	$	—	$	1,233	$	3,088
Residential real estate	1	—		64		—		—		64
Commercial	10	4,240		947		46		2,805		8,038
Agriculture	1	—		121		—		—		121
Total loans restructured during period	23	$	4,929	$	2,298	$	46	$	4,038	$	11,311
(1) Other includes concessions that reduce or defer payments for a specified period of time and/or do not fit into other designated categories.

For troubled debt restructurings that were on non-accrual status or otherwise deemed impaired before the modification, a specific reserve may already be recorded. In periods subsequent to modification, the Company continues to evaluate all troubled debt restructurings for possible impairment and recognizes impairment through the allowance. Additionally these loans continue to work their way through the credit cycle through charge-off, pay-off or foreclosure. Financial effects of modifications of troubled debt restructurings may include principal loan forgiveness or other charge-offs directly related to the restructuring. The Company had no charge-offs directly related to modifying troubled debt restructurings during the three and nine months ended September 30, 2016 or 2015.

The following table presents information on the Company's troubled debt restructurings during the previous 12 months for which there was a payment default during the three and nine months ended September 30, 2016. The Company considers a payment default to occur on troubled debt restructurings when the loan is 90 days or more past due or was placed on non-accrual status after the modification.

	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
	Number of Notes	Balance		Number of Notes	Balance
Commercial real estate	—	$	—	1	$	194
Total	—	$	—	1	$	194

At September 30, 2016, there were no material commitments to lend additional funds to borrowers whose existing loans have been renegotiated or are classified as non-accrual.

As part of the on-going and continuous monitoring of the credit quality of the Company’s loan portfolio, management tracks internally assigned risk classifications of loans. The Company adheres to a Uniform Classification System developed jointly by the various bank regulatory agencies to internally risk rate loans. The Uniform Classification System defines three broad categories of criticized assets, which the Company uses as credit quality indicators:

Other Assets Especially Mentioned — includes loans that exhibit weaknesses in financial condition, loan structure or documentation, which if not promptly corrected, may lead to the development of abnormal risk elements.

Substandard — includes loans that are inadequately protected by the current sound worth and paying capacity of the borrower. Although the primary source of repayment for a substandard loan is not currently sufficient, collateral or other sources of repayment are sufficient to satisfy the debt. Continuance of a substandard loan is not warranted unless positive steps are taken to improve the worthiness of the credit.

Doubtful — includes loans that exhibit pronounced weaknesses to a point where collection or liquidation in full, on the basis of currently existing facts, conditions and values, is highly questionable and improbable. Doubtful loans are required to be placed on non-accrual status and are assigned specific loss exposure.

Company management undertakes the same process for assigning risk ratings to acquired loans as it does for originated loans. Acquired loans rated as substandard or lower or that were on non-accrual status or designated as troubled debt restructurings at the time of acquisition are deemed to be acquired credit impaired loans accounted for under ASC Topic 310-30, regardless of whether they are classified as performing or non-performing loans.

The following tables present the Company’s recorded investment in criticized loans by class and credit quality indicator based on the most recent analysis performed as of the dates indicated:

As of September 30, 2016	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	76,913	$	88,580	$	17,991	$	183,484
Construction:
Land acquisition & development	11,597		7,377		1,383		20,357
Residential	1,615		1,482		664		3,761
Commercial	1,616		5,891		720		8,227
Total construction loans	14,828		14,750		2,767		32,345
Residential	5,461		13,195		214		18,870
Agricultural	6,511		16,605		—		23,116
Total real estate loans	103,713		133,130		20,972		257,815
Consumer:
Indirect consumer	847		1,572		121		2,540
Other consumer	665		1,130		217		2,012
Total consumer loans	1,512		2,702		338		4,552
Commercial	42,080		31,931		19,758		93,769
Agricultural	5,563		7,792		472		13,827
Total	$	152,868	$	175,555	$	41,540	$	369,963

As of December 31, 2015	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	61,787	$	84,556	$	10,609	$	156,952
Construction:
Land acquisition & development	16,593		12,482		591		29,666
Residential	1,640		1,886		—		3,526
Commercial	166		323		756		1,245
Total construction loans	18,399		14,691		1,347		34,437
Residential	4,453		9,661		2,540		16,654
Agricultural	6,114		16,529		—		22,643
Total real estate loans	90,753		125,437		14,496		230,686
Consumer:
Indirect consumer	644		1,131		154		1,929
Other consumer	651		1,130		198		1,979
Total consumer loans	1,295		2,261		352		3,908
Commercial	32,975		27,982		15,085		76,042
Agricultural	2,247		7,105		417		9,769
Total	$	127,270	$	162,785	$	30,350	$	320,405

The Company maintains a credit review function, which is independent of the credit approval process, to assess assigned internal risk classifications and monitor compliance with internal lending policies and procedures.

Written action plans with firm target dates for resolution of identified problems are maintained and reviewed on a quarterly basis for all categories of criticized loans.