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Loans
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Loans
Loans
    
The following tables present the Company's recorded investment and contractual aging of the Company's recorded investment in loans by class as of the dates indicated. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
 
 
 
 
Total Loans
 
 
 
 
30 - 59
60 - 89
> 90
30 or More
 
 
 
 
Days
Days
Days
Days
Current
Non-accrual
Total
As of March 31, 2017
Past Due
Past Due
Past Due
Past Due
Loans
Loans
Loans
Real estate
 
 
 
 
 
 
 
Commercial
$
4,936

$
776

$
322

$
6,034

$
1,784,284

$
29,336

$
1,819,654

Construction:
 
 
 
 
 
 

 

Land acquisition & development
398

165


563

194,943

4,906

200,412

Residential
1,418


706

2,124

141,288

440

143,852

Commercial
231



231

116,542

4,381

121,154

Total construction loans
2,047

165

706

2,918

452,773

9,727

465,418

Residential
7,487

463

1,091

9,041

988,838

6,166

1,004,045

Agricultural
1,014


322

1,336

164,724

1,689

167,749

Total real estate loans
15,484

1,404

2,441

19,329

3,390,619

46,918

3,456,866

Consumer:
 
 
 
 
 
 
 

Indirect consumer
5,742

1,525

516

7,783

753,337

1,357

762,477

Other consumer
794

425

59

1,278

143,881

284

145,443

Credit card
628

264

630

1,522

63,719


65,241

Total consumer loans
7,164

2,214

1,205

10,583

960,937

1,641

973,161

Commercial
3,176

1,733

711

5,620

787,125

25,096

817,841

Agricultural
2,738

83

170

2,991

121,576

925

125,492

Other, including overdrafts




3,182


3,182

Loans held for investment
28,562

5,434

4,527

38,523

5,263,439

74,580

5,376,542

Mortgage loans originated for sale




23,237


23,237

Total loans
$
28,562

$
5,434

$
4,527

$
38,523

$
5,286,676

$
74,580

$
5,399,779

 
 
 
 
Total Loans
 
 
 
 
30 - 59
60 - 89
> 90
30 or More
 
 
 
 
Days
Days
Days
Days
Current
Non-accrual
Total
As of December 31, 2016
Past Due
Past Due
Past Due
Past Due
Loans
Loans
Loans
Real estate
 
 
 
 
 
 
 
Commercial
$
7,307

$
1,099

$
303

$
8,709

$
1,799,525

$
26,211

$
1,834,445

Construction:
 
 
 
 
 
 

 

Land acquisition & development
633

352

279

1,264

202,223

5,025

208,512

Residential
931

264


1,195

146,245

456

147,896

Commercial




124,827

762

125,589

Total construction loans
1,564

616

279

2,459

473,295

6,243

481,997

Residential
3,986

1,280

702

5,968

1,014,990

6,435

1,027,393

Agricultural
341

287


628

165,293

4,327

170,248

Total real estate loans
13,198

3,282

1,284

17,764

3,453,103

43,216

3,514,083

Consumer:
 
 
 
 
 
 
 

Indirect consumer
8,425

2,329

712

11,466

740,163

780

752,409

Other consumer
1,322

235

167

1,724

146,006

357

148,087

Credit card
504

333

567

1,404

68,366


69,770

Total consumer loans
10,251

2,897

1,446

14,594

954,535

1,137

970,266

Commercial
3,171

727

734

4,632

767,878

25,432

797,942

Agricultural
1,518

362

14

1,894

127,956

3,008

132,858

Other, including overdrafts

1

311

312

1,289


1,601

Loans held for investment
28,138

7,269

3,789

39,196

5,304,761

72,793

5,416,750

Mortgage loans originated for sale




61,794


61,794

Total loans
$
28,138

$
7,269

$
3,789

$
39,196

$
5,366,555

$
72,793

$
5,478,544



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 and accrual status of loans acquired with credit impairment as of March 31, 2017 and 2016:    
As of March 31,
2017
 
2016
 
 
 
 
Outstanding balance
$
32,623

 
$
33,175

 
 
 
 
Carrying value
 
 
 
Loans on accrual status
18,920

 
21,064

Total carrying value
$
18,920

 
$
21,064


    
The following table summarizes changes in the accretable yield for loans acquired credit impaired for the three months ended March 31, 2017 and 2016:
 
Three Months Ended March 31,
 
2017
2016
 
 
 
Beginning balance
$
6,803

$
6,713

Additions


Accretion income
(605
)
(614
)
Reductions due to exit events
(570
)
(147
)
Reclassifications from nonaccretable differences
804

726

Ending balance
$
6,432

$
6,678



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 $874 and $790 for the three months ended March 31, 2017 and 2016.

The Company considers impaired loans to include all originated loans, except consumer loans, that are risk rated as doubtful, or have been placed on non-accrual status or renegotiated in troubled debt restructurings, and all loans acquired with evidence of deterioration in credit quality and for which it was probable, at acquisition, that the Company would be unable to collect all contractual amounts owed. The following tables present information on the Company’s recorded investment in impaired loans as of dates indicated:
As of March 31, 2017
Unpaid
Total
Principal
Balance
Recorded
Investment
With No
Allowance
Recorded
Investment
With
Allowance
Total
Recorded
Investment
Related
Allowance
Real estate:
 
 
 
 
 
Commercial
$
55,648

$
24,392

$
20,218

$
44,610

$
4,105

Construction:
 
 
 
 
 
Land acquisition & development
11,391

3,886

1,578

5,464

939

Residential
933

214


214

35

Commercial
4,734

228

4,267

4,495

2,870

Total construction loans
17,058

4,328

5,845

10,173

3,844

Residential
8,184

4,371

2,283

6,654

111

Agricultural
2,436

1,890

185

2,075

6

Total real estate loans
83,326

34,981

28,531

63,512

8,066

Commercial
40,135

14,760

18,319

33,079

7,176

Agricultural
1,188

691

464

1,155

223

Total
$
124,649

$
50,432

$
47,314

$
97,746

$
15,465


As of December 31, 2016
Unpaid
Total
Principal
Balance
Recorded
Investment
With No
Allowance
Recorded
Investment
With
Allowance
Total
Recorded
Investment
Related
Allowance
Real estate:
 
 
 
 
 
Commercial
$
57,017

$
24,410

$
21,420

$
45,830

$
2,847

Construction:
 
 
 
 
 
Land acquisition & development
12,084

4,330

1,813

6,143

826

Residential
1,555

219

619

838

1

Commercial
4,786

3,940

647

4,587

657

Total construction loans
18,425

8,489

3,079

11,568

1,484

Residential
8,222

4,074

2,470

6,544

253

Agricultural
5,069

4,509

181

4,690

4

Total real estate loans
88,733

41,482

27,150

68,632

4,588

Commercial
40,314

13,230

19,167

32,397

9,254

Agricultural
3,738

3,280

382

3,662

112

Total
$
132,785

$
57,992

$
46,699

$
104,691

$
13,954


The following table presents the average recorded investment in and income recognized on impaired loans for the periods indicated:
 
Three Months Ended March 31,
 
2017
 
2016
 
 Average Recorded Investment
 
 Income Recognized
 
 Average Recorded Investment
 
 Income Recognized
 
 
 
 
 
 
Real estate:
 
 
 
 
 
 
 
Commercial
$
45,220

 
$
125

 
$
33,483

 
$
36

Construction:
 
 
 
 
 
 
 
Land acquisition & development
5,804

 
4

 
7,508

 
7

Residential
526

 

 
288

 

Commercial
4,541

 
43

 
1,067

 

Total construction loans
10,871

 
47

 
8,863

 
7

Residential
6,599

 
4

 
4,206

 
1

Agricultural
3,383

 

 
5,748

 
1

Total real estate loans
66,073

 
176

 
52,300

 
45

Commercial
32,738

 
49

 
23,379

 
15

Agricultural
2,409

 
2

 
856

 

Total
$
101,220

 
$
227

 
$
76,535

 
$
60

 
 
 
 
 
 
 
 

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 $874 and $790 for the three months ended March 31, 2017 and 2016.
    
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 changes, 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 may be 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, although they continue to be individually evaluated for impairment and disclosed as impaired loans.
    
The Company had loans renegotiated in troubled debt restructurings of $55,255 as of March 31, 2017, of which $38,876 were included in non-accrual loans and $16,379 were on accrual status. The Company had loans renegotiated in troubled debt restructurings of $49,652 as of December 31, 2016, of which $27,309 were included in non-accrual loans and $22,343 were on accrual status.

The following table presents information on the Company's troubled debt restructurings that occurred during the three months ended March 31, 2017:
 
 
Number of Notes
 
Type of Concession
Principal Balance at Restructure Date
Three Months Ended March 31, 2017
 
 
Interest only period
Extension of term or amortization schedule
Interest rate adjustment
Other (1)
Commercial real estate
 
4
 
$
1,475

$
162

$

$
909

$
2,546

Commercial
 
13
 
495

1,968


4,981

7,444

Total loans restructured during period
 
17
 
$
1,970

$
2,130

$

$
5,890

$
9,990

(1) Other includes concessions that reduce or defer payments for a specified period of time and/or concessions that 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 months ended March 31, 2017 or 2016.
    
The Company had no troubled debt restructurings during the previous 12 months for which there was a payment default during the three months ended March 31, 2017. 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.
 
 
 
 
 
 
 
 

At March 31, 2017, 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 Accounting Standards Codification 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 March 31, 2017
Other Assets
Especially
Mentioned
Substandard
Doubtful
Total
Criticized
Loans
Real estate:
 
 
 
 
Commercial
$
73,394

$
90,127

$
12,118

$
175,639

Construction:
 
 
 
 
Land acquisition & development
16,793

6,754

1,400

24,947

Residential
2,043

2,724

620

5,387

Commercial
1,494

3,385

4,284

9,163

Total construction loans
20,330

12,863

6,304

39,497

Residential
4,616

11,766

922

17,304

Agricultural
4,595

14,517


19,112

Total real estate loans
102,935

129,273

19,344

251,552

Consumer:
 
 
 
 
Indirect consumer
471

2,096

76

2,643

Other consumer
586

962

213

1,761

Credit card

127


127

Total consumer loans
1,057

3,185

289

4,531

Commercial
33,368

54,963

18,029

106,360

Agricultural
7,446

12,926

747

21,119

Total
$
144,806

$
200,347

$
38,409

$
383,562

As of December 31, 2016
Other Assets
Especially
Mentioned
Substandard
Doubtful
Total
Criticized
Loans
Real estate:
 
 
 
 
Commercial
$
85,292

$
85,293

$
10,842

$
181,427

Construction:
 
 
 
 
Land acquisition & development
13,414

6,214

1,401

21,029

Residential
412

1,621

656

2,689

Commercial
1,555

6,344

664

8,563

Total construction loans
15,381

14,179

2,721

32,281

Residential
5,038

12,472

764

18,274

Agricultural
3,831

17,813


21,644

Total real estate loans
109,542

129,757

14,327

253,626

Consumer:
 
 
 
 
Indirect consumer
778

1,527

101

2,406

Other consumer
681

1,036

264

1,981

Total consumer loans
1,459

2,563

365

4,387

Commercial
46,402

29,281

21,240

96,923

Agricultural
6,178

10,724

404

17,306

Total
$
163,581

$
172,325

$
36,336

$
372,242


    
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.