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 June 30, 2017	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Loans
Real estate
Commercial	$	4,522	$	419	$	978	$	5,919	$	2,780,010	$	30,597	$	2,816,526
Construction:
Land acquisition & development	1,880		42		52		1,974		333,247		4,663		339,884
Residential	1,124		508		—		1,632		217,914		210		219,756
Commercial	—		—		—		—		117,287		4,318		121,605
Total construction loans	3,004		550		52		3,606		668,448		9,191		681,245
Residential	14,136		2,583		3,583		20,302		1,441,507		4,205		1,466,014
Agricultural	1,371		661		1,900		3,932		156,898		2,345		163,175
Total real estate loans	23,033		4,213		6,513		33,759		5,046,863		46,338		5,126,960
Consumer:
Indirect consumer	6,430		1,648		159		8,237		769,361		1,428		779,026
Other consumer	1,246		301		87		1,634		173,713		390		175,737
Credit card	488		355		487		1,330		74,300		1		75,631
Total consumer loans	8,164		2,304		733		11,201		1,017,374		1,819		1,030,394
Commercial	3,487		1,248		1,684		6,419		1,178,688		25,762		1,210,869
Agricultural	1,618		487		432		2,537		143,824		2,768		149,129
Other, including overdrafts	—		—		—		—		8,238		—		8,238
Loans held for investment	36,302		8,252		9,362		53,916		7,394,987		76,687		7,525,590
Mortgage loans originated for sale	—		—		—		—		30,383		—		30,383
Total loans	$	36,302	$	8,252	$	9,362	$	53,916	$	7,425,370	$	76,687	$	7,555,973



							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 balances and accrual status of loans acquired with credit impairment as of June 30, 2017 and 2016:



As of June 30,	2017		2016

Outstanding balance	$	60,195	$	31,979

Carrying value
Loans on accrual status	39,359		20,140
Total carrying value	$	39,359	$	20,140

The following table summarizes changes in the accretable yield for loans acquired credit impaired for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016

Beginning balance	$	6,432		$	6,678		$	6,803		$	6,713
Additions	1,929			—			1,929			—
Accretion income	(668		)	(615		)	(1,273		)	(1,229		)
Reductions due to exit events	(418		)	(158		)	(988		)	(305		)
Reclassifications from nonaccretable differences	375			—			1,179			726
Ending balance	$	7,650		$	5,905		$	7,650		$	5,905

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 $919 and $821 for the three months ended June 30, 2017 and 2016, respectively, and approximately $1,772 and $1,690 for the six months ended June 30, 2017, and 2016, respectively.

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 June 30, 2017	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Real estate:
Commercial	$	53,576	$	22,751	$	20,380	$	43,131	$	5,158
Construction:
Land acquisition & development	11,281		3,639		1,718		5,357		741
Residential	312		209		—		209		—
Commercial	4,728		226		4,204		4,430		2,828
Total construction loans	16,321		4,074		5,922		9,996		3,569
Residential	7,636		4,472		2,022		6,494		170
Agricultural	2,752		2,549		153		2,702		9
Total real estate loans	80,285		33,846		28,477		62,323		8,906
Consumer	28		—		25		25		—
Commercial	39,587		13,021		18,882		31,903		6,882
Agricultural	3,001		2,040		940		2,980		528
Total	$	122,901	$	48,907	$	48,324	$	97,231	$	16,316



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 June 30,
	2017				2016
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized


Real estate:
Commercial	$	43,871	$	102	$	34,576	$	105
Construction:
Land acquisition & development	5,411		4		7,096		12
Residential	212		—		277		—
Commercial	4,463		1		1,421		2
Total construction loans	10,086		5		8,794		14
Residential	6,574		4		3,067		2
Agricultural	2,389		—		5,857		—
Total real estate loans	62,920		111		52,294		121
Consumer	13		—		—		—
Commercial	32,491		60		28,074		41
Agricultural	2,068		—		753		—
Total	$	97,492	$	171	$	81,121	$	162



	Six Months Ended June 30,
	2017				2016
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized


Real estate:
Commercial	$	44,481	$	227	$	36,342	$	141
Construction:
Land acquisition & development	5,750		8		7,277		19
Residential	524		—		282		—
Commercial	4,509		44		1,433		2
Total construction loans	10,783		52		8,992		21
Residential	6,519		8		4,138		3
Agricultural	3,696		—		5,671		1
Total real estate loans	65,479		287		55,143		166
Consumer	13		—		—		—
Commercial	32,150		109		28,133		56
Agricultural	3,321		2		846		—
Total	$	100,963	$	398	$	84,122	$	222

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 $919 and $964 for the three months ended June 30, 2017 and 2016, respectively, and approximately $1,772 and $2,020 for the six months ended June 30, 2017 and 2016, 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 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 $52,351 as of June 30, 2017, of which $37,395 were included in non-accrual loans and $14,956 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 and six months ended June 30, 2017:



	Number of Notes	Type of Concession								Principal Balance at Restructure Date
Three Months Ended June 30, 2017	Number of Notes	Interest only period		Extension of term or amortization schedule		Interest rate adjustment		Other (1)		Principal Balance at Restructure Date
Commercial real estate	1	$	—	$	226	$	—	$	—	$	226
Commercial	2	16		—		—		465		481
Total loans restructured during period	3	$	16	$	226	$	—	$	465	$	707
(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.




	Number of Notes	Type of Concession								Principal Balance at Restructure Date
Six Months Ended June 30, 2017	Number of Notes	Interest only period		Extension of terms or maturity		Interest rate adjustment		Other (1)		Principal Balance at Restructure Date
Commercial real estate	5	$	1,475	$	388	$	—	$	909	$	2,772
Commercial	15	511		1,968		—		5,446		7,925
Total loans restructured during period	20	$	1,986	$	2,356	$	—	$	6,355	$	10,697
(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 or six months ended June 30, 2017 or 2016.

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 six months ended June 30, 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.




	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
	Number of Notes	Balance		Number of Notes	Balance
Commercial real estate	3	$	2,763	3	$	2,763
Commercial construction	1	3,575		1	3,575
Total	4	$	6,338	4	$	6,338

At June 30, 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 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 June 30, 2017	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	89,093	$	105,050	$	14,265	$	208,408
Construction:
Land acquisition & development	17,516		6,785		1,383		25,684
Residential	2,609		2,503		548		5,660
Commercial	1,520		3,844		4,221		9,585
Total construction loans	21,645		13,132		6,152		40,929
Residential	4,831		11,754		874		17,459
Agricultural	1,319		16,016		—		17,335
Total real estate loans	116,888		145,952		21,291		284,131
Consumer:
Indirect consumer	707		2,096		126		2,929
Other consumer	609		835		135		1,579
Credit card	—		185		—		185
Total consumer loans	1,316		3,116		261		4,693
Commercial	39,346		57,731		21,310		118,387
Agricultural	5,526		15,612		1,327		22,465
Total	$	163,076	$	222,411	$	44,189	$	429,676



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.