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 September 30, 2017	Past Due		Past Due		Past Due		Past Due		Loans		Loans		Loans
Real estate
Commercial	$	4,582	$	1,160	$	2,502	$	8,244	$	2,722,265	$	28,042	$	2,758,551
Construction:
Land acquisition & development	1,656		493		65		2,214		345,234		4,720		352,168
Residential	1,245		1,598		470		3,313		230,533		205		234,051
Commercial	—		—		—		—		113,173		3,844		117,017
Total construction loans	2,901		2,091		535		5,527		688,940		8,769		703,236
Residential	8,502		6,313		187		15,002		1,478,314		5,711		1,499,027
Agricultural	1,327		8,533		—		9,860		148,219		2,218		160,297
Total real estate loans	17,312		18,097		3,224		38,633		5,037,738		44,740		5,121,111
Consumer:
Indirect consumer	6,840		1,659		347		8,846		778,434		1,505		788,785
Other consumer	1,391		498		68		1,957		175,275		358		177,590
Credit card	1,043		408		671		2,122		70,087		—		72,209
Total consumer loans	9,274		2,565		1,086		12,925		1,023,796		1,863		1,038,584
Commercial	3,308		1,094		1,077		5,479		1,154,196		26,532		1,186,207
Agricultural	1,769		97		278		2,144		149,192		1,345		152,681
Other, including overdrafts	—		—		—		—		3,804		—		3,804
Loans held for investment	31,663		21,853		5,665		59,181		7,368,726		74,480		7,502,387
Mortgage loans originated for sale	—		—		—		—		49,729		—		49,729
Total loans	$	31,663	$	21,853	$	5,665	$	59,181	$	7,418,455	$	74,480	$	7,552,116



							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 September 30, 2017 and 2016:



As of September 30,	2017		2016

Outstanding balance	$	46,199	$	38,505

Carrying value
Loans on accrual status	30,804		23,665
Total carrying value	$	30,804	$	23,665

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016

Beginning balance	$	7,650		$	5,905		$	6,803		$	6,713
Additions	167			1,114			2,096			1,114
Accretion income	(858		)	(670		)	(2,131		)	(1,899		)
Reductions due to exit events	(143		)	(595		)	(1,131		)	(900		)
Reclassifications from nonaccretable differences	498			729			1,677			1,455
Ending balance	$	7,314		$	6,483		$	7,314		$	6,483

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 $946 and $820 for the three months ended September 30, 2017 and 2016, respectively, and approximately $1,814 and $2,492 for the nine months ended September 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 September 30, 2017	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Real estate:
Commercial	$	47,934	$	21,558	$	16,035	$	37,593	$	3,947
Construction:
Land acquisition & development	11,290		3,694		1,714		5,408		711
Residential	310		205		—		205		—
Commercial	4,725		417		3,537		3,954		2,148
Total construction loans	16,325		4,316		5,251		9,567		2,859
Residential	8,990		5,629		2,122		7,751		218
Agricultural	2,681		2,425		156		2,581		4
Total real estate loans	75,930		33,928		23,564		57,492		7,028
Consumer	27		—		25		25		14
Commercial	36,787		14,623		16,748		31,371		6,426
Agricultural	1,585		951		609		1,560		435
Total	$	114,329	$	49,502	$	40,946	$	90,448	$	13,903



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


Real estate:
Commercial	$	40,362	$	54	$	33,408	$	100
Construction:
Land acquisition & development	5,383		2		6,797		13
Residential	207		—		274		—
Commercial	4,192		1		1,055		1
Total construction loans	9,782		3		8,126		14
Residential	7,123		4		3,282		4
Agricultural	2,642		—		4,786		2
Total real estate loans	59,909		61		49,602		120
Consumer	25		—		—
Commercial	31,637		47		30,123		72
Agricultural	2,270		—		2,249		—
Total	$	93,841	$	108	$	81,974	$	192



	Nine Months Ended September 30,
	2017				2016
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized


Real estate:
Commercial	$	41,712	$	281	$	35,572	$	241
Construction:
Land acquisition & development	5,776		10		6,992		32
Residential	522		—		279		—
Commercial	4,271		45		1,007		3
Total construction loans	10,569		55		8,278		35
Residential	7,148		12		4,219		7
Agricultural	3,636		—		4,607		3
Total real estate loans	63,065		348		52,676		286
Consumer	13		—		—		—
Commercial	31,884		156		27,781		128
Agricultural	2,611		2		2,341		—
Total	$	97,573	$	506	$	82,798	$	414

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 $946 and $993 for the three months ended September 30, 2017 and 2016, respectively, and approximately $1,814 and $2,994 for the nine months ended September 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 $45,859 as of September 30, 2017, of which $34,997 were included in non-accrual loans and $10,862 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 nine months ended September 30, 2017:



	Number of Notes	Type of Concession								Principal Balance at Restructure Date
Three Months Ended September 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	1	—		—		—		611		611
Total loans restructured during period	1	$	—	$	—	$	—	$	611	$	611
(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
Nine Months Ended September 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	16	511		1,968		—		6,057		8,536
Total loans restructured during period	21	$	1,986	$	2,356	$	—	$	6,966	$	11,308
(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 nine months ended September 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 nine months ended September 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 September 30, 2017			Nine Months Ended September 30, 2017
	Number of Notes	Balance		Number of Notes	Balance
Commercial real estate	1	$	177	2	$	2,407
Commercial construction	—	—		1	3,528
Commercial	1	1,300		1	1,300
Total	2	$	1,477	4	$	7,235

At September 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 September 30, 2017	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	79,921	$	107,791	$	12,025	$	199,737
Construction:
Land acquisition & development	5,425		13,818		1,597		20,840
Residential	3,690		2,201		—		5,891
Commercial	2,564		3,842		3,747		10,153
Total construction loans	11,679		19,861		5,344		36,884
Residential	4,607		11,664		1,039		17,310
Agricultural	1,212		23,574		—		24,786
Total real estate loans	97,419		162,890		18,408		278,717
Consumer:
Indirect consumer	660		2,116		120		2,896
Other consumer	458		849		140		1,447
Total consumer loans	1,118		2,965		260		4,343
Commercial	43,365		61,612		16,495		121,472
Agricultural	5,219		11,859		979		18,057
Total	$	147,121	$	239,326	$	36,142	$	422,589



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.