Loans

6 Months Ended

Jun. 30, 2011

Loans [Abstract]

Loans

(3) Loans

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

	June 30,		December 31,
	2011		2010
Real estate loans:
Commercial	$	1,555,964	$	1,565,665
Construction:
Land acquisition & development		312,690		329,720
Residential		63,364		99,196
Commercial		76,740		98,542
Total construction loans		452,794		527,458
Residential		578,739		549,604
Agricultural		177,728		182,794
Mortgage loans originated for sale		28,498		46,408
Total real estate loans		2,793,723		2,871,929
Consumer loans:
Indirect consumer loans		413,825		423,552
Other consumer loans		152,704		162,137
Credit card loans		59,655		60,891
Total consumer loans		626,184		646,580
Commercial		724,158		730,471
Agricultural		133,898		116,546
Other loans, including overdrafts		3,297		2,383
Total loans	$	4,281,260	$	4,367,909

Commercial real estate includes loans aggregating $866,352 and $867,510 as of June 30, 2011 and December 31, 2010, respectively, that are owner occupied.

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
	Accruing Loans				Nonaccruing Loans				Loans 30
	30 - 89				30 - 89				or More
	Days Past		Past Due		Days Past		Past Due		Days Past		Current		Total
As of June 30, 2011	Due		> 90 Days		Due		> 90 Days		Due		Loans		Loans
Real estate
Commercial	$	35,604	$	1,733	$	8,647	$	24,920	$	70,904	$	1,485,060	$	1,555,964
Construction:
Land acquisition & development		7,684		169		1,166		18,346		27,365		285,325		312,690
Residential		1,491		—		—		3,059		4,550		58,814		63,364
Commercial		—		—		79		6,072		6,151		70,589		76,740
Total construction loans		9,175		169		1,245		27,477		38,066		414,728		452,794
Residential		3,291		49		—		614		3,954		574,785		578,739
Agricultural		3,578		104		—		1,044		4,726		173,002		177,728
Mortgage loans originated for sale		—		—		—		—		—		28,498		28,498
Total real estate loans		51,648		2,055		9,892		54,055		117,650		2,676,073		2,793,723
Consumer:
Indirect consumer loans		2,958		24		42		170		3,194		410,631		413,825
Other consumer loans		1,451		64		118		55		1,688		151,016		152,704
Credit card loans		764		538		—		—		1,302		58,353		59,655
Total consumer loans		5,173		626		160		225		6,184		620,000		626,184
Commercial		11,265		444		3,695		8,288		23,692		700,466		724,158
Agricultural		2,059		80		62		21		2,222		131,676		133,898
Other loans, including overdrafts		—		—		—		—		—		3,297		3,297
Total	$	70,145	$	3,205	$	13,809	$	62,589	$	149,748	$	4,131,512	$	4,281,260

									Total
	Accruing Loans				Nonaccruing Loans				Loans 30
	30 - 89				30 - 89				or More
	Days Past		Past Due		Days Past		Past Due		Days Past		Current		Total
As of December 31, 2010	Due		> 90 Days		Due		> 90 Days		Due		Loans		Loans
Real estate
Commercial	$	17,959	$	—	$	7,582	$	13,047	$	38,588	$	1,527,077	$	1,565,665
Construction:
Land acquisition & development	9,608			—		1,559		7,462		18,629		311,091		329,720
Residential		3,022		—		359		992		4,373		94,823		99,196
Commercial		2,794		—		1,213		3,376		7,383		91,159		98,542
Total construction loans	15,424			—		3,131		11,830		30,385		497,073		527,458
Residential		2,192		—		160		359		2,711		546,893		549,604
Agricultural		4,856		—		406		392		5,654		177,140		182,794
Mortgage loans originated for sale		—		—		—		—		—		46,408		46,408
Total real estate loans		40,431		—		11,279		25,628		77,338		2,794,591		2,871,929
Consumer:
Indirect consumer loans		3,717		—		81		63		3,861		419,691		423,552
Other consumer loans		1,552		15		87		568		2,222		159,915		162,137
Credit card loans		1,005		759		—		—		1,764		59,127		60,891
Total consumer loans		6,274		774		168		631		7,847		638,733		646,580
Commercial		8,069		957		744		8,707		18,477		711,994		730,471
Agricultural		2,114		117		—		25		2,256		114,290		116,546
Other loans, including overdrafts	123			4		—		—		127		2,256		2,383
Total	$	57,011	$	1,852	$	12,191	$	34,991	$	106,045	$	4,261,864	$	4,367,909

Included in current loans in the table above are loans aggregating $153,264 and $148,160 that were on nonaccrual status as of June 30, 2011 and December 31, 2010, respectively.

The following table presents the Company’s recorded investment in nonaccrual loans by class as of the dates indicated:

	June 30,		December 31,
	2011		2010
Real estate
Commercial	$	75,505	$	68,948
Construction:
Land acquisition & development		65,420		41,547
Residential		15,167		16,679
Commercial		23,650		16,589
Total construction loans		104,237		74,815
Residential		12,274		15,222
Agricultural		4,583		2,497
Total real estate loans		196,599		161,482
Consumer:
Indirect consumer loans		617		564
Other consumer loans		1,049		1,337
Credit card loans		28		30
Total consumer loans		1,694		1,931
Commercial		30,445		30,953
Agricultural		924		976
Total	$	229,662	$	195,342

The Company considers impaired loans to include non-consumer loans placed on nonaccrual and renegotiated in troubled debt restructurings. The following table presents information on the Company’s recorded investment in impaired loans as of dates indicated:

	As of June 30, 2011
	Unpaid		Recorded		Recorded
	Total		Investment		Investment		Total
	Principal		With No		With		Recorded		Related
	Balance		Allowance		Allowance		Investment		Allowance
Real estate:
Commercial	$	92,806	$	52,871	$	32,166	$	85,037	$	7,823
Construction:
Land acquisition & development		75,417		12,259		56,501		68,760		17,512
Residential		20,173		7,721		9,972		17,693		2,041
Commercial		25,547		16,146		7,504		23,650		1,921
Total construction loans		121,137		36,126		73,977		110,103		21,474
Residential		6,745		528		6,127		6,655		529
Agricultural		7,237		5,699		991		6,690		77
Total real estate loans		227,925		95,224		113,261		208,485		29,903
Commercial		39,205		8,461		24,148		32,609		13,740
Agricultural		924		558		365		923		249
Total	$	268,054	$	104,243	$	137,774	$	242,017	$	43,892

	As of December 31, 2010
	Unpaid		Recorded		Recorded
	Total		Investment		Investment		Total
	Principal		With No		With		Recorded		Related
	Balance		Allowance		Allowance		Investment		Allowance
Real estate:
Commercial	$	79,193	$	31,925	$	41,703	$	73,628	$	10,315
Construction:
Land acquisition & development		48,371		24,120		20,440		44,560		8,064
Residential		18,632		2,993		13,721		16,714		3,431
Commercial		17,458		2,976		13,578		16,554		3,877
Total construction loans		84,461		30,089		47,739		77,828		15,372
Residential		8,951		1,741		7,110		8,851		1,266
Agricultural		3,045		1,065		1,432		2,497		128
Total real estate loans		175,650		64,820		97,984		162,804		27,081
Commercial		36,251		11,354		24,168		35,522		14,892
Agricultural		976		498		478		976		253
Total	$	212,877	$	76,672	$	122,630	$	199,302	$	42,226

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

	Three months ended				Six months ended				Year Ended
	June 30, 2011				June 30, 2011				December 31,
	Average				Average				Average
	Recorded		Income		Recorded		Income		Recorded
	Investment		Recognized		Investment		Recognized		Investment
Real estate:
Commercial	$	90,625	$	110	$	81,429	$	202	$	49,713
Construction:
Land acquisition & development		54,500		42		49,444		87		34,871
Residential		18,841		18		17,697		37		15,097
Commercial		18,306		—		18,811		—		21,086
Total construction loans		91,647		60		85,952		124		71,054
Residential		23,085		97		19,415		97		10,889
Agricultural		6,086		40		5,094		42		1,737
Total real estate loans		211,443		307		191,890		465		133,393
Commercial		29,626		23		31,505		65		22,017
Agricultural		1,003		—		945		—		974
Total	$	242,072	$	330	$	224,340	$	530	$	156,384

If interest on impaired loans had been accrued, interest income on impaired loans during the three and six months ended June 30, 2011 would have been approximately $3,512 and $6,530, respectively. If interest on impaired loans had been accrued, interest income on impaired loans during the three and six months ended June 30, 2010 would have been approximately $2,117 and $4,008, respectively. At June 30, 2011, there were no material commitments to lend additional funds to borrowers whose existing loans have been renegotiated or are classified as nonaccrual.

The Company had loans renegotiated in troubled debt restructurings of $101,994 as of June 30, 2011, of which $70,383 were included in nonaccrual loans and $31,611 were on accrual status, including loans aggregating $1,011 that were more than 90 days past due and still accruing interest. The Company had loans renegotiated in troubled debt restructurings of $53,700 as of December 31, 2010, of which $40,210 were included in nonaccrual loans and $13,490 were on accrual status.

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 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 nonaccrual status and are assigned specific loss exposure.

The following table presents the Company’s recorded investment in criticized loans by class and credit quality indicator based on the most recent analyses performed as of the dates indicated.

	Other Assets						Total
	Especially						Criticized
As of June 30, 2011	Mentioned		Substandard		Doubtful		Loans
Real estate:
Commercial	$	141,294	$	155,847	$	33,228	$	330,369
Construction:
Land acquisition & development		47,504		25,045		56,757		129,306
Residential		4,693		7,548		12,634		24,875
Commercial		—		23,783		8,706		32,489
Total construction loans		52,197		56,376		78,097		186,670
Residential		12,675		28,365		8,940		49,980
Agricultural		13,546		20,028		991		34,565
Total real estate loans		219,712		260,616		121,256		601,584
Consumer:
Indirect consumer loans		808		1,907		389		3,104
Other consumer loans		744		1,501		745		2,990
Credit card loans		—		467		2,859		3,326
Total consumer loans		1,552		3,875		3,993		9,420
Commercial		40,331		38,392		24,350		103,073
Agricultural		6,855		6,146		365		13,366
Total	$	268,450	$	309,029	$	149,964	$	727,443

	Other Assets						Total
	Especially						Criticized
As of December 31, 2010	Mentioned		Substandard		Doubtful		Loans
Real estate:
Commercial	$	133,700	$	149,604	$	41,662	$	324,966
Construction:
Land acquisition & development		73,151		36,552		21,795		131,498
Residential		9,083		9,842		13,721		32,646
Commercial		9,025		18,611		13,598		41,234
Total construction loans		91,259		65,005		49,114		205,378
Residential		13,889		18,725		11,474		44,088
Agricultural		12,683		20,885		1,432		35,000
Total real estate loans		251,531		254,219		103,682		609,432
Consumer:
Indirect consumer loans		768		1,964		315		3,047
Other consumer loans		903		1,499		1,131		3,533
Credit card loans		—		571		3,467		4,038
Total consumer loans		1,671		4,034		4,913		10,618
Commercial		47,307		39,145		24,280		110,732
Agricultural		5,416		6,255		478		12,149
Total	$	305,925	$	303,653	$	133,353	$	742,931

The Company maintains an independent credit review function 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 criticized loans.