Allowance For Loan Losses

6 Months Ended

Jun. 30, 2011

Allowance For Loan Losses [Abstract]

Allowance For Loan Losses

(4) Allowance For Loan Losses

The following tables present a summary of changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2011.

Three months ended June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	92,350		$	8,992		$	21,790		$	1,314		$	—	$	124,446
Provision charged to operating expense		10,941			563			3,798			98			—		15,400
Less loans charged-off		(13,157	)		(1,499	)		(1,407	)		(39	)		—		(16,102	)
Add back recoveries of loans previously charged-off		109			470			253			3			—		835
Ending balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579

Six months ended June 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	84,181		$	9,332		$	25,354		$	1,613		$	—	$	120,480
Provision charged to operating expense		23,096			1,251			6,255			(202	)		—		30,400
Less loans charged-off		(17,388	)		(2,959	)		(8,049	)		(45	)		—		(28,441	)
Add back recoveries of loans previously charged-off		354			902			874			10			—		2,140
Ending balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579

As of June 30, 2011	Real Estate		Consumer		Commercial		Agriculture		Other		Total
Individually evaluated for impairment	$	29,903	$	—	$	13,740	$	249	$	—	$	43,892
Collectively evaluated for impairment		60,340		8,526		10,694		1,127		—		80,687
Ending balance	$	90,243	$	8,526	$	24,434	$	1,376	$	—	$	124,579
Individually evaluated for impairment	$	208,485	$	—	$	32,609	$	923	$	—	$	242,017
Collectively evaluated for impairment		2,585,238		626,184		691,549		132,975		3,297		4,039,243
Total loans	$	2,793,723	$	626,184	$	724,158	$	133,898	$	3,297	$	4,281,260

In determining the allowance for loan losses, the Company estimates losses on specific loans, or groups of loans, where the probable loss can be identified and reasonably determined. The balance of the allowance for loan losses is based on internally assigned risk classifications of loans, historical loan loss rates, changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, current economic factors and the estimated impact of current economic conditions on certain historical loan loss rates.

The allowance for loan losses consists of three elements: (1) specific valuation allowances based on probable losses on impaired loans; (2) historical valuation allowances based on loan loss experience for similar loans with similar characteristics and trends; and (3) general valuation allowances determined based on general economic conditions and other qualitative risk factors both internal and external to us.

Specific allowances are established for loans where management has determined that probability of a loss exists by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies and any relevant qualitative or environmental factors impacting the loan. Historical valuation allowances are determined by applying percentage loss factors to the credit exposures from outstanding loans. For commercial, agricultural and real estate loans, loss factors are applied based on the internal risk classifications of these loans. For consumer loans, loss factors are applied on a portfolio basis. For commercial, agriculture and real estate loans, loss factor percentages are based on a migration analysis of our historical loss experience, designed to account for credit deterioration. For consumer loans, loss factor percentages are based on a one-year loss history. General valuation allowances are determined by evaluating, on a quarterly basis, changes in the nature and volume of the loan portfolio, overall portfolio quality, industry concentrations, current economic and regulatory factors and the estimated impact of current economic, environmental and regulatory conditions on historical loss rates.

The following table presents a summary of changes in the allowance for loan losses for the three and six months ended June 30, 2010:

	Three months ended			Six months ended
	June 30, 2010			June 30, 2010
Beginning balance	$	106,349		$	103,030
Provision charged to operating expense		19,500			31,400
Less loans charged-off		(12,107	)		(21,505	)
Add back recoveries of loans previously charged-off		586			1,403
Ending balance	$	114,328		$	114,328