Loans

9 Months Ended

Sep. 30, 2011

Loans and Allowance For Loan Losses [Abstract]

Loans

(3) Loans

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

	September 30, 2011		December 31, 2010
Real estate loans:
Commercial	$	1,561,788	$	1,565,665
Construction:
Land acquisition & development		296,407		329,720
Commercial		67,261		98,542
Residential		64,098		99,196
Total construction loans		427,766		527,458
Residential		586,425		549,604
Agricultural		177,121		182,794
Total real estate loans		2,753,100		2,825,521
Consumer loans:
Indirect consumer loans		415,245		423,552
Other consumer loans		151,611		162,137
Credit card loans		60,283		60,891
Total consumer loans		627,139		646,580
Commercial		703,010		730,471
Agricultural		136,728		116,546
Other loans, including overdrafts		3,252		2,383
Loans held for investment		4,223,229		4,321,501
Mortgage loans held for sale		52,488		46,408
Total loans	$	4,275,717	$	4,367,909

Commercial real estate includes loans aggregating $883,501 and $867,510 as of September 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.

As of September 30, 2011	30 - 59 Days Past Due		60 - 89 Days Past Due		> 90 Due Days Due		Total Loans 30 or More Days Past Due		Current Loans		Total Loans		> 90 Days Past Due and Accruing
Real estate
Commercial	$	25,436	$	5,176	$	26,879	$	57,491	$	1,504,297	$	1,561,788	$	393
Construction:
Land acquisition & development		8,961		5,284		19,285		33,530		262,877		296,407		1,001
Commercial		30		1,149		6,126		7,305		59,956		67,261		—
Residential		848		477		396		1,721		62,377		64,098		—
Total construction loans		9,839		6,910		25,807		42,556		385,210		427,766		1,001
Residential		7,850		515		1,011		9,376		577,049		586,425		284
Agricultural		1,508		59		1,261		2,828		174,293		177,121		—
Total real estate loans		44,633		12,660		54,958		112,251		2,640,849		2,753,100		1,678
Consumer:
Indirect consumer loans		2,868		225		90		3,183		412,062		415,245		3
Other consumer loans		1,300		215		196		1,711		149,900		151,611		98
Credit card loans		574		348		511		1,433		58,850		60,283		511
Total consumer loans		4,742		788		797		6,327		620,812		627,139		612
Commercial		13,233		2,040		3,958		19,231		683,779		703,010		711
Agricultural		656		17		40		713		136,015		136,728		—
Other loans, including overdrafts		—		—		—		—		3,252		3,252		—
Loans held for investment		63,264		15,505		59,753		138,522		4,084,707		4,223,229		3,001
Mortgage loans originated for sale		—		—		—		—		52,488		52,488		—
Total loans	$	63,264	$	15,505	$	59,753	$	138,522	$	4,137,195	$	4,275,717	$	3,001
As of December 31, 2010	30 - 59 Days Past Due		60 - 89 Days Past Due		> 90 Days Past Due		Total Loans 30 or More Days Past Due		Current Loans		Total Loans		> 90 Days Past Due and Accruing
Real estate
Commercial	$	18,743	$	6,798	$	13,047	$	38,588	$	1,527,077	$	1,565,665	$	—
Construction:
Land acquisition & development		7,225		3,942		7,462		18,629		311,091		329,720		—
Commercial		3,870		137		3,376		7,383		91,159		98,542		—
Residential		3,142		239		992		4,373		94,823		99,196		—
Total construction loans		14,237		4,318		11,830		30,385		497,073		527,458		—
Residential		1,370		982		359		2,711		546,893		549,604		—
Agricultural		3,492		1,770		392		5,654		177,140		182,794		—
Total real estate loans		37,842		13,868		25,628		77,338		2,748,183		2,825,521		—
Consumer:
Indirect consumer loans		3,419		379		63		3,861		419,691		423,552		—
Other consumer loans		1,391		248		583		2,222		159,915		162,137		15
Credit card loans		613		392		759		1,764		59,127		60,891		759
Total consumer loans		5,423		1,019		1,405		7,847		638,733		646,580		774
Commercial		5,701		3,112		9,664		18,477		711,994		730,471		957
Agricultural		697		1,417		142		2,256		114,290		116,546		117
Other loans, including overdrafts		—		123		4		127		2,256		2,383		4
Loans held for investment		49,663		19,539		36,843		106,045		4,215,456		4,321,501		1,852
Mortgage loans originated for sale		—		—		—		—		46,408		46,408		—
Total loans	$	49,663	$	19,539	$	36,843	$	106,045	$	4,261,864	$	4,367,909	$	1,852

Included in total loans 30 or more days past due in the table above are loans aggregating $73,356 and $47,182 that were on non-accrual status as of September 30, 2011 and December 31, 2011, respectively. Included in current loans in the table above are loans aggregating $150,605 and $148,160 that were on non-accrual status as of September 30, 2011 and December 31, 2010, respectively.

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

	September 30, 2011		December 31, 2010
Real estate
Commercial	$	77,017	$	68,948
Construction:
Land acquisition & development		63,347		41,547
Commercial		21,189		16,589
Residential		12,503		16,679
Total construction loans		97,039		74,815
Residential		13,689		15,222
Agricultural		4,491		2,497
Total real estate loans		192,236		161,482
Consumer:
Indirect consumer loans		463		564
Other consumer loans		838		1,337
Credit card loans		27		30
Total consumer loans		1,328		1,931
Commercial		29,517		30,953
Agricultural		880		976
Total	$	223,961	$	195,342

The Company considers impaired loans to include all loans risk rated doubtful, loans placed on non-accrual status and loans renegotiated in troubled debt restructurings with the exception of consumer loans. The following table presents information on the Company’s recorded investment in impaired loans as of dates indicated:

	As of September 30, 2011
	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Real estate:
Commercial	$	101,963	$	61,672	$	28,817	$	90,489	$	6,829
Construction:
Land acquisition & development		74,808		16,153		48,039		64,192		14,469
Commercial		23,078		13,593		7,596		21,189		1,864
Residential		16,370		5,104		10,016		15,120		2,031
Total construction loans		114,256		34,850		65,651		100,501		18,364
Residential		23,671		13,225		10,356		23,581		2,126
Agricultural		9,363		7,824		991		8,815		25
Total real estate loans		249,253		117,571		105,815		223,386		27,344
Commercial		38,298		11,038		20,432		31,470		9,422
Agricultural		880		550		330		880		239
Total	$	288,431	$	129,159	$	126,577	$	255,736	$	37,005

	As of December 31, 2010
	Unpaid Total Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related 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
Commercial		17,458		2,976		13,578		16,554		3,877
Residential		18,632		2,993		13,721		16,714		3,431
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 September 30, 2011				Nine months ended September 30, 2011				Year Ended December 31, 2010
	Average Recorded Investment		Income Recognized		Average Recorded Investment		Income Recognized		Average Recorded Investment
Real estate:
Commercial	$	86,347	$	188	$	83,479	$	390	$	49,713
Construction:
Land acquisition & development		66,470		3		54,494		90		34,871
Commercial		23,441		—		20,371		—		21,086
Residential		17,627		18		17,248		55		15,097
Total construction loans		107,538		21		92,113		145		71,054
Residential		22,972		160		19,101		257		10,889
Agricultural		7,694		56		6,392		98		1,737
Total real estate loans		224,551		425		201,085		890		133,393
Commercial		33,634		31		32,634		96		22,017
Agricultural		885		—		925		—		974
Total	$	259,070	$	456	$	234,644	$	986	$	156,384

For the three and nine months ended September 30, 2011, 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 principle. Interest income is subsequently recognized only to the extent cash payments are received in excess of principle due. If interest on all impaired loans had been accrued, interest income on impaired loans during the three and nine months ended September 30, 2011 would have been approximately $3,729 and $10,214, respectively. If interest on all impaired loans had been accrued, interest income on impaired loans during the three and nine months ended September 30, 2010 would have been approximately $2,675 and $6,882, respectively.

Collateralized impaired loans are recorded at the fair value of the underlying collateral using independent appraisals and management estimates of current market conditions. 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 concessions, 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 are typically returned to accrual status after considering the borrower’s sustained repayment performance in accordance with the restructuring agreement for a reasonable 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.

The Company had troubled debt restructurings of $119,574 as of September 30, 2011, of which $83,958 were included in non-accrual loans and $35,616 were on accrual status. The Company had troubled debt restructurings of $53,700 as of December 31, 2010, of which $40,210 were included in non-accrual loans and $13,490 were on accrual status.

The following tables present information on the Company’s troubled debt restructurings during the periods indicated:

			Pre-Modification Investment
Three months ended September 30, 2011	Number of Notes		Interest rate adjustment		Interest only period		Other		Total		Post- Modification Investment
Real estate
Commercial		23	$	516	$	6,685	$	2,510	$	9,711	$	9,703
Construction:
Land acquisition & development		3		—		380		408		788		788
Residential		2		—		7,749		—		7,749		7,732
Total construction loans		5		0		8,129		408		8,537		8,520
Residential		1		—		—		54		54		53
Agricultural		2		189		1,970		—		2,159		2,159
Total real estate loans		31		705		16,784		2,972		20,461		20,435
Consumer:
Other consumer loans		1		—		—		50		50		50
Total consumer loans		1		—		—		50		50		50
Commercial		8		165		3,387		1,298		4,850		4,844
Total		40	$	870	$	20,171	$	4,320	$	25,361	$	25,329

	Number of Notes		Pre-Modification Investment								Post- Modification Investment
Nine months ended September 30, 2011			Interest rate adjustment		Interest only period		Other		Total
Real estate
Commercial		55	$	3,031	$	23,569	$	6,897	$	33,497	$	33,200
Construction:
Land acquisition & development		9		680		995		4,532		6,207		6,194
Residential		5		234		7,749		878		8,861		8,835
Total construction loans		14		914		8,744		5,410		15,068		15,029
Residential		6		223		9,771		954		10,948		10,886
Agricultural		6		189		3,594		517		4,300		4,298
Total real estate loans		81		4,357		45,678		13,778		63,813		63,413
Consumer:
Indirect consumer loans		2		—		—		29		29		29
Other consumer loans		3		—		17		61		78		76
Total consumer loans		5		0		17		90		107		105
Commercial		37		662		11,727		2,789		15,178		8,959
Agricultural		5		—		—		187		187		148
Total		128	$	5,019	$	57,422	$	16,844	$	79,285	$	72,625

For troubled debt restructurings that were on non-accrual status 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. Financial effects of modifications of troubled debt restructurings may include principle loan forgiveness or other charge-offs. The Company had no charge-offs related to modifying troubled debt restructurings for the three and nine months ended September 30, 2011.

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 periods indicated. 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. All troubled debt restructurings with payment defaults in the following table are on non-accrual status.

	Three months ended September 30, 2011				Nine months ended September 30, 2011
	Number of Notes		Recorded Investment		Number of Notes		Recorded Investment
Real estate
Commercial		2	$	1,032		6	$	2,432
Construction:
Land acquisition & development		—		—		2		1,338
Residential		—		—		1		302
Total construction loans		—		—		3		1,640
Agricultural		—		—		2		152
Total real estate loans		2		1,032		11		4,224
Commercial		1		14		4		161
Agricultural		—		—		3		37
Total		3	$	1,046		18	$	4,422

At September 30, 2011, 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 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 a specific valuation allowance.

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.

As of September 30, 2011	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	137,983	$	157,208	$	30,283	$	325,474
Construction:
Land acquisition & development		44,414		29,622		48,295		122,331
Commercial		—		21,231		8,797		30,028
Residential		7,650		5,214		10,016		22,880
Total construction loans		52,064		56,067		67,108		175,239
Residential		12,581		25,322		10,257		48,160
Agricultural		12,435		22,740		801		35,976
Total real estate loans		215,063		261,337		108,449		584,849
Consumer:
Indirect consumer loans		1,082		1,721		371		3,174
Other consumer loans		778		1,499		557		2,834
Credit card loans		—		448		2,788		3,236
Total consumer loans		1,860		3,668		3,716		9,244
Commercial		38,465		34,949		21,872		95,286
Agricultural		6,113		5,191		330		11,634
Total	$	261,501	$	305,145	$	134,367	$	701,013

As of December 31, 2010	Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans
Real estate:
Commercial	$	133,700	$	149,604	$	41,662	$	324,966
Construction:
Land acquisition & development		73,151		36,552		21,795		131,498
Commercial		9,025		18,611		13,598		41,234
Residential		9,083		9,842		13,721		32,646
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 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 prepared and reviewed on a quarterly basis for all criticized loans.