Allowance For Loan Losses

9 Months Ended

Sep. 30, 2011

Loans and 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 nine months ended September 30, 2011.

Three months ended September 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Allowance for loan losses:
Beginning balance	$	90,243		$	8,526		$	24,434		$	1,376		$	—	$	124,579
Provision charged to operating expense		9,984			1,676			2,206			134			—		14,000
Less loans charged-off		(12,210	)		(1,682	)		(6,498	)		(15	)		—		(20,405	)
Add back recoveries of loans previously charged-off		1,386			453			287			3			—		2,129
Ending balance	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303
Nine months ended September 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		33,080			2,927			8,461			(68	)		—		44,400
Less loans charged-off		(29,598	)		(4,641	)		(14,547	)		(60	)		—		(48,846	)
Add back recoveries of loans previously charged-off		1,740			1,355			1,161			13			—		4,269
Ending balance	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303
As of September 30, 2011	Real Estate			Consumer			Commercial			Agriculture			Other		Total
Individually evaluated for impairment	$	27,344		$	—		$	9,422		$	239		$	—	$	37,005
Collectively evaluated for impairment		62,059			8,973			11,007			1,259			—		83,298
Ending balance	$	89,403		$	8,973		$	20,429		$	1,498		$	—	$	120,303
Loans individually evaluated for impairment	$	223,386		$	—		$	31,470		$	880		$	—	$	255,736
Loans collectively evaluated for impairment		2,582,202			627,139			671,540			135,848			3,252		4,019,981
Total loans	$	2,805,588		$	627,139		$	703,010		$	136,728		$	3,252	$	4,275,717

The Company performs a quarterly assessment of the adequacy of its allowance for loan losses in accordance with generally accepted accounting principles. The methodology used to assess the adequacy is consistently applied to the Company’s loan portfolio and 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 changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, general economic conditions and other qualitative risk factors both internal and external to the Company.

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. 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 nine months ended September 30, 2010:

	Three months ended September 30, 2010			Nine months ended September 30, 2010
Beginning balance	$	114,328		$	103,030
Provision charged to operating expense		18,000			49,400
Less loans charged-off		(12,789	)		(34,294	)
Add back recoveries of loans previously charged-off		697			2,100
Ending balance	$	120,236		$	120,236