Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Major Classifications of Loans Held for Investment

Major classifications of loans held for investment are as follows (in thousands):

	March 31,				December 31, 2012
	2013		2012
Commercial	$	513,422	$	433,351	$	509,609
Agricultural		55,247		57,977		68,306
Real estate		1,275,564		1,083,244		1,226,823
Consumer		283,782		218,600		272,428
Total loans held for investment	$	2,128,015	$	1,793,172	$	2,077,166

Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans

The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):

	March 31,				December 31, 2012
	2013		2012
Non-accrual loans	$	22,509	$	20,963	$	21,800
Loans still accruing and past due 90 days or more		24		53		97
Restructured loans*		—		—		—
Total	$	22,533	$	21,016	$	21,897

* Restructured loans whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans.

Recorded Investment in Impaired Loans and Related Valuation Allowance

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):

March 31, 2013		March 31, 2012		December 31, 2012
Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance	Recorded Investment	Valuation Allowance
$ 22,509	$5,793	$20,963	$5,357	$21,800	$6,010

Schedule of Non-Accrual Loans

Non-accrual loans totaled $22,509,000, $20,963,000 and $21,800,000, respectively, and consisted of the following amounts by type (in thousands):

	March 31,				December 31, 2012
	2013		2012
Commercial	$	1,133	$	3,665	$	2,251
Agricultural		473		923		372
Real estate		20,502		16,026		18,698
Consumer		401		349		479
Total	$	22,509	$	20,963	$	21,800

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of March 31, 2013 and 2012, and December 31, 2012, are summarized in the following table (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

March 31, 2013	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three-month Average Recorded Investment
Commercial	$	1,555	$	25	$	1,108	$	1,133	$	555	$	1,232
Agricultural		489		25		448		473		169		483
Real Estate		24,937		1,956		18,546		20,502		4,901		21,028
Consumer		466		77		324		401		168		420
Total	$	27,447	$	2,083	$	20,426	$	22,509	$	5,793	$	23,163

March 31, 2012	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Three-month Average Recorded Investment
Commercial	$	4,218	$	24	$	3,641	$	3,665	$	1,990	$	3,817
Agricultural		948		—		923		923		170		922
Real Estate		20,058		3,470		12,556		16,026		3,082		16,838
Consumer		414		55		294		349		115		380
Total	$	25,638	$	3,549	$	17,414	$	20,963	$	5,357	$	21,957

December 31, 2012	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment
Commercial	$	2,677	$	20	$	2,231	$	2,251	$	1,350	$	2,966
Agricultural		381		—		372		372		131		437
Real Estate		22,569		2,049		16,649		18,698		4,356		20,164
Consumer		543		115		364		479		173		458
Total	$	26,170	$	2,184	$	19,616	$	21,800	$	6,010	$	24,025

Schedule of Internal Ratings of Loans Held for Investment

At March 31, 2013 and December 31, 2012, the following summarizes the Company’s internal ratings of its loans held for investment (in thousands):

March 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	501,859	$	2,083	$	9,449	$	31	$	513,422
Agricultural		51,321		337		3,582		7		55,247
Real Estate		1,222,112		15,015		38,281		156		1,275,564
Consumer		282,545		349		870		18		283,782
Total	$	2,057,837	$	17,784	$	52,182	$	212	$	2,128,015

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	498,188	$	2,193	$	9,198	$	30	$	509,609
Agricultural		64,397		342		3,559		8		68,306
Real Estate		1,176,330		14,680		35,673		140		1,226,823
Consumer		271,114		382		911		21		272,428
Total	$	2,010,029	$	17,597	$	49,341	$	199	$	2,077,166

Schedule of Past Due Loans

At March 31, 2013 and December 31, 2012, the Company’s past due loans are as follows (in thousands):

March 31, 2013	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,146	$	307	$	283	$	4,736	$	508,686	$	513,422	$	3
Agricultural		641		16		—		657		54,590		55,247		—
Real Estate		14,962		1,653		1,907		18,522		1,257,042		1,275,564		—
Consumer		1,629		227		144		2,000		281,782		283,782		21
Total	$	21,378	$	2,203	$	2,334	$	25,915	$	2,102,100	$	2,128,015	$	24

December 31, 2012	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	1,708	$	470	$	247	$	2,425	$	507,184	$	509,609	$	—
Agricultural		467		95		—		562		67,744		68,306		—
Real Estate		10,141		2,711		1,237		14,089		1,212,734		1,226,823		34
Consumer		1,660		287		163		2,110		270,318		272,428		63
Total	$	13,976	$	3,563	$	1,647	$	19,186	$	2,057,980	$	2,077,166	$	97

* The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due.

Allowance for Loan Losses by Estimating Probable Losses in Various Categories of Loan Portfolio

The allowance for loan losses as of March 31, 2013 and 2012, and December 31, 2012, is presented below. Management has evaluated the adequacy of the allowance for loan losses by estimating the probable losses in various categories of the loan portfolio, which are identified below (in thousands):

	March 31,				December 31, 2012
	2013		2012
Allowance for loan losses provided for:
Loans specifically evaluated as impaired	$	5,793	$	5,357	$	6,010
Remaining portfolio		28,879		29,172		28,829
Total allowance for loan losses	$	34,672	$	34,529	$	34,839

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table details the allowance for loan losses at March 31, 2013 and December 31, 2012 by portfolio segment (in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

March 31, 2013	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,542	$	388	$	8,983	$	315	$	12,228
Loans collectively evaluated for impairment		3,962		1,078		15,878		1,526		22,444
Total	$	6,504	$	1,466	$	24,861	$	1,841	$	34,672

December 31, 2012	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,253	$	388	$	8,380	$	308	$	12,329
Loans collectively evaluated for impairment		4,090		1,153		15,683		1,584		22,510
Total	$	7,343	$	1,541	$	24,063	$	1,892	$	34,839

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three months ended March 31, 2013 and 2012 are summarized as follows (in thousands):

Three months ended March 31, 2013	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,343		$	1,541		$	24,063		$	1,892		$	34,839
Provision for loan losses		(672	)		(86	)		1,120			39			401
Recoveries		121			11			28			95			255
Charge-offs		(288	)		—			(350	)		(185	)		(823	)
Ending balance	$	6,504		$	1,466		$	24,861		$	1,841		$	34,672

Three months ended March 31, 2012	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	9,664		$	1,482		$	21,533		$	1,636		$	34,315
Provision for loan losses		94			(119	)		1,161			160			1,296
Recoveries		103			12			113			95			323
Charge-offs		(249	)		(22	)		(972	)		(162	)		(1,405	)
Ending balance	$	9,612		$	1,353		$	21,835		$	1,729		$	34,529

Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology

The Company’s recorded investment in loans as of March 31, 2013 and December 31, 2012 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands):

March 31, 2013	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	11,563	$	3,926	$	53,452	$	1,237	$	70,178
Loans collectively evaluated for impairment		501,859		51,321		1,222,112		282,545		2,057,837
Total	$	513,422	$	55,247	$	1,275,564	$	283,782	$	2,128,015

December 31, 2012	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	11,421	$	3,909	$	50,493	$	1,314	$	67,137
Loans collectively evaluated for impairment		498,188		64,397		1,176,330		271,114		2,010,029
Total	$	509,609	$	68,306	$	1,226,823	$	272,428	$	2,077,166

Schedule of Loans Modified and Considered Troubled Debt Restructuring

The Company’s loans that were modified in the three months ended March 31, 2013 and 2012 and considered a troubled debt restructuring are as follows (dollars in thousands):

	Three months ended March 31, 2013						Three months ended March 31, 2012
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		2	$	120	$	120		4	$	127	$	127
Agricultural		1		24		24		2		108		108
Real Estate		4		796		796		13		3,803		3,803
Consumer		—		—		—		—		—		—
Total		7	$	940	$	940		19	$	4,038	$	4,038

Schedule of How Loans Were Modified as Troubled Debt Restructured Loans

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three months ended March 31, 2013 and 2012 (in thousands):

	Three months ended March 31, 2013						Three months ended March 31, 2012
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	120	$	—	$	17	$	62	$	48
Agricultural		—		24		—		—		13		95
Real Estate		272		350		174		—		—		3,803
Consumer		—		—		—		—		—		—
Total	$	272	$	494	$	174	$	17	$	75	$	3,946

Schedule of Troubled Debt Restructuring

The loans are as follows (dollars in thousands):

	Three months ended March 31, 2013
	Number		Balance
Commercial		5	$	217
Agriculture		—		—
Real Estate		5		931
Consumer		1		19
Total		11	$	1,167