Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interest-bearing Time Deposits in Banks and Securities

Interest-bearing Time Deposits in Banks and Securities

Interest-bearing time deposits in banks totaled $2,427,000, $5,456,000 and $3,495,000 at June 30, 2016 and 2015 and December 31, 2015, respectively, and have original maturities generally ranging from one to three years.

Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income using the interest method. Securities not classified as held-to-maturity or trading are classified as available-for-sale and recorded at fair value, with all unrealized gains and unrealized losses judged to be temporary, net of deferred income taxes, excluded from earnings and reported in the consolidated statements of comprehensive earnings. Available-for-sale securities that have unrealized losses that are judged other-than-temporary are included in gain (loss) on sale of securities and a new cost basis is established. Securities classified as trading are recorded at fair value with unrealized gains and losses included in earnings.

The Company records its available-for-sale and trading securities portfolio at fair value. Fair values of these securities are determined based on methodologies in accordance with current authoritative accounting guidance. Fair values are volatile and may be influenced by a number of factors, including market interest rates, prepayment speeds, discount rates, credit ratings and yield curves. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair value is below amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other-than-temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity, (ii) whether it is more likely than not that we will have to sell our securities prior to recovery and/or maturity, (iii) the length of time and extent to which the fair value has been less than amortized cost, and (iv) the financial condition of the issuer. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition.

The Company’s investment portfolio consists of U.S. Treasury securities, obligations of U.S. government sponsored enterprises and agencies, obligations of states and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds. Pricing for such securities is generally readily available and transparent in the market. The Company utilizes independent third party pricing services to value its investment securities, which the Company reviews as well as the underlying pricing methodologies for reasonableness and to ensure such prices are aligned with pricing matrices. The Company validates quarterly, on a sample basis, prices supplied by the independent pricing services by comparison to prices obtained from other third party sources.

A summary of the Company’s available-for-sale securities follows (in thousands):

	June 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost Basis		Holding Gains		Holding Losses			Fair Value
U.S. Treasury securities	$	10,721	$	90	$	—		$	10,811
Obligations of U.S. government sponsored enterprises and agencies		121,174		1,178		—			122,352
Obligations of states and political subdivisions		1,418,342		97,980		(10	)		1,516,312
Corporate bonds and other		71,687		1,723		—			73,410
Residential mortgage-backed securities		787,451		18,928		(606	)		805,773
Commercial mortgage-backed securities		261,662		5,068		(32	)		266,698
Total securities available-for-sale	$	2,671,037	$	124,967	$	(648	)	$	2,795,356

	June 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost Basis		Holding Gains		Holding Losses			Fair Value
U.S. Treasury securities	$	10,864	$	72	$	—		$	10,936
Obligations of U.S. government sponsored enterprises and agencies		164,351		985		—			165,336
Obligations of states and political subdivisions		1,340,163		49,483		(5,400	)		1,384,246
Corporate bonds and other		94,485		2,623		—			97,108
Residential mortgage-backed securities		856,546		14,383		(2,838	)		868,091
Commercial mortgage-backed securities		203,482		591		(677	)		203,396
Total securities available-for-sale	$	2,669,891	$	68,137	$	(8,915	)	$	2,729,113
	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost Basis		Holding Gains		Holding Losses			Fair Value
U.S. Treasury securities	$	10,792	$	5	$	(2	)	$	10,795
Obligations of U.S. government sponsored enterprises and agencies		148,393		268		(107	)		148,554
Obligations of states and political subdivisions		1,379,879		71,382		(134	)		1,451,127
Corporate bonds and other		86,182		1,778		(5	)		87,955
Residential mortgage-backed securities		781,648		10,993		(3,759	)		788,882
Commercial mortgage-backed securities		247,991		429		(1,834	)		246,586
Total securities available-for-sale	$	2,654,885	$	84,855	$	(5,841	)	$	2,733,899

Disclosures related to the Company’s held-to-maturity securities, which totaled $137,000, $295,000 and $278,000 at June 30, 2016 and 2015, and December 31, 2015, respectively, have not been presented due to insignificance.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at June 30, 2016 were computed by using scheduled amortization of balances and historical prepayment rates. At June 30, 2016 and 2015, and December 31, 2015, the Company did not hold CMOs that entail higher risks than standard mortgage-backed securities.

The amortized cost and estimated fair value of available-for-sale securities at June 30, 2016, by contractual and expected maturity, are shown below (in thousands):

	Amortized		Estimated
	Cost Basis		Fair Value
Due within one year	$	180,342	$	182,079
Due after one year through five years		669,211		705,585
Due after five years through ten years		762,452		824,643
Due after ten years		9,919		10,578
Mortgage-backed securities		1,049,113		1,072,471
Total	$	2,671,037	$	2,795,356

The following tables disclose, as of June 30, 2016 and 2015, and December 31, 2015, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

	Less than 12 Months				12 Months or Longer				Total
June 30, 2016	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	5,959	$	7	$	745	$	3	$	6,704	$	10
Residential mortgage-backed securities		16,085		14		60,360		592		76,445		606
Commercial mortgage-backed securities		—		—		14,152		32		14,152		32
Total	$	22,044	$	21	$	75,257	$	627	$	97,301	$	648
	Less than 12 Months				12 Months or Longer				Total
June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	304,510	$	5,335	$	2,531	$	65	$	307,041	$	5,400
Residential mortgage-backed securities		176,569		844		65,562		1,994		242,131		2,838
Commercial mortgage-backed securities		134,151		628		9,504		49		143,655		677
Total	$	615,230	$	6,807	$	77,597	$	2,108	$	692,827	$	8,915
	Less than 12 Months				12 Months or Longer				Total
December 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasury securities	$	5,110	$	2	$	—	$	—	$	5,110	$	2
Obligations of U.S. government sponsored enterprises and agencies		50,388		107		—		—		50,388		107
Obligations of states and political subdivisions		32,929		127		1,513		7		34,442		134
Corporate bonds and other		7,004		5		—		—		7,004		5
Residential mortgage-backed securities		231,481		1,765		63,919		1,994		295,400		3,759
Commercial mortgage-backed securities		196,163		1,752		9,345		82		205,508		1,834
Total	$	523,075	$	3,758	$	74,777	$	2,083	$	597,852	$	5,841

The number of investments in an unrealized loss position totaled 24 at June 30, 2016. We do not believe these unrealized losses are “other-than-temporary” as (i) we do not have the intent to sell our securities prior to recovery and/or maturity and (ii) it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. In making this determination, we also consider the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. The unrealized losses noted are interest rate related due to the level of interest rates at June 30, 2016 compared to the time of purchase. We have reviewed the ratings of the issuers and have not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At June 30, 2016, 80.05% of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 30.25% are guaranteed by the Texas Permanent School Fund.

At June 30, 2016, $1,718,683,000 of the Company’s securities were pledged as collateral for public or trust fund deposits, repurchase agreements and for other purposes required or permitted by law.

During the quarters ended June 30, 2016 and 2015, sales of investment securities that were classified as available-for-sale totaled $12,829,000 and $6,631,000, respectively. Gross realized gains from security sales during the second quarter of 2016 and 2015 totaled $912,000 and $243,000, respectively. Gross realized losses from security sales during the second quarter of 2015 totaled $4,000. There were no gross realized losses during the second quarter of 2016. During the six months ended June 30, 2016 and 2015, sales of investment securities that were classified as available-for-sale totaled $13,382,000 and $7,760,000, respectively. Gross realized gains from security sales during the six-month period ended June 30, 2016 and 2015 totaled $919,000 and $248,000, respectively. Gross realized losses from security sales during the six-month periods ended June 30, 2016 and 2015 totaled $5,000 and $4,000, respectively.

The specific identification method was used to determine cost in order to compute the realized gains and losses.

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

Loans held for investment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amounts outstanding. The Company defers and amortizes net loan origination fees and costs as an adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis and makes changes as appropriate. Management receives and reviews monthly reports related to loan originations, quality, concentrations, delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geographic location.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Agricultural loans are subject to underwriting standards and processes similar to commercial loans. These agricultural loans are based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farm land, cattle or equipment, and include personal guarantees.

Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location within Texas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk.

Consumer loan underwriting utilizes methodical credit standards and analysis to supplement the Company’s underwriting policies and procedures. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize the Company’s risk.

The allowance for loan losses is an amount which represents management’s best estimate of probable losses that are inherent in the Company’s loan portfolio as of the balance sheet date. The allowance for loan losses is comprised of three elements: (i) specific reserves determined based on probable losses on specific classified loans; (ii) a historical valuation reserve component that considers historical loss rates; and (iii) qualitative reserves based upon general economic conditions and other qualitative risk factors both internal and external to the Company. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. For purposes of determining our historical valuation reserve, the loan portfolio, less cash secured loans, government guaranteed loans and classified loans, is multiplied by the Company’s historical loss rate. Specific allocations are increased or decreased in accordance with deterioration or improvement in credit quality and a corresponding increase or decrease in risk of loss on a particular loan. In addition, we adjust our allowance for qualitative factors such as current local economic conditions and trends, including, without limitations, unemployment, oil and gas prices, drought conditions, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. This qualitative reserve serves to estimate for additional areas of losses inherent in our portfolio that are not reflected in our historic loss factors.

Although we believe we use the best information available to make loan loss allowance determinations, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making our initial determinations. A downturn in the economy and employment could result in increased levels of non-performing assets and charge-offs, increased loan provisions and reductions in income. Additionally, bank regulatory agencies periodically review our allowance for loan losses and methodology and could require, in accordance with generally accepted accounting principles, additional provisions to the allowance for loan losses based on their judgment of information available to them at the time of their examination as well as changes to our methodology.

Accrual of interest is discontinued on a loan and payments are applied to principal when management believes, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Except consumer loans, generally all loans past due greater than 90 days, based on contractual terms, are placed on non-accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Consumer loans are generally charged-off when a loan becomes past due 90 days. For other loans in the portfolio, facts and circumstances are evaluated in making charge-off decisions.

Loans are considered impaired when, based on current information and events, management determines that it is probable we will be unable to collect all amounts due in accordance with the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectable.

The Company’s policy requires measurement of the allowance for an impaired, collateral dependent loan based on the fair value of the collateral. Other loan impairments for non-collateral dependent loans are measured based on the present value of expected future cash flows or the loan’s observable market price. At June 30, 2016 and 2015, and December 31, 2015, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral.

From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. For all impaired loans, including the Company’s troubled debt restructurings, the Company performs a periodic, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment to assess the likelihood that all principal and interest payments required under the terms of the agreement will be collected in full. When doubt exists about the ultimate collectability of principal and interest, the troubled debt restructuring remains on non-accrual status and payments received are applied to reduce principal to the extent necessary to eliminate such doubt. This determination of accrual status is judgmental and is based on facts and circumstances related to each troubled debt restructuring. Each of these loans is individually evaluated for impairment and a specific reserve is recorded based on probable losses, taking into consideration the related collateral, modified loan terms and cash flow. As of June 30, 2016 and 2015, and December 31, 2015, substantially all of the Company’s troubled debt restructured loans are included in the non-accrual totals.

The Company originates certain mortgage loans for sale in the secondary market. Accordingly, these loans are classified as held-for-sale and are carried at the lower of cost or fair value on an aggregate basis. The mortgage loan sales contracts contain indemnification clauses should the loans default, generally in the first three to six months, or if documentation is determined not to be in compliance with regulations. The Company’s historic losses as a result of these indemnities have been insignificant.

Loans acquired, including loans acquired in a business combination, are initially recorded at fair value with no valuation allowance. Acquired loans are segregated between those considered to be credit impaired and those deemed performing. To make this determination, management considers such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans is determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances at acquisition date, the fair value discount, is accreted into interest income over the estimated life of the acquired loan portfolio.

Purchased credit impaired loans are those loans that showed evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their acquisition fair value, which includes a credit component at the acquisition date, was based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the discounted cash flows expected at acquisition and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan, unless management was unable to reasonably forecast cash flows in which case the loans were placed on nonaccrual. Contractually required payments for interest and principal that exceed the cash flows expected at acquisition are not recognized as a yield adjustment. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows subsequent to acquisition are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. The carrying amount of purchased credit impaired loans at June 30, 2016 and 2015, and December 31, 2015, was $1,654,000, $1,123,000 and $2,178,000, respectively, compared to a contractual balance of $2,362,000, $1,648,000, and $2,936,000, respectively. Other purchased credit impaired loan disclosures were omitted due to immateriality.

Loans held-for-investment by class of financing receivables are as follows (in thousands):

	June 30,				December 31,
	2016		2015		2015
Commercial	$	661,659	$	649,909	$	696,163
Agricultural		80,812		92,317		102,351
Real estate		2,154,388		1,838,488		2,136,233
Consumer		386,796		361,510		382,303
Total loans held-for-investment	$	3,283,655	$	2,942,224	$	3,317,050

Loans held for sale totaled $25,733,000, $25,544,000 and $33,543,000 at June 30, 2016 and 2015, and December 31, 2015, respectively, which are valued using the lower of cost or market method.

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

	June 30,				December 31,
	2016		2015		2015
Non-accrual loans*	$	38,904	$	16,854	$	28,601
Loans still accruing and past due 90 days or more		237		64		341
Troubled debt restructured loans**		961		172		199
Total	$	40,102	$	17,090	$	29,141

* Includes $1,654,000, $1,123,000 and $2,178,000 of purchased credit impaired loans as of June 30, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $7,454,000, $6,936,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2016 and 2015, and December 31, 2015, respectively.

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

June 30, 2016				June 30, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	38,904	$	7,102	$	16,854	$	3,866	$	28,601	$	5,071

The Company had $40,387,000, $18,135,000 and $29,768,000 in non-accrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets at June 30, 2016 and 2015, and December 31, 2015, respectively. Non-accrual loans at June 30, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2016		2015		2015
Commercial	$	17,254	$	3,606	$	8,761
Agricultural		20		118		97
Real estate		20,435		12,570		18,766
Consumer		1,195		560		977
Total	$	38,904	$	16,854	$	28,601

No significant additional funds are committed to be advanced in connection with impaired loans as of June 30, 2016.

The Company’s impaired loans and related allowance as of June 30, 2016 and 2015, and December 31, 2015, are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

June 30, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three- Month Average Recorded Investment
Commercial	$	19,571	$	1,103	$	16,151	$	17,254	$	4,144	$	16,970	$	17,319
Agricultural		20		—		20		20		20		22		21
Real Estate		25,241		7,427		13,008		20,435		2,565		20,856		21,227
Consumer		1,375		254		941		1,195		373		1,148		1,288
Total	$	46,207	$	8,784	$	30,120	$	38,904	$	7,102	$	38,996	$	39,855

* Includes $1,654,000 of purchased credit impaired loans.

June 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three- month Average Recorded Investment
Commercial	$	4,168	$	263	$	3,343	$	3,606	$	1,168	$	3,717	$	3,298
Agricultural		163		—		118		118		87		148		136
Real Estate		18,711		2,921		9,649		12,570		2,506		13,817		12,876
Consumer		784		367		193		560		105		705		567
Total	$	23,826	$	3,551	$	13,303	$	16,854	$	3,866	$	18,387	$	16,877

* Includes $1,123,000 of purchased credit impaired loans.

December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664
Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

* Includes $2,178,000 of purchased credit impaired loans.

The Company recognized interest income on impaired loans prior to being recognized as impaired of approximately $922,000 during the year ended December 31, 2015. Such amounts for the three-month and six-month periods ended June 30, 2016 and 2015 were not significant.

From a credit risk standpoint, the Company rates its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans rated as loss are charged-off.

The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our on-going monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same, at June 30, 2016 and 2015, and December 31, 2015 (in thousands):

June 30, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	608,758	$	5,027	$	47,874	$	—	$	661,659
Agricultural		77,870		—		2,942		—		80,812
Real Estate		2,080,544		20,852		52,992		—		2,154,388
Consumer		383,818		246		2,732		—		386,796
Total	$	3,150,990	$	26,125	$	106,540	$	—	$	3,283,655
June 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,071	$	25,438	$	13,400	$	—	$	649,909
Agricultural		91,657		159		501		—		92,317
Real Estate		1,783,633		21,504		33,308		43		1,838,488
Consumer		360,094		308		1,108		—		361,510
Total	$	2,846,455	$	47,409	$	48,317	$	43	$	2,942,224
December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303
Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

At June 30, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):

June 30, 2016	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	$	13,948	$	1,032	$	937	$	15,917	$	645,742	$	661,659	$	—
Agricultural		350		2		—		352		80,460		80,812		—
Real Estate		14,640		984		3,784		19,408		2,134,980		2,154,388		187
Consumer		1,786		262		182		2,230		384,566		386,796		50
Total	$	30,724	$	2,280	$	4,903	$	37,907	$	3,245,748	$	3,283,655	$	237
June 30, 2015	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	$	7,854	$	38	$	12	$	7,904	$	642,005	$	649,909	$	—
Agricultural		270		—		—		270		92,047		92,317		—
Real Estate		13,458		1,255		1,933		16,646		1,821,842		1,838,488		47
Consumer		1,507		342		98		1,947		359,563		361,510		17
Total	$	23,089	$	1,635	$	2,043	$	26,767	$	2,915,457	$	2,942,224	$	64
December 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70
Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

* 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.

The following table details the allowance for loan losses at June 30, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2016 and 2015, and December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	4,144	$	20	$	2,565	$	373	$	7,102
Loans collectively evaluated for impairment		9,882		1,431		23,079		3,566		37,958
Total	$	14,026	$	1,451	$	25,644	$	3,939	$	45,060
June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,168	$	87	$	2,506	$	105	$	3,866
Loans collectively evaluated for impairment		10,288		305		21,836		2,704		35,133
Total	$	11,456	$	392	$	24,342	$	2,809	$	38,999
December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loans collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806
Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in the allowance for loan losses for the three and six months ended June 30, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072
Provision for loan losses		2,142			203			(760	)		473			2,058
Recoveries		255			5			363			195			818
Charge-offs		(1,276	)		(12	)		(58	)		(542	)		(1,888	)
Ending balance	$	14,026		$	1,451		$	25,644		$	3,939		$	45,060
Three months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828
Provision for loan losses		1,324			(27	)		(1,048	)		1,305			1,554
Recoveries		117			—			302			141			560
Charge-offs		(360	)		(54	)		(151	)		(378	)		(943	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999

Six months ended June 30, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		2,989			400			71			926			4,386
Recoveries		542			15			1,590			319			2,466
Charge-offs		(2,149	)		(155	)		(392	)		(973	)		(3,669	)
Ending balance	$	14,026		$	1,451		$	25,644		$	3,939		$	45,060
Six months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		3,789			(59	)		(2,515	)		1,629			2,844
Recoveries		197			2			373			212			784
Charge-offs		(520	)		(78	)		(173	)		(682	)		(1,453	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999

The Company’s recorded investment in loans as of June 30, 2016 and 2015, and December 31, 2015 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $1,654,000, $1,123,000 and $2,178,000 at June 30, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.

June 30, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	17,254	$	20	$	20,435	$	1,195	$	38,904
Loans collectively evaluated for impairment		644,405		80,792		2,133,953		385,601		3,244,751
Total	$	661,659	$	80,812	$	2,154,388	$	386,796	$	3,283,655
June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,606	$	118	$	12,570	$	560	$	16,854
Loans collectively evaluated for impairment		646,303		92,199		1,825,918		360,950		2,925,370
Total	$	649,909	$	92,317	$	1,838,488	$	361,510	$	2,942,224
December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loans collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449
Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

The Company’s loans that were modified in the three and six months ended June 30, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		4	$	286	$	286		11	$	2,926	$	2,926
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		2		463		463
Consumer		2		98		98		4		118		118
Total		6	$	384	$	384		17	$	3,507	$	3,507
	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
			Recorded		Recorded				Recorded		Recorded
	Number		Investment		Investment		Number		Investment		Investment
Commercial		2	$	74	$	74		2	$	74	$	74
Agricultural		—		—		—		3		128		128
Real Estate		2		336		336		2		336		336
Consumer		2		4		4		3		28		28
Total		6	$	414	$	414		10	$	566	$	566
The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three and six months ended June 30, 2016 and 2015 (in thousands):
	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	212	$	74	$	—	$	2,449	$	477
Agricultural		—		—		—		—		—		—
Real Estate		—		—		—		—		113		350
Consumer		—		39		59		—		43		75
Total	$	—	$	251	$	133	$	—	$	2,605	$	902
	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	74	$	—	$	—	$	74	$	—
Agricultural		—		—		—		—		128		—
Real Estate		257		—		79		257		—		79
Consumer		—		4		—		—		4		24
Total	$	257	$	78	$	79	$	257	$	206	$	103

During the three months ended June 30, 2016, one loan was modified as troubled debt restructured loan within the previous 12 months and for which there was a payment default. There were no such defaults in the three months ended June 30, 2015. During the six months ended June 30, 2016 and 2015, one loan was modified in each six month period as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or more or results in the foreclosure and repossession of the applicable collateral. The loans with payment default are as follows (dollars in thousands):

	Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		1		350		1		350
Consumer		—		—		—		—
Total		1	$	350		1	$	350

	Six Months Ended June 30, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

As of June 30, 2016, the Company has no commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings.

Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At June 30, 2016, $2,029,811,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At June 30, 2016, $210,000,000 were outstanding under this line of credit.

Fair Value Disclosures

Fair Value Disclosures

The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

• Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

• Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Securities classified as available-for-sale and trading are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items.

There were no transfers between Level 2 and Level 3 during the three and six months ended June 30, 2016 and 2015, and the year ended December 31, 2015.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2016 and 2015, and December 31, 2015, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

June 30, 2016	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,811	$	—	$	—	$	10,811
Obligations of U. S. government sponsored enterprises and agencies		—		122,352		—		122,352
Obligations of states and political subdivisions		—		1,516,312		—		1,516,312
Corporate bonds		—		65,550		—		65,550
Residential mortgage-backed securities		—		805,773		—		805,773
Commercial mortgage-backed securities		—		266,698		—		266,698
Other securities		7,860		—		—		7,860
Total	$	18,671	$	2,776,685	$	—	$	2,795,356
June 30, 2015	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,936	$	—	$	—	$	10,936
Obligations of U. S. government sponsored enterprises and agencies		—		165,336		—		165,336
Obligations of states and political subdivisions		—		1,384,246		—		1,384,246
Corporate bonds		—		92,188		—		92,188
Residential mortgage-backed securities		—		868,091		—		868,091
Commercial mortgage-backed securities		—		203,396		—		203,396
Other securities		4,920		—		—		4,920
Total	$	15,856	$	2,713,257	$	—	$	2,729,113

December 31, 2015	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,795	$	—	$	—	$	10,795
Obligations of U. S. government sponsored enterprises and agencies		—		148,554		—		148,554
Obligations of states and political subdivisions		—		1,451,127		—		1,451,127
Corporate bonds		—		83,254		—		83,254
Residential mortgage-backed securities		—		788,882		—		788,882
Commercial mortgage-backed securities		—		246,586		—		246,586
Other securities		4,701		—		—		4,701
Total	$	15,496	$	2,718,403	$	—	$	2,733,899

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following at June 30, 2016:

Impaired Loans – Impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data. At June 30, 2016, impaired loans with a carrying value of $38,904,000 were reduced by specific valuation reserves totaling $7,102,000 resulting in a net fair value of $31,802,000.

Loans Held-for-Sale – Loans held-for-sale are reported at the lower of cost or fair value. In determining whether the fair value of loans held-for-sale is less than cost when quoted market prices are not available, the Company considers investor commitments/contracts. These loans are considered Level 2 of the fair value hierarchy. At June 30, 2016, the Company’s mortgage loans held-for-sale were recorded at cost as fair value exceeded cost.

Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include other real estate owned, goodwill and other intangible assets and other non-financial long-lived assets. Non-financial assets measured at fair value on a non-recurring basis during the three months and six months ended June 30, 2016 and 2015 include other real estate owned which, subsequent to their initial transfer to other real estate owned from loans, were re-measured at fair value through a write-down included in gain (loss) on sale of foreclosed assets. During the reported periods, all fair value measurements for foreclosed assets utilized Level 2 inputs based on observable market data, generally third-party appraisals, or Level 3 inputs based on customized discounting criteria. These appraisals are evaluated individually and discounted as necessary due to the age of the appraisal, lack of comparable sales, expected holding periods of property or special use type of the property. Such discounts vary by appraisal based on the above factors but generally range from 5% to 25% of the appraised value. Re-evaluation of other real estate owned is performed at least annually as required by regulatory guidelines or more often if particular circumstances arise. The following table presents other real estate owned that were re-measured subsequent to their initial transfer to other real estate owned (dollars in thousands):

	Three Months Ended June 30,
	2016		2015
Carrying value of other real estate owned prior to re-measurement	$	—	$	341
Write-downs included in gain (loss) on sale of other real estate owned		—		(85	)
Fair value	$	—	$	256

	Six Months Ended June 30,
	2016		2015
Carrying value of other real estate owned prior to re-measurement	$	—	$	351
Write-downs included in gain (loss) on sale of other real estate owned		—		(95	)
Fair value	$	—	$	256

At June 30, 2016 and 2015, and December 31, 2015, other real estate owned totaled $124,000, $635,000, and $153,000, respectively.

The Company is required under current authoritative accounting guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements

discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

Cash and due from banks, federal funds sold, interest-bearing deposits and time deposits in banks and accrued interest receivable and payable are liquid in nature and considered Levels 1 or 2 of the fair value hierarchy.

Financial instruments with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities and are considered Levels 2 and 3 of the fair value hierarchy. Financial instrument liabilities with no stated maturities have an estimated fair value equal to both the amount payable on demand and the carrying value and are considered Level 1 of the fair value hierarchy.

The carrying value and the estimated fair value of the Company’s contractual off-balance-sheet unfunded lines of credit, loan commitments and letters of credit, which are generally priced at market at the time of funding, are not material.

The estimated fair values and carrying values of all financial instruments under current authoritative guidance at June 30, 2016 and 2015, and December 31, 2015, were as follows (in thousands):

	June 30,								December 31,
	2016				2015				2015
	Carrying		Estimated		Carrying		Estimated		Carrying		Estimated		Fair Value
	Value		Fair Value		Value		Fair Value		Value		Fair Value		Hierarchy
Cash and due from banks	$	135,092	$	135,092	$	149,524	$	149,524	$	179,140	$	179,140	Level 1
Federal funds sold		2,960		2,960		5,720		5,720		3,810		3,810	Level 1
Interest-bearing deposits in banks		67,746		67,746		18,179		18,179		89,936		89,936	Level 1
Interest-bearing time deposits in banks		2,427		2,429		5,456		5,466		3,495		3,500	Level 2
Available-for-sale Securities		2,795,356		2,795,356		2,729,113		2,729,113		2,733,899		2,733,899	Levels 1 and 2
Held-to-maturity securities		137		141		295		301		278		283	Level 2
Loans		3,264,328		3,269,221		2,928,769		2,935,344		3,308,716		3,316,243	Level 3
Accrued interest receivable		33,516		33,516		32,003		32,003		34,697		34,697	Level 2
Deposits with stated maturities		554,753		556,224		598,404		600,093		620,852		622,572	Level 2
Deposits with no stated maturities		4,501,536		4,501,536		4,129,015		4,129,015		4,569,317		4,569,317	Level 1
Short-term borrowings		556,924		556,924		621,155		621,155		615,675		615,675	Level 2
Accrued interest payable		283		283		242		242		240		240	Level 2