Note 4 - Loans

6 Months Ended

Jun. 30, 2013

Disclosure Text Block Supplement [Abstract]

Loans, Notes, Trade and Other Receivables, Excluding Allowance for Credit Losses [Text Block]

4. LOANS

Loans Held-for-Investment

Loans that the Company intends to hold until they are paid in full or mature are classified as loans held-for-investment. The following table presents the Company’s loans held-for-investment by class.

Loan Portfolio

(Dollar amounts in thousands)

	June 30, 2013		December 31, 2012
Commercial and industrial	$	1,743,139	$	1,631,474
Agricultural		288,632		268,618
Commercial real estate:
Office, retail, and industrial		1,319,849		1,333,191
Multi-family		306,182		285,481
Residential construction		50,384		61,462
Commercial construction		117,116		124,954
Other commercial real estate		759,367		773,121
Total commercial real estate		2,552,898		2,578,209
Total corporate loans		4,584,669		4,478,301
Home equity		374,406		390,033
1-4 family mortgages		291,770		282,948
Installment		36,720		38,394
Total consumer loans		702,896		711,375
Total loans, excluding covered loans		5,287,565		5,189,676
Covered loans (1)		171,861		197,894
Total loans	$	5,459,426	$	5,387,570
Deferred loan fees included in total loans	$	5,180	$	5,941
Overdrawn demand deposits included in total loans	$	3,001	$	4,451

⁽¹⁾ For information on covered loans, refer to Note 5, “Acquired Loans.”

The Company primarily lends to small and mid-sized businesses, commercial real estate customers, and consumers in the Company’s markets. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower.

It is the Company’s policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company’s lending standards, and credit monitoring and remediation procedures. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 4, “Loans,” in the Company’s 2012 10-K.

Mortgage Loan Sales

During the quarter ended June 30, 2013, the Company sold $28.0 million of mortgage loans at a gain of $1.0 million, which is included in mortgage banking income in the Consolidated Statements of Income. For the six months ended June 30, 2013, a gain of $3.0 million was recognized on $82.0 million of mortgage loans sold. The Company retained servicing responsibilities for the sold mortgages and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold loans. A description of the recourse obligation is presented in Note 11, “Commitments, Guarantees, and Contingent Liabilities.”