Loans | Loans The following tables present the Company's recorded investment and contractual aging of the Company's recorded investment in loans by class as of the dates indicated. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Total Loans 30 - 59 60 - 89 > 90 30 or More Days Days Days Days Current Non-accrual Total As of June 30, 2017 Past Due Past Due Past Due Past Due Loans Loans Loans Real estate Commercial $ 4,522 $ 419 $ 978 $ 5,919 $ 2,780,010 $ 30,597 $ 2,816,526 Construction: Land acquisition & development 1,880 42 52 1,974 333,247 4,663 339,884 Residential 1,124 508 — 1,632 217,914 210 219,756 Commercial — — — — 117,287 4,318 121,605 Total construction loans 3,004 550 52 3,606 668,448 9,191 681,245 Residential 14,136 2,583 3,583 20,302 1,441,507 4,205 1,466,014 Agricultural 1,371 661 1,900 3,932 156,898 2,345 163,175 Total real estate loans 23,033 4,213 6,513 33,759 5,046,863 46,338 5,126,960 Consumer: Indirect consumer 6,430 1,648 159 8,237 769,361 1,428 779,026 Other consumer 1,246 301 87 1,634 173,713 390 175,737 Credit card 488 355 487 1,330 74,300 1 75,631 Total consumer loans 8,164 2,304 733 11,201 1,017,374 1,819 1,030,394 Commercial 3,487 1,248 1,684 6,419 1,178,688 25,762 1,210,869 Agricultural 1,618 487 432 2,537 143,824 2,768 149,129 Other, including overdrafts — — — — 8,238 — 8,238 Loans held for investment 36,302 8,252 9,362 53,916 7,394,987 76,687 7,525,590 Mortgage loans originated for sale — — — — 30,383 — 30,383 Total loans $ 36,302 $ 8,252 $ 9,362 $ 53,916 $ 7,425,370 $ 76,687 $ 7,555,973 Total Loans 30 - 59 60 - 89 > 90 30 or More Days Days Days Days Current Non-accrual Total As of December 31, 2016 Past Due Past Due Past Due Past Due Loans Loans Loans Real estate Commercial $ 7,307 $ 1,099 $ 303 $ 8,709 $ 1,799,525 $ 26,211 $ 1,834,445 Construction: Land acquisition & development 633 352 279 1,264 202,223 5,025 208,512 Residential 931 264 — 1,195 146,245 456 147,896 Commercial — — — — 124,827 762 125,589 Total construction loans 1,564 616 279 2,459 473,295 6,243 481,997 Residential 3,986 1,280 702 5,968 1,014,990 6,435 1,027,393 Agricultural 341 287 — 628 165,293 4,327 170,248 Total real estate loans 13,198 3,282 1,284 17,764 3,453,103 43,216 3,514,083 Consumer: Indirect consumer 8,425 2,329 712 11,466 740,163 780 752,409 Other consumer 1,322 235 167 1,724 146,006 357 148,087 Credit card 504 333 567 1,404 68,366 — 69,770 Total consumer loans 10,251 2,897 1,446 14,594 954,535 1,137 970,266 Commercial 3,171 727 734 4,632 767,878 25,432 797,942 Agricultural 1,518 362 14 1,894 127,956 3,008 132,858 Other, including overdrafts — 1 311 312 1,289 — 1,601 Loans held for investment 28,138 7,269 3,789 39,196 5,304,761 72,793 5,416,750 Mortgage loans originated for sale — — — — 61,794 — 61,794 Total loans $ 28,138 $ 7,269 $ 3,789 $ 39,196 $ 5,366,555 $ 72,793 $ 5,478,544 Loans from business combinations included in the tables above include certain loans that had evidence of deterioration in credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The following table displays the outstanding unpaid balances and accrual status of loans acquired with credit impairment as of June 30, 2017 and 2016 : As of June 30, 2017 2016 Outstanding balance $ 60,195 $ 31,979 Carrying value Loans on accrual status 39,359 20,140 Total carrying value $ 39,359 $ 20,140 The following table summarizes changes in the accretable yield for loans acquired credit impaired for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Beginning balance $ 6,432 $ 6,678 $ 6,803 $ 6,713 Additions 1,929 — 1,929 — Accretion income (668 ) (615 ) (1,273 ) (1,229 ) Reductions due to exit events (418 ) (158 ) (988 ) (305 ) Reclassifications from nonaccretable differences 375 — 1,179 726 Ending balance $ 7,650 $ 5,905 $ 7,650 $ 5,905 Acquired loans that met the criteria for nonaccrual of interest prior to acquisition were considered performing upon acquisition. If interest on non-accrual loans had been accrued, such income would have been approximately $ 919 and $ 821 for the three months ended June 30, 2017 and 2016 , respectively, and approximately $1,772 and $1,690 for the six months ended June 30, 2017, and 2016, respectively. The Company considers impaired loans to include all originated loans, except consumer loans, that are risk rated as doubtful, or have been placed on non-accrual status or renegotiated in troubled debt restructurings, and all loans acquired with evidence of deterioration in credit quality and for which it was probable, at acquisition, that the Company would be unable to collect all contractual amounts owed. The following tables present information on the Company’s recorded investment in impaired loans as of dates indicated: As of June 30, 2017 Unpaid Total Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Real estate: Commercial $ 53,576 $ 22,751 $ 20,380 $ 43,131 $ 5,158 Construction: Land acquisition & development 11,281 3,639 1,718 5,357 741 Residential 312 209 — 209 — Commercial 4,728 226 4,204 4,430 2,828 Total construction loans 16,321 4,074 5,922 9,996 3,569 Residential 7,636 4,472 2,022 6,494 170 Agricultural 2,752 2,549 153 2,702 9 Total real estate loans 80,285 33,846 28,477 62,323 8,906 Consumer 28 — 25 25 — Commercial 39,587 13,021 18,882 31,903 6,882 Agricultural 3,001 2,040 940 2,980 528 Total $ 122,901 $ 48,907 $ 48,324 $ 97,231 $ 16,316 As of December 31, 2016 Unpaid Total Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Real estate: Commercial $ 57,017 $ 24,410 $ 21,420 $ 45,830 $ 2,847 Construction: Land acquisition & development 12,084 4,330 1,813 6,143 826 Residential 1,555 219 619 838 1 Commercial 4,786 3,940 647 4,587 657 Total construction loans 18,425 8,489 3,079 11,568 1,484 Residential 8,222 4,074 2,470 6,544 253 Agricultural 5,069 4,509 181 4,690 4 Total real estate loans 88,733 41,482 27,150 68,632 4,588 Commercial 40,314 13,230 19,167 32,397 9,254 Agricultural 3,738 3,280 382 3,662 112 Total $ 132,785 $ 57,992 $ 46,699 $ 104,691 $ 13,954 The following table presents the average recorded investment in and income recognized on impaired loans for the periods indicated: Three Months Ended June 30, 2017 2016 Average Recorded Investment Income Recognized Average Recorded Investment Income Recognized Real estate: Commercial $ 43,871 $ 102 $ 34,576 $ 105 Construction: Land acquisition & development 5,411 4 7,096 12 Residential 212 — 277 — Commercial 4,463 1 1,421 2 Total construction loans 10,086 5 8,794 14 Residential 6,574 4 3,067 2 Agricultural 2,389 — 5,857 — Total real estate loans 62,920 111 52,294 121 Consumer 13 — — — Commercial 32,491 60 28,074 41 Agricultural 2,068 — 753 — Total $ 97,492 $ 171 $ 81,121 $ 162 Six Months Ended June 30, 2017 2016 Average Recorded Investment Income Recognized Average Recorded Investment Income Recognized Real estate: Commercial $ 44,481 $ 227 $ 36,342 $ 141 Construction: Land acquisition & development 5,750 8 7,277 19 Residential 524 — 282 — Commercial 4,509 44 1,433 2 Total construction loans 10,783 52 8,992 21 Residential 6,519 8 4,138 3 Agricultural 3,696 — 5,671 1 Total real estate loans 65,479 287 55,143 166 Consumer 13 — — — Commercial 32,150 109 28,133 56 Agricultural 3,321 2 846 — Total $ 100,963 $ 398 $ 84,122 $ 222 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 principal. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. If interest on impaired loans had been accrued, interest income on impaired loans would have been approximately $ 919 and $ 964 for the three months ended June 30, 2017 and 2016 , respectively, and approximately $1,772 and $2,020 for the six months ended June 30, 2017 and 2016, respectively. Collateralized impaired loans are generally recorded at the fair value of the underlying collateral using discounted cash flows, independent appraisals and management estimates based upon current market conditions. For loans measured under the present value of cash flows method, 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 changes, 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 may be returned to accrual status after considering the borrower's sustained repayment performance in accordance with the restructuring agreement for a 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 and the accrual of interest will resume, although they continue to be individually evaluated for impairment and disclosed as impaired loans. The Company had loans renegotiated in troubled debt restructurings of $ 52,351 as of June 30, 2017 , of which $ 37,395 were included in non-accrual loans and $ 14,956 were on accrual status. The Company had loans renegotiated in troubled debt restructurings of $ 49,652 as of December 31, 2016 , of which $ 27,309 were included in non-accrual loans and $ 22,343 were on accrual status. The following table presents information on the Company's troubled debt restructurings that occurred during the three and six months ended June 30, 2017 : Number of Notes Type of Concession Principal Balance at Restructure Date Three Months Ended June 30, 2017 Interest only period Extension of term or amortization schedule Interest rate adjustment Other (1) Commercial real estate 1 $ — $ 226 $ — $ — $ 226 Commercial 2 16 — — 465 481 Total loans restructured during period 3 $ 16 $ 226 $ — $ 465 $ 707 (1) Other includes concessions that reduce or defer payments for a specified period of time and/or concessions that do not fit into other designated categories. Number of Notes Type of Concession Principal Balance at Restructure Date Six Months Ended June 30, 2017 Interest only period Extension of terms or maturity Interest rate adjustment Other (1) Commercial real estate 5 $ 1,475 $ 388 $ — $ 909 $ 2,772 Commercial 15 511 1,968 — 5,446 7,925 Total loans restructured during period 20 $ 1,986 $ 2,356 $ — $ 6,355 $ 10,697 (1) Other includes concessions that reduce or defer payments for a specified period of time and/or do not fit into other designated categories. For troubled debt restructurings that were on non-accrual status or otherwise deemed impaired 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. Additionally these loans continue to work their way through the credit cycle through charge-off, pay-off or foreclosure. Financial effects of modifications of troubled debt restructurings may include principal loan forgiveness or other charge-offs directly related to the restructuring. The Company had no charge-offs directly related to modifying troubled debt restructurings during the three or six months ended June 30, 2017 or 2016 . 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 three and six months ended June 30, 2017 . 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. Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Number of Notes Balance Number of Notes Balance Commercial real estate 3 $ 2,763 3 $ 2,763 Commercial construction 1 3,575 1 3,575 Total 4 $ 6,338 4 $ 6,338 At June 30, 2017 , 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 loan 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 specific loss exposure. Company management undertakes the same process for assigning risk ratings to acquired loans as it does for originated loans. Acquired loans rated as substandard or lower or that were on non-accrual status or designated as troubled debt restructurings at the time of acquisition are deemed to be acquired credit impaired loans accounted for under ASC Topic 310-30, regardless of whether they are classified as performing or non-performing loans. The following tables present the Company’s recorded investment in criticized loans by class and credit quality indicator based on the most recent analysis performed as of the dates indicated: As of June 30, 2017 Other Assets Especially Mentioned Substandard Doubtful Total Criticized Loans Real estate: Commercial $ 89,093 $ 105,050 $ 14,265 $ 208,408 Construction: Land acquisition & development 17,516 6,785 1,383 25,684 Residential 2,609 2,503 548 5,660 Commercial 1,520 3,844 4,221 9,585 Total construction loans 21,645 13,132 6,152 40,929 Residential 4,831 11,754 874 17,459 Agricultural 1,319 16,016 — 17,335 Total real estate loans 116,888 145,952 21,291 284,131 Consumer: Indirect consumer 707 2,096 126 2,929 Other consumer 609 835 135 1,579 Credit card — 185 — 185 Total consumer loans 1,316 3,116 261 4,693 Commercial 39,346 57,731 21,310 118,387 Agricultural 5,526 15,612 1,327 22,465 Total $ 163,076 $ 222,411 $ 44,189 $ 429,676 As of December 31, 2016 Other Assets Especially Mentioned Substandard Doubtful Total Criticized Loans Real estate: Commercial $ 85,292 $ 85,293 $ 10,842 $ 181,427 Construction: Land acquisition & development 13,414 6,214 1,401 21,029 Residential 412 1,621 656 2,689 Commercial 1,555 6,344 664 8,563 Total construction loans 15,381 14,179 2,721 32,281 Residential 5,038 12,472 764 18,274 Agricultural 3,831 17,813 — 21,644 Total real estate loans 109,542 129,757 14,327 253,626 Consumer: Indirect consumer 778 1,527 101 2,406 Other consumer 681 1,036 264 1,981 Total consumer loans 1,459 2,563 365 4,387 Commercial 46,402 29,281 21,240 96,923 Agricultural 6,178 10,724 404 17,306 Total $ 163,581 $ 172,325 $ 36,336 $ 372,242 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 maintained and reviewed on a quarterly basis for all categories of criticized loans. |