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 September 30, 2017 Past Due Past Due Past Due Past Due Loans Loans Loans Real estate Commercial $ 4,582 $ 1,160 $ 2,502 $ 8,244 $ 2,722,265 $ 28,042 $ 2,758,551 Construction: Land acquisition & development 1,656 493 65 2,214 345,234 4,720 352,168 Residential 1,245 1,598 470 3,313 230,533 205 234,051 Commercial — — — — 113,173 3,844 117,017 Total construction loans 2,901 2,091 535 5,527 688,940 8,769 703,236 Residential 8,502 6,313 187 15,002 1,478,314 5,711 1,499,027 Agricultural 1,327 8,533 — 9,860 148,219 2,218 160,297 Total real estate loans 17,312 18,097 3,224 38,633 5,037,738 44,740 5,121,111 Consumer: Indirect consumer 6,840 1,659 347 8,846 778,434 1,505 788,785 Other consumer 1,391 498 68 1,957 175,275 358 177,590 Credit card 1,043 408 671 2,122 70,087 — 72,209 Total consumer loans 9,274 2,565 1,086 12,925 1,023,796 1,863 1,038,584 Commercial 3,308 1,094 1,077 5,479 1,154,196 26,532 1,186,207 Agricultural 1,769 97 278 2,144 149,192 1,345 152,681 Other, including overdrafts — — — — 3,804 — 3,804 Loans held for investment 31,663 21,853 5,665 59,181 7,368,726 74,480 7,502,387 Mortgage loans originated for sale — — — — 49,729 — 49,729 Total loans $ 31,663 $ 21,853 $ 5,665 $ 59,181 $ 7,418,455 $ 74,480 $ 7,552,116 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 September 30, 2017 and 2016 : As of September 30, 2017 2016 Outstanding balance $ 46,199 $ 38,505 Carrying value Loans on accrual status 30,804 23,665 Total carrying value $ 30,804 $ 23,665 The following table summarizes changes in the accretable yield for loans acquired credit impaired for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Beginning balance $ 7,650 $ 5,905 $ 6,803 $ 6,713 Additions 167 1,114 2,096 1,114 Accretion income (858 ) (670 ) (2,131 ) (1,899 ) Reductions due to exit events (143 ) (595 ) (1,131 ) (900 ) Reclassifications from nonaccretable differences 498 729 1,677 1,455 Ending balance $ 7,314 $ 6,483 $ 7,314 $ 6,483 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 $ 946 and $ 820 for the three months ended September 30, 2017 and 2016 , respectively, and approximately $1,814 and $2,492 for the nine months ended September 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 September 30, 2017 Unpaid Total Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Real estate: Commercial $ 47,934 $ 21,558 $ 16,035 $ 37,593 $ 3,947 Construction: Land acquisition & development 11,290 3,694 1,714 5,408 711 Residential 310 205 — 205 — Commercial 4,725 417 3,537 3,954 2,148 Total construction loans 16,325 4,316 5,251 9,567 2,859 Residential 8,990 5,629 2,122 7,751 218 Agricultural 2,681 2,425 156 2,581 4 Total real estate loans 75,930 33,928 23,564 57,492 7,028 Consumer 27 — 25 25 14 Commercial 36,787 14,623 16,748 31,371 6,426 Agricultural 1,585 951 609 1,560 435 Total $ 114,329 $ 49,502 $ 40,946 $ 90,448 $ 13,903 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 September 30, 2017 2016 Average Recorded Investment Income Recognized Average Recorded Investment Income Recognized Real estate: Commercial $ 40,362 $ 54 $ 33,408 $ 100 Construction: Land acquisition & development 5,383 2 6,797 13 Residential 207 — 274 — Commercial 4,192 1 1,055 1 Total construction loans 9,782 3 8,126 14 Residential 7,123 4 3,282 4 Agricultural 2,642 — 4,786 2 Total real estate loans 59,909 61 49,602 120 Consumer 25 — — Commercial 31,637 47 30,123 72 Agricultural 2,270 — 2,249 — Total $ 93,841 $ 108 $ 81,974 $ 192 Nine Months Ended September 30, 2017 2016 Average Recorded Investment Income Recognized Average Recorded Investment Income Recognized Real estate: Commercial $ 41,712 $ 281 $ 35,572 $ 241 Construction: Land acquisition & development 5,776 10 6,992 32 Residential 522 — 279 — Commercial 4,271 45 1,007 3 Total construction loans 10,569 55 8,278 35 Residential 7,148 12 4,219 7 Agricultural 3,636 — 4,607 3 Total real estate loans 63,065 348 52,676 286 Consumer 13 — — — Commercial 31,884 156 27,781 128 Agricultural 2,611 2 2,341 — Total $ 97,573 $ 506 $ 82,798 $ 414 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 $ 946 and $ 993 for the three months ended September 30, 2017 and 2016 , respectively, and approximately $1,814 and $2,994 for the nine months ended September 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 $ 45,859 as of September 30, 2017 , of which $ 34,997 were included in non-accrual loans and $ 10,862 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 nine months ended September 30, 2017 : Number of Notes Type of Concession Principal Balance at Restructure Date Three Months Ended September 30, 2017 Interest only period Extension of term or amortization schedule Interest rate adjustment Other (1) Commercial 1 — — — 611 611 Total loans restructured during period 1 $ — $ — $ — $ 611 $ 611 (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 Nine Months Ended September 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 16 511 1,968 — 6,057 8,536 Total loans restructured during period 21 $ 1,986 $ 2,356 $ — $ 6,966 $ 11,308 (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 nine months ended September 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 nine months ended September 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 September 30, 2017 Nine Months Ended September 30, 2017 Number of Notes Balance Number of Notes Balance Commercial real estate 1 $ 177 2 $ 2,407 Commercial construction — — 1 3,528 Commercial 1 1,300 1 1,300 Total 2 $ 1,477 4 $ 7,235 At September 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 September 30, 2017 Other Assets Especially Mentioned Substandard Doubtful Total Criticized Loans Real estate: Commercial $ 79,921 $ 107,791 $ 12,025 $ 199,737 Construction: Land acquisition & development 5,425 13,818 1,597 20,840 Residential 3,690 2,201 — 5,891 Commercial 2,564 3,842 3,747 10,153 Total construction loans 11,679 19,861 5,344 36,884 Residential 4,607 11,664 1,039 17,310 Agricultural 1,212 23,574 — 24,786 Total real estate loans 97,419 162,890 18,408 278,717 Consumer: Indirect consumer 660 2,116 120 2,896 Other consumer 458 849 140 1,447 Total consumer loans 1,118 2,965 260 4,343 Commercial 43,365 61,612 16,495 121,472 Agricultural 5,219 11,859 979 18,057 Total $ 147,121 $ 239,326 $ 36,142 $ 422,589 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. |