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Loans and Allowance (Tables)
 6 Months Ended
Jun. 30, 2012
Composition of Loan Portfolio by Loan Class
The following table shows the composition of the corporation’s loan portfolio by loan class for the periods indicated:

   
June 30,
    
December 31,
  
   
2012
    
2011
  
Loans:
            
Commercial and industrial loans
  
$
552,353
    
$
532,523
  
Agricultural production financing and other loans to farmers
    
106,135
      
104,526
  
Real estate loans:
                
Construction
    
99,588
      
81,780
  
Commercial and farm land
    
1,219,114
      
1,194,230
  
Residential
    
480,917
      
481,493
  
Home Equity
    
207,250
      
191,631
  
Individual's loans for household and other personal expenditures
    
83,933
      
84,172
  
Lease financing receivables, net of unearned income
    
2,976
      
3,555
  
Other loans
    
45,368
      
39,505
  
     
2,797,634
      
2,713,415
  
Allowance for loan losses
    
(70,143
)
    
(70,898
)
Total Loans
  
$
2,727,491
    
$
2,642,517
  
Changes in Allowance for Loan Losses
The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2012 and June 30, 2011:

   
Three Months Ended June 30, 2012
  
   
Commercial
    
Real Estate
Commercial
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance for loan losses:
                                    
Balances, April 1
  
$
15,574
    
$
37,907
    
$
2,805
    
$
14,083
            
$
70,369
  
Provision for losses
    
4,325
      
(750
)
    
(177
)
    
1,147
              
4,545
  
Recoveries on loans
    
519
      
1,636
      
168
      
481
              
2,804
  
Loans charged off
    
(2,627
)
    
(3,660
)
    
(365
)
    
(923
)
            
(7,575
)
Balances, June 30, 2012
  
$
17,791
    
$
35,133
    
$
2,431
    
$
14,788
            
$
70,143
  


   
Six Months Ended June 30, 2012
  
   
Commercial
    
Real Estate
Commercial
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance for loan losses:
                                    
Balances, January 1
  
$
17,731
    
$
37,919
    
$
2,902
    
$
12,343
    
$
3
    
$
70,898
  
Provision for losses
    
4,902
      
1,028
      
(161
)
    
3,655
      
(4
)
    
9,420
  
Recoveries on loans
    
667
      
1,864
      
376
      
794
      
1
      
3,702
  
Loans charged off
    
(5,509
)
    
(5,678
)
    
(686
)
    
(2,004
)
            
(13,877
)
Balances, June 30, 2012
  
$
17,791
    
$
35,133
    
$
2,431
    
$
14,788
            
$
70,143
  


   
Three Months Ended June 30, 2011
  
   
Commercial
    
Real Estate
Commercial
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance for loan losses:
                                    
Balances, April 1
  
$
30,206
    
$
37,240
    
$
3,098
    
$
10,371
    
$
21
    
$
80,936
  
Provision for losses
    
(11,993
)
    
14,264
      
(253
)
    
3,617
      
(10
)
    
5,625
  
Recoveries on loans
    
6,351
      
545
      
332
      
225
      
3
      
7,456
  
Loans charged off
    
(849
)
    
(13,381
)
    
(318
)
    
(2,336
)
            
(16,884
)
Balances, June 30, 2011
  
$
23,715
    
$
38,668
    
$
2,859
    
$
11,877
    
$
14
    
$
77,133
  


   
Six Months Ended June 30, 2011
  
   
Commercial
    
Real Estate
Commercial
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance for loan losses:
                                    
Balances, January 1
  
$
32,508
    
$
36,341
    
$
3,622
    
$
10,408
    
$
98
    
$
82,977
  
Provision for losses
    
(13,875
)
    
21,190
      
(468
)
    
4,459
      
(87
)
    
11,219
  
Recoveries on loans
    
6,998
      
866
      
618
      
697
      
3
      
9,182
  
Loans charged off
    
(1,916
)
    
(19,729
)
    
(913
)
    
(3,687
)
            
(26,245
)
Balances, June 30, 2011
  
$
23,715
    
$
38,668
    
$
2,859
    
$
11,877
    
$
14
    
$
77,133
  
Allowance for Credit Losses and Loan Portfolio by Loan Segment
The following table shows the Corporation’s allowance for credit losses and loan portfolio by loan segment for the periods indicated:

   
June 30, 2012
  
   
Commercial
    
Commercial
Real Estate
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance Balances:
                                    
        Individually evaluated for impairment
  
$
2,447
    
$
2,202
          
$
1,427
          
$
6,076
  
        Collectively evaluated for impairment
    
15,344
      
32,931
    
$ 
2,431
      
13,361
              
64,067
  
                Total Allowance for Loan Losses
  
$
17,791
    
$
35,133
    
$
2,431
    
$
14,788
            
$
70,143
  
                                                 
Loan Balances:
                                                
        Individually evaluated for impairment
  
$
16,596
    
$
56,343
    
$
139
    
$
15,204
            
$
88,282
  
        Collectively evaluated for impairment
    
687,260
      
1,262,359
      
83,794
      
672,963
    
$ 
2,976
      
2,709,352
  
                Total Loans
  
$
703,856
    
$
1,318,702
    
$
83,933
    
$
688,167
    
$
2,976
    
$
2,797,634
  


   
December 31, 2011
  
   
Commercial
    
Commercial
Real Estate
    
Consumer
    
Residential
    
Finance
Leases
    
Total
  
Allowance Balances:
                                    
        Individually evaluated for impairment
  
$
4,701
    
$
2,504
          
$
733
          
$
7,938
  
        Collectively evaluated for impairment
    
13,030
      
35,415
    
$
2,902
      
11,610
    
$
3
      
62,960
  
                Total Allowance for Loan Losses
  
$
17,731
    
$
37,919
    
$
2,902
    
$
12,343
    
$
3
    
$
70,898
  
                                                 
Loan Balances:
                                                
        Individually evaluated for impairment
  
$
18,793
    
$
51,980
            
$
12,546
            
$
83,319
  
        Collectively evaluated for impairment
    
657,760
      
1,224,031
    
$
84,172
      
660,578
    
$
3,555
      
2,630,096
  
                Total Loans
  
$
676,553
    
$
1,276,011
    
$
84,172
    
$
673,124
    
$
3,555
    
$
2,713,415
  
Summary of Non-Accrual Loans by Loan class
The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated:
 
   
June 30,
    
December 31,
  
   
2012
    
2011
  
Commercial and Industrial
  
$
13,723
    
$
12,246
  
Agriculture production financing and other loans
                
Real Estate Loans:
                
       Construction
    
7,630
      
8,990
  
       Commercial and farm land
    
26,838
      
31,093
  
       Residential
    
12,583
      
14,805
  
       Home Equity
    
1,855
      
1,896
  
Individuals loans for household and other personal expenditures
    
146
      
1
  
Lease financing receivables, net of unearned income
    
345
          
Other Loans
    
7
      
561
  
             Total
  
$
63,127
    
$
69,592
  
Composition of Impaired Loans by Loan Class
The following table shows the composition of the Corporation’s commercial impaired loans by loan class as of June 30, 2012:

                     
Three Months Ended
    
Six Months Ended
  
   
June 30, 2012
    
June 30, 2012
    
June 30, 2012
  
   
Unpaid
Principal
Balance
    
Recorded
Investment
    
Related
Allowance
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Impaired loans with no related allowance:
                                          
          Commercial and industrial
  
$
26,307
    
$
10,487
          
$
11,411
    
$
39
    
$
12,418
    
$
64
  
          Real Estate Loans:
                                                      
               Construction
    
12,309
      
7,197
            
8,040
      
16
      
8,581
      
29
  
               Commercial and farm land
    
57,740
      
38,884
            
41,084
      
315
      
42,615
      
575
  
               Residential
    
8,372
      
5,589
            
5,815
      
15
      
6,072
      
26
  
               Home equity
    
3,754
      
567
            
570
      
3
      
585
      
6
  
          Individuals loans for household and
                          
139
              
139
          
               other personal expenditures
    
283
      
139
                                        
          Other loans
    
91
      
18
              
18
              
19
          
                  Total
  
$
108,856
    
$
62,881
            
$
67,077
    
$
388
    
$
70,429
    
$
700
  
                                                         
Impaired loans with related allowance:
                                                        
          Commercial and industrial
  
$
6,523
    
$
6,091
    
$
2,447
    
$
6,111
    
$
11
    
$
6,136
    
$
21
  
          Real Estate Loans:
                                                        
               Construction
    
2,176
      
1,931
      
235
      
1,931
              
1,936
          
               Commercial and farm land
    
9,671
      
8,330
      
1,967
      
8,369
      
45
      
8,505
      
89
  
               Residential
    
2,115
      
2,008
      
552
      
2,012
      
19
      
1,993
      
38
  
               Home equity
                                                        
          Individuals loans for household and
                                                        
               other personal expenditures
                                                        
          Other loans
                                                        
                  Total
  
$
20,485
    
$
18,360
    
$
5,201
    
$
18,423
    
$
75
    
$
18,570
    
$
148
  
Total Impaired Loans
  
$
129,341
    
$
81,241
    
$
5,201
    
$
85,500
    
$
463
    
$
88,999
    
$
848
  
 
The following table shows the composition of the Corporation’s commercial impaired loans by loan class as of December 31, 2011:

   
December 31,2011
  
   
Unpaid
Principal
Balance
    
Recorded
Investment
    
Related
Allowance
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Impaired loans with no related allowance:
                              
          Commercial and industrial
  
$
23,364
    
$
10,116
          
$
13,399
    
$
615
  
          Real Estate Loans:
                                      
               Construction
    
14,301
      
7,701
            
8,836
          
               Commercial and farm land
    
49,242
      
34,571
            
39,032
      
591
  
               Residential
    
7,491
      
6,185
            
6,539
      
20
  
               Home equity
    
4,425
      
1,241
            
1,500
      
15
  
          Individuals loans for household and
                                      
               other personal expenditures
                                      
          Other loans
    
99
      
21
              
24
          
                  Total
  
$
98,922
    
$
59,835
            
$
69,330
    
$
1,241
  
                                         
Impaired loans with related allowance:
                                        
          Commercial and industrial
  
$
8,691
    
$
8,104
    
$
4,142
    
$
8,196
    
$
174
  
          Real Estate Loans:
                                        
               Construction
    
961
      
961
      
321
      
961
          
               Commercial and farm land
    
12,115
      
8,748
      
2,183
      
10,028
      
140
  
               Residential
    
1,888
      
1,575
      
391
      
1,687
      
7
  
               Home equity
                                        
          Individuals loans for household and
                                        
               other personal expenditures
                                        
          Other loans
    
579
      
552
      
559
      
590
          
                  Total
  
$
24,234
    
$
19,940
    
$
7,596
    
$
21,462
    
$
321
  
Total Impaired Loans
  
$
123,156
    
$
79,775
    
$
7,596
    
$
90,792
    
$
1,562
  
Credit Quality of Loan Portfolio by Loan Class
The following table summarizes the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated.  Consumer Non-Performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans.  The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date.

   
June 30, 2012
  
   
Commercial
Pass
    
Commercial
Special
Mention
    
Commercial
Substandard
    
Commercial
Doubtful
    
Consumer
Performing
    
Consumer
Non-
Performing
    
Total
Loans
  
Commercial and industrial
  
$
485,220
    
$
37,086
    
$
25,293
    
$
4,754
                
$
552,353
  
Agriculture production financing and other loans
    
105,269
      
352
      
514
                          
106,135
  
Real Estate Loans:
                                                    
       Construction
    
76,112
      
2,116
      
21,246
                  
$
114
      
99,588
  
       Commercial and farm land
    
1,079,776
      
45,377
      
93,101
      
802
            
58
      
1,219,114
  
       Residential
    
132,361
      
9,552
      
16,885
      
459
    
$
314,191
      
7,469
      
480,917
  
       Home equity
    
14,543
      
1,298
      
1,778
              
188,108
      
1,523
      
207,250
  
Individuals loans for household and other
personal expenditures
                                    
83,925
      
8
      
83,933
  
Lease financing receivables, net of unearned income
                                    
2,976
              
2,976
  
Other loans
    
45,314
      
11
      
43
                              
45,368
  
                Total
  
$
1,938,595
    
$
95,792
    
$
158,860
    
$
6,015
    
$
589,200
    
$
9,172
    
$
2,797,634
  


   
December 31, 2011
  
   
Commercial
Pass
    
Commercial
Special
Mention
    
Commercial
Substandard
    
Commercial
Doubtful
    
Consumer
Performing
    
Consumer
Non
Performing
    
Total
Loans
  
Commercial and industrial
  
$
478,885
    
$
22,405
    
$
28,025
    
$
3,208
                
$
532,523
  
Agriculture production financing and other loans
    
101,289
      
1,582
      
1,655
                          
104,526
  
Real Estate Loans:
                                                    
       Construction
    
47,611
      
3,672
      
22,376
            
$
7,762
    
$
359
      
81,780
  
       Commercial and farm land
    
1,033,397
      
54,697
      
103,330
      
1,724
      
1,035
      
47
      
1,194,230
  
       Residential
    
139,237
      
9,175
      
16,699
      
500
      
308,306
      
7,576
      
481,493
  
       Home equity
    
15,912
      
499
      
3,317
              
170,776
      
1,127
      
191,631
  
Individuals loans for household and other
personal expenditures
                                    
84,121
      
51
      
84,172
  
Lease financing receivables, net of unearned income
                                    
3,555
              
3,555
  
Other loans
    
38,917
      
15
      
21
      
552
                      
39,505
  
                Total
  
$
1,855,248
    
$
92,045
    
$
175,423
    
$
5,984
    
$
575,555
    
$
9,160
    
$
2,713,415
  
Past Due Aging of Loan Portfolio by Loan Class
The following table shows a past due aging of the Corporation’s loan portfolio, by loan class for June 30, 2012, and December 31, 2011:

   
June 30, 2012
  
   
Current
    
30-59
Days
Past Due
    
60-89
Days
Past Due
    
Loans > 90
Days And
Accruing
    
Non-
Accrual
    
Total Past
Due & Non-
Accrual
    
Total Loans
  
Commercial and industrial
  
$
535,910
    
$
2,086
    
$
506
    
$
128
    
$
13,723
    
$
16,443
    
$
552,353
  
Agriculture production financing and other loans
    
106,135
                                              
106,135
  
Real Estate Loans:
                                                        
       Construction
    
91,751
      
202
              
5
      
7,630
      
7,837
      
99,588
  
       Commercial and farm land
    
1,184,882
      
5,095
      
2,122
      
177
      
26,838
      
34,232
      
1,219,114
  
       Residential
    
459,104
      
6,967
      
1,936
      
327
      
12,583
      
21,813
      
480,917
  
       Home equity
    
203,794
      
904
      
669
      
28
      
1,855
      
3,456
      
207,250
  
Individuals loans for household and other
personal expenditures
    
83,065
      
649
      
73
              
146
      
868
      
83,933
  
Lease financing receivables, net of unearned income
    
2,631
                              
345
      
345
      
2,976
  
Other loans
    
45,361
                              
7
      
7
      
45,368
  
                Total
  
$
2,712,633
    
$
15,903
    
$
5,306
    
$
665
    
$
63,127
    
$
85,001
    
$
2,797,634
  


   
December 31, 2011
  
   
Current
    
30-59
Days
Past Due
    
60-89
Days
Past Due
    
Loans > 90
Days And
Accruing
    
Non-
Accrual
    
Total Past
Due & Non-
Accrual
    
Total Loans
  
Commercial and industrial
  
$
518,764
    
$
1,332
    
$
135
    
$
46
    
$
12,246
    
$
13,759
    
$
532,523
  
Agriculture production financing and other loans
    
104,464
      
62
                              
62
      
104,526
  
Real Estate Loans:
                                                        
       Construction
    
69,305
      
328
      
3,126
      
31
      
8,990
      
12,475
      
81,780
  
       Commercial and farm land
    
1,140,897
      
16,457
      
5,783
              
31,093
      
53,333
      
1,194,230
  
       Residential
    
458,925
      
5,485
      
2,087
      
191
      
14,805
      
22,568
      
481,493
  
       Home equity
    
187,788
      
1,096
      
590
      
261
      
1,896
      
3,843
      
191,631
  
Individuals loans for household and other
personal expenditures
    
82,837
      
1,075
      
208
      
51
      
1
      
1,335
      
84,172
  
Lease financing receivables, net of unearned income
    
3,555
                                              
3,555
  
Other loans
    
38,944
                              
561
      
561
      
39,505
  
                Total
  
$
2,605,479
    
$
25,835
    
$
11,929
    
$
580
    
$
69,592
    
$
107,936
    
$
2,713,415
  
Summary of Troubled Debt Restructurings
The following tables summarize troubled debt restructurings that occurred during the periods indicated:

   
Three Months Ended
    
Six Months Ended
  
   
June 30, 2012
    
June 30, 2012
  
                                     
   
Pre-Modification
    
Post-Modification
          
Pre-Modification
    
Post-Modification
        
   
Recorded
Balance
    
Recorded
Balance
    
Number
of Loans
    
Recorded
Balance
    
Recorded
Balance
    
Number
of Loans
  
Commercial and industrial
  
$
166
    
$
166
      
2
    
$
405
    
$
405
      
4
  
Real Estate Loans:
                                                
       Construction
    
491
      
350
      
1
      
491
      
350
      
1
  
       Commercial and farm land
    
730
      
735
      
4
      
2,508
      
2,369
      
6
  
       Residential
    
1,733
      
1,598
      
11
      
1,957
      
1,822
      
15
  
             Total
  
$
3,120
    
$
2,849
      
18
    
$
5,361
    
$
4,946
      
26
  
Summary of Troubled Debt Restructurings and Subsequent Defaults
The following table shows the recorded investment, as of June 30, 2012, of troubled debt restructurings that occurred during the periods indicated:

   
Three Months Ended
  
         
June 30, 2012
        
   
Term
    
Rate
          
Total
  
   
Modification
    
Modification
    
Combination
    
Modification
  
Commercial and industrial
              
$
31
    
$
31
  
Real Estate Loans:
                            
       Construction
                
346
      
346
  
       Commercial and farm land
  
$
82
            
599
      
681
  
       Residential
    
531
    
$
258
      
720
      
1,509
  
             Total
  
$
613
    
$
258
    
$
1,696
    
$
2,567
  


   
Six Months Ended
  
         
June 30, 2012
        
   
Term
    
Rate
          
Total
  
   
Modification
    
Modification
    
Combination
    
Modification
  
Commercial and industrial
  
$
238
          
$
31
    
$
269
  
Real Estate Loans:
                              
       Construction
                  
346
      
346
  
       Commercial and farm land
    
1,717
            
599
      
2,316
  
       Residential
    
531
    
$
258
      
944
      
1,733
  
             Total
  
$
2,486
    
$
258
    
$
1,920
    
$
4,664
  
Commercial Non-Impaired Loans Included in ASC 450 Loss Migration Analysis
The following table summarizes troubled debt restructures that occurred between July 1, 2011, and June 30, 2012, subsequently defaulted during the period indicated:

   
Three Months Ended
    
Six Months Ended
  
   
June 30, 2012
    
June 30, 2012
  
   
Number of
Loans
    
Recorded
Balance
    
Number of
Loans
    
Recorded
Balance
  
Commercial and Industrial
                
1
    
$
46
  
Real Estate Loans:
                            
       Construction
                            
       Commercial and farm land
    
2
    
$
445
      
3
      
1,203
  
       Residential
    
5
      
2,283
      
 5
      
 2,283
  
             Total
    
7
    
$
2,728
      
9
    
$
3,532