Purchase and Assumption (Tables)

9 Months Ended

Sep. 30, 2012

Assets and Liabilities of SCB Recorded at Provisional Fair Value

The statement of net assets and liabilities acquired as of February 10, 2012, are presented below. The assets and liabilities of SCB were recorded at the respective acquisition date provisional fair values, and identifiable intangible assets were recorded at provisional fair value.

Assets			Liabilities
Cash and due from banks (1)	$	29,113	Deposits:
Investment securities, available for sale		18,896	Non-interest bearing	$	13,715
Federal Home Loan Bank stock		1,761	NOW accounts		14,746
Loans:			Savings and money market		25,843
Commercial		51,042	Certificate of deposit		71,605
Residential mortgage		11,181	Total Deposits		125,909
Installment		31,570
Total Loans		93,793	Federal Home Loan Bank advances		10,286
			Other liabilities		804
Premises		1,516	Total Liabilities Assumed	$	136,999
Core deposit intangible		484
Other assets		560	Net Gain on Acquisition	$	9,124
Total Assets Purchased	$	146,123

(1)   Includes $17,200,000 cash received from the FDIC.

Acquired Loans Accounted With ASC 310 30

In accordance with ASC 310-30 (formerly Statement of Position (“SOP”) 03-3 as of February 10, 2012, loans acquired during 2012 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

Preliminary estimate of contractually required principal and interest at acquisition	$	31,143
Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences)		9,688
Preliminary estimate of expected cash flows at acquisition		21,455
Preliminary estimate of interest component of expected cash flows (accretable discount)		4,152
Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30	$	17,303

Carrying Amount of Loans Included in Balance Sheet Amounts of Loans Receivable

The carrying amount of these loans is included in the balance sheet amounts of loans receivable at September 30, 2012. The amounts are as follows:

	September 30,
	2012
Commercial and industrial loans	$	12,494
Agricultural production finance and other loans to farmers		1,531
Real estate loans
Construction		92
Commercial and farmland		23,724
Residential		32,936
Individuals' loans for household and other personal expenditures		922
Tax exempt
Lease financing
Other loans		987
Total	$	72,686

Accretable Yield Or Income Expected to be Collected

Accretable yield, or income expected to be collected, is as follows:

	Three Months ended
	September 30, 2012
Beginning balance, June 30, 2012	$	9,048
Accretions		(2,612	)
Ending balance, September 30, 2012	$	6,436

	Nine Months ended
	September 30, 2012
Beginning balance, February 10, 2012	$	9,774
Accretions		(3,338	)
Ending balance, September 30, 2012	$	6,436