				Commercial
				Real Estate									Consumer
	Commercial			and Multifamily			Agri-business			Other			1-4 Family			Other
	and Industrial			Residential			and Agricultural			Commercial			Mortgage			Consumer			Unallocated			Total
	(in thousands)
Balance January 1	$	21,479		$	15,893		$	1,318		$	270		$	1,694		$	682		$	3,671		$	45,007
Provision for loan losses		3,112			9,748			(520	)		(205	)		1,632			350			(317	)		13,800
Loans charged-off		(2,587	)		(2,514	)		(103	)		0			(1,050	)		(575	)		0			(6,829	)
Recoveries		826			362			0			0			46			188			0			1,422
Net loans charged-off		(1,761	)		(2,152	)		(103	)		0			(1,004	)		(387	)		0			(5,407	)
Balance December 31	$	22,830		$	23,489		$	695		$	65		$	2,322		$	645		$	3,354		$	53,400

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,443		$	8,382		$	213		$	0		$	288		$	0		$	0		$	18,326
Collectively evaluated for impairment		13,387			15,107			482			65			2,034			645			3,354			35,074

Total ending allowance balance	$	22,830		$	23,489		$	695		$	65		$	2,322		$	645		$	3,354		$	53,400


Loans:
Loans individually evaluated for impairment	$	24,204		$	35,794		$	853		$	0		$	2,665		$	0		$	0		$	63,516
Loans collectively evaluated for impairment		727,160			815,883			237,150			58,249			285,791			45,960			0			2,170,193

Total ending loans balance	$	751,364		$	851,677		$	238,003		$	58,249		$	288,456		$	45,960		$	0		$	2,233,709

			Commercial
			Real Estate						Consumer
	Commercial		and Multifamily		Agri-business		Other		1-4 Family		Other
	and Industrial		Residential		and Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
	(in thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,911	$	4,663	$	301	$	190	$	76	$	0	$	0	$	12,141
Collectively evaluated for impairment		14,568		11,230		1,017		80		1,618		682		3,671		32,866

Total ending allowance balance	$	21,479	$	15,893	$	1,318	$	270	$	1,694	$	682	$	3,671	$	45,007


Loans:
Loans individually evaluated for impairment	$	20,988	$	23,358	$	1,259	$	197	$	2,204	$	0	$	0	$	48,006
Loans collectively evaluated for impairment		644,551		791,715		228,305		38,542		287,729		51,111		0		2,041,953

Total ending loans balance	$	665,539	$	815,073	$	229,564	$	38,739	$	289,933	$	51,111	$	0	$	2,089,959

											Cash Basis
	Unpaid				Allowance for		Average		Interest		Interest
	Principal		Recorded		Loan Losses		Recorded		Income		Income
	Balance		Investment		Allocated		Investment		Recognized		Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial loans:
Non-working capital loans	$	116	$	116	$	0	$	30	$	0	$	0

Commercial real estate and multi-family residential loans:
Nonowner occupied loans		0		0		0		425		0		0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		7,831		5,969		3,206		5,649		23		25
Non-working capital loans		20,867		18,119		6,237		17,202		616		625

Commercial real estate and multi-family residential loans:
Construction and land development loans		816		429		125		1,319		0		0
Owner occupied loans		5,874		5,082		1,566		3,082		41		45
Nonowner occupied loans		30,769		30,283		6,691		24,108		246		252
Multifamily loans		0		0		0		0		0		0

Agri-business and agricultural loans:
Loans secured by farmland		1,126		628		195		610		0		0
Loans for agricultural production		225		225		18		410		0		0

Other commercial loans		0		0		0		129		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,461		2,256		285		1,872		44		48
Open end and junior lien loans		409		409		3		118		0		0
Residential construction loans		0		0		0		0		0		0

Other consumer loans		0		0		0		0		0		0

Total	$	70,494	$	63,516	$	18,326	$	54,954	$	970	$	995

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
	(in thousands)
With no related allowance recorded:
Commercial real estate and multi-family residential loans:
Nonowner occupied loans	$	870	$	869	$	0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,651		5,652		2,944
Non-working capital loans		15,335		15,336		3,967

Commercial real estate and multi-family residential loans:
Construction and land development loans		1,402		1,401		195
Owner occupied loans		2,908		2,909		948
Nonowner occupied loans		18,186		18,179		3,520
Multifamily loans		0		0		0

Agri-business and agricultural loans:
Loans secured by farmland		405		406		83
Loans for agricultural production		853		853		218

Other commercial loans		197		197		190

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,067		2,063		75
Open end and junior lien loans		141		141		1
Residential construction loans		0		0		0

Other consumer loans		0		0		0

Total	$	48,015	$	48,006	$	12,141

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. For December 31, 2011 and 2010, $39.0 million and $35.8 million of impaired loans were also included in the total for nonaccrual loans. Total impaired loans increased by $15.5 million to $63.5 million at December 31, 2011 from $48.0 million at December 31, 2010. The increase in nonaccrual loans resulted primarily from the addition of one commercial credit relationship totaling $7.3 million (3 loans). As discussed earlier, the increase in impaired loans resulted from this commercial credit, as well as five other commercial relationships totaling $12.1 million. For December 31, 2010 and 2009, $35.8 million and $29.7 million of impaired loans were also included in the total for nonaccrual loans. Total impaired loans increased by $16.2 million to $48.0 million at December 31, 2010 from $31.8 million at December 31, 2009. The increase in nonaccrual loans resulted primarily from the addition of a commercial credit of $9.0 million. As discussed earlier, the increase in impaired loans resulted primarily from the nonaccrual commercial credit mentioned previously, as well as two other commercial relationships totaling $10.8 million.

					Loans Past Due
					Over 90 Days
	Nonaccrual				Still Accruing
	2011		2010		2011		2010
	(in thousands)
Commercial and industrial loans:
Non-impaired watch list loans	$	102	$	372	$	0	$	0
Working capital lines of credit loans		4,707		5,405		0		0
Non-working capital loans		5,367		4,786		0		0

Commercial real estate and multi-family residential loans:
Non-impaired watch list loans		36		26		0		0
Construction and land development loans		429		1,400		0		0
Owner occupied loans		4,335		2,935		0		0
Nonowner occupied loans		21,971		19,049		0		0
Multifamily loans		0		0		0		0

Agri-business and agricultural loans:
Non-impaired watch list loans		0		0		0		0
Loans secured by farmland		628		406		0		0
Loans for agricultural production		225		878		0		0

Other commercial loans		0		197		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,193		842		52		318
Open end and junior lien loans		452		267		0		0
Residential construction loans		0		0		0		0

Other consumer loans		7		20		0		12

Total	$	39,452	$	36,583	$	52	$	330

	30-89		Greater than
	Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Total
	(in thousands)
Commercial and industrial loans:
Non-impaired watch list loans	$	1,000	$	102	$	1,102	$	40,719	$	41,821
Working capital lines of credit loans		51		4,707		4,758		353,266		358,024
Non-working capital loans		21		5,367		5,388		346,131		351,519

Commercial real estate and multi-family residential loans:
Non-impaired watch list loans		0		36		36		58,593		58,629
Construction and land development loans		0		429		429		64,808		65,237
Owner occupied loans		104		4,335		4,439		318,872		323,311
Nonowner occupied loans		0		21,971		21,971		345,402		367,373
Multifamily loans		0		0		0		37,127		37,127

Agri-business and agricultural loans:
Non-impaired watch list loans		0		0		0		857		857
Loans secured by farmland		0		628		628		116,762		117,390
Loans for agricultural production		0		225		225		119,531		119,756

Other commercial loans		0		0		0		58,249		58,249

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,569		1,245		3,814		102,970		106,784
Open end and junior lien loans		254		452		706		175,517		176,223
Residential construction loans		34		0		34		5,415		5,449

Other consumer loans		192		7		199		45,761		45,960

Total	$	4,225	$	39,504	$	43,729	$	2,189,980	$	2,233,709

The recorded investment in loans does not include accrued interest.

	30-89		Greater than
	Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Total
Commercial and industrial loans:	(in thousands)
Non-impaired watch list loans	$	0	$	372	$	372	$	54,977	$	55,349
Working capital lines of credit loans		0		5,405		5,405		261,556		266,961
Non-working capital loans		462		4,786		5,248		337,981		343,229

Commercial real estate and multi-family residential loans:
Non-impaired watch list loans		0		26		26		60,473		60,499
Construction and land development loans		0		1,400		1,400		88,089		89,489
Owner occupied loans		27		2,935		2,962		304,702		307,664
Nonowner occupied loans		0		19,049		19,049		314,245		333,294
Multifamily loans		0		0		0		24,127		24,127

Agri-business and agricultural loans:
Non-impaired watch list loans		0		0		0		4,131		4,131
Loans secured by farmland		0		406		406		109,465		109,871
Loans for agricultural production		0		878		878		114,684		115,562

Other commercial loans		0		197		197		38,542		38,739

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,333		1,160		3,493		99,405		102,898
Open end and junior lien loans		237		267		504		182,395		182,899
Residential construction loans		0		0		0		4,136		4,136

Other consumer loans		145		32		177		50,934		51,111

Total	$	3,204	$	36,913	$	40,117	$	2,049,842	$	2,089,959

The recorded investment in loans does not include accrued interest.

Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $15.7 million and $4.1 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2011 and 2010. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

During the year ending December 31, 2011, the terms of certain loans were modified as troubled debt restructurings. The modified terms of these loans included one or a combination of the following: a reduction of the stated interest rate of the loan below market rates; principle and interest forgiveness; a modification of repayment terms that delays principal repayment for some period; or inadequate compensation for the terms of the restructure. Clarifications in the accounting guidance for troubled debt restructurings that became effective in the third quarter of 2011 resulted in $15.6 million being added to total troubled debt restructured loans in 2011. Of the $15.6 million added, $15.3 million was included in nonperforming and impaired loans at December 31, 2010.

Renegotiated interest rates include loans with a reduction in rate for a short-term (part of the remaining life of the loan) or long-term (life of loan). Included are modifications to borrowers at a rate that is readily available in the market, but who otherwise would not have qualified for the terms offered in the modification without a concession being granted. Also included are borrowers who received interest rate concessions that are below market rates.

Delays in principal repayment include loans that were intended to be amortizing during the period, but, due to financial hardship, these borrowers were unable to meet the original or intended repayment terms. These include loans with principal deferrals for a prolonged period or those with modified payments, which are an exception to bank policy.

Inadequate compensation for the terms of the restructure were identified in some loans where terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles, including loans that were renewed under terms similar to original terms. In some instances it was determined that a concession had been granted; however, it is difficult to quantify these concessions due to an absence in market terms to be used for comparison. These loans included two non-working capital loans with a recorded investment of $636,000, one non-owner occupied loan with a recorded investment of $642,000 and one loan secured by farmland with a recorded investment of $413,000. These loans are included in the table of all modifications below.

	All Modifications

			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Loans		Investment		Investment
			(in thousands)
Troubled Debt Restructurings

Commercial and industrial loans:
Working capital lines of credit loans		3	$	639	$	639
Non-working capital loans		6		6,187		6,261

Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans		8		6,648		6,651
Nonowner occupied loans		8		23,767		23,767

Agri-business and agricultural loans:
Loans secured by farmland		2		683		683

Consumer 1-4 family loans:
Closed end first mortgage loans		6		942		849

Total		33	$	38,866	$	38,850

	Interest Rate Reductions						Principal and Interest Forgiveness										Modified Repayment Terms

			Interest at		Interest at				Principal at		Principal at		Interest at		Interest at				Extension
	Number of		Pre-Modification		Post-Modification		Number of		Pre-Modification		Post-Modification		Pre-Modification		Post-Modification		Number of		Period or
	Loans		Rate		Rate		Loans		Rate		Rate		Rate		Rate		Loans		Range
			(in thousands)						(in thousands)										(in months)
Troubled Debt Restructurings

Commercial and industrial loans:
Working capital lines of credit loans		0	$	0	$	0		0	$	0	$	0	$	0	$	0		3		11-60
Non-working capital loans		0		0		0		0		0		0		0		0		4		12-36

Commercial real estate and multi- family residential loans:
Owner occupied loans		0		0		0		1		2,125		2,125		641		429		7		20-70
Nonowner occupied loans		0		0		0		0		0		0		0		0		7		6-36

Agri-business and agricultural loans:
Loans secured by farmland		0		0		0		0		0		0		0		0		1		22

Consumer 1-4 family loans:
Closed end first mortgage loans		5		402		324		1		550		450		66		57		0		0

Total		5	$	402	$	324		2	$	2,675	$	2,575	$	707	$	486		22		6-70

For the period ending December 31, 2011, the commercial and industrial loan troubled debt restructurings described above decreased the allowance for loan losses by $112,000, the commercial real estate and multi-family residential loan troubled debt restructurings described above increased the allowance for loan losses by $3.2 million, the agri-business and agricultural loan troubled debt restructurings described above decreased the allowance for loan losses by $11,000 and the consumer 1-4 family loan troubled debt restructurings described above increased the allowance for loan losses by $76,000. The five commercial and industrial loans and one agri-business and agricultural loan that decreased the provision during 2011 had modifications during the first five months of the year and had improved their positions during the remainder of the year warranting the decrease in allocation.

The commercial real estate and multi-family residential loan troubled debt restructurings described above also resulted in charge offs of $667,000 during the period ending December 31, 2011. No charge offs resulted from any other troubled debt restructurings described above during the period ending December 31, 2011.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000.

Special Mention. Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized as the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans. Loans listed as not rated are consumer loans included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
					(in thousands)
Commercial and industrial loans:
Non-impaired watch list loans	$	0	$	11,270	$	30,551	$	0	$	0
Working capital lines of credit loans		352,055		0		5,969		0		0
Non-working capital loans		331,881		1,792		16,443		0		1,403

Commercial real estate and multi-family residential loans:
Non-impaired watch list loans		0		15,912		42,717		0		0
Construction and land development loans		64,808		0		429		0		0
Owner occupied loans		318,191		0		5,082		0		38
Nonowner occupied loans		337,090		3,419		26,864		0		0
Multifamily loans		37,127		0		0		0		0

Agri-business and agricultural loans:
Non-impaired watch list loans		0		70		787		0		0
Loans secured by farmland		116,742		0		628		0		20
Loans for agricultural production		119,531		0		225		0		0

Other commercial loans		58,061		66		120		0		2

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		17,307		53		974		0		88,450
Open end and junior lien loans		11,569		319		0		0		164,335
Residential construction loans		0		0		0		0		5,449

Other consumer loans		7,416		375		497		0		37,672

Total	$	1,771,778	$	33,276	$	131,286	$	0	$	297,369

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans. Loans listed as not rated are consumer loans included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of December 31, 2010, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial and industrial loans:					(in thousands)
Non-impaired watch list loans	$	0	$	22,282	$	33,067	$	0	$	0
Working capital lines of credit loans		261,210		0		5,751		0		0
Non-working capital loans		325,976		0		15,327		0		1,926

Commercial real estate and multi-family residential loans:
Non-impaired watch list loans		0		23,722		36,777		0		0
Construction and land development loans		88,088		0		1,401		0		0
Owner occupied loans		304,661		0		2,911		0		92
Nonowner occupied loans		314,247		0		19,047		0		0
Multifamily loans		24,127		0		0		0		0

Agri-business and agricultural loans:
Non-impaired watch list loans		0		2,008		2,123		0		0
Loans secured by farmland		109,444		0		405		0		22
Loans for agricultural production		114,495		0		853		0		214

Other commercial loans		38,400		0		339		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		17,398		427		1,386		0		83,687
Open end and junior lien loans		13,380		0		178		0		169,341
Residential construction loans		0		0		0		0		4,136

Other consumer loans		9,394		0		497		0		41,220

Total	$	1,620,820	$	48,439	$	120,062	$	0	$	300,638