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ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

3 Months Ended

Mar. 31, 2012

Notes To Financial Statements [Abstract]

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

NOTE 4. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2012:

		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,	$ 22,830	$ 23,489	$ 695	$ 65	$ 2,322	$ 645	$ 3,354	$ 53,400
Provision for loan losses	(104)	565	(157)	119	171	(54)	259	799
Loans charged-off	(778)	(847)	0	0	(14)	(94)	0	(1,733)
Recoveries	186	29	0	2	48	26	0	291
Net loans charged-off	(592)	(818)	0	2	34	(68)	0	(1,442)
Balance March 31,	$ 22,134	$ 23,236	$ 538	$ 186	$ 2,527	$ 523	$ 3,613	$ 52,757

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 8,478	$ 8,274	$ 138	$ -	$ 478	$ 5	$ 0	$ 17,373
Collectively evaluated for impairment	13,656	14,962	400	186	2,049	518	3,613	35,384

Total ending allowance balance	$ 22,134	$ 23,236	$ 538	$ 186	$ 2,527	$ 523	$ 3,613	$ 52,757


Loans:
Loans individually evaluated for impairment	$ 22,982	$ 34,122	$ 826	$ -	$ 3,058	$ 7	$ 0	$ 60,995
Loans collectively evaluated for impairment	757,846	800,570	216,347	58,695	286,075	44,934	0	2,164,467

Total ending loans balance	$ 780,828	$ 834,692	$ 217,173	$ 58,695	$ 289,133	$ 44,941	$ 0	$ 2,225,462

The recorded investment in loans does not include accrued interest.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2011:

		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	1,371	3,373	(124)	0	1,161	(82)	(101)	5,598
Loans charged-off	(398)	(1,391)	0	0	(378)	(131)	0	(2,298)
Recoveries	97	9	0	0	3	79	0	188
Net loans charged-off	(301)	(1,382)	0	0	(375)	(52)	0	(2,110)
Balance March 31,	$ 22,549	$ 17,884	$ 1,194	$ 270	$ 2,480	$ 548	$ 3,570	$ 48,495

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 7,612	$ 4,957	$ 276	$ 190	$ 69	$ 0	$ 0	$ 13,104
Collectively evaluated for impairment	14,937	12,927	918	80	2,411	548	3,570	35,391

Total ending allowance balance	$ 22,549	$ 17,884	$ 1,194	$ 270	$ 2,480	$ 548	$ 3,570	$ 48,495


Loans:
Loans individually evaluated for impairment	$ 20,739	$ 24,893	$ 1,185	$ 195	$ 1,675	$ 0	$ 0	$ 48,687
Loans collectively evaluated for impairment	668,324	790,581	216,822	44,226	284,980	50,746	0	2,055,679

Total ending loans balance	$ 689,063	$ 815,474	$ 218,007	$ 44,421	$ 286,655	$ 50,746	$ 0	$ 2,104,366

The recorded investment in loans does not include accrued interest.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2011:

		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	$ -	$ 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

The recorded investment in loans does not include accrued interest.

The allowance for loan losses to total loans for the three months ended March 31, 2012 and 2011 was 2.37% and 2.30% respectively. The allowance for loan losses to total loans for the year ended December 31, 2011 was 2.39%.

The following table presents loans individually evaluated for impairment as of and for the three-month period ended March 31, 2012 and 2011:

						Cash Basis
	Unpaid		Allowance for	Average	Interest	Interest
	Principal	Recorded	Loan Losses	Recorded	Income	Income
	Balance	Investment	Allocated	Investment	Recognized	Recognized

With no related allowance recorded:
Commercial and industrial loans:
Non-working capital loans	$ 196	$ 196	$ 0	$ 171	$ 0	$ 0

Commercial real estate and multi-family residential loans:
Owner occupied loans	292	292	0	290	0	0

Consumer 1-4 family loans:
Closed end first mortgage loans	301	301	0	297	0	0
Open end and junior lien loans	40	40	0	40	0	0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	5,503	5,502	3,023	5,805	16	15
Non-working capital loans	17,282	17,284	5,455	17,723	180	182

Commercial real estate and multi-family residential loans:
Construction and land development loans	2,060	2,059	550	969	0	0
Owner occupied loans	4,175	4,174	1,169	4,588	12	10
Nonowner occupied loans	27,598	27,597	6,555	29,401	98	99
Multifamily loans	0	0	0	0	0	0

Agri-business and agricultural loans:
Loans secured by farmland	618	618	120	622	0	0
Loans for agricultural production	208	208	18	210	0	0

Other commercial loans	0	0	0	0	0	0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,445	2,447	329	1,797	11	11
Open end and junior lien loans	270	270	149	354	0	0
Residential construction loans	0	0	0	0	0	0

Other consumer loans	7	7	5	7	0	0

Total	$ 60,995	$ 60,995	$ 17,373	$ 62,274	$ 317	$ 317

The recorded investment in loans does not include accrued interest.

						Cash Basis
	Unpaid		Allowance for	Average	Interest	Interest
	Principal	Recorded	Loan Losses	Recorded	Income	Income
	Balance	Investment	Allocated	Investment	Recognized	Recognized

With no related allowance recorded:
Commercial real estate and multi-family residential loans:
Nonowner occupied loans	$ 857	$ 856	$ 0	$ 856	$ 0	$ 0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	5,630	5,631	3,303	5,615	3	3
Non-working capital loans	15,107	15,108	4,309	15,163	127	111

Commercial real estate and multi-family residential loans:
Construction and land development loans	1,395	1,393	245	1,396	0	0
Owner occupied loans	2,942	2,943	912	3,205	6	6
Nonowner occupied loans	19,711	19,701	3,800	19,950	17	17
Multifamily loans	0	0	0	0	0	0

Agri-business and agricultural loans:
Loans secured by farmland	397	398	83	401	0	0
Loans for agricultural production	787	787	193	819	0	0

Other commercial loans	194	195	190	195	0	0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,675	1,675	69	1,844	12	14
Open end and junior lien loans	0	0	0	47	0	0
Residential construction loans	0	0	0	0	0	0

Other consumer loans	0	0	0	0	0	0

Total	$ 48,695	$ 48,687	$ 13,104	$ 49,491	$ 165	$ 151

The recorded investment in loans does not include accrued interest.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011:

						Cash Basis
	Unpaid		Allowance for	Average	Interest	Interest
	Principal	Recorded	Loan Losses	Recorded	Income	Income
	Balance	Investment	Allocated	Investment	Recognized	Recognized

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	$ 54,924	$ 970	$ 995

The recorded investment in loans does not include accrued interest.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2012 and December 31, 2011:

	March 31, 2012		December 31, 2011
		Loans Past Due		Loans Past Due
		Over 90 Days		Over 90 Days
		Still		Still
	Nonaccrual	Accruing	Nonaccrual	Accruing

Commercial and industrial loans:
Working capital lines of credit loans	$ 4,441	$ 0	$ 4,743	$ 0
Non-working capital loans	4,763	0	5,433	0

Commercial real estate and multi-family residential loans:
Construction and land development loans	420	0	429	0
Owner occupied loans	4,099	0	4,371	0
Nonowner occupied loans	20,147	0	21,971	0
Multifamily loans	0	0	0	0

Agri-business and agricultural loans:
Loans secured by farmland	618	0	628	0
Loans for agricultural production	207	0	225	0

Other commercial loans		0	0	0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,453	52	1,193	52
Open end and junior lien loans	311	2	452	0
Residential construction loans	0	0	0	0

Other consumer loans	7	0	7	0

Total	$ 36,466	$ 54	$ 39,452	$ 52

The recorded investment in loans does not include accrued interest.

The following table presents the aging of the recorded investment in past due loans as of March 31, 2012 by class of loans:

	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:
Working capital lines of credit loans	$ 0	$ 4,441	$ 4,441	$ 398,378	$ 402,819
Non-working capital loans	326	4,763	5,089	372,920	378,009

Commercial real estate and multi-family residential loans:
Construction and land development loans	0	420	420	88,704	89,124
Owner occupied loans	0	4,099	4,099	348,965	353,064
Nonowner occupied loans	578	20,146	20,724	336,685	357,409
Multifamily loans	0	0	0	35,095	35,095

Agri-business and agricultural loans:
Loans secured by farmland	0	618	618	103,491	104,109
Loans for agricultural production	0	207	207	112,857	113,064

Other commercial loans	0	0	0	58,695	58,695

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,494	1,505	3,999	103,703	107,702
Open end and junior lien loans	128	313	441	174,061	174,502
Residential construction loans	33	0	33	6,896	6,929

Other consumer loans	110	7	117	44,824	44,941

Total	$ 3,669	$ 36,519	$ 40,188	$ 2,185,274	$ 2,225,462

The recorded investment in loans does not include accrued interest.

The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 by class of loans:

	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:
Working capital lines of credit loans	$ 1,051	$ 4,743	$ 5,794	$ 368,098	$ 373,892
Non-working capital loans	21	5,433	5,454	372,018	377,472

Commercial real estate and multi-family residential loans:
Construction and land development loans	0	429	429	81,650	82,079
Owner occupied loans	104	4,371	4,475	342,068	346,543
Nonowner occupied loans	0	21,971	21,971	362,710	384,681
Multifamily loans	0	0	0	38,374	38,374

Agri-business and agricultural loans:
Loans secured by farmland	0	628	628	117,619	118,247
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.

Troubled Debt Restructurings:

Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $15.2 million and $15.7 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2012 and December 31, 2011. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

	March 31,	December 31,
	2012	2011

Accruing troubled debt restructured loans	$ 22,735	$ 22,177
Nonaccrual troubled debt restructured loans	31,940	34,273
Total troubled debt restructured loans	$ 54,675	$ 56,450

During the quarter ending March 31, 2012, there were no loan modifications offered to borrowers experiencing financial distress that would be considered troubled debt restructurings. There were, however, renewal terms on several loans offered to a borrower under financial distress which did not require additional compensation or consideration and would not have been readily available in the marketplace for loans bearing similar risk profiles. In this instance, it was determined that a concession had been granted. It is difficult to quantify the concession granted due to an absence in market terms to be used for comparison. The renewals were to one borrower engaged in construction and land development, where the aggregate recorded investment totaled $1.6 million. These loans are included in the table of all modifications below.

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). There were modifications to borrowers at rates that were readily available in the market, but to borrowers who 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 were below market rates.

Delays in principal repayment include loans which were intended to be amortizing during the period, but due to financial hardship the borrowers under these loans 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.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three month period ending March 31, 2012:

		Modifications
		Three Months Ended March 31, 2012

		All Modifications

			Pre-Modification	Post-Modification
			Outstanding	Outstanding
		Number of	Recorded	Recorded
		Loans	Investment	Investment

Troubled Debt Restructurings

	Commercial real estate and multi-family residential loans:
	Construction and land development loans	5	$ 1,638	$ 1,638

	Total	5	$ 1,638	$ 1,638

For the three month period ending March 31, 2012 the commercial real estate and multi-family residential loan troubled debt restructurings described above increased the allowance for loan losses by $500,000.

The commercial real estate and multi-family residential loan troubled debt restructurings described above did not result in any charge offs during the three months ending March 31, 2012.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification which occurred during the three month period ending March 31, 2012:

		Number of	Recorded
		Loans	Investment



Troubled Debt Restructurings that Subsequently Defaulted

	Consumer 1-4 family loans:
	Closed end first mortgage loans	1	$ 65

	Total	1	$ 65

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

The troubled debt restructuring that subsequently defaulted as set forth above increased the allowance for loan losses by $1,000 and did not result in any charge offs during the three month period ending March 31, 2012.

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.

Loans with renegotiated interest rates include reductions 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 for borrowers who would not have otherwise 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.

The following tables present loans by class modified as troubled debt restructurings that occurred during the period ending December 31, 2011:

		All Modifications

			Pre-Modification	Post-Modification
			Outstanding	Outstanding
		Number of	Recorded	Recorded
		Loans	Investment	Investment
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 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

All of the commercial and industrial loan troubled debt restructurings described above also had inadequate compensation of additional collateral as part of the restructuring.

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.

Credit Quality Indicators:

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.

The Company uses the following definitions for risk ratings:

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 by the distinct possibility that the Company 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 March 31, 2012 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:
Working capital lines of credit loans	$ 383,024	$ 5,348	$ 14,447	$ 0	$ 0
Non-working capital loans	334,206	4,977	37,484	0	1,342

Commercial real estate and multi-family residential loans:
Construction and land development loans	72,224	3,291	13,609	0	0
Owner occupied loans	322,863	8,342	21,811	0	48
Nonowner occupied loans	322,080	10,297	25,032	0	0
Multifamily loans	33,864	1,231	0	0	0

Agri-business and agricultural loans:
Loans secured by farmland	102,769	70	1,250	0	20
Loans for agricultural production	112,857	0	207	0	0

Other commercial loans	58,531	46	118	0	0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	19,704	51	1,069	0	86,878
Open end and junior lien loans	13,224	300	0	0	160,978
Residential construction loans	0	0	0	0	6,929

Other consumer loans	7,647	386	497	0	36,411

Total	$ 1,782,993	$ 34,339	$ 115,524	$ 0	$ 292,606

The recorded investment in loans does not include accrued interest.

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:
Working capital lines of credit loans	$ 352,055	$ 5,625	$ 16,212	$ 0	$ 0
Non-working capital loans	331,881	7,437	36,751	0	1,403

Commercial real estate and multi-family residential loans:
Construction and land development loans	64,808	3,296	13,976	0	0
Owner occupied loans	318,191	5,913	22,400	0	38
Nonowner occupied loans	337,090	8,875	38,716	0	0
Multifamily loans	37,127	1,247	0	0	0

Agri-business and agricultural loans:
Loans secured by farmland	116,742	70	1,415	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

The recorded investment in loans does not include accrued interest.