ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

9 Months Ended

Sep. 30, 2013

In Allowance For Loan Losses and Recorded Investment In Loans By Portfolio Segment

The following table presents the activity in the allowance for loan losses by portfolio segment for the three-month and nine-month periods ended September 30, 2013, and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2013:

			Commercial
			Real Estate						Consumer
	Commercial		and Multifamily		Agri-business		Other		1-4 Family		Other
	and Industrial		Residential		and Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
Three Months Ended September 30, 2013
Balance July 1,	$	21,879	$	20,098	$	1,517	$	264	$	2,823	$	587	$	3,467	$	50,635
Provision for loan losses		138		(544)		(185)		(23)		409		179		26		0
Loans charged-off		(595)		(455)		0		0		(126)		(120)		0		(1,296)
Recoveries		75		73		201		0		71		45		0		465
Net loans charged-off		(520)		(382)		201		0		(55)		(75)		0		(831)
Balance September 30,	$	21,497	$	19,172	$	1,533	$	241	$	3,177	$	691	$	3,493	$	49,804
Nine Months Ended September 30, 2013
Balance January 1,	$	22,342	$	20,812	$	1,403	$	240	$	2,682	$	609	$	3,357	$	51,445
Provision for loan losses		(569)		(627)		125		1		709		225		136		0
Loans charged-off		(738)		(1,361)		(200)		0		(315)		(257)		0		(2,871)
Recoveries		462		348		205		0		101		114		0		1,230
Net loans charged-off		(276)		(1,013)		5		0		(214)		(143)		0		(1,641)
Balance September 30,	$	21,497	$	19,172	$	1,533	$	241	$	3,177	$	691	$	3,493	$	49,804

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	4,345	$	5,731	$	45	$	0	$	390	$	32	$	0	$	10,543
Collectively evaluated for impairment		17,152		13,441		1,488		241		2,787		659		3,493		39,261

Total ending allowance balance	$	21,497	$	19,172	$	1,533	$	241	$	3,177	$	691	$	3,493	$	49,804

Loans:
Loans individually evaluated for impairment	$	16,493	$	26,127	$	1,147	$	0	$	3,494	$	97	$	0	$	47,358
Loans collectively evaluated for impairment		881,826		891,635		199,091		55,792		273,067		43,946		0		2,345,357

Total ending loans balance	$	898,319	$	917,762	$	200,238	$	55,792	$	276,561	$	44,043	$	0	$	2,392,715

The recorded investment in loans does not include accrued interest.

The following table presents the activity in the allowance for loan losses by portfolio segment for the three-month and nine-month periods ended September 30, 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
Three Months Ended September 30, 2012
Balance July 1,	$	19,696	$	24,083	$	1,419	$	176	$	2,412	$	523	$	3,508	$	51,817
Provision for loan losses		1,532		(1,236)		(76)		(207)		356		114		(483)		0
Loans charged-off		(98)		(112)		0		0		(196)		(77)		0		(483)
Recoveries		224		120		1		182		21		30		0		578
Net loans charged-off		126		8		1		182		(175)		(47)		0		95
Balance September 30,	$	21,354	$	22,855	$	1,344	$	151	$	2,593	$	590	$	3,025	$	51,912
Nine Months Ended September 30, 2012
Balance January 1,	$	22,830	$	23,489	$	695	$	65	$	2,322	$	645	$	3,354	$	53,400
Provision for loan losses		380		158		648		(100)		417		125		(329)		1,299
Loans charged-off		(2,552)		(959)		0		0		(288)		(268)		0		(4,067)
Recoveries		696		167		1		186		142		88		0		1,280
Net loans charged-off		(1,856)		(792)		1		186		(146)		(180)		0		(2,787)
Balance September 30,	$	21,354	$	22,855	$	1,344	$	151	$	2,593	$	590	$	3,025	$	51,912

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, 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
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	5,542	$	8,559	$	63	$	0	$	607	$	34	$	0	$	14,805
Collectively evaluated for impairment		16,800		12,253		1,340		240		2,075		575		3,357		36,640

Total ending allowance balance	$	22,342	$	20,812	$	1,403	$	240	$	2,682	$	609	$	3,357	$	51,445

Loans:
Loans individually evaluated for impairment	$	18,281	$	36,919	$	797	$	0	$	2,853	$	92	$	0	$	58,942
Loans collectively evaluated for impairment		828,728		763,279		224,008		56,810		280,141		45,612		0		2,198,578

Total ending loans balance	$	847,009	$	800,198	$	224,805	$	56,810	$	282,994	$	45,704	$	0	$	2,257,520

The recorded investment in loans does not include accrued interest.

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month and nine-month periods ended September 30, 2013:

							Three Months Ended September 30, 2013						Nine Months Ended September 30, 2013
											Cash Basis						Cash Basis
	Unpaid				Allowance for		Average		Interest		Interest		Average		Interest		Interest
	Principal		Recorded		Loan Losses		Recorded		Income		Income		Recorded		Income		Income
	Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	64	$	64	$	0	$	64	$	0	$	0	$	65	$	0	$	0
Non-working capital loans		0		0		0		0		0		0		11		0		0

Commercial real estate and multi-family residential loans:
Owner occupied loans		1,072		476		0		616		0		0		575		0		0

Agri-business and agricultural loans:
Loans secured by farmland		612		613		0		479		0		0		480		0		0

Consumer 1-4 family loans:
Closed end first mortgage loans		1,158		1,054		0		719		0		0		275		0		0
Open end and junior lien loans		41		41		0		27		0		0		23		0		0

Other consumer loans		1		1		0		1		0		0		1		0		0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,196		2,587		1,024		2,988		12		14		3,019		39		41
Non-working capital loans		15,695		13,842		3,321		14,017		120		126		14,081		391		402

Commercial real estate and multi-family residential loans:
Construction and land development loans		2,569		2,569		595		2,848		11		20		3,860		63		67
Owner occupied loans		3,946		3,906		505		3,707		20		20		3,592		88		96
Nonowner occupied loans		19,166		19,176		4,631		19,183		87		86		20,960		255		258
Multifamily loans		0		0		0		0		0		0		64		0		0

Agri-business and agricultural loans:
Loans secured by farmland		1,033		534		45		536		0		0		418		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		3,355		2,384		385		2,347		5		6		2,461		28		43
Open end and junior lien loans		15		15		5		22		0		0		40		0		0

Other consumer loans		96		96		32		99		0		0		86		1		1

Total	$	54,019	$	47,358	$	10,543	$	47,653	$	255	$	272	$	50,010	$	865	$	908

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 and for the three-month and nine-month periods ended September 30, 2012:

							Three Months Ended September 30, 2012						Nine Months Ended September 30, 2012
												Cash Basis						Cash Basis
		Unpaid				Allowance for		Average		Interest		Interest		Average		Interest		Interest
		Principal		Recorded		Loan Losses		Recorded		Income		Income		Recorded		Income		Income
		Balance		Investment		Allocated		Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Non-working capital loans	$	70	$	70	$	0	$	70	$	0	$	0	$	136	$	0	$	0

Commercial real estate and multi-family residential loans:
Owner occupied loans		781		601		0		611		0		0		513		0		0
Nonowner occupied loans		385		385		0		385		10		13		217		10		13

Agri-business and agricultural loans:
Loans secured by farmland		666		487		0		489		0		0		252		0		0
Loans for ag production		0		0		0		0		0		0		68		0		0

Consumer 1-4 family loans:
Closed end first mortgage loans		277		276		0		417		1		0		432		1		0
Open end and junior lien loans		0		0		0		0		0		0		20		0		0

Other consumer loans		1		1		0		0		0		0		0		0		0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,915		3,074		1,417		3,059		13		10		4,420		42		38
Non-working capital loans		19,357		17,175		5,154		17,072		171		168		17,353		528		528

Commercial real estate and multi-family residential loans:
Construction and land development loans		3,786		3,396		672		2,436		18		13		1,814		35		30
Owner occupied loans		6,900		6,287		1,527		5,702		30		19		4,859		48		35
Nonowner occupied loans		27,957		27,255		6,670		27,382		78		77		28,115		280		281

Agri-business and agricultural loans:
Loans secured by farmland		654		333		67		343		0		0		437		0		0
Loans for agricultural production		0		0		0		63		0		0		91		0		0

Other commercial loans		0		0		0		0		0		0		0		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,562		1,564		267		1,730		12		10		1,787		32		32
Open end and junior lien loans		354		354		192		353		0		0		340		0		0

Other consumer loans		45		45		18		30		1		1		14		1		1

Total	$	68,710	$	61,303	$	15,984	$	60,142	$	334	$	311	$	60,866	$	977	$	958

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, 2012:

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	61	$	61	$	0
Non-working capital loans		0		0		0
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans		754		574		0
Nonowner occupied loans		385		385		0
Multifamily loans		410		286		0
Agri-business and agricultural loans:
Loans secured by farmland		645		466		0
Loans for ag production		0		0		0
Other commercial loans		0		0		0

Consumer 1-4 family loans:
Closed end first mortgage loans		59		59		0
Open end and junior lien loans		41		41		0
Residential construction loans

Other consumer loans		1		1		0

With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,833		3,224		1,516
Non-working capital loans		16,763		14,996		4,026
Commercial real estate and multi-family residential loans:
Construction and land development loans		3,352		2,960		934
Owner occupied loans		5,869		5,869		1,476
Nonowner occupied loans		26,835		26,845		6,149
Multifamily loans		0		0		0
Agri-business and agricultural loans:
Loans secured by farmland		651		331		63
Loans for agricultural production		0		0		0
Other commercial loans		0		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		3,387		2,403		415
Open end and junior lien loans		379		350		192
Residential construction loans		0		0		0

Other consumer loans		91		91		34
Total	$	65,516	$	58,942	$	14,805

The recorded investment in loans does not include accrued interest.

Schedule of Impaired loans

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 September 30, 2013 and December 31, 2012:

	September 30, 2013				December 31, 2012
			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	$	1,765	$	0	$	1,899	$	0
Non-working capital loans		3,895		0		4,812		50

Commercial real estate and multi-family residential loans:
Construction and land development loans		0		0		398		0
Owner occupied loans		2,646		0		2,461		0
Nonowner occupied loans		11,633		0		19,200		0
Multifamily loans		0		0		286		0

Agri-business and agricultural loans:
Loans secured by farmland		1,147		0		797		0
Loans for agricultural production		0		0		0		0

Other commercial loans		0		0		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,607		239		504		0
Open end and junior lien loans		56		126		391		0
Residential construction loans		0		0		0		0

Other consumer loans		83		0		77		0

Total	$	22,832	$	365	$	30,825	$	50

Aging of the recorded investment in past due loans

The following table presents the aging of the recorded investment in past due loans as of September 30, 2013 by class of loans:

	30-89		Greater than
	Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	596	$	1,765	$	2,361	$	459,989	$	462,350
Non-working capital loans		872		3,895		4,767		431,202		435,969

Commercial real estate and multi-family residential loans:
Construction and land development loans		0		0		0		117,323		117,323
Owner occupied loans		45		2,646		2,691		368,521		371,212
Nonowner occupied loans		0		11,633		11,633		380,360		391,993
Multifamily loans		0		0		0		37,234		37,234

Agri-business and agricultural loans:
Loans secured by farmland		0		1,147		1,147		103,665		104,812
Loans for agricultural production		90		0		90		95,336		95,426

Other commercial loans		0		0		0		55,792		55,792

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,167		1,846		3,013		116,516		119,529
Open end and junior lien loans		233		182		415		151,921		152,336
Residential construction loans		162		0		162		4,534		4,696

Other consumer loans		102		83		185		43,858		44,043

Total	$	3,267	$	23,197	$	26,464	$	2,366,251	$	2,392,715

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, 2012 by class of loans:

	30-89		Greater than
	Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	233	$	1,899	$	2,132	$	437,705	$	439,837
Non-working capital loans		48		4,862		4,910		402,262		407,172

Commercial real estate and multi-family residential loans:
Construction and land development loans		998		398		1,396		80,954		82,350
Owner occupied loans		1,023		2,461		3,484		354,921		358,405
Nonowner occupied loans		38		19,200		19,238		295,243		314,481
Multifamily loans		0		286		286		44,676		44,962

Agri-business and agricultural loans:
Loans secured by farmland		0		797		797		108,359		109,156
Loans for agricultural production		0		0		0		115,649		115,649

Other commercial loans		0		0		0		56,810		56,810

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,475		504		1,979		107,583		109,562
Open end and junior lien loans		361		391		752		161,172		161,924
Residential construction loans		0		0		0		11,508		11,508

Other consumer loans		81		77		158		45,546		45,704

Total	$	4,257	$	30,875	$	35,132	$	2,222,388	$	2,257,520

The recorded investment in loans does not include accrued interest.

Troubled debt restructuring

Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $9.8 million and $12.5 million of specific reserves to loans whose terms have been modified in troubled debt restructurings as of September 30, 2013 and December 31, 2012. The Company is not committed to lending additional funds to customers whose loans have been modified in a troubled debt restructuring.

	September 30		December 31,
	2013		2012

Accruing troubled debt restructured loans	$	22,888	$	22,332
Nonaccrual troubled debt restructured loans		18,691		28,506
Total troubled debt restructured loans	$	41,579	$	50,838

Loans by class modified as troubled debt restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine-month periods ending September 30, 2013:

	Modifications
	Nine Months Ended September 30, 2013
	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	6	$	2,198	$	2,198

Consumer 1-4 family loans:
Closed end first mortgage loans	4		317		328

Total	10	$	2,515	$	2,526

	Interest Rate Reductions					Principal and Interest Forgiveness									Modified Repayment Terms
		Interest at		Interest at							Interest at		Interest at			Extension
	Number of	Pre-Modification		Post-Modification		Number of	Principal at		Principal at		Pre-Modification		Post-Modification		Number of	Period or
	Loans	Rate		Rate		Loans	Pre-Modification		Post-Modification		Rate		Rate		Loans	Range
																(in months)
Troubled Debt Restructurings

Commercial real estate and:
multi-family residential loans
Construction and land development loans	6	$	85	$	63	0	$	0	$	0	$	0	$	0	0	0

Consumer 1-4 family loans:
Closed end first mortgage loans	2		142		158	2		156		161		164		149	0	0
Total	8	$	227	$	221	2	$	156	$	161	$	164	$	149	0	0

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine-month and three-month periods ending September 30, 2012:

	Modifications
	Nine Months Ended September 30, 2012
	All Modifications
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Loans		Investment		Investment

Troubled Debt Restructurings

Commercial and industrial loans:
Non-working capital loans	1	$	942	$	1,060

Commercial real estate and multi-family residential loans:
Construction and land development loans	5		1,638		1,638
Owner occupied loans	2		2,260		2,260
Nonowner occupied loans	1		385		385

Consumer 1-4 family loans:
Closed end first mortgage loans	1		39		39

Other consumer loans	1		17		17

Total	11	$	5,281	$	5,399

	Interest Rate Reductions					Modified Repayment Terms
		Interest at		Interest at			Extension
	Number of	Pre-Modification		Post-Modification		Number of	Period or
	Loans	Rate		Rate		Loans	Range
							(in months)
Troubled Debt Restructurings

Commercial and industrial loans:
Non-working capital loans	0	$	0	$	0	0	0

Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans	1		440		117	1	18
Nonowner occupied loans	0		0		0	1	14

Consumer 1-4 family loans:
Closed end first mortgage loans	1		76		15	0	0

Other consumer loans	0		0		0	0	0

Total	2	$	516	$	132	2	14-18

	Modifications
	Three Months Ended September 30, 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:
Owner occupied loans	1	$	1,411	$	1,411

Other consumer loans	1		17		17

Total	2	$	1,428	$	1,428

	Modified Repayment Terms
		Extension
	Number of	Period or
	Loans	Range
		(in months)
Troubled Debt Restructurings

Commercial real estate and multi-family residential loans:
Owner occupied loans	1	18

Other consumer loans	0	0

Total	1	18

Troubled debt restructurings subsequently defaulted

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 and nine month periods ending September 30, 2013:

	Modifications
	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
	Number of	Recorded		Number of	Recorded
	Loans	Investment		Loans	Investment
Troubled Debt Restructurings that Subsequently Defaulted

Consumer 1-4 family loans:
Closed end first mortgage loans	0	$	0	1	$	912

Total	0	$	0	1	$	912

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

The troubled debt restructurings described above that subsequently defaulted made a large principal payment during the second quarter of 2013, which decreased the allowance for loan losses by $85,000 and did not result in any charge offs during the three and nine month periods ending September 30, 2013.

	Modifications
	Three months ended September 30, 2012			Nine months ended September 30, 2012
	Number of	Recorded		Number of	Recorded
	Loans	Investment		Loans	Investment
Troubled Debt Restructurings that Subsequently Defaulted

Consumer 1-4 family loans:
Closed end first mortgage loans	0	$	0	1	$	65

Total	0	$	0	1	$	65

Credit quality indicators

As of September 30, 2013 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:
Working capital lines of credit loans	$	427,576	$	21,129	$	13,645	$	0	$	0
Non-working capital loans		387,047		29,779		19,143		0		0

Commercial real estate and multi-family residential loans:
Construction and land development loans		107,363		549		9,411		0		0
Owner occupied loans		333,148		25,536		12,528		0		0
Nonowner occupied loans		363,712		9,476		18,805		0		0
Multifamily loans		36,904		330		0		0		0

Agri-business and agricultural loans:
Loans secured by farmland		103,083		0		1,729		0		0
Loans for agricultural production		95,426		0		0		0		0

Other commercial loans		55,674		0		118		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		29,422		549		1,824		0		87,734
Open end and junior lien loans		7,099		1,949		0		0		143,288
Residential construction loans		0		0		0		0		4,696

Other consumer loans		8,699		467		292		0		34,585

Total	$	1,955,153	$	89,764	$	77,495	$	0	$	270,303

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 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, 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

Commercial and industrial loans:
Working capital lines of credit loans	$	403,778	$	22,591	$	13,468	$	0	$	0
Non-working capital loans		355,772		23,192		26,857		66		1,285

Commercial real estate and multi-family residential loans:
Construction and land development loans		67,002		4,595		10,753		0		0
Owner occupied loans		315,672		24,589		18,144		0		0
Nonowner occupied loans		282,108		6,345		26,028		0		0
Multifamily loans		43,425		345		1,192		0		0

Agri-business and agricultural loans:
Loans secured by farmland		107,734		0		1,404		0		18
Loans for agricultural production		115,649		0		0		0		0

Other commercial loans		56,692		0		118		0		0

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		18,685		343		729		0		89,805
Open end and junior lien loans		7,932		300		0		0		153,692
Residential construction loans		0		0		0		0		11,508

Other consumer loans		10,168		378		497		0		34,661

Total	$	1,784,617	$	82,678	$	99,190	$	66	$	290,969

The recorded investment in loans does not include accrued interest.