ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

6 Months Ended

Jun. 30, 2015

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

The following tables present the activity in the allowance for loan losses by portfolio segment for the three-month periods ended June 30, 2015 and 2014:

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multifamily

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

Three Months Ended June 30, 2015

Beginning balance, April 1

$23,024

$13,804

$1,627

$398

$3,313

$430

$3,081

$45,677

Provision for loan losses

(228)

(283)

248

(40)

160

(16)

159

Loans charged-off

(507)

(429)

(6)

(53)

(995)

Recoveries

134

Net loans charged-off

(436)

(409)

(22)

(861)

Ending balance

$22,360

$13,112

$1,881

$358

$3,473

$392

$3,240

$44,816

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
Three Months Ended June 30, 2014
Beginning balance	$21,730	$15,648	$1,408	$249	$3,064	$549	$3,489	$46,137
Provision for loan losses	(343)	329	(10)	(15)	276	(56)	(181)	0
Loans charged-off	(483)	(22)	0	0	(107)	(43)	0	(655)
Recoveries	18	20	6	0	42	37	0	123
Net loans charged-off	(465)	(2)	6	0	(65)	(6)	0	(532)
Ending balance	$20,922	$15,975	$1,404	$234	$3,275	$487	$3,308	$45,605

The following tables present the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2015 and 2014:

Commercial

Real Estate

Commercial

and

Agri-business

Consumer

and

Multifamily

and

Other

1-4 Family

Other

(dollars in thousands)

Industrial

Residential

Agricultural

Commercial

Mortgage

Consumer

Unallocated

Total

Six Months Ended June 30, 2015

Beginning balance, January 1

$22,785

$14,153

$1,790

$276

$3,459

$483

$3,316

$46,262

Provision for loan losses

328

(621)

204

135

(51)

(76)

Loans charged-off

(876)

(459)

(122)

(140)

(106)

(1,703)

Recoveries

123

257

Net loans charged-off

(753)

(420)

(122)

(121)

(40)

(1,446)

Ending balance

$22,360

$13,112

$1,881

$358

$3,473

$392

$3,240

$44,816

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
Six Months Ended June 30, 2014
Beginning balance	$21,005	$18,556	$1,682	$391	$3,046	$608	$3,509	$48,797
Provision for loan losses	377	(59)	(289)	(157)	408	(79)	(201)	0
Loans charged-off	(513)	(2,553)	0	0	(222)	(118)	0	(3,406)
Recoveries	53	31	11	0	43	76	0	214
Net loans charged-off	(460)	(2,522)	11	0	(179)	(42)	0	(3,192)
Ending balance	$20,922	$15,975	$1,404	$234	$3,275	$487	$3,308	$45,605

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2015 and December 31, 2014:

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
June 30, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$2,228	$862	$0	$0	$416	$66	$0	$3,572
Collectively evaluated for impairment	20,132	12,250	1,881	358	3,057	326	3,240	41,244
Total ending allowance balance	$22,360	$13,112	$1,881	$358	$3,473	$392	$3,240	$44,816

Loans:
Loans individually evaluated for impairment	$7,411	$11,209	$477	$0	$3,126	$112	$0	$22,335
Loans collectively evaluated for impairment	1,136,650	1,039,318	250,933	82,242	311,370	50,614	0	2,871,127
Total ending loans balance	$1,144,061	$1,050,527	$251,410	$82,242	$314,496	$50,726	$0	$2,893,462

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multifamily	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
December 31, 2014
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$3,306	$1,531	$14	$15	$482	$73	$0	$5,421
Collectively evaluated for impairment	19,479	12,622	1,776	261	2,977	410	3,316	40,841
Total ending allowance balance	$22,785	$14,153	$1,790	$276	$3,459	$483	$3,316	$46,262

Loans:
Loans individually evaluated for impairment	$14,702	$13,005	$486	$30	$3,614	$127	$0	$31,964
Loans collectively evaluated for impairment	1,020,897	1,011,858	273,388	75,684	299,189	49,340	0	2,730,356
Total ending loans balance	$1,035,599	$1,024,863	$273,874	$75,714	$302,803	$49,467	$0	$2,762,320

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2015:

	Unpaid		Allowance for
	Principal	Recorded	Loan Losses
(dollars in thousands)	Balance	Investment	Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$21	$0
Non-working capital loans	2,519	752	0
Commercial real estate and multi-family residential loans:
Construction and land development loans	0	0	0
Owner occupied loans	2,737	2,557	0
Nonowner occupied loans	5,536	5,541	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	976	477	0
Loans for ag production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	403	338	0
Open end and junior lien loans	132	132	0
Residential construction loans	0	0	0
Other consumer loans	4	4	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	983	983	433
Non-working capital loans	7,847	5,655	1,795
Commercial real estate and multi-family residential loans:
Construction and land development loans	373	373	58
Owner occupied loans	2,768	2,738	804
Nonowner occupied loans	0	0	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	0	0	0
Loans for agricultural production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,721	2,622	413
Open end and junior lien loans	34	34	3
Residential construction loans	0	0	0
Other consumer loans	108	108	66
Total	$27,162	$22,335	$3,572

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014:

	Unpaid		Allowance for
	Principal	Recorded	Loan Losses
(dollars in thousands)	Balance	Investment	Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$21	$0
Non-working capital loans	1,673	279	0
Commercial real estate and multi-family residential loans:
Construction and land development loans	526	526	0
Owner occupied loans	554	374	0
Nonowner occupied loans	3,030	3,036	0
Agri-business and agricultural loans:
Loans secured by farmland	603	283	0
Consumer 1-4 family loans:
Closed end first mortgage loans	724	712	0
Open end and junior lien loans	317	317	0
Residential construction loans	129	129	0
Other consumer loans	1	1	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,409	1,408	837
Non-working capital loans	15,557	12,994	2,469
Commercial real estate and multi-family residential loans:
Construction and land development loans	449	448	107
Owner occupied loans	5,298	5,297	1,213
Nonowner occupied loans	3,324	3,324	211
Agri-business and agricultural loans:
Loans secured by farmland	381	203	14
Other commercial loans	30	30	15
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,505	2,375	474
Open end and junior lien loans	81	81	8
Other consumer loans	126	126	73
Total	$36,738	$31,964	$5,421

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2015:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$0	$0
Non-working capital loans	767	0	0
Commercial real estate and multi-family residential loans:
Construction and land development loans	0	0	0
Owner occupied loans	2,865	0	0
Nonowner occupied loans	5,590	26	27
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	479	0	0
Loans for ag production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	329	0	0
Open end and junior lien loans	245	0	0
Residential construction loans	0	0	0
Other consumer loans	4	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	994	7	7
Non-working capital loans	9,670	112	124
Commercial real estate and multi-family residential loans:
Construction and land development loans	373	4	5
Owner occupied loans	2,753	0	0
Nonowner occupied loans	0	0	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	0	0	0
Loans for agricultural production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,687	16	16
Open end and junior lien loans	34	0	0
Residential construction loans	0	0	0
Other consumer loans	111	1	1
Total	$26,922	$166	$180

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended June 30, 2014:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$462	$0	$1
Non-working capital loans	124	0	0
Commercial real estate and multi-family residential loans:
Construction and land development loans	0	0	0
Owner occupied loans	168	0	0
Nonowner occupied loans	344	0	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	0	0	0
Loans for ag production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	688	0	0
Open end and junior lien loans	157	0	0
Residential construction loans	141	0	0
Other consumer loans	3	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,549	21	16
Non-working capital loans	13,898	134	136
Commercial real estate and multi-family residential loans:
Construction and land development loans	2,695	15	16
Owner occupied loans	1,921	6	0
Nonowner occupied loans	7,218	35	35
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	616	0	0
Loans for agricultural production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,736	17	17
Open end and junior lien loans	29	0	0
Residential construction loans	0	0	0
Other consumer loans	82	0	0
Total	$32,831	$228	$221

The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2015:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$21	$0	$0
Non-working capital loans	565	1	1
Commercial real estate and multi-family residential loans:
Construction and land development loans	263	0	0
Owner occupied loans	1,704	0	0
Nonowner occupied loans	4,053	54	56
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	381	0	0
Loans for ag production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	244	0	0
Open end and junior lien loans	292	0	0
Residential construction loans	21	0	0
Other consumer loans	2	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,003	16	14
Non-working capital loans	11,118	234	247
Commercial real estate and multi-family residential loans:
Construction and land development loans	411	8	9
Owner occupied loans	4,201	21	22
Nonowner occupied loans	1,635	0	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	100	0	0
Loans for agricultural production	0	0	0
Other commercial loans	5	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	2,850	33	30
Open end and junior lien loans	34	0	0
Residential construction loans	0	0	0
Other consumer loans	116	2	2
Total	$29,019	$369	$381

The following table presents loans individually evaluated for impairment by class of loans as of and for the six-month period ended June 30, 2014:

			Cash Basis
	Average	Interest	Interest
	Recorded	Income	Income
(dollars in thousands)	Investment	Recognized	Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$287	$1	$1
Non-working capital loans	62	0	0
Commercial real estate and multi-family residential loans:
Construction and land development loans	0	0	0
Owner occupied loans	243	0	0
Nonowner occupied loans	349	0	0
Multifamily loans	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland	196	0	0
Loans for ag production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	689	0	0
Open end and junior lien loans	113	0	0
Residential construction loans	144	0	0
Other consumer loans	2	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	2,000	33	29
Non-working capital loans	13,840	260	262
Commercial real estate and multi-family residential loans:
Construction and land development loans	2,663	30	31
Owner occupied loans	2,816	19	14
Nonowner occupied loans	9,526	69	69
Multifamily loans	0	0	0
Agri-business and agricultural loans:	0
Loans secured by farmland	559	0	0
Loans for agricultural production	0	0	0
Other commercial loans	0	0	0
Consumer 1-4 family mortgage loans:	0
Closed end first mortgage loans	2,835	33	36
Open end and junior lien loans	73	0	0
Residential construction loans	0	0	0
Other consumer loans	87	0	0
Total	$36,484	$445	$442

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 June 30, 2015 by class of loans:

		30-89	Greater than
	Loans Not	Days	90 Days		Total
(dollars in thousands)	Past Due	Past Due	Past Due	Nonaccrual	Past Due	Total
Commercial and industrial loans:
Working capital lines of credit loans	$605,190	$40	$0	$580	$620	$605,810
Non-working capital loans	534,829	127	275	3,020	3,422	538,251
Commercial real estate and multi-family
residential loans:
Construction and land development loans	151,936	0	0	0	0	151,936
Owner occupied loans	401,579	2,439	0	5,295	7,734	409,313
Nonowner occupied loans	395,575	269	0	3,359	3,628	399,203
Multifamily loans	90,075	0	0	0	0	90,075
Agri-business and agricultural loans:
Loans secured by farmland	155,526	0	0	477	477	156,003
Loans for agricultural production	95,407	0	0	0	0	95,407
Other commercial loans	82,242	0	0	0	0	82,242
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	146,031	1,508	9	1,154	2,671	148,702
Open end and junior lien loans	156,736	86	0	166	252	156,988
Residential construction loans	8,806	0	0	0	0	8,806
Other consumer loans	50,569	117	0	40	157	50,726
Total	$2,874,501	$4,586	$284	$14,091	$18,961	$2,893,462

The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 by class of loans:

		30-89	Greater than
	Loans Not	Days	90 Days		Total
(dollars in thousands)	Past Due	Past Due	Past Due	Nonaccrual	Past Due	Total
Commercial and industrial loans:
Working capital lines of credit loans	$543,613	$0	$0	$632	$632	$544,245
Non-working capital loans	487,655	0	101	3,598	3,699	491,354
Commercial real estate and multi-family
residential loans:
Construction and land development loans	155,711	0	0	526	526	156,237
Owner occupied loans	399,028	800	0	3,049	3,849	402,877
Nonowner occupied loans	390,394	31	0	3,629	3,660	394,054
Multi-family loans	71,695	0	0	0	0	71,695
Agri-business and agricultural loans:
Loans secured by farmland	136,923	0	0	485	485	137,408
Loans for agricultural production	136,466	0	0	0	0	136,466
Other commercial loans	75,684	0	0	30	30	75,714
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	142,615	1,198	20	1,051	2,269	144,884
Open end and junior lien loans	150,551	235	9	398	642	151,193
Residential construction loans	6,597	0	0	129	129	6,726
Other consumer loans	49,308	108	0	51	159	49,467
Total	$2,746,240	$2,372	$130	$13,578	$16,080	$2,762,320

Troubled Debt Restructuring

The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

	June 30,	December 31,
(dollars in thousands)	2015	2014
Accruing troubled debt restructured loans	$7,606	$16,492
Nonaccrual troubled debt restructured loans	11,177	9,161
Total troubled debt restructured loans	$18,783	$25,653

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as new troubled debt restructurings that occurred during the three month period ending June 30, 2015:

	All Modifications			Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	2	$564	$564
Non-working capital loans	1	783	783	1	12
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	67	67	1	6
Total	4	$1,414	$1,414	2	6-12

The following table presents loans by class modified as new troubled debt restructurings that occurred during the six month period ending June 30, 2015:

	All Modifications			Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	2	$564	$564
Non-working capital loans	1	783	783	1	12
Commercial real estate and multi-
family residential loans:
Owner occupied loans	2	855	855	1	6
Total	5	$2,202	$2,202	2	6-12

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ending June 30, 2014:


	All Modifications			Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Non-working capital loans	2	$ 433	$ 433	2	12-15
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	158	159
Total	3	$ 591	$ 592	2	12-15

Credit Quality Indicators

As of June 30, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

		Special			Not
(dollars in thousands)	Pass	Mention	Substandard	Doubtful	Rated	Total
Commercial and industrial loans:
Working capital lines of credit loans	$ 563,337	$ 36,003	$ 6,470	$ 0	$ 0	$ 605,810
Non-working capital loans	488,192	36,406	10,783	0	2,870	538,251
Commercial real estate and multi-
family residential loans:
Construction and land development loans	148,079	1,272	2,585	0	0	151,936
Owner occupied loans	375,025	24,646	9,642	0	0	409,313
Nonowner occupied loans	381,942	11,753	5,508	0	0	399,203
Multifamily loans	90,075	0	0	0	0	90,075
Agri-business and agricultural loans:
Loans secured by farmland	155,526	0	477	0	0	156,003
Loans for agricultural production	95,407	0	0	0	0	95,407
Other commercial loans	82,238	0	0	0	4	82,242
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	40,008	126	1,841	0	106,727	148,702
Open end and junior lien loans	9,374	0	2,015	0	145,599	156,988
Residential construction loans	0	0	0	0	8,806	8,806
Other consumer loans	16,572	0	72	0	34,082	50,726
Total	$ 2,445,775	$ 110,206	$ 39,393	$ 0	$ 298,088	$ 2,893,462

As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

		Special			Not
(dollars in thousands)	Pass	Mention	Substandard	Doubtful	Rated	Total
Commercial and industrial loans:
Working capital lines of credit loans	$504,806	$28,485	$10,343	$611	$0	$544,245
Non-working capital loans	436,735	31,781	20,324	0	2,514	491,354
Commercial real estate and multi-
family residential loans:
Construction and land
development loans	150,442	1,033	4,762	0	0	156,237
Owner occupied loans	369,520	20,960	12,397	0	0	402,877
Nonowner occupied loans	375,702	12,512	5,840	0	0	394,054
Multi-family loans	71,695	0	0	0	0	71,695
Agri-business and agricultural loans:
Loans secured by farmland	136,923	0	485	0	0	137,408
Loans for agricultural production	136,466	0	0	0	0	136,466
Other commercial loans	75,680	0	30	0	4	75,714
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	39,156	0	2,199	0	103,529	144,884
Open end and junior lien loans	8,400	291	2,015	0	140,487	151,193
Residential construction loans	0	0	0	0	6,726	6,726
Other consumer loans	15,879	290	75	0	33,223	49,467
Total	$2,321,404	$95,352	$58,470	$611	$286,483	$2,762,320