LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Loans Outstanding by Category

The following is a schedule of loans outstanding by category:


	June 30, 2013					December 31, 2012							June 30, 2012
	Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Commercial and industrial	$	529,253		16.31	%	$	559,274		17.25	%	$	515,456		16.82	%
Oil & gas production & equipment		145,735		4.49			154,380		4.76			125,228		4.08
Agriculture		94,337		2.91			93,274		2.88			77,882		2.54
State and political subdivisions:
Taxable		9,202		0.28			9,412		0.29			6,520		0.21
Tax-exempt		12,392		0.38			13,194		0.41			13,853		0.45
Real estate:
Construction		247,827		7.64			226,102		6.97			197,168		6.43
Farmland		126,233		3.89			125,033		3.86			111,472		3.64
One to four family residences		697,927		21.51			669,230		20.64			674,577		22.01
Multifamily residential properties		48,128		1.48			50,721		1.56			46,866		1.53
Commercial		1,070,807		33.00			1,068,445		32.95			1,036,322		33.81
Consumer		243,799		7.51			253,002		7.80			239,156		7.80
Other (not classified above)		19,444		0.60			20,360		0.63			20,939		0.68

Total loans	$	3,245,084		100.00	%	$	3,242,427		100.00	%	$	3,065,439		100.00	%

Loans held for sale (included above)	$	12,044				$	13,661				$	16,612

Summary of Nonperforming and Restructured Assets

The following is a summary of nonperforming and restructured assets:


	June 30,			December 31,			June 30,
	2013			2012			2012
	(Dollars in thousands)
Past due 90 days or more and still accruing	$	850		$	537		$	1,403
Nonaccrual		18,946			20,549			20,702
Restructured		17,903			17,866			18,089

Total nonperforming and restructured loans		37,699			38,952			40,194
Other real estate owned and repossessed assets		8,503			9,566			10,223

Total nonperforming and restructured assets	$	46,202		$	48,518		$	50,417

Nonperforming and restructured loans to total loans		1.16	%		1.20	%		1.31	%

Nonperforming and restructured assets to total assets		0.80	%		0.81	%		0.89	%

Summary of Amounts Included in Nonaccrual Loans Segregated by Class of Loans

The following table is a summary of amounts included in nonaccrual loans, segregated by class of loans. Residential real estate refers to one-to-four family real estate.


	June 30, 2013		June 30, 2012
	(Dollars in thousands)
Non-residential real estate	$	9,711	$	9,711
Residential real estate		3,578		4,098
Non-consumer non-real estate		1,268		1,142
Consumer non-real estate		216		140
Other loans		1,938		1,918
Acquired loans		2,235		3,693

Total	$	18,946	$	20,702

Age Analysis of Past Due Loans Segregated by Class of Loans

The following table presents an age analysis of past due loans, segregated by class of loans:


	Age Analysis of Past Due Loans
	30-89 Days Past Due		90 Days and Greater		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(Dollars in thousands)
As of June 30, 2013
Non-residential real estate	$	2,078	$	3,194	$	5,272	$	1,246,052	$	1,251,324	$	171
Residential real estate		2,990		817		3,807		788,947		792,754		151
Non-consumer non-real estate		3,519		816		4,335		745,327		749,662		32
Consumer non-real estate		2,382		213		2,595		214,785		217,380		176
Other loans		1,850		1,520		3,370		144,135		147,505		—
Acquired loans		375		593		968		85,491		86,459		320

Total	$	13,194	$	7,153	$	20,347	$	3,224,737	$	3,245,084	$	850

As of June 30, 2012
Non-residential real estate	$	2,649	$	2,454	$	5,103	$	1,135,948	$	1,141,051	$	285
Residential real estate		4,240		1,288		5,528		715,621		721,149		478
Non-consumer non-real estate		1,285		244		1,529		695,887		697,416		16
Consumer non-real estate		2,002		183		2,185		198,242		200,427		122
Other loans		1,213		1,654		2,867		153,117		155,984		102
Acquired loans		3,134		1,352		4,486		144,926		149,412		400

Total	$	14,523	$	7,175	$	21,698	$	3,043,741	$	3,065,439	$	1,403

Impaired Loans Segregated by Class of Loans

The following table presents impaired loans, segregated by class of loans. No material amount of interest income was recognized on impaired loans subsequent to their classification as impaired.


	Impaired Loans
	Unpaid Principal Balance		Recorded Investment with Allowance		Related Allowance		Average Recorded Investment
	(Dollars in thousands)
As of June 30, 2013
Non-residential real estate	$	28,111	$	26,607	$	2,391	$	26,508
Residential real estate		5,204		4,581		1,253		5,262
Non-consumer non-real estate		1,816		1,481		390		1,536
Consumer non-real estate		517		495		79		419
Other loans		2,253		2,090		278		2,648
Acquired loans		10,359		8,230		58		8,511

Total	$	48,260	$	43,484	$	4,449	$	44,884

As of June 30, 2012
Non-residential real estate	$	28,184	$	27,165	$	2,122	$	27,397
Residential real estate		5,839		5,384		1,468		5,547
Non-consumer non-real estate		1,792		1,163		302		1,512
Consumer non-real estate		349		325		59		389
Other loans		2,255		2,020		212		2,158
Acquired loans		13,648		11,522		291		13,263

Total	$	52,067	$	47,579	$	4,454	$	50,266

Internal Loan Grading by Class of Loans

The following table presents internal loan grading by class of loans:


	Internal Loan Grading
	Grade
	1		2		3		4		5		Total
	(Dollars in thousands)
As of June 30, 2013
Non-residential real estate	$	1,032,002	$	183,754	$	25,686	$	9,882	$	—	$	1,251,324
Residential real estate		667,217		108,006		13,716		3,815		—		792,754
Non-consumer non-real estate		649,542		94,045		4,737		1,338		—		749,662
Consumer non-real estate		203,408		11,767		1,860		342		3		217,380
Other loans		143,653		2,642		864		346		—		147,505
Acquired loans		66,234		13,774		3,894		2,557		—		86,459

Total	$	2,762,056	$	413,988	$	50,757	$	18,280	$	3	$	3,245,084

As of June 30, 2012
Non-residential real estate	$	983,946	$	118,825	$	28,514	$	9,766	$	—	$	1,141,051
Residential real estate		619,115		81,324		15,920		4,790		—		721,149
Non-consumer non-real estate		610,214		78,825		7,211		1,166		—		697,416
Consumer non-real estate		187,768		10,204		2,122		333		—		200,427
Other loans		151,330		2,917		1,027		710		—		155,984
Acquired loans		110,506		27,002		7,898		4,006		—		149,412

Total	$	2,662,879	$	319,097	$	62,692	$	20,771	$	—	$	3,065,439

Activity in ALLL by Class of Loans

The following table details activity in the ALLL by class of loans for the period presented. Allocation of a portion of the allowance to one class of loans does not preclude its availability to absorb losses in other classes.


	ALLL
	Non- Residential Real Estate			Residential Real Estate			Non- Consumer Non-Real Estate			Consumer Non-Real Estate			Other Loans			Acquired Loans			Total
	(Dollars in thousands)
Three Months Ended June 30, 2013
Allowance for credit losses:
Balance at March 31, 2013	$	15,331		$	9,921		$	8,982		$	2,384		$	1,822		$	224		$	38,664

Charge-offs		(3	)		(99	)		(69	)		(155	)		(20	)		(1	)		(347	)
Recoveries		7			29			18			61			31			3			149

Net charge-offs		4			(70	)		(51	)		(94	)		11			2			(198	)

Provisions charged to operations		245			231			(180	)		99			128			(7	)		516

Balance at June 30, 2013	$	15,580		$	10,082		$	8,751		$	2,389		$	1,961		$	219		$	38,982

Six Months Ended June 30, 2013
Allowance for credit losses:
Balance at December 31, 2012	$	14,969		$	9,815		$	9,385		$	2,451		$	1,885		$	220		$	38,725

Charge-offs		(21	)		(250	)		(105	)		(295	)		(159	)		(50	)		(880	)
Recoveries		26			42			49			137			31			36			321

Net charge-offs		5			(208	)		(56	)		(158	)		(128	)		(14	)		(559	)

Provisions charged to operations		606			475			(578	)		96			204			13			816

Balance at June 30, 2013	$	15,580		$	10,082		$	8,751		$	2,389		$	1,961		$	219		$	38,982

Allowance for credit losses-ending balances:
Individually evaluated for impairment	$	2,880		$	2,016		$	1,124		$	265		$	231		$	—		$	6,516
Collectively evaluated for impairment		12,700			8,066			7,627			2,124			1,730			219			32,466

Balance at June 30, 2013	$	15,580		$	10,082		$	8,751		$	2,389		$	1,961		$	219		$	38,982

Loans-Ending balances:
Individually evaluated for impairment	$	35,568		$	17,531		$	6,075		$	2,205		$	280		$	—		$	61,659
Collectively evaluated for impairment		1,215,756			775,223			743,587			215,175			147,225			80,008			3,176,974
Loans acquired with deteriorated credit quality		—			—			—			—			—			6,451			6,451

Balance at June 30, 2013	$	1,251,324		$	792,754		$	749,662		$	217,380		$	147,505		$	86,459		$	3,245,084


	ALLL
	Non- Residential Real Estate			Residential Real Estate			Non- Consumer Non-Real Estate			Consumer Non-Real Estate			Other Loans			Acquired Loans			Total
	(Dollars in thousands)
Three Months Ended June 30, 2012
Allowance for credit losses:
Balance at March 31, 2012	$	14,109		$	9,762		$	9,198		$	2,283		$	1,850		$	431		$	37,633

Charge-offs		(7	)		(95	)		(313	)		(77	)		(27	)		(12	)		(531	)
Recoveries		(6	)		13			26			32			12			9			86

Net charge-offs		(13	)		(82	)		(287	)		(45	)		(15	)		(3	)		(445	)

Provisions charged to operations		253			326			(353	)		44			19			(41	)		248

Balance at June 30, 2012	$	14,349		$	10,006		$	8,558		$	2,282		$	1,854		$	387		$	37,436

Six Months Ended June 30, 2012
Allowance for credit losses:
Balance at December 31, 2011	$	13,948		$	9,764		$	9,156		$	2,315		$	1,886		$	587		$	37,656

Charge-offs		(128	)		(131	)		(330	)		(191	)		(207	)		(76	)		(1,063	)
Recoveries		31			109			124			116			31			11			422

Net charge-offs		(97	)		(22	)		(206	)		(75	)		(176	)		(65	)		(641	)

Provisions charged to operations		498			264			(392	)		42			144			(135	)		421

Balance at June 30, 2012	$	14,349		$	10,006		$	8,558		$	2,282		$	1,854		$	387		$	37,436

Allowance for credit losses-ending balances:
Individually evaluated for impairment	$	2,986		$	2,760		$	1,436		$	302		$	196		$	—		$	7,680
Collectively evaluated for impairment		11,363			7,246			7,122			1,980			1,658			387			29,756

Balance at June 30, 2012	$	14,349		$	10,006		$	8,558		$	2,282		$	1,854		$	387		$	37,436

Loans-Ending balances:
Individually evaluated for impairment	$	38,278		$	20,710		$	8,377		$	2,455		$	109		$	—		$	69,929
Collectively evaluated for impairment		1,102,773			700,439			689,039			197,972			155,875			137,508			2,983,606
Loans acquired with deteriorated credit quality		—			—			—			—			—			11,904			11,904

Balance at June 30, 2012	$	1,141,051		$	721,149		$	697,416		$	200,427		$	155,984		$	149,412		$	3,065,439

Transfers from Loans to Other Real Estate Owned and Repossessed Assets

Transfers from loans to other real estate owned and repossessed assets during the periods presented, are summarized as follows:


	Six Months Ended June 30,
	2013		2012
	(Dollars in thousands)
Other real estate owned	$	896	$	1,284
Repossessed assets		594		295

Total	$	1,490	$	1,579