9. Loans and Allowance for Loan Losses

The composition of the loan portfolio is summarized as follows:

	March 31, 2012		December 31, 2011
Commercial, financial and agricultural	$	138,265,330	$	142,209,279
Commercial mortgages		276,270,702		264,589,013
Residential mortgages		192,548,256		193,599,853
Indirect consumer loans		96,660,998		97,165,447
Consumer loans		99,287,781		99,351,585
	$	803,033,067	$	796,915,177

Loans are charged against the allowance for loan losses when management believes that the collectability of all or a portion of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb probable incurred losses on existing loans. Management's evaluation of the adequacy of the allowance for loan losses is performed on a periodic basis and takes into consideration such factors as the credit risk grade assigned to the loan, historical loan loss experience and review of specific problem loans (including evaluations of the underlying collateral). Historical loss experience is adjusted by management based on their judgment as to the current impact of qualitative factors including changes in the composition and volume of the loan portfolio, overall portfolio quality, and current economic conditions that may affect the borrowers' ability to pay. Management believes that the allowance for loan losses is adequate to absorb probable incurred losses. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation's allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.

Management, after considering current information and events regarding a borrower's ability to repay its obligations, classifies a loan as impaired when it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. Loans not impaired but classified as substandard and special mention use a historical loss factor on a rolling five year history of net losses. For all other unclassified loans, the historical loss experience is determined by portfolio class and is based on the actual loss history experienced by the Corporation over the most recent two years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio class. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial, financial and agricultural; commercial mortgages; residential mortgages; and consumer loans.

Risk Characteristics

Commercial, financial and agricultural loans primarily consist of loans to small to mid-sized businesses in our market area in a diverse range of industries. These loans are of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value. The credit risk related to commercial loans is largely influenced by general economic conditions and the resulting impact on a borrower's operations or on the value of underlying collateral, if any.

Commercial mortgage loans generally have larger balances and involve a greater degree of risk than residential mortgage loans, inferring higher potential losses on an individual customer basis. Loan repayment is often dependent on the successful operation and management of the properties and/or the businesses occupying the properties, as well as on the collateral securing the loan. Economic events or conditions in the real estate market could have an adverse impact on the cash flows generated by properties securing the Company's commercial real estate loans and on the value of such properties.

Residential mortgage loans are generally made on the basis of the borrower's ability to make repayment from his or her employment and other income, but are secured by real property whose value tends to be more easily ascertainable. Credit risk for these types of loans is generally influenced by general economic conditions, the characteristics of individual borrowers and the nature of the loan collateral.

The consumer loan segment includes home equity lines of credit and home equity loans, which exhibit many of the same risk characteristics as residential mortgages. Indirect and other consumer loans may entail greater credit risk than residential mortgage and home equity loans, particularly in the case of other consumer loans which are unsecured or, in the case of indirect consumer loans, secured by depreciable assets, such as automobiles or boats. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower's continuing financial stability, thus are more likely to be affected by adverse personal circumstances such as job loss, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

The following tables present activity in the allowance for loan losses by portfolio segment for the three-month periods ending March 31, 2012 and March 31, 2011 and by loans originated by the Corporation (referred to as "Legacy" loans) and loans acquired in the FOFC merger completed on April 8, 2011 (referred to as "Acquired" loans). The Acquired loan allowance represents any valuation allowances established after acquisition for decreases in cash flows expected to be collected on loans acquired with deteriorated credit quality:

Legacy Loans	Three Months Ended March 31, 2012
Allowance for loan losses	Commercial, Financial and Agricultural			Commercial Mortgages		Residential Mortgages			Consumer Loans			Unallocated			Total
Beginning balance:	$	3,143,373		$	2,570,149	$	1,309,649		$	2,192,729		$	443,420		$	9,659,320
Charge Offs:		-			-		(14,340	)		(158,319	)		-			(172,659	)
Recoveries:		172,603			10,235		-			61,983			-			244,821
Net charge offs		172,603			10,235		(14,340	)		(96,336	)		-			72,162
Provision		(179,519	)		373,248		121,943			4,040			(69,712	)		250,000
Ending balance	$	3,136,457		$	2,953,632	$	1,417,252		$	2,100,433		$	373,708		$	9,981,482

Acquired loans	Three Months Ended March 31, 2012
Allowance for loan losses	Commercial, Financial and Agricultural		Commercial Mortgages			Residential Mortgages		Consumer Loans		Unallocated		Total
Beginning balance:	$	-	$	-		$	-	$	-	$	-	$	-
Reclassification of acquired loan discount		73,228		50,332			-		-		-		123,560
Charge Offs:		-		(49,057	)						-		(49,057	)
Recoveries:		-		-			-		-		-		-
Net charge offs		-		(49,057	)		-		-		-		(49,057	)
Provision		151,708		75,597			-		-		-		227,305
Ending balance	$	224,936	$	76,872		$	-	$	-	$	-	$	301,807

	Three Months Ended March 31, 2011
Allowance for loan losses	Commercial, Financial and Agricultural		Commercial Mortgages			Residential Mortgages		Consumer Loans			Unallocated			Total
Beginning balance:	$	2,118,299	$	2,575,058		$	1,301,780	$	2,727,022		$	775,972		$	9,498,131
Charge Offs:		-		(3,764	)		-		(206,911	)		-			(210,675	)
Recoveries:		110,589		9,629			14,479		43,797			-			178,494
Net charge offs		110,589		5,865			14,479		(163,114	)		-			(32,181	)
Provision		273,312		76,262			49,955		(139,596	)		(134,933	)		125,000
Ending balance	$	2,572,200	$	2,657,185		$	1,366,214	$	2,424,312		$	641,040		$	9,590,951

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of March 31, 2012 and December 31, 2011. The recorded investment excludes loans acquired in the FOFC merger except those loans acquired with deteriorated credit quality:

	March 31, 2012
Allowance for loan losses	Commercial, Financial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Unallocated		Total
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,492,310	$	313,054	$	-	$	-	$	-	$	1,805,364
Collectively evaluated for impairment		1,644,147		2,640,578		1,417,252		2,100,433		373,708		8,176,118
Acquired with deteriorated credit quality		224,936		76,871		-		-		-		301,807
Total ending allowance balance	$	3,361,393	$	3,030,503	$	1,417,252	$	2,100,433	$	373,708	$	10,283,289

	December 31, 2011
Allowance for loan losses	Commercial, Financial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Unallocated		Total
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,528,651	$	413,555	$	-	$	-	$	-	$	1,942,206
Collectively evaluated for impairment		1,614,722		2,156,594		1,309,649		2,192,729		443,420		7,717,114
Total ending allowance balance	$	3,143,373	$	2,570,149	$	1,309,649	$	2,192,729	$	443,420	$	9,659,320

	March 31, 2012
Loans:	Commercial, Financial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually evaluated for impairment	$	2,470,586	$	2,190,967	$	142,730	$	59,568	$	4,863,851
Loans collectively evaluated for impairment		112,831,940		190,351,054		175,166,488		190,478,832	$	668,828,314
Acquired with deteriorated credit quality		1,275,293		10,613,740		231,246		-		12,120,279
Total ending loans balance	$	116,577,819	$	203,155,761	$	175,540,464	$	190,538,400	$	685,812,444

	December 31, 2011
Loans:	Commercial, Financial and Agricultural		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually evaluated for impairment	$	5,275,043	$	4,603,563	$	179,337	$	-	$	10,057,943
Loans collectively evaluated for impairment		111,532,413		169,658,759		175,405,950		190,904,630		647,501,752
Total ending loans balance	$	116,807,456	$	174,262,322	$	175,585,287	$	190,904,630	$	657,559,695

The following tables present loans individually evaluated for impairment recognized by class of loans as of March 31, 2012 and December 31, 2011, the average recorded investment and interest income recognized by class of loans as of the three-month periods ending March 31, 2012 and 2011:

	March 31, 2012						December 31, 2011
	Unpaid Principal Balance		Allowance for Loan Losses Allocated		Recorded Investment		Unpaid Principal Balance			Allowance for Loan Losses Allocated		Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural:
Commercial & industrial	$	105,834	$	-	$	105,947	$	2,914,401	$	-	$	2,914,776
Commercial mortgages:
Construction		10,454		-		10,454		10,454		-		10,454
Other		706,200		-		706,172		862,815		-		860,648
Residential mortgages		142,730		-		142,730		178,925		-		179,337
Consumer loans:
Home equity lines & loans		58,823		-		59,568		-		-		-

With an allowance recorded:
Commercial, financial and agricultural:
Commercial & industrial		2,364,363		1,492,310		2,364,639		2,360,252		1,528,651		2,360,267
Commercial mortgages:
Construction		8,295		8,295		8,295		8,295		8,295		8,295
Other		1,465,884		304,759		1,466,046		3,727,097		405,260		3,724,166
Total	$	4,862,583	$	1,805,364	$	4,863,851	$	10,062,239	$	1,942,206	$	10,057,943

	Three Months Ended March 31, 2012				Three Months Ended March 31, 2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial, financial and agricultural:
Commercial & industrial	$	1,510,362	$	-	$	3,165,465	$	8,426
Commercial mortgages:
Construction		10,454		-		31,460		-
Other		783,410		-		3,434,129		-
Residential mortgages		161,034		-		357,510		2,374
Consumer loans:
Home equity lines & loans		29,784		1,166		-		-
With an allowance recorded:
Commercial, financial and agricultural:
Commercial & industrial		2,362,453		-		43, 715		-

Commercial mortgages:
Construction		8,295		-		35,551		-
Other		2,595,105		-		766,573		-
Total	$	7,460,897	$	1,166	$	7,834,403	$	10,800

The following table presents the recorded investment in non accrual and loans past due over 90 days still on accrual by class of loans as of the periods ending March 31, 2012 and December 31, 2011. This table includes loans acquired in the FOFC merger, except those loans with evidence of credit deterioration at the time of the merger.

	March 31, 2012				December 31, 2011
	Non-Accrual		Loans Past Due Over 90 Days Still Accruing		Non-Accrual		Loans Past Due Over 90 Days Still Accruing
Commercial, financial and agricultural:
Commercial & industrial	$	2,823,621	$	7,847	$	5,611,805	$	-
Commercial mortgages
Construction		427,729		6,274,564		18,749		7,295,104
Other		2,412,214		-		4,778,384		-
Residential mortgages		2,588,711		-		2,611,096		-
Consumer loans
Credit cards		-		11,582		-		9,053
Home equity lines & loans		417,776		-		455,418		-
Indirect consumer loans		102,402		-		22,287		-
Other direct consumer loans		10,596		-		113,349		-
Total	$	8,783,049	$	6,293,993	$	13,611,088	$	7,304,157

The following tables present the aging of the recorded investment in loans past due (including non-accrual loans) by class of loans as of March 31, 2012 and December 31, 2011 and by loans originated by the Corporation (referred to as "Legacy" loans) and loans acquired in the FOFC merger (referred to as "Acquired" loans):

	March 31, 2012
Legacy Loans:	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due			Loans Acquired with deteriorated credit quality	Loans Not Past Due			Total
Commercial, financial and agricultural:
Commercial & industrial	$	83,304	$	211,650	$	167,318	$	462,272	$	-	$	114,534,498	$	114,996,770
Agricultural		-		-		-		-		-		305,755		305,755
Commercial mortgages:
Construction		-		10,454		8,295		18,749		-		17,321,744		17,340,493
Other		-		-		701,830		701,830		-		174,499,698		175,201,528
Residential mortgages		1,323,511		173,740		867,608		2,364,859		-		172,944,360		175,309,219
Consumer loans:
Credit cards		7,789		5,800		11,582		25,171		-		1,756,861		1,782,032
Home equity lines & loans		358,087		17,579		173,659		549,325		-		76,404,286		76,953,611
Indirect consumer loans		335,143		46,448		73,560		455,151		-		96,515,998		96,971,149
Other direct consumer loans		10,998		21,729		435		33,162		-		14,798,446		14,831,608
Total	$	2,118,832	$	487,400	$	2,004,287	$	4,610,519	$	-	$	669,081,646	$	673,692,165

	March 31, 2012
Acquired Loans:	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due			Loans Acquired with deteriorated credit quality	Loans Not Past Due			Total
Commercial, financial and agricultural:
Commercial & industrial	$	438,004	$	24,476	$	249,984	$	712,464	$	1,275,293	$	22,654,930	$	24,642,687
Commercial mortgages:
Construction		-		-		6,683,544		6,683,544		1,199,658		2,498,382		10,381,584
Other		-		-		239,996		239,996		9,414,082		63,195,237		72,849,315
Residential mortgages		2,723,725		-		265,851		2,989,576		231,246		14,556,417		17,777,239
Consumer loans:
Home equity lines & loans		-		-		-		-		-		5,915,875		5,915,875
Other direct consumer loans		-		701		-		701		-		122,048		122,749
Total	$	3,161,729	$	25,177	$	7,439,375	$	10,626,281	$	12,120,279	$	108,942,889	$	131,689,449

	December 31, 2011
Legacy Loans:		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due			Loans Acquired with deteriorated credit quality	Loans Not Past Due			Total
Commercial, financial and agricultural:
Commercial & industrial		$	4,571	$	10,940	$	2,920,906	$	2,936,417	$	-	$	113,612,941	$	116,549,358
Agricultural			-		-		-		-		-		258,098		258,098
Commercial mortgages:
Construction			-		-		-		-		-		7,383,731		7,383,731
Other			82,986		-		2,977,010		3,059,996		-		163,818,595		166,878,591
Residential mortgages			1,418,234		293,337		1,221,056		2,932,627		-		172,652,660		175,585,287
Consumer loans:
Credit cards			3,660		8,031		9,053		20,744		-		1,934,471		1,955,215
Home equity lines & loans			368,556		27,717		212,573		608,846		-		76,280,502		76,889,348
Indirect consumer loans			597,180		75,817		85,763		758,760		-		96,781,480		97,540,240
Other direct consumer loans			21,876		10,243		9,644		41,763		-		14,478,064		14,519,827
Total		$	2,497,063	$	426,085	$	7,436,005	$	10,359,153	$	-	$	647,200,542	$	657,559,695

	December 31, 2011
Acquired Loans:		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due			Loans Acquired with deteriorated credit quality	Loans Not Past Due			Total
Commercial, financial and agricultural:
Commercial & industrial		$	275,121	$	82,677	$	195,687	$	553,485	$	1,499,141	$	25,335,874	$	27,388,500
Commercial mortgages:
Construction			-		418,518		7,295,104		7,713,622		2,022,149		2,715,270		12,451,041
Other			-		-		193,570		193,570		11,063,483		65,836,938		77,093,991
Residential mortgages			405,087		62,017		84,083		551,187		226,937		17,753,898		18,532,022
Consumer loans:
Home equity lines & loans			-		-		-		-		-		6,168,831		6,168,831
Other direct consumer loans			171		-		-		171		-		147,439		147,610
Total		$	680,379	$	563,212	$	7,768,444	$	9,012,035	$	14,811,710	$	117,958,250	$	141,781,995

Troubled Debt Restructurings:

The Corporation has $66 thousand of allocated specific reserves to customers whose loan terms have been modified in troubled debt restructurings which are included in non-accrual loans as of March 31, 2012. The Corporation had $218 thousand allocated specific reserves to customers whose loan terms have been modified in troubled debt restructurings which are included in non-accrual loans as of December 31, 2011. The Corporation has not committed to lend any additional amounts as of March 31, 2012 or December 31, 2011 to customers with outstanding loans that are classified as trouble debt restructurings.

During the three months ended March 31, 2012, one loan in the amount of $59 thousand was modified as a troubled debt restructuring by the Corporation. The modification of the terms of this loan included an extension of the maturity date. Additionally, there were no payment defaults on any loans previously modified as troubled debt restructurings within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

Credit Quality Indicators:

The Corporation 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 Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes new consumer, mortgage and home equity loans and lines with outstanding balances greater than $50 thousand, $250 thousand and $100 thousand, respectively, along with a sample of existing loans and non-homogeneous loans, such as commercial and commercial real estate loans. The loans meeting these criteria are reviewed at least annually. The Corporation uses the following definitions for risk rating:

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 the institution's credit position as some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capability 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 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 characteristic 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 not rated loans. Based on the analysis's performed as of March 31, 2012 and December 31, 2011, the risk category of the recorded investment of loans by class of loans is as follows:

	March 31, 2012
Legacy Loans:	Not Rated		Pass		Special Mention		Substandard		Doubtful
Commercial, financial and agricultural:
Commercial & industrial	$	-	$	96,287,427	$	13,885,755	$	2,833,733	$	1,989,855
Agricultural		-		305,755		-		-		-
Commercial mortgages:
Construction		-		16,358,450		205,050		776,993		-
Other		-		159,594,079		10,130,408		5,060,046		416,995
Residential mortgages		172,986,984		-		-		2,322,235		-
Consumer loans:
Credit cards		1,782,032		-		-		-		-
Home equity lines & loans		76,476,267		-		-		477,344		-
Indirect consumer loans		96,886,193		-		-		84,956		-
Other direct consumer loans		14,820,994		-		-		10,614		-
Total	$	362,952,470	$	272,545,711	$	24,221,213	$	11,565,921	$	2,406,850

	March 31, 2012
Acquired Loans:		Not Rated		Pass		Loans Acquired with deteriorated credit quality		Special Mention		Substandard		Doubtful
Commercial, financial and agricultural:
Commercial & industrial		$	-		22,421,797	$	1,275,293	$	568,085	$	284,941	$	92,571
Commercial mortgages
Construction			-		1,019,952		1,199,658		6,562,664		1,599,310		-
Other			-		60,091,719		9,414,082		476,760		2,673,184		193,570
Residential mortgages			17,401,243		-		231,246		-		144,750		-
Consumer loans
Home equity lines & loans			5,915,875		-		-		-		-		-
Other direct consumer loans			122,749		-		-		-		-		-
Total		$	23,439,867		83,533,468	$	12,120,279	$	7,607,509	$	4,702,185	$	286,141

	December 31, 2011
Legacy Loans:	Not Rated		Pass		Special Mention		Substandard		Doubtful
Commercial, financial and agricultural:
Commercial & industrial	$	-	$	93,923,356	$	14,957,683	$	4,139,413	$	3,528,906
Agricultural		-		258,098		-		-		-
Commercial mortgages:
Construction		-		6,391,614		208,360		783,757		-
Other		-		152,435,884		6,503,087		7,423,514		516,106
Residential mortgages		173,120,292		-		-		2,464,995		-
Consumer loans:
Credit cards		1,955,215		-		-		-		-
Home equity lines & loans		76,432,196		-		-		457,152		-
Indirect consumer loans		97,426,891		-		-		113,349		-
Other direct consumer loans		14,497,795		-		-		22,032		-
Total	$	363,432,389	$	253,008,952	$	21,669,130	$	15,404,212	$	4,045,012

	December 31, 2011
Acquired Loans:		Not Rated		Pass		Loans Acquired with deteriorated credit quality		Special Mention		Substandard		Doubtful
Commercial, financial and agricultural:
Commercial & industrial		$	-	$	25,164,742	$	1,499,141	$	602,006	$	24,635	$	97,976
Commercial mortgages
Construction			-		1,790,731		2,022,149		7,447,661		1,190,500		-
Other			-		62,684,708		11,063,483		475,036		2,677,194		193,570
Residential mortgages			18,158,984		-		226,937		-		146,101		-
Consumer loans
Home equity lines & loans			6,168,831		-		-		-		-		-
Other direct consumer loans			147,610		-		-		-		-		-
Total		$	24,475,425	$	89,640,181	$	14,811,710	$	8,524,703	$	4,038,430	$	291,546

The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of March 31, 2012 and December 31, 2011:

	March 31, 2012
			Consumer Loans
Legacy Loans:	Residential Mortgages		Credit Card		Home Equity Lines & Loans		Indirect Consumer Loans		Other Direct Consumer Loans
Performing	$	172,986,359	$	1,770,450	$	76,535,835	$	96,868,747	$	14,820,994
Non-Performing		2,322,860		11,582		417,776		102,402		10,614
		175,309,219		1,782,032		76,953,611		96,971,149		14,831,608

Acquired Loans:
Performing	$	17,511,388	$	-	$	5,915,875	$	-	$	122,749
Non-Performing		265,851		-		-		-		-
Total	$	17,777,239	$	-	$	5,915,875	$	-	$	122,749

	December 31, 2011
			Consumer Loans
Legacy Loans:	Residential Mortgages		Credit Card		Home Equity Lines & Loans		Indirect Consumer Loans		Other Direct Consumer Loans
Performing	$	173,120,292	$	1,946,162	$	76,432,196	$	97,426,891	$	14,497,878
Non-Performing		2,464,995		9,053		457,152		113,349		21,949
Total	$	175,585,287	$	1,955,215	$	76,889,348	$	97,540,240	$	14,519,827

Acquired Loans:
Performing	$	18,385,921	$	-	$	6,168,831	$	-	$	147,610
Non-Performing		146,101		-		-		-		-
Total	$	18,532,022	$	-	$	6,168,831	$	-	$	147,610

Acquired loans include loans acquired with deteriorated credit quality. The Corporation adjusted its estimates of future expected losses, cash flows, and renewal assumptions during the current year. The table below summarizes the changes in total contractually required principal and interest cash payments, management's estimate of expected total cash payments and carrying value of the loans from January 1, 2012 to March 31, 2012 (in thousands of dollars):

	Balance at December 31, 2011			Income Accretion		All Other Adjustments			Balance at March 31, 2012
Contractually required principal and interest	$	21,261		$	-	$	(3,481	)	$	17,780
Contractual cash flows not expected to be collected (nonaccretable discount)		(4,662	)		-		440			(4,222	)
Cash flows expected to be collected		16,599			-		(3,041	)		13,558
Interest component of expected cash flows (accretable yield)		(1,844	)		916		(489	)		(1,417	)
Fair value of loans acquired with deteriorating credit quality	$	14,755		$	916	$	(3,530	)	$	12,141