ACQUISITIONS

On July 9, 2009, through its subsidiary Galena State Bank & Trust Co., Heartland acquired substantially all of the assets of The Elizabeth State Bank in an FDIC assisted transition for which the FDIC provided loss share coverage. The carrying amount of loans covered under these loss share agreements with the FDIC consisted of impaired and nonimpaired purchased loans and are summarized in the following table:



(Dollars in thousands)
	June 30, 2011						December 31, 2010
	Impaired Purchased Loans		Nonimpaired Purchased Loans		Total Covered Loans		Impaired Purchased Loans		Nonimpaired Purchased Loans		Total Covered Loans
Commercial and commercial real estate	$	2,782	$	4,533	$	7,315	$	4,256	$	5,800	$	10,056
Residential real estate	—		4,747		4,747		—		5,792		5,792
Agricultural and agricultural real estate	379		1,919		2,298		379		2,344		2,723
Consumer loans	628		1,202		1,830		690		1,539		2,229
Total Covered Loans	$	3,789	$	12,401	$	16,190	$	5,325	$	15,475	$	20,800