Note 5.

Allowance for Loan and Lease Losses

The following tables present the detail of the allowance and the loan portfolio disaggregated by loan portfolio segment as of March 31, 2012, December 31, 2011, and March 31, 2011.

Allowance for Loan and Leases Losses and Loans Held for Investment
For the three months ended March 31, 2012
(In thousands)	Commercial real estate		Construction and land development			Commercial & industrial		Multi- family		Residential real estate		Other		Leases			Tax certificates			Unallocated			Total
Allowance for Loan and Leases Losses
Beginning balance	$	7,744	$	2,523		$	2,331	$	531	$	1,188	$	20	$	1,311		$	425		$	307		$	16,380
Charge-offs		-		-			-		-		-		-		(133	)		(20	)		-			(153	)
Recoveries		3		104			2		-		1		-		8			25			-			143
Provision		149		(178	)		21		84		5		-		109			(24	)		(82	)		84
Ending balance	$	7,896	$	2,449		$	2,354	$	615	$	1,194	$	20	$	1,295		$	406		$	225		$	16,454
Ending balance: related to loans individually evaluated for impairment	$	-	$	-		$	47	$	-	$	20	$	-	$	53		$	55		$	-		$	175
Ending balance: related to loans collectively evaluated for impairment	$	7,896	$	2,449		$	2,307	$	615	$	1,174	$	20	$	1,242		$	351		$	225		$	16,279
LHFI
Ending balance	$	180,123	$	49,399		$	52,794	$	13,735	$	27,155	$	945	$	37,468		$	39,056		$	-		$	400,675
Ending balance: individually evaluated for impairment	$	12,846	$	13,728		$	6,173	$	1,688	$	1,334	$	-	$	76		$	1,025		$	-		$	36,870
Ending balance: collectively evaluated for impairment	$	167,277	$	35,671		$	46,621	$	12,047	$	25,821	$	945	$	37,392		$	38,031		$	-		$	363,805

Allowance for Loan and Leases Losses and Loans Held for Investment
For the year ended December 31, 2011
(In thousands)	Commercial real estate			Construction and land development			Commercial & industrial			Multi- family			Residential real estate			Other		Leases			Tax certificates			Unallocated		Total
Allowance for Loan and Leases Losses
Beginning balance	$	9,534		$	3,976		$	3,797		$	652		$	1,106		$	12	$	1,670		$	380		$	2	$	21,129
Charge-offs		(1,685	)		(5,755	)		(2,901	)		(328	)		(635	)		-		(868	)		(1,039	)		-		(13,211	)
Recoveries		357			196			22			-			153			-		6			-			-		734
Provision		(462	)		4,106			1,413			207			564			8		503			1,084			305		7,728
Ending balance	$	7,744		$	2,523		$	2,331		$	531		$	1,188		$	20	$	1,311		$	425		$	307	$	16,380
Ending balance: related to loans individually evaluated for impairment	$	-		$	-		$	-		$	-		$	24		$	-	$	114		$	-		$	-	$	138
Ending balance: related to loans collectively evaluated for impairment	$	7,744		$	2,523		$	2,331		$	531		$	1,164		$	20	$	1,197		$	425		$	307	$	16,242
LHFI
Ending balance	$	182,579		$	54,120		$	54,136		$	11,622		$	26,637		$	949	$	36,014		$	48,809		$	-	$	414,866
Ending balance: individually evaluated for impairment	$	17,311		$	17,368		$	7,267		$	1,703		$	1,139		$	-	$	266		$	1,023		$	-	$	46,077
Ending balance: collectively evaluated for impairment	$	165,268		$	36,752		$	46,869		$	9,919		$	25,498		$	949	$	35,748		$	47,786		$	-	$	368,789

Allowance for Loan and Leases Losses and Loans Held for Investment
For the three months ended March 31, 2011
(In thousands)	Commercial real estate			Construction and land development		Commercial & industrial			Multi- family			Residential real estate			Other		Leases			Tax certificates			Unallocated		Total
Allowance for Loan and Leases Losses
Beginning balance	$	9,534		$	3,976	$	3,797		$	652		$	1,106		$	12	$	1,670		$	380		$	2	$	21,129
Charge-offs		-			-		-			-			-			-		(176	)		(1	)		-		(177	)
Recoveries		9			-		1			-			1			-		-			1			-		12
Provision		(219	)		1,509		(214	)		(4	)		(23	)		4		198			110			723		2,084
Ending balance	$	9,324		$	5,485	$	3,584		$	648		$	1,084		$	16	$	1,692		$	490		$	725	$	23,048
Ending balance: related to loans individually evaluated for impairment	$	1,303		$	1,990	$	495		$	245		$	72		$	-	$	183		$	178		$	-	$	4,466
Ending balance: related to loans collectively evaluated for impairment	$	8,021		$	3,495	$	3,089		$	403		$	1,012		$	16	$	1,509		$	312		$	725	$	18,582
LHFI
Ending balance	$	188,800		$	73,776	$	57,103		$	10,168		$	29,101		$	909	$	38,697		$	65,804		$	-	$	464,358
Ending balance: individually evaluated for impairment	$	9,863		$	20,706	$	5,437		$	2,415		$	2,402		$	-	$	390		$	1,790		$	-	$	43,003
Ending balance: collectively evaluated for impairment	$	178,937		$	53,070	$	51,666		$	7,753		$	26,699		$	909	$	38,307		$	64,014		$	-	$	421,355

The following tables detail the loans that were evaluated for impairment by loan segment at March 31, 2012 and December 31, 2011.

	For the three months ended March 31, 2012
(In thousands)	Unpaid principal balance		Carrying value		Related allowance		Average recorded investment		Interest income recognized
With no related allowance recorded:
Construction and land development	$	19,190	$	13,728	$	-	$	16,316	$	63
Commercial real estate		14,654		12,846		-		14,097		19
Commercial & industrial		12,181		5,560		-		6,642		-
Residential real estate		3,997		688		-		422		-
Multi-family		1,888		1,688		-		1,696		-
Tax certificates		-		-		-		773		-
Total:	$	51,910	$	34,510	$	-	$	39,946	$	82
With an allowance recorded:
Commercial & industrial	$	1,111	$	566	$	47	$	153	$	-
Residential real estate		906		626		20		817		-
Leases		75		23		53		151		-
Tax certificates		4,661		970		55		256		-
Total:	$	6,753	$	2,185	$	175	$	1,377	$	-

	For the year ended December 31, 2011
(In thousands)	Unpaid principal balance		Carrying value		Related allowance		Average recorded investment		Interest income recognized
With no related allowance recorded:
Construction and land development	$	24,183	$	17,368	$	-	$	13,331	$	84
Commercial real estate		19,513		17,311		-		7,732		33
Commercial & industrial		14,368		7,267		-		8,257		77
Residential real estate		3,645		337		-		950		-
Multi-family		1,888		1,703		-		1,760		-
Tax certificates		4,658		1,023		-		171		-
Total:	$	68,255	$	45,009	$	-	$	32,201	$	194
With an allowance recorded:
Construction and land development	$	-	$	-	$	-	$	4,514	$	-
Commercial real estate		-		-		-		2,642		-
Commercial & industrial		-		-		-		1,394		-
Residential real estate		1,048		778		24		915		1
Multi-family		-		-		-		245		-
Leases		266		152		114		348		-
Tax certificates		-		-		-		1,423		-
Total:	$	1,314	$	930	$	138	$	11,481	$	1