8. ALLOWANCE FOR LOAN LOSSES

An analysis of activity in the allowance for loan losses for the periods indicated, and the balance of loans receivable by the method of impairment evaluation for those periods were as follows:


	Commercial & Industrial		Owner Occupied Commercial Real Estate		Commercial Real Estate		Construction & Land Development		Residential Mortgage		Other Consumer		Total
	(Dollars in thousands)

Allowance for loan losses:
For the Three Months
Balance - July 1, 2014	$	9,993	$	791	$	2,609	$	1,475	$	624	$	213	$	15,705
Charge-offs		(679)		-		-		-		-		(2)		(681)
Recoveries		10		-		-		-		7		1		18
Provision		(1,283)		63		251		1,176		(65)		78		220
Balance - September 30, 2014	$	8,041	$	854	$	2,860	$	2,651	$	566	$	290	$	15,262

For the Nine Months
Balance - January 1, 2014	$	10,196	$	874	$	2,216	$	1,103	$	654	$	1,318	$	16,361
Charge-offs		(1,967)		-		-		-		-		(1,287)		(3,254)
Recoveries		65		14		1		-		15		617		712
Provision		(253)		(34)		643		1,548		(103)		(358)		1,443
Balance - September 30, 2014	$	8,041	$	854	$	2,860	$	2,651	$	566	$	290	$	15,262

As of September 30, 2014
Allowance for loan losses:
Collectively evaluated for impairment	$	7,006	$	852	$	2,709	$	2,636	$	566	$	188	$	13,957
Individually evaluated for impairment		1,035		-		-		-		-		102		1,137
Purchased credit impaired		-		2		151		15		-		-		168
Total allowance for loan losses	$	8,041	$	854	$	2,860	$	2,651	$	566	$	290	$	15,262

Loans receivable:
Collectively evaluated for impairment	$	722,756	$	131,485	$	300,939	$	228,441	$	99,358	$	6,437	$	1,489,416
Individually evaluated for impairment		2,109		177		3,047		1,740		1,296		261		8,630
Purchased credit impaired		718		1,278		4,714		78		164		-		6,952
Total loans evaluated for impairment	$	725,583	$	132,940	$	308,700	$	230,259	$	100,818	$	6,698	$	1,504,998


	Commercial & Industrial		Owner Occupied Commercial Real Estate		Commercial Real Estate		Construction & Land Development		Residential Mortgage		Other Consumer		Total
	(Dollars in thousands)

Allowance for loan losses:
For the Year
Balance - January 1, 2013	$	9,109	$	763	$	2,380	$	1,352	$	492	$	55	$	14,151
Charge-offs		(916)		-		(333)		-		(186)		(54)		(1,489)
Recoveries		1,044		222		21		-		27		12		1,326
Provision		959		(111)		148		(249)		321		1,305		2,373
Balance - December 31, 2013	$	10,196	$	874	$	2,216	$	1,103	$	654	$	1,318	$	16,361

Allowance for loan losses:
Collectively evaluated for impairment	$	7,272	$	872	$	2,021	$	1,082	$	566	$	39	$	11,852
Individually evaluated for impairment		2,924		-		45		-		88		1,278		4,335
Purchased credit impaired		-		2		150		21		-		1		174
Total allowance for loan losses	$	10,196	$	874	$	2,216	$	1,103	$	654	$	1,318	$	16,361

Loans receivable:
Collectively evaluated for impairment	$	672,831	$	155,306	$	258,993	$	138,220	$	104,858	$	6,277	$	1,336,485
Individually evaluated for impairment		7,564		-		3,342		1,751		1,328		1,447		15,432
Purchased credit impaired		895		1,655		4,676		96		176		-		7,498
Total loans evaluated for impairment	$	681,290	$	156,961	$	267,011	$	140,067	$	106,362	$	7,724	$	1,359,415


	Commercial & Industrial		Owner Occupied Commercial Real Estate		Commercial Real Estate		Construction & Land Development		Residential Mortgage		Other Consumer		Total
	(Dollars in thousands)

Allowance for loan losses:
For the Three Months
Balance - July 1, 2013	$	8,204	$	1,010	$	2,232	$	1,121	$	644	$	1,330	$	14,541
Charge-offs		(17)		-		-		-		-		(2)		(19)
Recoveries		252		83		-		-		10		8		353
Provision		329		(309)		(218)		240		(26)		(17)		(1)
Balance - September 30, 2013	$	8,768	$	784	$	2,014	$	1,361	$	628	$	1,319	$	14,874

For the Nine Months
Balance - January 1, 2013	$	9,109	$	763	$	2,380	$	1,352	$	492	$	55	$	14,151
Charge-offs		(916)		-		(333)		-		(186)		(52)		(1,487)
Recoveries		890		136		21		-		25		12		1,084
Provision		(315)		(115)		(54)		9		297		1,304		1,126
Balance - September 30, 2013	$	8,768	$	784	$	2,014	$	1,361	$	628	$	1,319	$	14,874

As of September 30, 2013
Allowance for loan losses:
Collectively evaluated for impairment	$	7,099	$	781	$	1,866	$	1,100	$	628	$	40	$	11,514
Individually evaluated for impairment		1,669		-		-		241		-		1,278		3,188
Purchased credit impaired		-		3		148		20		-		1		172
Total allowance for loan losses	$	8,768	$	784	$	2,014	$	1,361	$	628	$	1,319	$	14,874

Loans receivable:
Collectively evaluated for impairment	$	622,699	$	145,834	$	230,622	$	137,668	$	97,759	$	6,394	$	1,240,976
Individually evaluated for impairment		12,304		-		2,700		4,159		1,344		1,429		21,936
Purchased credit impaired		948		1,687		4,731		100		180		1		7,647
Total loans evaluated for impairment	$	635,951	$	147,521	$	238,053	$	141,927	$	99,283	$	7,824	$	1,270,559