LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2012

LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of loans

	December 31, 2012			December 31, 2011
Commercial
Commercial and industrial	$	126,965		$	114,367
Agricultural		32,769			20,741
Commercial Real Estate
Farm		62,896			46,308
Hotel		131,495			146,358
Construction and development		25,208			30,746
Other		507,231			540,752
Residential
1-4 family		394,195			365,710
Home equity		224,329			212,202
Consumer
Direct		45,844			51,157
Indirect		2,451			6,038
Total loans		1,553,383			1,534,379
Allowance for loan losses		(32,227	)		(39,889	)
Net loans	$	1,521,156		$	1,494,490

Schedule of activity in the allowance for loan losses

2012	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, January 1	$	5,562		$	30,476		$	2,972		$	879		$	39,889
Provision charged to expense		(265	)		4,802			3,490			1,823			9,850
Losses charged off		(1,946	)		(13,553	)		(3,547	)		(3,286	)		(22,332	)
Recoveries		543			2,432			265			1,580			4,820
Balance, December 31	$	3,894		$	24,157		$	3,180		$	996		$	32,227

2011	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, January 1	$	6,386		$	32,653		$	2,281		$	1,285		$	42,605
Provision charged to expense		215			13,406			3,136			1,043			17,800
Losses charged off		(2,211	)		(16,954	)		(3,093	)		(2,636	)		(24,894	)
Recoveries		1,172			1,371			648			1,187			4,378
Balance, December 31	$	5,562		$	30,476		$	2,972		$	879		$	39,889

	2010
Allowance for loan losses
Balances, January 1	$	46,648
Provision for losses		35,250
Recoveries on loans		3,153
Loans charged off		(42,446	)
Balances, December 31	$	42,605

Schedule of balance in the allowance for loan losses and the recorded investment by portfolio segment and impairment method

December 31, 2012	Commercial		Commercial Real Estate		Residential		Consumer		Total
Allowance for loan loss
Ending Balance individually evaluated for impairment	$	150	$	3,067		—		—	$	3,217
Ending Balance collectively evaluated for impairment		3,744		21,090		3,180		996		29,010
Total ending allowance balance	$	3,894	$	24,157	$	3,180	$	996	$	32,227
Loans
Ending Balance individually evaluated for impairment	$	1,797	$	33,499	$	14,175	$	1,083	$	50,554
Ending Balance collectively evaluated for impairment		157,937		693,331		604,349		47,212		1,502,829
Total ending loan balance excludes $5,206 of accrued interest	$	159,734	$	726,830	$	618,524	$	48,295	$	1,553,383

December 31, 2011	Commercial		Commercial Real Estate		Residential		Consumer		Total
Allowance for loan loss
Ending Balance individually evaluated for impairment	$	1,193	$	5,476	$	—	$	—	$	6,669
Ending Balance collectively evaluated for impairment		4,369		25,000		2,972		879		33,220
Total ending allowance balance	$	5,562		30,476	$	2,972	$	879	$	39,889
Loans
Ending Balance individually evaluated for impairment	$	5,144	$	41,149	$	14,522	$	1,116	$	61,931
Ending Balance collectively evaluated for impairment		129,964		723,015		563,390		56,079		1,472,448
Total ending loan balance excludes $5,835 of accrued interest	$	135,108		764,164	$	577,912	$	57,195	$	1,534,379

Schedule of average impaired loan information

December 31	2010
Average balance of impaired loans during the year	$	94,905
Interest income recognized on impaired loans		108
Cash basis interest included above		108

Schedule of nonperforming loans

December 31	2012		2011
Loans past due 90 days or more still on accrual	$	565	$	3,266
Troubled debt restructurings		15,102		20,402
Non-accrual loans		35,451		41,528
Total	$	51,118	$	65,196

Schedule of loans individually evaluated for impairment by class of loans

December 31, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded
Commercial
Commercial and industrial	$	305	$	305	$	150
Agricultural				—		—
Commercial Real Estate
Farm		922		922		442
Hotel
Construction and development		742		644		240
Other		9,727		9,419		2,385
Residential
1-4 Family
Home Equity
Consumer
Direct
Indirect
Subtotal — impaired with allowance recorded		11,696		11,290		3,217
With no related allowance recorded
Commercial
Commercial and industrial		2,115		1,492			$	76	$	76
Agricultural		1		—
Commercial Real Estate
Farm		741		663				9		9
Hotel		6,257		5,968
Construction and development		2,685		1,499				108		108
Other		20,047		14,384				129		129
Residential
1-4 Family		13,110	$	11,548				3		3
Home Equity		2,801		2,627				17		17
Consumer
Direct		1,083		1,066				9		9
Indirect		19		17				7		7
Subtotal — impaired with no allowance recorded	$	48,859	$	39,264		—	$	358	$	358
Total impaired loans	$	60,555	$	50,554	$	3,217	$	358	$	358

December 31, 2011	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded
Commercial
Commercial and industrial	$	3,130	$	3,057	$	1,193
Agricultural
Commercial Real Estate
Farm		486		486		193
Hotel		5,385		5,385		100
Construction and development		5,558		5,476		2,371
Other		14,400		14,322		2,812
Residential
1-4 Family
Home Equity
Consumer
Direct
Indirect
Subtotal — impaired with allowance recorded	$	28,959	$	28,726	$	6,669
With no related allowance recorded
Commercial
Commercial and industrial	$	2,720	$	2,030	$	—	$	22	$	22
Agricultural		351		57
Commercial Real Estate
Farm		579		531
Hotel		876		384
Construction and development		2,996		1,839				1		1
Other		16,325		12,726				135		135
Residential
1-4 Family		12,344		12,045				8		8
Home Equity		2,548		2,477				8		8
Consumer
Direct		1,096		1,083				9		9
Indirect		35		33				5		5
Subtotal — impaired with no allowance recorded	$	39,870	$	33,205	$	—	$	188	$	188
Total impaired loans	$	68,829	$	61,931	$	6,669	$	188	$	188

Schedule of average recorded investment of impaired loans

	2012		2011
Commercial
Commercial and industrial	$	4,401	$	6,438
Agricultural		23		103
Commercial Real Estate
Farm		1,180		1,110
Hotel		2,388		7,271
Construction and development		4,751		9,467
Other		25,716		29,079
Residential
1-4 family		11,778		11,825
Home equity		2,719		1,974
Consumer
Direct		1,041		1,143
Indirect		41		58
Total loans	$	54,038	$	68,468

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans

	Non-accrual				Past due over 90 days and still accruing
December 31,	2012		2011		2012		2011
Commercial
Commercial and industrial	$	1,777	$	2,518	$	—	$	—
Agricultural		—		57		—		—
Commercial Real Estate
Farm		1,584		1,016		—		—
Hotel		—		384		—		—
Construction and development		1,657		3,240		565		—
Other		17,442		21,060		—		3,259
Residential
1-4 Family		10,392		10,873		—		—
Home Equity		2,216		2,105		—		—
Consumer
Direct		366		242		—		7
Indirect		17		33		—		—
Total	$	35,451	$	41,528	$	565	$	3,266

Schedule of aging of the recorded investment in past due loans

December 31, 2012	Total Loans		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due
Commercial
Commercial and industrial	$	126,965	$	1,421	$	311	$	1,094	$	2,826	$	124,139
Agricultural		32,769		—		—		—		—		32,769
Commercial Real Estate
Farm		62,896		158		—		1,417		1,575		61,321
Hotel		131,495		—		—		—		—		131,495
Construction and development		25,208		—		—		2,121		2,121		23,087
Other		507,231		2,516		1,208		10,607		14,331		492,900
Residential
1-4 Family		394,195		7,788		2,605		5,492		15,885		378,310
Home Equity		224,329		1,170		357		1,428		2,955		221,374
Consumer
Direct		45,844		182		49		242		473		45,371
Indirect		2,451		33		12		5		50		2,401
Total — excludes $5,206 of accrued interest	$	1,553,383	$	13,268	$	4,542	$	22,406	$	40,216	$	1,513,167

December 31, 2011	Total Loans		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due
Commercial
Commercial and industrial	$	114,367	$	1,139	$	655	$	1,831	$	3,625	$	110,742
Agricultural		20,741						57		57		20,684
Commercial Real Estate
Farm		46,308				58		905		963		45,345
Hotel		146,358						384		384		145,974
Construction and development		30,746		61				3,179		3,240		27,506
Other		540,752		4,249		3,576		16,529		24,354		516,398
Residential
1-4 Family		365,710		9,327		2,233		7,182		18,742		346,968
Home Equity		212,202		1,417		500		1,491		3,408		208,794
Consumer
Direct		51,157		382		146		129		657		50,500
Indirect		6,038		87		24		16		127		5,911
Total — excludes $5,835 of accrued interest	$	1,534,379	$	16,662	$	7,192	$	31,703	$	55,557	$	1,478,822

Schedule of loans by class modified as troubled debt restructurings

2012	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial and industrial		2	$	179	$	179
Commercial Real Estate
Hotel		2		7,727		5,968
Other		7		6,241		5,367
Residential
1-4 Family		1		91		91
Home Equity		1		70		70
Consumer
Direct		1		4		4
Total		14	$	14,312	$	11,679

2011	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial and industrial		3	$	248	$	248
Commercial Real Estate
Construction and development		3		4,287		4,287
Hotel		1		5,922		5,498
Other		15		8,783		6,619
Residential
1-4 Family		8		632		632
Home Equity		45		855		855
Consumer
Direct		6		47		47
Total		81	$	20,774	$	18,186

Schedule of loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification

2012	Number of Loans		Recorded Investment
Commercial
Commercial and industrial		3	$	2,195
Commercial real estate:
Development		1		323
Other		9		3,332
Residential
1-4 Family		2		125
Home Equity		1		12
Total		16	$	5,987

2011	Number of Loans		Recorded Investment
Commercial
Commercial and industrial		4	$	926
Commercial real estate:
Farm		2		532
Development		1		150
Other		7		910
Residential
1-4 Family		6		521
Home Equity		5		93
Total		25	$	3,132

Schedule of risk category of loans by class of loans

December 31, 2012	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	112,564	$	9,824	$	2,800	$	1,777
Agricultural		32,764		—		5		—
Commercial Real Estate
Farm		60,071		1,094		147		1,584
Hotel		83,522		47,973		—		—
Construction and development		18,719		1,465		3,367		1,657
Other		439,702		27,621		22,466		17,442
Total	$	747,342	$	87,977	$	28,785	$	22,460

December 31, 2011	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	93,380	$	11,935	$	6,534	$	2,518
Agricultural		20,150		524		10		57
Commercial Real Estate
Farm		42,847		2,151		294		1,016
Hotel		77,259		51,900		16,815		384
Construction and development		15,498		3,212		8,796		3,240
Other		422,385		66,377		30,930		21,060
Total	$	671,519	$	136,099	$	63,379	$	28,275

Schedule of performing/non performing loans by category of loans

December 31, 2012	Performing		Watch		Substandard
Residential
1-4 Family	$	386,098	$	2,605	$	5,492
Home Equity		222,544		357		1,428
Total	$	608,642	$	2,962	$	6,920

December 31, 2012	Performing		Substandard		Loss
Consumer
Direct	$	45,553	$	195	$	96
Indirect		2,434		12		5
Total	$	47,987	$	207	$	101

December 31, 2011	Performing		Watch		Substandard
Residential
1-4 Family	$	356,295	$	2,233	$	7,182
Home Equity		210,211		500		1,491
Total	$	566,506	$	2,733	$	8,673

December 31, 2011	Performing		Substandard		Loss
Consumer
Direct	$	50,882	$	201	$	74
Indirect		5,998		25		15
Total	$	56,880	$	226	$	89