LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2014

LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of loans

	December 31, 2014			December 31, 2013
Commercial
Commercial and industrial	$	275,646		$	180,378
Agricultural		46,784			30,323
Commercial Real Estate
Farm		76,849			76,082
Hotel		74,962			108,226
Construction and development		61,640			35,731
Other		666,417			546,970
Residential
1-4 family		435,336			403,733
Home equity		274,159			244,277
Consumer
Direct		45,360			45,129
Indirect		612			1,077
Total loans		1,957,765			1,671,926
Allowance for loan losses		(23,250	)		(27,609	)
Net loans	$	1,934,515		$	1,644,317

Schedule of activity in the allowance for loan losses

These loans are included in the above table and all other tables below in the recorded investment amount. No allowance for loan losses is provided for these loans at December 31, 2014.

Commercial and industrial	$	26,152
Construction and development		2,037
Other real estate		98,436
1-4 family		36,490
Home equity		16,278
Direct		2,006
	$	181,399

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

       The following tables present the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2014, 2013, and 2012:

2014	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan losses
Balance, January 1	$	3,291		$	20,210		$	3,409		$	699		$	27,609
Provision charged to expense		(1,204	)		(1,284	)		1,977			2,011			1,500
Losses charged off		(241	)		(5,583	)		(2,295	)		(2,899	)		(11,018	)
Recoveries		1,131			2,262			410			1,356			5,159
Balance, December 31	$	2,977		$	15,605		$	3,501		$	1,167		$	23,250

2013	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan losses
Balance, January 1	$	3,894		$	24,157		$	3,180		$	996		$	32,227
Provision charged to expense		208			1,319			1,928			1,079			4,534
Losses charged off		(1,152	)		(6,353	)		(2,349	)		(2,648	)		(12,502	)
Recoveries		341			1,087			650			1,272			3,350
Balance, December 31	$	3,291		$	20,210		$	3,409		$	699		$	27,609

2012	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan losses
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

       The following table presents the balance in the allowance for loan losses and the recorded investment by portfolio segment and based on impairment method as of December 31, 2014 and 2013:

December 31, 2014	Commercial		Commercial Real Estate		Residential		Consumer		Total
Allowance for loan losses
Ending Balance individually evaluated for impairment	$	162	$	705	$	183	$	—	$	1,050
Ending Balance collectively evaluated for impairment		2,815		14,900		3,318		1,167		22,200
Total ending allowance balance	$	2,977	$	15,605	$	3,501	$	1,167	$	23,250
Loans
Ending Balance individually evaluated for impairment	$	705	$	24,722	$	10,662	$	220	$	36,309
Ending Balance collectively evaluated for impairment		321,725		855,146		698,833		45,752		1,921,456
Total ending loan balance excludes $5,605 of accrued interest	$	322,430	$	879,868	$	709,495	$	45,972	$	1,957,765

December 31, 2013	Commercial		Commercial Real Estate		Residential		Consumer		Total
Allowance for loan losses
Ending Balance individually evaluated for impairment	$	13	$	1,167	$	105	$	2	$	1,287
Ending Balance collectively evaluated for impairment		3,278		19,043		3,304		697		26,322
Total ending allowance balance	$	3,291	$	20,210	$	3,409	$	699	$	27,609
Loans
Ending Balance individually evaluated for impairment	$	300	$	21,240	$	10,797	$	785	$	33,122
Ending Balance collectively evaluated for impairment		210,401		745,769		637,213		45,421	$	1,638,804
Total ending loan balance excludes $5,043 of accrued interest	$	210,701	$	767,009	$	648,010	$	46,206	$	1,671,926

Schedule of nonperforming loans

December 31	2014		2013
Loans past due 90 days or more still on accrual	$	—	$	14
Troubled debt restructurings (accruing)		15,243		4,188
Non-accrual loans		13,596		22,341
Total	$	28,839	$	26,543

Schedule of loans individually evaluated for impairment by class of loans

December 31, 2014	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	$	82	$	64	$	12
Agricultural		397		150		150
Commercial Real Estate
Farm		76		76		21
Hotel		—		—		—
Construction and development		—		—		—
Other		979		889		684
Residential
1-4 Family		1,543		1,478		178
Home Equity		167		167		5
Consumer
Direct		—		—		—
Indirect		—		—		—
Subtotal — impaired with allowance recorded		3,244		2,824		1,050
With no related allowance recorded
Commercial
Commercial and industrial		761		491			$	10	$	10
Agricultural		—		—
Commercial Real Estate
Farm		864		616
Hotel		11,423		11,377
Construction and development		84		78
Other		5,848		4,186				94		94
Residential
1-4 Family		7,325		6,400				28		28
Home Equity		2,847		2,618				15		15
Consumer
Direct		238		213				17		17
Indirect		7		7
Subtotal — impaired with no allowance recorded		29,397		25,986		—		164		164
Total impaired loans	$	32,641	$	28,810	$	1,050	$	164	$	164

December 31, 2013	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	$	194	$	177	$	13
Agricultural		—		—		—
Commercial Real Estate
Farm		625		436		61
Hotel		—		—		—
Construction and development		—		—		—
Other		7,309		6,382		1,106
Residential
1-4 Family		1,089		981		102
Home Equity		50		50		3
Consumer
Direct		126		126		2
Indirect		—		—		—
Subtotal — impaired with allowance recorded		9,393		8,152		1,287
With no related allowance recorded
Commercial
Commercial and industrial	$	204	$	123			$	12	$	12
Agricultural		—		—				—		—
Commercial Real Estate
Farm		767		657				11		11
Hotel		—		—				1		1
Construction and development		942		795				45		45
Other		8,651		6,377				72		72
Residential
1-4 Family		8,931		8,007				15		15
Home Equity		1,860		1,759				13		13
Consumer
Direct		675		649				17		17
Indirect		11		10				—		—
Subtotal — impaired with no allowance recorded		22,041		18,377		—		186		186
Total impaired loans	$	31,434	$	26,529	$	1,287	$	186	$	186

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

Schedule of average recorded investment of impaired loans

	2014		2013		2012
Commercial
Commercial and industrial	$	308	$	997	$	4,401
Agricultural		195		—		23
Commercial Real Estate
Farm		875		1,360		1,180
Hotel		7,255		1,194		2,388
Construction and development		270		1,514		4,751
Other		9,259		18,150		25,716
Residential
1-4 family		8,062		10,372		11,778
Home equity		2,535		2,420		2,719
Consumer
Direct		264		893		1,041
Indirect		6		14		41
Total loans	$	29,029	$	36,914	$	54,038

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,	2014		2013		2014		2013
Commercial
Commercial and industrial	$	479	$	159	$	—	$	14
Agricultural		150		—		—		—
Commercial Real Estate
Farm		692		1,093		—		—
Hotel		—		—		—		—
Construction and development		78		329		—		—
Other		3,744		11,489		—		—
Residential
1-4 Family		6,428		7,635		—		—
Home Equity		1,841		1,452		—		—
Consumer
Direct		177		174		—		—
Indirect		7		10		—		—
Total	$	13,596	$	22,341	$	—	$	14

Schedule of aging of the recorded investment in past due loans

December 31, 2014	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	$	275,646	$	441	$	75	$	210	$	726	$	274,920
Agricultural		46,784		—		—		—		—		46,784
Commercial Real Estate
Farm		76,849		—		—		327		327		76,522
Hotel		74,962		—		—		—		—		74,962
Construction and development		61,640		—		78		—		78		61,562
Other		666,417		933		755		1,919		3,607		662,810
Residential
1-4 Family		435,336		6,217		1,719		3,186		11,122		424,214
Home Equity		274,159		751		250		1,521		2,522		271,637
Consumer
Direct		45,360		91		17		162		270		45,090
Indirect		612		6		7		—		13		599
Total — excludes $5,605 of accrued interest	$	1,957,765	$	8,439	$	2,901	$	7,325	$	18,665	$	1,939,100

December 31, 2013	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	$	180,378	$	64	$	24	$	72	$	160	$	180,218
Agricultural		30,323		—		—		—		—		30,323
Commercial Real Estate
Farm		76,082		—		—		697		697		75,385
Hotel		108,226		—		—		—		—		108,226
Construction and development		35,731		466		—		329		795		34,936
Other		546,970		984		187		5,944		7,115		539,855
Residential
1-4 Family		403,733		7,381		1,969		4,936		14,286		389,447
Home Equity		244,277		646		313		1,025		1,984		242,293
Consumer
Direct		45,129		192		32		126		350		44,779
Indirect		1,077		2		4		—		6		1,071
Total — excludes $5,043 of accrued interest	$	1,671,926	$	9,735	$	2,529	$	13,129	$	25,393	$	1,646,533

Schedule of loans by class modified as troubled debt restructurings

       The following tables present loans by class modified as troubled debt restructurings that occurred during the year ending December 31, 2014, 2013 and 2012:

2014	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Real Estate
Hotel		2	$	15,362	$	11,550
Other		2		1,015		1,015
Residential
1-4 Family		5		628		628
Home Equity		1		34		34
Consumer
Direct		1		26		26
Total		11	$	17,065	$	13,253

2013	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial and industrial		1	$	28	$	28
Commercial Real Estate
Other real estate		3		344		344
Residential
1-4 Family		7		359		359
Home Equity		1		20		20
Consumer
Direct		1		30		30
Total		13	$	781	$	781

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

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

       The following tables present loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the years ending December 31, 2014, 2013 and 2012:

2014	Number of Loans		Recorded Investment
Commercial real estate
Other		1	$	1,431
Residential
1-4 Family		2		102
Home equity		1		14
Total		4	$	1,547

2013	Number of Loans		Recorded Investment
Residential
1-4 Family		2	$	89
Home Equity		1		15
Consumer
Direct		1		4
Total		4	$	108

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

Schedule of risk category of loans by class of loans

December 31, 2014	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	226,731	$	9,926	$	1,596	$	35
Agricultural		46,634		—		—		150
Commercial Real Estate
Farm		75,191		966		—		692
Hotel		60,704		2,835		11,423		—
Construction and development		60,971		372		219		78
Other		525,758		20,823		9,689		2,323
Total	$	995,989	$	34,922	$	22,927	$	3,278

December 31, 2013	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	144,744	$	4,538	$	1,250	$	159
Agricultural		30,206		—		—		—
Commercial Real Estate
Farm	$	73,006		105		—		1,093
Hotel		61,195		31,401		15,630		—
Construction and development		34,672		—		466		329
Other		388,719		20,893		9,931		11,489
Total	$	732,542	$	56,937	$	27,277	$	13,070

Schedule of performing/non performing loans by category of loans

December 31, 2014	Performing		Watch		Substandard
Commercial
Commercial and industrial	$	36,839	$	75	$	444
Commercial Real Estate
Other		106,247		156		1,421
Total	$	143,086	$	231	$	1,865

December 31, 2013	Performing		Watch		Substandard
Commercial
Commercial and industrial	$	29,664	$	23	$	—
Agricultural		117		—		—
Commercial Real Estate
Farm		1,878		—		—
Construction and development		264		—		—
Other		115,938		—		—
Total	$	147,861	$	23	$	—

December 31, 2014	Performing		Watch		Substandard
Residential
1-4 Family	$	430,431	$	1,719	$	3,186
Home Equity		272,388		250		1,521
Total	$	702,819	$	1,969	$	4,707

December 31, 2014	Performing		Substandard		Loss
Consumer
Direct	$	45,181	$	142	$	37
Indirect		605		7		—
Total	$	45,786	$	149	$	37

December 31, 2013	Performing		Watch		Substandard
Residential
1-4 Family	$	396,098	$	2,703	$	4,932
Home Equity		242,825		424		1,028
Total	$	638,923	$	3,127	$	5,960

December 31, 2013	Performing		Substandard		Loss
Consumer
Direct	$	44,955	$	47	$	127
Indirect		1,067		10		—
Total	$	46,022	$	57	$	127