LOANS AND ALLOWANCE (Tables)

6 Months Ended

Jun. 30, 2012

LOANS AND ALLOWANCE

Schedule of loans

	June 30,2012			December 31, 2011
Commercial
Commercial and industrial	122,893			114,367
Agricultural	21,576			20,741
Commercial Real Estate
Farm	57,823			46,308
Hotel	139,650			146,358
Construction and development	29,918			30,746
Other	522,026			540,752
Residential
1-4 family	381,374			365,710
Home equity	217,925			212,202
Consumer
Direct	49,566			51,157
Indirect	3,759			6,038
Total loans	1,546,510			1,534,379
Allowance for loan losses	(38,289		)	(39,889		)
Net loans	$	1,508,221		$	1,494,490

Schedule of activity in the allowance for loan losses

Activity in the allowance for loan losses for the six months ended June 30, 2012 and 2011 and the recorded investment of loans and allowances by portfolio segment and impairment method as of June 30, 2012 were as follows:

	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, January 1, 2012	$	5,562		$	30,476		$	2,972		$	879		$	39,889
Provision charged to expense	(795		)	4,091			1,709			595			5,600
Losses charged off	(277		)	(6,089		)	(1,832		)	(1,506		)	(9,704		)
Recoveries	455			1,102			126			821			2,504
Balance, June 30, 2012	$	4,945		$	29,580		$	2,975		$	789		$	38,289

	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, January 1, 2011	$	6,386		$	32,653		$	2,281		$	1,285		$	42,605
Provision charged to expense	(259		)	7,816			1,653			390			9,600
Losses charged off	(543		)	(9,266		)	(1,710		)	(1,038		)	(12,557		)
Recoveries	205			648			364			597			1,814
Balance, June 30, 2011	$	5,789		$	31,851		$	2,588		$	1,234		$	41,462

Activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2012 and June 30, 2011 was as follows:

	June 30, 2012
	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, April 1	$	5,331		$	30,240		$	2,012		$	958		$	38,541
Provision charged to expense	(577		)	1,198			1,527			352			2,500
Losses charged off	(97		)	(2,181		)	(618		)	(887		)	(3,783		)
Recoveries	288			323			54			366			1,031
Balance, June 30	$	4,945		$	29,580		$	2,975		$	789		$	38,289

	June 30, 2011
	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, April 1	$	5,949		$	33,229		$	2,607		$	1,470		$	43,255
Provision charged to expense	(53		)	3,450			606			(3		)	4,000
Losses charged off	(284		)	(5,004		)	(788		)	(488		)	(6,564		)
Recoveries	177			176			163			255			771
Balance, June 30	$	5,789		$	31,851		$	2,588		$	1,234		$	41,462

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

As of June 30, 2012
Ending Balance individually evaluated for impairment	$	1,000	$	5,974	$	—	$	—	$	6,974
Ending Balance collectively evaluated for impairment	3,945		23,606		2,975		789		31,315
Total ending allowance balance	$	4,945	$	29,580	$	2,975	$	789	$	38,289
Loans
Ending Balance individually evaluated for impairment	$	5,363	$	33,247	$	15,275	$	1,095	$	54,980
Ending Balance collectively evaluated for impairment	139,106		716,170		584,024		52,230		1,491,530
Total ending loan balance excludes $5,401 of accrued interest	$	144,469	$	749,417	$	599,299	$	53,325	$	1,546,510

As of December 31, 2011	Commercial		Commercial Real Estate		Residential		Consumer		Total
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 loans individually evaluated for impairment by class of loans

June 30, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded
Commercial
Commercial and industrial	$	2,349	$	2,346	$	1,000
Commercial Real Estate
Farm	461		461		124
Construction and development	1,304		1,206		606
Other	18,096		16,018		5,244
Subtotal — impaired with allowance recorded	22,210		20,031		6,974
With no related allowance recorded
Commercial
Commercial & industrial	3,521		2,996
Agricultural	320		21
Commercial Real Estate
Farm	690		633
Hotel	265
Construction and development	6,460		3,568
Other	13,766		11,361
Residential
1-4 Family	13,093		12,198
Home Equity	3,276		3,077
Consumer
Direct	1,058		1,042
Indirect	56		53
Subtotal — impaired with allowance recorded	42,505		34,949
Total impaired loans	$	64,715	$	54,980	$	6,974

Schedule of the three and six month average balance of impaired loans

At June 30, 2012	Three Month Average Balance		Six Month Average Balance
Commercial
Commercial and industrial	$	4,999	$	5,028
Agricultural	28		38
Commercial Real Estate
Farm	1,048		1,038
Hotel	102		1,991
Construction and development	4,828		5,657
Other	26,591		26,743
Residential
1-4 family	12,055		12,052
Home equity	2,939		2,785
Consumer
Direct	1,043		1,056
Indirect	61		52
Total loans	53,694		56,440

At June 30, 2011	Three Month Average Balance		Six Month Average Balance
Commercial
Commercial and industrial	$	6,823	$	7,246
Agricultural	124		126
Commercial Real Estate
Farm	1,092		1,128
Hotel	6,066		8,265
Construction and development	6,664		10,777
Other	28,536		29,396
Residential
1-4 family	10,661		12,070
Home equity	1,708		1,776
Consumer
Direct	1,063		1,186
Indirect	59		64
Total loans	$	62,796	$	72,034

Schedule of loans individually evaluated for impairment by class of loans

December 31, 2011	Unpaid Principal Balance	Recorded Investment	Allowance for Loan Losses Allocated
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
Subtotal — impaired with allowance recorded	28,959	28,726	6,669
With no related allowance recorded
Commercial
Commercial & industrial	2,720	2,030
Agricultural	351	57
Commercial Real Estate
Farm	579	531
Hotel	876	384
Construction and development	2,996	1,839
Other	16,325	12,726
Residential
1-4 Family	12,344	12,045
Home Equity	2,548	2,477
Consumer
Direct	1,096	1,083
Indirect	35	33
Subtotal — impaired with allowance recorded	39,870	33,205
Total impaired loans	68,829	61,931	6,669

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
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Commercial
Commercial and industrial	$	3,263	$	2,518	$	34	$	—
Agricultural	21		57
Commercial Real Estate
Farm	1,094		1,016
Hotel	—		384
Construction and development	4,773		3,240
Other	23,564		21,060				3,259
Residential
1-4 Family	11,222		10,873
Home Equity	2,656		2,105
Consumer
Direct	292		242				7
Indirect	53		33
Total	$	46,938	$	41,528	$	34	$	3,266

Schedule of aging of the recorded investment in past due loans

The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 by class of loans:

June 30, 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	$	122,893	$	131	$	406	$	2,604	$	3,141	$	119,752
Agricultural	21,576		—		—		21		21		21,555
Commercial Real Estate
Farm	57,823		212		—		1,043		1,255		56,568
Hotel	139,650		—		—		—		—		139,650
Construction and development	29,918		360		549		4,544		5,453		24,465
Other	522,026		2,730		1,454		14,809		18,993		503,033
Residential
1-4 Family	381,374		3,289		2,192		6,306		11,787		369,587
Home Equity	217,925		707		249		1,803		2,759		215,166
Consumer
Direct	49,566		106		83		39		228		49,338
Indirect	3,759		20		3		15		38		3,721
Total — excludes $5,401 of accrued interest	$	1,546,510	$	7,555	$	4,936	$	31,184	$	43,675	$	1,502,835

The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 by class of loans:

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

The following table presents loans by class modified as troubled debt restructurings that occurred during the three month period ending June 30, 2012:

		Pre-Modification		Post-Modification
		Outstanding Recorded		Outstanding Recorded
June 30, 2012	Number of Loans	Investment		Investment
Residential
Home Equity	1	$	70	$	70
Total	1	$	70	$	70

The following table presents loans by class modified as troubled debt restructurings that occurred during the six month period ending June 30, 2012:

		Pre-Modification		Post-Modification
		Outstanding Recorded		Outstanding Recorded
	Number of Loans	Investment		Investment
Residential
Home Equity	1	$	70	$	70
Consumer
Direct	1	4		4
Total	2	$	74	$	74

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 table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three month period ending June 30, 2012:

	Number of Loans	Recorded Investment
Commercial
Commercial and industrial	1	$	137
Commercial real estate:
Development	1	323
Other	2	2,019
Residential
Home Equity	1	12
Total	5	$	2,491

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the six month period ending June 30, 2012:

	Number of Loans	Recorded Investment
Commercial
Commercial and industrial	1	$	137
Commercial real estate:
Development	1	323
Other	8	2,962
Residential
Home Equity	1	12
Total	11	$	3,434

Schedule of risk category of loans by class of loans

June 30, 2012	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	100,399	$	7,459	$	11,772	$	3,263
Agricultural	21,547		—		8		21
Commercial Real Estate
Farm	54,965		1,154		610		1,094
Hotel	89,762		33,461		16,427		—
Construction and development	19,077		2,228		3,839		4,774
Other	437,311		31,816		29,335		23,564
Total	$	723,061	76,118		61,991		32,716

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

June 30, 2012	Performing		Watch		Substandard
Residential
1-4 Family	$	372,876	$	2,192	$	6,306
Home Equity	215,873		249		1,803
Total	$	588,749	$	2,441	$	8,109

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

June 30, 2012	Performing		Substandard		Loss
Consumer
Direct	$	49,444	$	114	$	8
Indirect	3,741		18		—
Total	$	53,185	$	132	$	8

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