LOANS AND ALLOWANCE (Tables)

3 Months Ended

Mar. 31, 2013

	March 31, 2013			December 31, 2012
Commercial
Commercial and industrial	$	136,895		$	134,156
Agricultural	18,091			22,355
Commercial Real Estate
Farm	63,971			66,119
Hotel	127,027			131,495
Construction and development	27,994			25,208
Other	509,373			507,231
Residential
1-4 family	403,083			394,195
Home equity	222,915			224,329
Consumer
Direct	42,032			45,844
Indirect	1,939			2,451
Total loans	1,553,320			1,553,383
Allowance for loan losses	(31,728		)	(32,227		)
Net loans	$	1,521,592		$	1,521,156

Schedule of activity in the allowance for loan losses

	Commercial			Commercial Real Estate			Residential			Consumer			Total
Allowance for loan loss
Balance, January 1, 2013	$	3,894		$	24,157		$	3,180		$	996		$	32,227
Provision charged to expense	525			238			631			340			1,734
Losses charged off	(271		)	(1,208		)	(698		)	(819		)	(2,996		)
Recoveries	131			51			150			431			763
Balance, March 31, 2013	$	4,279		$	23,238		$	3,263		$	948		$	31,728

	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	(218		)	2,893			182			243			3,100
Losses charged off	(180		)	(3,908		)	(1,214		)	(619		)	(5,921		)
Recoveries	167			779			72			455			1,473
Balance, March 31, 2012	$	5,331		$	30,240		$	2,012		$	958		$	38,541

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

As of March 31, 2013
Ending Balance individually evaluated for impairment	$	355	$	3,143	$	121	$	2	$	3,621
Ending Balance collectively evaluated for impairment	3,924		20,095		3,142		946		28,107
Total ending allowance balance	$	4,279	$	23,238	$	3,263	$	948	$	31,728
Loans
Ending Balance individually evaluated for impairment	$	1,384	$	34,518	$	13,137	$	927	$	49,966
Ending Balance collectively evaluated for impairment	153,602		693,847		612,861		43,044		1,503,354
Total ending loan balance excludes $5,230 of accrued interest	$	154,986	$	728,365	$	625,998	$	43,971	$	1,553,320

As of December 31, 2012	Commercial		Commercial Real Estate		Residential		Consumer		Total
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	154,714		696,554		604,349		47,212		1,502,829
Total ending loan balance excludes $5,206 of accrued interest	$	156,511	$	730,053	$	618,524	$	48,295	$	1,553,383

Schedule of loans individually evaluated for impairment by class of loans

March 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	$	509	$	496	$	355	$		$
Commercial Real Estate
Farm	625		625		204
Hotel
Construction and development	641		543		252
Other	11,951		11,276		2,687
Residential
1-4 Family	1,239		1,137		118
Home Equity	52		51		3
Consumer
Direct	130		130		2
Subtotal — impaired with allowance recorded	15,147		14,258		3,621
With no related allowance recorded
Commercial
Commercial & industrial	1,475		888
Agricultural	—		—
Commercial Real Estate
Farm	1,093		986
Hotel	—		—
Construction and development	2,539		1,487
Other	12,606		9,982				6		6
Residential
1-4 Family	10,787		9,339				2		2
Home Equity	2,804		2,610				2		2
Consumer
Direct	785		776				4		4
Indirect	23		21
Subtotal — impaired with allowance recorded	32,112		26,089				14		14
Total impaired loans	$	47,259	$	40,347	$	3,621	$	14	$	14

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
Commercial Real Estate
Farm	922		922		442
Construction and development	742		644		240
Other	9,727		9,419		2,385
Subtotal — impaired with allowance recorded	11,696		11,290		3,217
With no related allowance recorded
Commercial
Commercial & 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 allowance recorded	48,859		39,264				358		358
Total impaired loans	$	60,555	$	50,554	$	3,217	$	358	$	358

Schedule of average impaired loan information

	Average Balance
	March 31 2013		March 31 2012
Commercial
Commercial & industrial	$	1,590	$	4,871
Agricultural	—		46
Commercial Real Estate
Farm	1,598		1,010
Hotel	2,984		2,986
Construction and development	2,086		6,099
Other	22,530		26,426
Residential
1-4 Family	11,012		11,979
Home Equity	2,645		2,639
Consumer
Direct	986		1,063
Indirect	19		51
Total	$	45,450	$	57,170

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
	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Commercial
Commercial and industrial	$	1,365	$	1,777
Agricultural			—
Commercial Real Estate
Farm	1,611		1,584
Hotel			—
Construction and development	1,548		1,657				$	565
Other	19,939		17,442		$	100
Residential
1-4 Family	9,142		10,392
Home Equity	2,256		2,216
Consumer
Direct	196		366
Indirect	21		17
Total	$	36,078	$	35,451	$	100	$	565

Schedule of aging of the recorded investment in past due loans

March 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	$	136,895	$	693	$	136	$	742	$	1,571	$	135,324
Agricultural	18,091		—		—		—		—		18,091
Commercial Real Estate
Farm	63,971		—		—		1,278		1,278		62,693
Hotel	127,027		—		—		—		—		127,027
Construction and development	27,994		—		—		1,448		1,448		26,546
Other	509,373		703		2,806		10,955		14,464		494,909
Residential
1-4 Family	403,083		5,779		1,269		4,082		11,130		391,953
Home Equity	222,915		703		370		1,475		2,548		220,367
Consumer
Direct	42,032		129		17		125		271		41,761
Indirect	1,939		3		1		4		8		1,931
Total — excludes $5,230 of accrued interest	$	1,553,320	$	8,010	$	4,599	$	20,109	$	32,718	$	1,520,602

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	$	134,156	$	1,421	$	311	$	1,094	$	2,826	$	131,330
Agricultural	22,355		—		—		—		—		22,355
Commercial Real Estate
Farm	66,119		158		—		1,417		1,575		64,544
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

Schedule of loans by class modified as troubled debt restructurings

		Pre-Modification		Post-Modification
		Outstanding Recorded		Outstanding Recorded
March 31, 2013	Number of Loans	Investment		Investment
Commercial real estate
Other	2	$	249	$	249
Residential
1-4 Family	3	186		186
Consumer
Direct	1	30		30
Total	6	$	465	$	465

		Pre-Modification		Post-Modification
		Outstanding Recorded		Outstanding Recorded
March 31, 2012	Number of Loans	Investment		Investment
Consumer
Direct	1	$	4	$	4
Total	1	$	4	$	4

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

Schedule of risk category of loans by class of loans

March 31, 2013	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	129,488	$	4,134	$	1,908	$	1,365
Agricultural	18,087		—		4		—
Commercial Real Estate
Farm	61,940		420		—		1,611
Hotel	77,272		49,755		—		—
Construction and development	22,484		1,395		2,567		1,548
Other	441,754		29,833		17,847		19,939
Total	$	751,025	$	85,537	$	22,326	$	24,463

December 31, 2012	Pass		Special Mention		Substandard		Non-accrual
Commercial
Commercial and industrial	$	119,755	$	9,824	$	2,800	$	1,777
Agricultural	22,350		—		5		—
Commercial Real Estate
Farm	63,294		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

Schedule of performing/non performing loans by category of loans

March 31, 2013	Performing		Watch		Substandard
Residential
1-4 Family	$	397,732	$	1,269	$	4,082
Home Equity	221,069		371		1,475
Total	$	618,801	$	1,640	$	5,557

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

March 31, 2013	Performing		Substandard		Loss
Consumer
Direct	$	41,890	$	86	$	56
Indirect	1,933		1		5
Total	$	43,823	$	87	$	61

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

March 31, 2013

Number of Loans

Recorded Investment

Residential: