ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

12 Months Ended

Dec. 31, 2013

In Allowance For Loan Losses and Recorded Investment In Loans By Portfolio Segment

The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2013, 2012 and 2011:

				Commercial
				Real Estate
	Commercial			and			Agri-business					Consumer
	and			Multifamily			and			Other		1-4 Family			Other
(dollars in thousands)	Industrial			Residential			Agricultural			Commercial		Mortgage			Consumer			Unallocated		Total
December 31, 2013
Beginning balance	$	22,342		$	20,812		$	1,403		$	240	$	2,682		$	609		$	3,357	$	51,445
Provision for loan losses		(788	)		(564	)		267			151		620			162			152		0
Loans charged-off		(1,062	)		(2,069	)		(200	)		0		(382	)		(339	)		0		(4,052	)
Recoveries		513			377			212			0		126			176			0		1,404
Net loans charged-off		(549	)		(1,692	)		12			0		(256	)		(163	)		0		(2,648	)
Ending balance	$	21,005		$	18,556		$	1,682		$	391	$	3,046		$	608		$	3,509	$	48,797

				Commercial
				Real Estate
	Commercial			and			Agri-business					Consumer
	and			Multifamily			and		Other			1-4 Family			Other
(dollars in thousands)	Industrial			Residential			Agricultural		Commercial			Mortgage			Consumer			Unallocated		Total
December 31, 2012
Beginning balance	$	22,830		$	23,489		$	695	$	65		$	2,322		$	645		$	3,354	$	53,400
Provision for loan losses		1,814			(1,772	)		705		(11	)		1,552			258			3		2,549
Loans charged-off		(3,069	)		(1,108	)		0		0			(1,340	)		(405	)		0		(5,922	)
Recoveries		767			203			3		186			148			111			0		1,418
Net loans charged-off		(2,302	)		(905	)		3		186			(1,192	)		(294	)		0		(4,504	)
Ending balance	$	22,342		$	20,812		$	1,403	$	240		$	2,682		$	609		$	3,357	$	51,445

				Commercial
				Real Estate
	Commercial			and			Agri-business						Consumer
	and			Multifamily			and			Other			1-4 Family			Other
(dollars in thousands)	Industrial			Residential			Agricultural			Commercial			Mortgage			Consumer			Unallocated			Total
December 31, 2011
Beginning balance	$	21,479		$	15,893		$	1,318		$	270		$	1,694		$	682		$	3,671		$	45,007
Provision for loan losses		3,112			9,748			(520	)		(205	)		1,632			350			(317	)		13,800
Loans charged-off		(2,587	)		(2,514	)		(103	)		0			(1,050	)		(575	)		0			(6,829	)
Recoveries		826			362			0			0			46			188			0			1,422
Net loans charged-off		(1,761	)		(2,152	)		(103	)		0			(1,004	)		(387	)		0			(5,407	)
Ending balance	$	22,830		$	23,489		$	695		$	65		$	2,322		$	645		$	3,354		$	53,400

The recorded investment in loans does not include accrued interest.

The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2013 and 2012:

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multifamily		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	4,144	$	4,598	$	38	$	0	$	479	$	57	$	0	$	9,316
Collectively evaluated for impairment		16,861		13,959		1,644		391		2,566		551		3,509		39,481
Total ending allowance balance	$	21,005	$	18,557	$	1,682	$	391	$	3,045	$	608	$	3,509	$	48,797

Loans:
Loans individually evaluated for impairment	$	16,196	$	22,204	$	1,114	$	0	$	3,594	$	119	$	0	$	43,227
Loans collectively evaluated for impairment		885,651		962,673		253,011		70,766		273,812		45,958		0		2,491,871
Total ending loans balance	$	901,847	$	984,877	$	254,125	$	70,766	$	277,406	$	46,077	$	0	$	2,535,098

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multifamily		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2012
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	5,542	$	8,559	$	63	$	0	$	607	$	34	$	0	$	14,805
Collectively evaluated for impairment		16,800		12,253		1,340		240		2,075		575		3,357		36,640
Total ending allowance balance	$	22,342	$	20,812	$	1,403	$	240	$	2,682	$	609	$	3,357	$	51,445

Loans:
Loans individually evaluated for impairment	$	18,281	$	36,919	$	797	$	0	$	2,853	$	92	$	0	$	58,942
Loans collectively evaluated for impairment		828,728		763,279		224,008		56,810		280,141		45,612		0		2,198,578
Total ending loans balance	$	847,009	$	800,198	$	224,805	$	56,810	$	282,994	$	45,704	$	0	$	2,257,520

The recorded investment in loans does not include accrued interest.

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013:

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	63	$	63	$	0
Commercial real estate and multi-family residential loans:
Owner occupied loans		377		196		0
Agri-business and agricultural loans:
Loans secured by farmland		604		604		0
Consumer 1-4 family loans:
Closed end first mortgage loans		688		689		0
Open end and junior lien loans		81		81		0
Residential construction loans		150		150		0
Other consumer loans		1		1		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,251		2,641		984
Non-working capital loans		15,345		13,492		3,160
Commercial real estate and multi-family residential loans:
Construction and land development loans		2,795		2,795		585
Owner occupied loans		5,553		4,681		723
Nonowner occupied loans		15,163		14,532		3,290
Agri-business and agricultural loans:
Loans secured by farmland		1,008		510		38
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		3,469		2,463		442
Open end and junior lien loans		211		211		37
Other consumer loans		118		118		57
Total	$	50,877	$	43,227	$	9,316

The recorded investment in loans does not include accrued interest.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012:

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	61	$	61	$	0
Commercial real estate and multi-family residential loans:
Owner occupied loans		754		574		0
Nonowner occupied loans		385		385		0
Multifamily loans		410		286		0
Agri-business and agricultural loans:
Loans secured by farmland		645		466		0
Consumer 1-4 family loans:
Closed end first mortgage loans		59		59		0
Open end and junior lien loans		41		41		0
Other consumer loans		1		1		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,833		3,224		1,516
Non-working capital loans		16,763		14,996		4,026
Commercial real estate and multi-family residential loans:
Construction and land development loans		3,352		2,960		934
Owner occupied loans		5,869		5,869		1,476
Nonowner occupied loans		26,835		26,845		6,149
Agri-business and agricultural loans:
Loans secured by farmland		651		331		63
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		3,387		2,403		415
Open end and junior lien loans		379		350		192
Other consumer loans		91		91		34
Total	$	65,516	$	58,942	$	14,805

The recorded investment in loans does not include accrued interest.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013:

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	64	$	0	$	0
Non-working capital loans		8		0		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		482		0		0
Agri-business and agricultural loans:
Loans secured by farmland		512		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans		379		0		0
Open end and junior lien loans		35		0		0
Residential construction loans		39
Other consumer loans		1		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		2,934		50		52
Non-working capital loans		13,957		540		544
Commercial real estate and multi-family residential loans:
Construction and land development loans		3,537		84		92
Owner occupied loans		3,771		109		118
Nonowner occupied loans		20,108		337		344
Multifamily loans		48		0		0
Agri-business and agricultural loans:
Loans secured by farmland		442		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		2,488		56		68
Open end and junior lien loans		70		0		0
Other consumer loans		90		1		1
Total	$	48,965	$	1,177	$	1,219

The recorded investment in loans does not include accrued interest.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012:

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	10	$	0	$	0
Non-working capital loans		108		0		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		530		0		0
Nonowner occupied loans		259		17		17
Multifamily loans		83		0		0
Agri-business and agricultural loans:
Loans secured by farmland		307		0		0
Loans for ag production		51		0		0
Other commercial loans
Consumer 1-4 family loans:
Closed end first mortgage loans		339		0		0
Open end and junior lien loans		25		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		4,085		55		54
Non-working capital loans		17,062		667		681
Commercial real estate and multi-family residential loans:
Construction and land development loans		2,145		48		48
Owner occupied loans		5,157		90		84
Nonowner occupied loans		27,830		363		380
Agri-business and agricultural loans:
Loans secured by farmland		410		0		0
Loans for agricultural production		68		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,870		36		50
Open end and junior lien loans		343		0		0
Other consumer loans		26		0		0
Total	$	60,708	$	1,276	$	1,314

The recorded investment in loans does not include accrued interest.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011:

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Non-working capital loans	$	30	$	0	$	0
Commercial real estate and multi-family residential loans:
Nonowner occupied loans		425		0		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		5,649		23		25
Non-working capital loans		17,202		616		625
Commercial real estate and multi-family residential loans:
Construction and land development loans		1,319		0		0
Owner occupied loans		3,082		41		45
Nonowner occupied loans		24,108		246		252
Agri-business and agricultural loans:
Loans secured by farmland		610		0		0
Loans for agricultural production		410		0		0
Other commercial loans		129		0		0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,872		44		48
Open end and junior lien loans		118		0		0
Total	$	54,954	$	970	$	995

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 December 31, 2013 by class of loans:

			30-89		Greater than
	Loans Not		Days		90 Days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Nonaccrual		Past Due		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	456,136	$	0	$	0	$	1,819	$	1,819	$	457,955
Non-working capital loans		440,050		46		0		3,796		3,842		443,892
Commercial real estate and multi-family residential loans:
Construction and land development loans		156,594		0		0		544		544		157,138
Owner occupied loans		366,955		0		0		3,156		3,156		370,111
Nonowner occupied loans		382,478		0		0		11,758		11,758		394,236
Multifamily loans		63,392		0		0		0		0		63,392
Agri-business and agricultural loans:
Loans secured by farmland		132,347		0		0		1,113		1,113		133,460
Loans for agricultural production		120,665		0		0		0		0		120,665
Other commercial loans		70,766		0		0		0		0		70,766
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		122,370		1,645		0		1,165		2,810		125,180
Open end and junior lien loans		147,123		135		46		291		472		147,595
Residential construction loans		4,481		0		0		150		150		4,631
Other consumer loans		45,826		145		0		106		251		46,077
Total	$	2,509,183	$	1,971	$	46	$	23,898	$	25,915	$	2,535,098

The following table presents the aging of the recorded investment in past due loans as of December 31, 2012 by class of loans:

			30-89		Greater than
	Loans Not		Days		90 Days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Nonaccrual		Past Due		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	437,705	$	233	$	0	$	1,899	$	2,132	$	439,837
Non-working capital loans		402,262		48		50		4,812		4,910		407,172
Commercial real estate and multi-family residential loans:
Construction and land development loans		80,954		998		0		398		1,396		82,350
Owner occupied loans		354,921		1,023		0		2,461		3,484		358,405
Nonowner occupied loans		295,243		38		0		19,200		19,238		314,481
Multifamily loans		44,676		0		0		286		286		44,962
Agri-business and agricultural loans:
Loans secured by farmland		108,359		0		0		797		797		109,156
Loans for agricultural production		115,649		0		0		0		0		115,649
Other commercial loans		56,810		0		0		0		0		56,810
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		107,583		1,475		0		504		1,979		109,562
Open end and junior lien loans		161,172		361		0		391		752		161,924
Residential construction loans		11,508		0		0		0		0		11,508
Other consumer loans		45,546		81		0		77		158		45,704
Total	$	2,222,388	$	4,257	$	50	$	30,825	$	35,132	$	2,257,520

Troubled Debt Restructuring

The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

(dollars in thousands)	2013		2012
Accruing troubled debt restructured loans	$	17,714	$	22,332
Nonaccrual troubled debt restructured loans		18,531		28,506
Total troubled debt restructured loans	$	36,245	$	50,838

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the period ending December 31, 2013:

	All Modifications						Interest Rate Reductions
			Pre- Modification		Post- Modification				Interest at		Interest at
			Outstanding		Outstanding				Pre-		Post-
	Number of		Recorded		Recorded		Number of		Modification		Modification
(dollars in thousands)	Loans		Investment		Investment		Loans		Rate		Rate
Troubled Debt Restructurings Commercial real estate and multi- family residential loans:
Construction and land development loans		6	$	2,197	$	2,197		6	$	84	$	63
Owner occupied loans		1		524		524		0		0		0
Consumer 1-4 family loans:
Closed end first mortgage loans		4		317		327		2		142		158
Total		11	$	3,038	$	3,048		8	$	226	$	221

	Principal and Interest Forgiveness
			Principal at		Principal at		Interest at		Interest at
	Number of		Pre- Modification		Post- Modification		Pre- Modification		Post- Modification
(dollars in thousands)	Loans		Rate		Rate		Rate		Rate
Troubled Debt Restructurings
Consumer 1-4 family loans:
Closed end first mortgage loans		2	$	156	$	161	$	164	$	149
Total		2	$	156	$	161	$	164	$	149

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

	All Modifications						Interest Rate Reductions						Modified Repayment Terms
			Pre- Modification		Post- Modification										Extension
	Number		Outstanding		Outstanding		Number		Interest at		Interest at				Period or
	of		Recorded		Recorded		of		Pre-Modification		Post-Modification		Number of		Range
(dollars in thousands)	Loans		Investment		Investment		Loans		Rate		Rate		Loans		(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Non-working capital loans		1	$	942	$	1,060		0	$	0	$	0		0		0
Commercial real estate and multi-family residential loans:
Construction and land development loans		5		1,638		1,638		0		0		0		0		0
Owner occupied loans		2		2,260		2,260		1		440		117		1		18
Nonowner occupied loans		1		385		385		0		0		0		1		14
Consumer 1-4 family loans:
Closed end first mortgage loans		5		317		316		5		403		381		0		0
Other consumer loans		1		17		17		0		0		0		0		0
Total		15	$	5,559	$	5,676		6	$	843	$	498		2		14-18

Troubled Debt Restructurings Subsequently Defaulted

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 period ending December 31:

	2013				2012
	Number of		Recorded		Number of		Recorded
(dollars in thousands)	Loans		Investment		Loans		Investment
Troubled Debt Restructurings that Subsequently Defaulted
Commercial real estate and multi-family residential loans:
Construction and land development loans		1	$	763		0	$	0

Consumer 1-4 family loans:
Closed end first mortgage loans		0		0		1		63

Total		1	$	763		1	$	63

Credit Quality Indicators

As of December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	431,069	$	15,212	$	11,674	$	0	$	0	$	457,955
Non-working capital loans		384,415		37,727		19,659		0		2,091		443,892
Commercial real estate and multi- family residential loans:
Construction and land development loans		148,338		763		8,037		0		0		157,138
Owner occupied loans		333,795		23,687		12,629		0		0		370,111
Nonowner occupied loans		367,108		9,180		17,948		0		0		394,236
Multifamily loans		63,392		0		0		0		0		63,392
Agri-business and agricultural loans:
Loans secured by farmland		132,331		0		1,113		0		16		133,460
Loans for agricultural production		120,665		0		0		0		0		120,665
Other commercial loans		70,766		0		0		0		0		70,766
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		29,092		0		2,316		0		93,772		125,180
Open end and junior lien loans		8,291		1,863		0		0		137,441		147,595
Residential construction loans		0		0		0		0		4,631		4,631
Other consumer loans		10,722		416		291		0		34,648		46,077
Total	$	2,099,984	$	88,848	$	73,667	$	0	$	272,599	$	2,535,098

The recorded investment in loans does not include accrued interest.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with Not Rated loans. Loans listed as not rated are consumer loans included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	403,778	$	22,591	$	13,468	$	0	$	0	$	439,837
Non-working capital loans		355,772		23,192		26,857		66		1,285		407,172
Commercial real estate and multi- family residential loans:
Construction and land development loans		67,002		4,595		10,753		0		0		82,350
Owner occupied loans		315,672		24,589		18,144		0		0		358,405
Nonowner occupied loans		282,108		6,345		26,028		0		0		314,481
Multifamily loans		43,425		345		1,192		0		0		44,962
Agri-business and agricultural loans:
Loans secured by farmland		107,734		0		1,404		0		18		109,156
Loans for agricultural production		115,649		0		0		0		0		115,649
Other commercial loans		56,692		0		118		0		0		56,810
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		18,685		343		729		0		89,805		109,562
Open end and junior lien loans		7,932		300		0		0		153,692		161,924
Residential construction loans		0		0		0		0		11,508		11,508
Other consumer loans		10,168		378		497		0		34,661		45,704
Total	$	1,784,617	$	82,678	$	99,190	$	66	$	290,969	$	2,257,520

The recorded investment in loans does not include accrued interest.