ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

3 Months Ended

Mar. 31, 2016

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

The following tables present the activity in the allowance for loan losses by portfolio segment for the three-month periods ended March 31, 2016 and 2015:

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

Three Months Ended March 31, 2016

Beginning balance, January 1

$21,564

$12,473

$2,445

$574

$3,395

$319

$2,840

$43,610

Provision for loan losses

(947)

436

(15)

196

284

Loans charged-off

(214)

(168)

(38)

(45)

(465)

Recoveries

139

Net loans charged-off

(152)

(157)

(5)

(17)

(326)

Ending balance

$20,465

$12,752

$2,454

$559

$3,586

$344

$3,124

$43,284

		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
Three Months Ended March 31, 2015
Beginning balance	$22,785	$14,153	$1,790	$276	$3,459	$483	$3,316	$46,262
Provision for loan losses	556	(338)	(167)	244	(25)	(35)	(235)	0
Loans charged-off	(369)	(30)	0	(122)	(134)	(53)	0	(708)
Recoveries	52	19	4	0	13	35	0	123
Net loans charged-off	(317)	(11)	4	(122)	(121)	(18)	0	(585)
Ending balance	$23,024	$13,804	$1,627	$398	$3,313	$430	$3,081	$45,677

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015:

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

March 31, 2016

Allowance for loan losses:

Ending allowance balance attributable to loans:

Individually evaluated for impairment

$2,541

$430

$415

$49

$3,439

Collectively evaluated for impairment

17,924

12,322

2,454

555

3,171

295

3,124

39,845

Total ending allowance balance

$20,465

$12,752

$2,454

$559

$3,586

$344

$3,124

$43,284

Loans:

Loans individually evaluated for impairment

$5,988

$9,061

$471

$12

$1,827

$59

$17,418

Loans collectively evaluated for impairment

1,199,911

1,156,427

272,752

83,600

330,021

53,171

3,095,882

Total ending loans balance

$1,205,899

$1,165,488

$273,223

$83,612

$331,848

$53,230

$3,113,300

		Commercial
		Real Estate
	Commercial	and	Agri-business		Consumer
	and	Multi-family	and	Other	1-4 Family	Other
(dollars in thousands)	Industrial	Residential	Agricultural	Commercial	Mortgage	Consumer	Unallocated	Total
December 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$2,781	$465	$0	$5	$358	$50	$0	$3,659
Collectively evaluated for impairment	18,783	12,008	2,445	569	3,037	269	2,840	39,951
Total ending allowance balance	$21,564	$12,473	$2,445	$574	$3,395	$319	$2,840	$43,610

Loans:
Loans individually evaluated for impairment	$8,286	$9,823	$471	$12	$1,927	$60	$0	$20,579
Loans collectively evaluated for impairment	1,171,407	1,119,150	305,707	85,059	330,072	48,955	0	3,060,350
Total ending loans balance	$1,179,693	$1,128,973	$306,178	$85,071	$331,999	$49,015	$0	$3,080,929

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2016:

	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	$20	$20	$0
Non-working capital loans	2,351	584	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,701	2,520	0
Nonowner occupied loans	4,760	4,763	0
Agri-business and agricultural loans:
Loans secured by farmland	969	471	0
Consumer 1-4 family loans:
Closed end first mortgage loans	72	34	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,406	1,405	625
Non-working capital loans	4,379	3,979	1,916
Commercial real estate and multi-family residential loans:
Construction and land development loans	339	339	46
Owner occupied loans	942	941	235
Nonowner occupied loans	185	115	20
Multifamily loans	383	383	129
Other commercial loans	12	12	4
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,611	1,544	391
Open end and junior lien loans	249	249	24
Other consumer loans	59	59	49
Total	$20,438	$17,418	$3,439

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015:

	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	$20	$20	$0
Non-working capital loans	2,390	623	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	3,762	3,223	0
Nonowner occupied loans	4,894	4,898	0
Agri-business and agricultural loans:
Loans secured by farmland	969	471	0
Consumer 1-4 family loans:
Closed end first mortgage loans	45	45	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,318	1,318	535
Non-working capital loans	8,617	6,325	2,246
Commercial real estate and multi-family residential loans:
Construction and land development loans	364	364	71
Owner occupied loans	949	949	232
Multifamily loans	389	389	162
Other commercial loans	12	12	5
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,695	1,629	331
Open end and junior lien loans	253	253	27
Other consumer loans	60	60	50
Total	$25,737	$20,579	$3,659

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended March 31, 2016:

			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	$20	$0	$0
Non-working capital loans	673	0	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	2,724	0	0
Nonowner occupied loans	4,808	29	23
Agri-business and agricultural loans:
Loans secured by farmland	471	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	47	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,352	5	5
Non-working capital loans	4,635	34	34
Commercial real estate and multi-family residential loans:
Construction and land development loans	339	3	3
Owner occupied loans	942	0	0
Nonowner occupied loans	77	0	0
Multifamily loans	385	5	5
Other commercial loans	12	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,627	15	11
Open end and junior lien loans	251	0	0
Other consumer loans	59	1	1
Total	$18,422	$92	$82

The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended March 31, 2015:

			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	$21	$0	$0
Non-working capital loans	364	1	1
Commercial real estate and multi-family residential loans:
Construction and land development loans	526	0	0
Owner occupied loans	544	0	0
Nonowner occupied loans	2,517	28	29
Agri-business and agricultural loans:
Loans secured by farmland	283	0	0
Consumer 1-4 family loans:
Closed end first mortgage loans	160	0	0
Open end and junior lien loans	338	0	0
Residential construction loans	42	0	0
Other consumer loans	1	0	0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	1,012	9	7
Non-working capital loans	12,566	122	123
Commercial real estate and multi-family residential loans:
Construction and land development loans	448	4	4
Owner occupied loans	5,649	21	22
Nonowner occupied loans	3,269	0	0
Agri-business and agricultural loans:
Loans secured by farmland	201	0	0
Other commercial loans	10	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	3,014	17	14
Open end and junior lien loans	34	0	0
Other consumer loans	121	1	1
Total	$31,120	$203	$201

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 March 31, 2016 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	$589,464	$30	$0	$999	$1,029	$590,493
Non-working capital loans	610,595	2,898	0	1,913	4,811	615,406
Commercial real estate and multi-family
residential loans:
Construction and land development loans	206,025	0	0	0	0	206,025
Owner occupied loans	443,821	0	0	3,453	3,453	447,274
Nonowner occupied loans	407,681	0	0	264	264	407,945
Multifamily loans	104,244	0	0	0	0	104,244
Agri-business and agricultural loans:
Loans secured by farmland	144,227	0	0	471	471	144,698
Loans for agricultural production	128,525	0	0	0	0	128,525
Other commercial loans	83,612	0	0	0	0	83,612
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	160,268	911	0	227	1,138	161,406
Open end and junior lien loans	161,623	104	0	249	353	161,976
Residential construction loans	8,466	0	0	0	0	8,466
Other consumer loans	53,146	84	0	0	84	53,230
Total	$3,101,697	$4,027	$0	$7,576	$11,603	$3,113,300

The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 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	$579,081	$350	$0	$913	$1,263	$580,344
Non-working capital loans	595,154	0	0	4,195	4,195	599,349
Commercial real estate and multi-family
residential loans:
Construction and land development loans	230,336	0	0	0	0	230,336
Owner occupied loans	407,229	310	0	4,172	4,482	411,711
Nonowner occupied loans	404,146	423	0	3,000	3,423	407,569
Multi-family loans	79,357	0	0	0	0	79,357
Agri-business and agricultural loans:
Loans secured by farmland	163,911	0	0	471	471	164,382
Loans for agricultural production	141,706	90	0	0	90	141,796
Other commercial loans	85,071	0	0	0	0	85,071
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	156,525	1,187	0	49	1,236	157,761
Open end and junior lien loans	164,582	83	0	253	336	164,918
Residential construction loans	9,320	0	0	0	0	9,320
Other consumer loans	48,687	328	0	0	328	49,015
Total	$3,065,105	$2,771	$0	$13,053	$15,824	$3,080,929

Troubled Debt Restructuring

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

	March 31,	December 31,
(dollars in thousands)	2016	2015
Accruing troubled debt restructured loans	$8,590	$6,260
Nonaccrual troubled debt restructured loans	5,519	10,914
Total troubled debt restructured loans	$14,109	$17,174

Loans by Class Modified as Troubled Debt Restructurings

These concessions are not included in table below.

				Modified Repayment Terms
		Pre-Modification	Post-Modification		Extension
		Outstanding	Outstanding		Period or
	Number of	Recorded	Recorded	Number of	Range
(dollars in thousands)	Loans	Investment	Investment	Loans	(in months)
Troubled Debt Restructurings
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	$335	$335	1	15
Total	1	$335	$335	1	15

The following table presents loans by class modified as new troubled debt restructurings that occurred during the quarter ended March 31, 2015:

	All Modifications
		Pre-Modification	Post-Modification
		Outstanding	Outstanding
	Number of	Recorded	Recorded
(dollars in thousands)	Loans	Investment	Investment
Troubled Debt Restructurings
Commercial real estate and multi-
family residential loans:
Owner occupied loans	1	$788	$788
Total	1	$788	$788

Credit Quality Indicators

As of March 31, 2016, 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	$547,736	$32,071	$10,686	$0	$0	$590,493
Non-working capital loans	570,026	32,443	9,563	0	3,374	615,406
Commercial real estate and multi-
family residential loans:
Construction and land development loans	203,447	2,222	356	0	0	206,025
Owner occupied loans	405,284	31,477	10,513	0	0	447,274
Nonowner occupied loans	401,824	3,655	2,466	0	0	407,945
Multifamily loans	103,861	0	383	0	0	104,244
Agri-business and agricultural loans:
Loans secured by farmland	144,227	0	471	0	0	144,698
Loans for agricultural production	128,525	0	0	0	0	128,525
Other commercial loans	83,596	0	11	0	5	83,612
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	47,526	126	1,174	0	112,580	161,406
Open end and junior lien loans	6,206	0	1,616	0	154,154	161,976
Residential construction loans	0	0	0	0	8,466	8,466
Other consumer loans	13,302	0	59	0	39,869	53,230
Total	$2,655,560	$101,994	$37,298	$0	$318,448	$3,113,300

As of December 31, 2015, 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	$538,899	$32,601	$8,844	$0	$0	$580,344
Non-working capital loans	549,771	35,910	10,566	0	3,102	599,349
Commercial real estate and multi-
family residential loans:
Construction and land
development loans	227,996	2,340	0	0	0	230,336
Owner occupied loans	378,847	23,522	9,342	0	0	411,711
Nonowner occupied loans	394,387	10,953	2,229	0	0	407,569
Multi-family loans	78,968	0	389	0	0	79,357
Agri-business and agricultural loans:
Loans secured by farmland	163,911	0	471	0	0	164,382
Loans for agricultural production	141,796	0	0	0	0	141,796
Other commercial loans	85,056	0	12	0	3	85,071
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	43,231	126	1,769	0	112,635	157,761
Open end and junior lien loans	8,373	0	1,616	0	154,929	164,918
Residential construction loans	0	0	0	0	9,320	9,320
Other consumer loans	13,940	0	60	0	35,015	49,015
Total	$2,625,175	$105,452	$35,298	$0	$315,004	$3,080,929