Note 4 - Loans

Major classifications of loans, net of unearned income and deferred loan origination costs, are summarized as follows:

(in thousands)	June 30 2012		December 31 2011
Commercial construction	$	115,967	$	120,577
Commercial secured by real estate		814,625		798,887
Equipment lease financing		10,714		9,706
Commercial other		381,637		374,597
Real estate construction		56,451		53,534
Real estate mortgage		647,834		650,075
Home equity		83,101		84,841
Consumer direct		124,946		123,949
Consumer indirect		312,161		340,382
Total loans	$	2,547,436	$	2,556,548

CTBI has segregated and evaluates its loan portfolio through nine portfolio classes. The nine classes are commercial construction, commercial secured by real estate, equipment lease financing, commercial other, real estate construction, real estate mortgage, home equity, consumer direct, and consumer indirect. CTBI serves customers in small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Therefore, CTBI's exposure to credit risk is significantly affected by changes in these communities.

Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development. Included in this category are improved property, land development, and tract development loans. The terms of these loans are generally short-term with permanent financing upon completion.

Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/ multi-family properties, farmland, and other commercial real estate. These loans are originated based on the borrower's ability to service the debt and secondarily based on the fair value of the underlying collateral.

Equipment lease financing loans are fixed, variable, and tax exempt leases for commercial purposes.

Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, floorplans, loans to financial institutions, loans for purchasing or carrying securities, and other commercial purpose loans. Commercial loans are underwritten based on the borrower's ability to service debt from the business's underlying cash flows. As a general practice, we obtain collateral such as real estate, equipment, or other assets, although such loans may be uncollateralized but guaranteed.

Real estate construction loans are typically for owner-occupied properties. The terms of these loans are generally short-term with permanent financing upon completion.

Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans. As a policy, CTBI holds adjustable rate loans and sells the majority of its fixed rate first lien mortgage loans into the secondary market. Changes in interest rates or market conditions may impact a borrower's ability to meet contractual principal and interest payments. Residential real estate loans are secured by real property.

Home equity lines are revolving adjustable rate credit lines secured by real property.

Consumer direct loans are fixed rate products comprised of unsecured loans, consumer revolving credit lines, deposit secured loans, and all other consumer purpose loans.

Consumer indirect loans are fixed rate loans secured by automobiles, trucks, vans, and recreational vehicles originated at the selling dealership underwritten and purchased by CTBI's indirect lending department. Both new and used products are financed. Only dealers who have executed dealer agreements with CTBI participate in the indirect lending program.

Not included in the loan balances above were loans held for sale in the amount of $1.0 million at June 30, 2012 and $0.5 million at December 31, 2011. The amount of capitalized fees and costs under ASC 310-20, included in the above loan totals were $0.6 million and $0.7 million at June 30, 2012 and December 31, 2011, respectively.

CTBI acquired loans through the acquisition of First National Bank of LaFollette in the fourth quarter 2010. At acquisition, the transferred loans with evidence of deterioration of credit quality since origination were not significant; therefore, none of the loans acquired were accounted for under the guidance in ASC 310-30.

Credit discounts representing principal losses expected over the life of the loans are a component of the initial fair value for purchased loans acquired that are not deemed impaired at acquisition. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Subsequent to the acquisition date, the methods used to estimate the required allowance for credit losses for these loans is similar to originated loans; however, CTBI records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining difference between the purchase price and the unpaid principal balance at the date of acquisition is recorded in interest income over the life of the loans. Management estimated the cash flows expected to be collected at acquisition using a third party that incorporated estimates of current key assumptions, such as default rates, severity, and prepayment speeds. The carrying amounts of those loans included in the balance sheet are $77.5 million and $88.5 million at June 30, 2012 and December 31, 2011, respectively.

Changes in accretable yield for the six months ended June 30, 2012 and the year ended December 31, 2011 are as follows:

(in thousands)	June 30 2012			December 31 2011
Beginning balance	$	720		$	2,995
Accretion		(518	)		(1,067	)
Disposals		(90	)		(1,208	)
Ending balance	$	112		$	720

Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans segregated by class of loans were as follows:

(in thousands)	June 30 2012		December 31 2011
Commercial:
Commercial construction	$	8,492	$	7,029
Commercial secured by real estate		6,647		9,810
Commercial other		1,845		3,914

Residential:
Real estate construction		354		607
Real estate mortgage		2,897		4,204
Home equity		265		189
Total nonaccrual loans	$	20,500	$	25,753

The following tables present CTBI's loan portfolio aging analysis, segregated by class, as of June 30, 2012 and December 31, 2011:

	June 30, 2012
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		90+ and Accruing*
Commercial:
Commercial construction	$	178	$	0	$	9,802	$	9,980	$	105,987	$	115,967	$	1,451
Commercial secured by real estate		2,983		2,446		11,399		16,828		797,797		814,625		4,874
Equipment lease financing		0		0		0		0		10,714		10,714		0
Commercial other		581		353		5,468		6,402		375,235		381,637		4,102
Residential:
Real estate construction		137		139		742		1,018		55,433		56,451		388
Real estate mortgage		1,999		3,249		5,840		11,088		636,746		647,834		3,306
Home equity		850		255		609		1,714		81,387		83,101		368
Consumer:
Consumer direct		1,548		262		15		1,825		123,121		124,946		15
Consumer indirect		1,821		451		307		2,579		309,582		312,161		307
Total	$	10,097	$	7,155	$	34,182	$	51,434	$	2,496,002	$	2,547,436	$	14,811

	December 31, 2011
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		90+ and Accruing*
Commercial:
Commercial construction	$	362	$	33	$	10,171	$	10,566	$	110,011	$	120,577	$	3,292
Commercial secured by real estate		4,566		2,978		11,998		19,542		779,345		798,887		3,969
Equipment lease financing		0		0		0		0		9,706		9,706		0
Commercial other		2,286		688		2,504		5,478		369,119		374,597		619
Residential:
Real estate construction		305		91		622		1,018		52,516		53,534		16
Real estate mortgage		2,067		4,974		6,547		13,588		636,487		650,075		2,719
Home equity		968		312		482		1,762		83,079		84,841		346
Consumer:
Consumer direct		1,723		171		71		1,965		121,984		123,949		71
Consumer indirect		2,684		755		483		3,922		336,460		340,382		483
Total	$	14,961	$	10,002	$	32,878	$	57,841	$	2,498,707	$	2,556,548	$	11,515

*90+ and Accruing are also included in 90+ Days Past Due column.

Credit Quality Indicators:

CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings:

Pass grades include investment grade, low risk, moderate risk, and acceptable risk loans. The loans range from loans that have no chance of resulting in a loss to loans that have a limited chance of resulting in a loss. Customers in this grade have excellent to fair credit ratings. The cash flows are adequate to meet required debt repayments.

Watch graded loans are loans that warrant extra management attention but are not currently criticized. Loans on the watch list may be potential troubled credits or may warrant "watch" status for a reason not directly related to the asset quality of the credit. The watch grade is a management tool to identify credits which may be candidates for future classification or may temporarily warrant extra management monitoring.

Other assets especially mentioned (OAEM) reflects loans that are currently protected but are potentially weak. These loans constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of circumstances surrounding a specific asset. Loans in this grade display potential weaknesses which may, if unchecked or uncorrected, inadequately protect CTBI's credit position at some future date. The loans may be adversely affected by economic or market conditions.

Substandard grading indicates that the loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These loans have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt with the distinct possibility that CTBI will sustain some loss if the deficiencies are not corrected.

Doubtful graded loans have the weaknesses inherent in the substandard grading with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to CTBI's advantage or strengthen the asset(s), its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.

A loss grading applies to loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery value, but rather it is not practical or desirable to defer writing off the asset. Losses must be taken in the period in which they surface as uncollectible, or in the case of collateral-dependent loans, a specific reserve in the amount of the expected loss is applied to the loan until the collateral is liquidated or we have taken possession and moved it into other real estate owned.

The following tables present the credit risk profile of CTBI's commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of June 30, 2012 and December 31, 2011:

(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Commercial Other		Equipment Leases		Total
June 30, 2012
Pass	$	85,325	$	663,123	$	322,985	$	10,714	$	1,082,147
Watch		13,133		79,377		40,600		0		133,110
OAEM		1,428		22,915		8,712		0		33,055
Substandard		7,589		42,583		7,803		0		57,975
Doubtful		8,492		6,627		1,537		0		16,656
Total	$	115,967	$	814,625	$	381,637	$	10,714	$	1,322,943

December 31, 2011
Pass	$	85,886	$	643,312	$	323,471	$	9,706	$	1,062,375
Watch		17,721		78,611		38,185		0		134,517
OAEM		1,379		21,087		1,668		0		24,134
Substandard		8,783		46,238		7,364		0		62,385
Doubtful		6,808		9,639		3,909		0		20,356
Total	$	120,577	$	798,887	$	374,597	$	9,706	$	1,303,767

The following tables present the credit risk profile of the CTBI's residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of June 30, 2012 and December 31, 2011:

(in thousands)	Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
June 30, 2012
Performing	$	55,709	$	641,631	$	82,468	$	124,931	$	311,854	$	1,216,593
Nonperforming (1)		742		6,203		633		15		307		7,900
Total	$	56,451	$	647,834	$	83,101	$	124,946	$	312,161	$	1,224,493

December 31, 2011
Performing	$	52,911	$	643,152	$	84,306	$	123,878	$	339,899	$	1,244,146
Nonperforming (1)		623		6,923		535		71		483		8,635
Total	$	53,534	$	650,075	$	84,841	$	123,949	$	340,382	$	1,252,781

(1)	A loan is considered nonperforming if it is 90 days or more past due or on nonaccrual.

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable CTBI will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection.

The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended June 30, 2012, December 31, 2011, and June 30, 2011:

	June 30, 2012
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	4,554	$	4,554	$	0
Commercial secured by real estate		35,835		36,307		0
Commercial other		12,253		14,382		0
Real estate mortgage		277		278		0

Loans with a specific valuation allowance:
Commercial construction		7,561		8,414		1,823
Commercial secured by real estate		3,057		4,196		1,084
Commercial other		911		2,239		422

Totals:
Commercial		64,171		70,092		3,329
Residential		277		278		0
Total	$	64,448	$	70,370	$	3,329

	Three Months Ended				Six Months Ended
	June 30, 2012				June 30, 2012
(in thousands)	Average Investment in Impaired Loans		*Interest Income Recognized		Average Investment in Impaired Loans		*Interest Income Recognized
Loans without a specific valuation allowance:
Commercial construction	$	4,499	$	40	$	4,591	$	58
Commercial secured by real estate		35,964		353		36,235		685
Commercial other		12,504		43		9,645		59
Real estate mortgage		278		5		279		8

Loans with a specific valuation allowance:
Commercial construction		7,479		0		6,644		0
Commercial secured by real estate		3,059		0		3,222		0
Commercial other		939		0		1,884		0

Commercial		64,444		436		62,221		802
Residential		278		5		279		8
Total	$	64,722	$	441	$	62,500	$	810

	December 31, 2011
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance		Average Investment in Impaired Loans		*Interest Income Recognized
Loans without a specific valuation allowance:
Commercial construction	$	4,778	$	4,778	$	0	$	8,992	$	252
Commercial secured by real estate		27,811		29,765		0		31,480		1,543
Commercial other		1,770		2,501		0		3,392		143
Real estate construction		27		27		0		19		1
Real estate mortgage		82		82		0		84		5
Consumer direct		93		93		0		82		9
Consumer indirect		112		112		0		99		12

Loans with a specific valuation allowance:
Commercial construction		5,794		6,643		2,203		7,681		0
Commercial secured by real estate		3,525		3,669		1,156		4,747		23
Commercial other		3,432		6,022		1,310		5,071		22

Totals:
Commercial		47,110		53,378		4,669		61,363		1,983
Residential		109		109		0		103		6
Consumer		205		205		0		181		21
Total	$	47,424	$	53,692	$	4,669	$	61,647	$	2,010

	June 30, 2011
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	14,403	$	14,403	$	0
Commercial secured by real estate		32,050		34,403		0
Commercial other		3,788		4,380		0
Real estate construction		28		28		0
Real estate mortgage		84		84		0
Consumer direct		111		111		0
Consumer indirect		86		86		0

Loans with a specific valuation allowance:
Commercial construction		7,036		8,327		2,724
Commercial secured by real estate		5,217		5,382		1,977
Commercial other		2,257		4,834		918

Totals:
Commercial		64,751		71,729		5,619
Residential		112		112		0
Consumer		197		197		0
Total	$	65,060	$	72,038	$	5,619

	Three Months Ended				Six Months Ended
	June 30, 2011				June 30, 2011
(in thousands)	Average Investment in Impaired Loans		*Interest Income Recognized		Average Investment in Impaired Loans		*Interest Income Recognized
Loans without a specific valuation allowance:
Commercial construction	$	14,464	$	46	$	11,021	$	117
Commercial secured by real estate		32,037		316		32,405		573
Commercial other		4,025		32		3,956		88
Real estate construction		28		1		14		1
Real estate mortgage		85		1		85		3
Consumer direct		112		3		78		4
Consumer indirect		89		3		89		5

Loans with a specific valuation allowance:
Commercial construction		7,045		0		8,194		0
Commercial secured by real estate		5,229		0		5,224		23
Commercial other		4,230		0		6,086		0

Commercial		67,030		394		66,886		801
Residential		113		2		99		4
Consumer		201		6		167		9
Total	$	67,344	$	402	$	67,152	$	814

*Cash basis interest is substantially the same as interest income recognized.

As of June 30, 2012, three standby letters of credit in the amount of $0.9 million were outstanding and are not included in the above table.

Included in certain loan categories of impaired loans are certain loans and leases that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification. All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower. In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under CTBI's internal underwriting policy.

When we modify loans and leases in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.

During 2012, certain loans were modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances. Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and six months ended June 30, 2012:

	Three Months Ended June 30, 2012
(in thousands)	Number of Loans		Post- Modification Outstanding Balance		Net Charge-offs Resulting from Modification
Commercial:
Commercial construction		5	$	557	$	0
Commercial secured by real estate		2		728		0
Commercial other		10		1,018		0
Total troubled debt restructurings		17	$	2,303	$	0

	Six Months Ended June 30, 2012
(in thousands)	Number of Loans		Post- Modification Outstanding Balance		Net Charge-offs Resulting from Modification
Commercial:
Commercial construction		5	$	557	$	0
Commercial secured by real estate		5		2,393		0
Commercial other		11		1,066		0
Total troubled debt restructurings		21	$	4,016	$	0

Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual. Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.

(in thousands)	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial construction		1	$	54		4	$	424
Commercial secured by real estate		0		0		0		0
Commercial other		4		14		6		46
Total defaulted restructured loans		5	$	68		10	$	470

The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio class and impairment method for the periods ended June 30, 2012 and June 30, 2011:

	Three Months Ended June 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Commercial Other		Equipment Lease Financing		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,066	$	12,977	$	5,965	$	105	$	344	$	4,240	$	546	$	846	$	4,083	$	33,172
Provision charged to expense		209		1,170		207		37		42		414		64		69		213		2,425
Losses charged off		457		891		783		0		0		232		36		203		605		3,207
Recoveries		113		6		98		0		4		50		0		145		328		744
Ending balance	$	3,931	$	13,262	$	5,487	$	142	$	390	$	4,472	$	574	$	857	$	4,019	$	33,134

Ending balance:
Individually evaluated for impairment	$	1,823	$	1,084	$	422	$	0	$	0	$	0	$	0	$	0	$	0	$	3,329
Collectively evaluated for impairment	$	2,108	$	12,178	$	5,065	$	142	$	390	$	4,472	$	574	$	857	$	4,019	$	29,805

Loans
Ending balance:
Individually evaluated for impairment	$	12,115	$	38,892	$	13,164	$	0	$	0	$	277	$	0	$	0	$	0	$	64,448
Collectively evaluated for impairment	$	103,852	$	775,733	$	368,473	$	10,714	$	56,451	$	647,557	$	83,101	$	124,946	$	312,161	$	2,482,988

	Six Months Ended June 30, 2012
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Commercial Other		Equipment Lease Financing		Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct			Consumer I ndirect			Total
Allowance for loan losses
Beginning balance	$	4,023	$	11,753	$	5,608	$	112	$	354	$	4,302	$	562	$	917		$	5,540		$	33,171
Provision charged to expense		251		2,450		925		30		197		485		93		(48	)		(798	)		3,585
Losses charged off		475		987		1,395		0		171		422		82		349			1,452			5,333
Recoveries		132		46		349		0		10		107		1		337			729			1,711
Ending balance	$	3,931	$	13,262	$	5,487	$	142	$	390	$	4,472	$	574	$	857		$	4,019		$	33,134

Ending balance:
Individually evaluated for impairment	$	1,823	$	1,084	$	422	$	0	$	0	$	0	$	0	$	0		$	0		$	3,329
Collectively evaluated for impairment	$	2,108	$	12,178	$	5,065	$	142	$	390	$	4,472	$	574	$	857		$	4,019		$	29,805

Loans
Ending balance:
Individually evaluated for impairment	$	12,115	$	38,892	$	13,164	$	0	$	0	$	277	$	0	$	0		$	0		$	64,448
Collectively evaluated for impairment	$	103,852	$	775,733	$	368,473	$	10,714	$	56,451	$	647,557	$	83,101	$	124,946		$	312,161		$	2,482,988

	Three Months Ended June 30, 2011
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Commercial Other			Equipment Lease Financing			Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,668	$	11,952	$	7,504		$	138		$	262	$	3,345	$	439	$	1,061	$	5,783	$	35,152
Provision charged to expense		363		1,379		(233	)		(15	)		103		872		148		33		670		3,320
Losses charged off		406		198		1,960			0			75		309		81		118		919		4,066
Recoveries		12		69		141			0			6		30		8		91		389		746
Ending balance	$	4,637	$	13,202	$	5,452		$	123		$	296	$	3,938	$	514	$	1,067	$	5,923	$	35,152

Ending balance:
Individually evaluated for impairment	$	2,724	$	1,977	$	918		$	0		$	0	$	0	$	0	$	0	$	0	$	5,619
Collectively evaluated for impairment	$	1,913	$	11,225	$	4,534		$	123		$	296	$	3,938	$	514	$	1,067	$	5,923	$	29,533

Loans
Ending balance:
Individually evaluated for impairment	$	21,439	$	37,267	$	6,045		$	0		$	28	$	84	$	0	$	111	$	86	$	65,060
Collectively evaluated for impairment	$	105,189	$	768,371	$	376,165		$	10,365		$	48,167	$	641,081	$	83,727	$	122,969	$	359,393	$	2,515,427

	Six Months Ended June 30, 2011
(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Commercial Other		Equipment Lease Financing			Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
Allowance for loan losses
Beginning balance	$	4,332	$	12,327	$	7,392	$	148		$	271	$	2,982	$	407	$	1,169	$	5,777	$	34,805
Provision charged to expense		796		2,992		673		(25	)		86		1,555		226		76		1,328		7,707
Losses charged off		504		2,213		2,835		0			75		651		127		409		1,914		8,728
Recoveries		13		96		222		0			14		52		8		231		732		1,368
Ending balance	$	4,637	$	13,202	$	5,452	$	123		$	296	$	3,938	$	514	$	1,067	$	5,923	$	35,152

Ending balance:
Individually evaluated for impairment	$	2,724	$	1,977	$	918	$	0		$	0	$	0	$	0	$	0	$	0	$	5,619
Collectively evaluated for impairment	$	1,913	$	11,225	$	4,534	$	123		$	296	$	3,938	$	514	$	1,067	$	5,923	$	29,533

Loans
Ending balance:
Individually evaluated for impairment	$	21,439	$	37,267	$	6,045	$	0		$	28	$	84	$	0	$	111	$	86	$	65,060
Collectively evaluated for impairment	$	105,189	$	768,371	$	376,165	$	10,365		$	48,167	$	641,081	$	83,727	$	122,969	$	359,393	$	2,515,427