Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2014

Impaired Loans	September 30, 2014
(dollars in thousands, unaudited)	Unpaid Principal Balance⁽¹⁾		Recorded Investment⁽²⁾		Related Allowance		Average Recorded Investment		Interest Income Recognized⁽³⁾


With an allowance recorded
Real Estate:
Other construction/land		4,513		4,513		578		5,271		69
1-4 Family - closed-end		12,820		12,820		1,111		14,000		201
Equity lines		406		406		37		491		11
Commercial real estate- owner occupied		2,856		2,746		1,416		3,068		42
Commercial real estate- non-owner occupied		3,700		3,700		741		3,771		198
Farmland		-		-		-		-		-
Total real estate		24,295		24,185		3,883		26,601		521
Agriculture		127		127		3		335		-
Commercial and industrial		2,901		2,888		873		2,958		94
Consumer loans		2,854		2,843		422		3,104		116
		30,177		30,043		5,181		32,998		731
With no related allowance recorded
Real estate:
Other construction/land		9		9		-		18		-
1-4 family - closed-end		-		-		-		-		1
Equity lines		297		294		-		297		-
Commercial real estate- owner occupied		1,855		826		-		1,932		-
Commercial real estate- non-owner occupied		9,278		9,130		-		9,844		88
Farmland		-		-		-		-		-
Total real estate		11,439		10,259		-		12,091		89
Agriculture		-		-		-		-		-
Commercial and industrial		56		37		-		81		-
Consumer loans		257		95		-		322		-
		11,752		10,391		-		12,494		89
Total	$	41,929	$	40,434	$	5,181	$	45,492	$	820

(1) Contractual principal balance due from customer.

(2) Principal balance on Company's books, less any direct charge offs.

(3) Interest income is recognized on performing balances on a regular accrual basis.

	December 31, 2013
	Unpaid Principal Balance⁽¹⁾		Recorded Investment⁽²⁾		Related Allowance		Average Recorded Investment		Interest Income Recognized⁽³⁾


With an allowance recorded
Real estate:
1-4 family residential construction	$	-	$	-	$	-	$	-	$	-
Other construction/land		2,972		2,972		502		3,000		98
1-4 family - closed-end		13,522		13,522		1,324		13,630		260
Equity lines		528		528		123		530		13
Commercial real estate- owner occupied		2,047		2,047		217		2,069		135
Commercial real estate- non-owner occupied		3,715		3,715		701		3,813		238
Farmland		-		-		-		-		-
Total real estate		22,784		22,784		2,867		23,042		744
Agriculture		125		125		126		131		-
Commercial and industrial		4,580		4,345		1,925		4,496		131
Consumer loans		3,411		3,411		431		3,591		172
		30,900		30,665		5,349		31,260		1,047
With no related allowance recorded
Real estate:
1-4 family residential construction		-		-		-		-		-
Other construction/land		4,176		3,779		-		3,885		-
1-4 family - closed-end		4,655		4,376		-		4,687		1
Equity lines		565		493		-		493		-
Commercial real estate- owner occupied		7,436		5,516		-		5,568		-
Commercial real estate- non-owner occupied		10,077		9,780		-		9,820		115
Farmland		282		282		-		290		-
Total real estate		27,191		24,226		-		24,743		116
Agriculture		345		345		-		837		-
Commercial and industrial		1,249		1,099		-		1,607		57
Consumer loans		241		52		-		77		-
		29,026		25,722		-		27,264		173
Total	$	59,926	$	56,387	$	5,349	$	58,524	$	1,220

⁽¹⁾ Contractual principal balance due from customer.

⁽²⁾ Principal balance on Company's books, less any direct charge offs.

⁽³⁾ Interest income is recognized on performing balances on a regular accrual basis.

Allowance for Credit Losses and Recorded Investment in Financing Receivables
(dollars in thousands, unaudited)
	For the Three Months Ended September 30, 2014
	Real Estate			Agricultural			Commercial and Industrial			Consumer			Unallocated			Total

Allowance for credit losses:
Beginning Balance	$	7,278		$	1,353		$	1,516		$	1,463		$	24		$	11,634
Charge-offs		(1,053	)		-			(170	)		(424	)		-			(1,647	)
Recoveries		291			1			538			195			-			1,025
Provision		247			(539	)		26			288			(22	)		-

Ending Balance	$	6,763		$	815		$	1,910		$	1,522		$	2		$	11,012

	For the Nine Months Ended September 30, 2014
	Real Estate			Agricultural			Commercial and Industrial			Consumer			Unallocated			Total

Allowance for credit losses:
Beginning Balance	$	5,544		$	978		$	3,787		$	1,117		$	251		$	11,677
Charge-offs		(1,485	)		(124	)		(583	)		(1,410	)		-			(3,602	)
Recoveries		1,490			4			635			458			-			2,587
Provision		1,214			(43	)		(1,929	)		1,357			(249	)		350

Ending Balance	$	6,763		$	815		$	1,910		$	1,522		$	2		$	11,012

Reserves:
Specific	$	3,883		$	3		$	873		$	422		$	-		$	5,181
General		2,880			812			1,037			1,100		$	2			5,831

Ending Balance	$	6,763		$	815		$	1,910		$	1,522		$	2		$	11,012

Loans evaluated for impairment:
Individually	$	34,444		$	127		$	2,925		$	2,938		$	-		$	40,434
Collectively		603,576			24,494			198,693			16,478			-			843,241

Ending Balance	$	638,020		$	24,621		$	201,618		$	19,416		$	-		$	883,675

	For the Year Ended December 31, 2013
	Real Estate			Agricultural			Commercial and Industrial			Consumer			Unallocated		Total

Allowance for credit losses:
Beginning Balance	$	8,034		$	258		$	3,467		$	2,114		$	-	$	13,873
Charge-offs		(4,205	)		(473	)		(1,668	)		(1,917	)		-		(8,263	)
Recoveries		618			-			802			297			-		1,717
Provision		1,097			1,193			1,186			623			251		4,350

Ending balance	$	5,544		$	978		$	3,787		$	1,117		$	251	$	11,677

Reserves:
Specific	$	2,867		$	126		$	1,925		$	431				$	5,349
General		2,677			852			1,862			686			251		6,328

Ending balance	$	5,544		$	978		$	3,787		$	1,117		$	251	$	11,677

Loans evaluated for impairment:
Individually	$	47,010		$	470		$	5,444		$	3,463		$	-	$	56,387
Collectively		530,829			24,710			171,243			20,073			-		746,855

Ending balance	$	577,839		$	25,180		$	176,687		$	23,536		$	-	$	803,242