Old Second Bancorp (OSBC) 10-Q12 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 09, 2013
Document and Entity Information	'	'
Entity Registrant Name	'OLD SECOND BANCORP INC	'
Entity Central Index Key	'0000357173	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	13,917,108
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash and due from banks	$47,486	$44,221
Interest bearing deposits with financial institutions	32,586	84,286
Cash and cash equivalents	80,072	128,507
Securities available-for-sale, at fair value	373,478	579,886
Securities held-to-maturity, at amortized cost	258,101	'
Federal Home Loan Bank and Federal Reserve Bank stock	10,292	11,202
Loans held-for-sale	3,129	9,571
Loans	1,077,640	1,150,050
Less: allowance for loan losses	29,547	38,597
Net loans	1,048,093	1,111,453
Premises and equipment, net	46,392	47,002
Other real estate owned	49,066	72,423
Mortgage servicing rights, net	5,456	4,116
Core deposit, net	1,702	3,276
Bank-owned life insurance (BOLI)	55,005	54,203
Deferred tax assets, net	78,865	928
Other assets	23,137	23,232
Total assets	2,032,788	2,045,799
Deposits:	'	'
Noninterest bearing demand	373,499	379,451
Interest bearing:	'	'
Savings, NOW, and money market	809,521	826,976
Time	490,103	510,792
Total deposits	1,673,123	1,717,219
Securities sold under repurchase agreements	20,719	17,875
Other short-term borrowings	55,000	100,000
Junior subordinated debentures	58,378	58,378
Subordinated debt	45,000	45,000
Notes payable and other borrowings	500	500
Other liabilities	38,029	34,275
Total liabilities	1,890,749	1,973,247
Stockholders' Equity	'	'
Preferred stock	72,667	71,869
Common stock	18,830	18,729
Additional paid-in capital	66,168	66,189
Retained earnings	92,612	12,048
Accumulated other comprehensive loss	-12,435	-1,327
Treasury stock	-95,803	-94,956
Total stockholders' equity	142,039	72,552
Total liabilities and stockholders' equity	$2,032,788	$2,045,799

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Consolidated Balance Sheets	'	'
Preferred stock, Par value (in dollars per share)	$1	$1
Preferred stock, Liquidation value (in dollars per share)	$1,000	$1,000
Preferred stock, Shares authorized	300,000	300,000
Preferred stock, Shares issued	73,000	73,000
Preferred stock, Shares outstanding	73,000	73,000
Common stock, Par value (in dollars per share)	$1	$1
Common Stock, Shares authorized	60,000,000	60,000,000
Common stock, Shares issued	18,829,734	18,729,134
Common stock, Shares outstanding	13,917,108	14,084,328
Treasury stock, Shares	4,912,626	4,644,806

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest and Dividend Income	'	'	'	'
Loans, including fees	$14,327	$16,193	$43,153	$51,476
Loans held-for-sale	38	68	124	201
Securities:	'	'	'	'
Taxable	3,113	1,868	8,109	5,222
Tax exempt	148	98	441	303
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock	76	77	228	228
Interest bearing deposits with financial institutions	22	29	91	89
Total interest and dividend income	17,724	18,333	52,146	57,519
Interest Expense	'	'	'	'
Savings, NOW, and money market deposits	206	253	655	807
Time deposits	1,674	1,973	5,327	6,920
Securities sold under repurchase agreements	1	1	2	2
Other short-term borrowings	5	'	24	4
Junior subordinated debentures	1,336	1,243	3,937	3,660
Subordinated debt	209	223	610	684
Notes payable and other borrowings	4	5	12	13
Total interest expense	3,435	3,698	10,567	12,090
Net interest and dividend income	14,289	14,635	41,579	45,429
(Release) provision for loan losses	-1,750	'	-6,050	6,284
Net interest and dividend income after provision for loan losses	16,039	14,635	47,629	39,145
Noninterest Income	'	'	'	'
Trust income	1,494	1,489	4,666	4,603
Service charges on deposits	1,904	1,982	5,379	5,706
Secondary mortgage fees	183	350	680	957
Mortgage servicing income, net of changes in fair value	235	-155	1,222	-365
Net gain on sales of mortgage loans	814	2,504	4,601	7,509
Securities (losses) gains, net	-7	513	2,191	1,306
Increase in cash surrender value of bank-owned life insurance	419	425	1,198	1,246
Death benefit realized on bank-owned life insurance	6	'	381	'
Debit card interchange income	873	788	2,565	2,661
Lease revenue from other real estate owned	309	840	974	2,930
Net gain on sale of other real estate owned	608	20	1,175	398
Other income	1,549	1,592	4,434	4,257
Total noninterest income	8,387	10,348	29,466	31,208
Noninterest Expense	'	'	'	'
Salaries and employee benefits	9,299	8,963	27,508	26,835
Occupancy expense, net	1,266	1,242	3,787	3,684
Furniture and equipment expense	1,026	1,078	3,274	3,416
FDIC insurance	987	1,029	3,046	3,058
General bank insurance	489	851	1,829	2,538
Amortization of core deposit and other intangible asset	524	420	1,574	865
Advertising expense	347	400	841	982
Debit card interchange expense	366	388	1,072	1,183
Legal fees	615	760	1,424	2,215
Other real estate expense	3,461	6,545	11,092	17,987
Other expense	3,119	3,187	9,773	9,186
Total noninterest expense	21,499	24,863	65,220	71,949
Income (loss) before income taxes	2,927	120	11,875	-1,596
Income tax benefit	-69,997	'	-69,997	'
Net Income (loss)	72,924	120	81,872	-1,596
Preferred stock dividends and accretion	1,323	1,255	3,917	3,716
Net income (loss) available to common stockholders	$71,601	($1,135)	$77,955	($5,312)
Basic earnings (loss) per share (in dollars per share)	$5.08	($0.08)	$5.52	($0.37)
Diluted earnings (loss) per share (in dollars per share)	$5.08	($0.08)	$5.52	($0.37)

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Comprehensive Income (Loss)	'	'	'	'
Net Income (loss)	$72,924	$120	$81,872	($1,596)
Unrealized holding (losses) gains on available-for-sale securities arising during the period	-3,411	2,908	-16,780	3,255
Related tax benefit (expense)	1,405	-1,194	6,913	-1,335
Holding (losses) income after tax on available-for-sale securities	-2,006	1,714	-9,867	1,920
Less: Reclassification adjustment for the net gains realized during the period	'	'	'	'
Net realized (losses) gains	-7	513	2,191	1,306
Income tax benefit (expense) on net realized gains	3	-208	-899	-532
Net realized (losses) gains after tax	-4	305	1,292	774
Other comprehensive (loss) income on available-for-sale securities	-2,002	1,409	-11,159	1,146
Accretion of net unrealized holding losses on held-to-maturity transferred from available-for-sale securities	87	'	87	'
Related tax expense	-36	'	-36	'
Other comprehensive income on held-to-maturity securities	51	'	51	'
Total other comprehensive (loss) income	-1,951	1,409	-11,108	1,146
Total comprehensive income (loss)	$70,973	$1,529	$70,764	($450)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net income (loss)	$81,872	($1,596)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'
Depreciation and amortization of leasehold improvement	2,147	2,339
Change in market value of mortgage servicing rights	-81	1,315
(Release) provision for loan losses	-6,050	6,284
Gain on recapture of restricted stock	-612	'
Provision for deferred tax benefit	-70,161	'
Originations of loans held-for-sale	-151,601	-208,710
Proceeds from sales of loans held-for-sale	160,966	222,590
Net gain on sales of mortgage loans	-4,601	-7,509
Change in current income taxes (payable) receivable	-101	815
Increase in cash surrender value of bank-owned life insurance	-1,198	-1,246
Death claim on bank owned life insurance	396	'
Change in accrued interest receivable and other assets	-334	-2,437
Change in accrued interest payable and other liabilities	4,341	4,689
Net discount (accretion)/premium amortization on securities	-131	664
Securities gains, net	-2,191	-1,306
Amortization of core deposit and other intangible assets	1,574	865
Stock based compensation	123	220
Net gain on sale of other real estate owned	-1,175	-398
Provision for other real estate owned losses	6,537	12,101
Net gain on disposal of fixed assets	-5	'
Net cash provided by operating activities	19,715	28,680
Cash flows from investing activities	'	'
Proceeds from maturities and calls including pay down of securities available-for-sale	38,175	65,940
Proceeds from sales of securities available-for-sale	484,112	185,861
Purchases of securities available-for-sale	-564,372	-353,992
Proceeds from maturities and calls including pay down of securities held-to-maturity	541	'
Purchases of securities held-to-maturity	-21,382	'
Net sales of Federal Reserve Bank and Federal Home Loan Bank stock	910	2,250
Net change in loans	49,885	115,728
Investment in other real estate owned	-60	-646
Proceeds from sales of other real estate owned	32,103	20,915
Proceeds from disposition of fixed assets	6	'
Net purchases of premises and equipment	-1,538	-371
Net cash provided by investing activities	18,380	35,685
Cash flows from financing activities	'	'
Net change in deposits	-44,096	-43,847
Net change in securities sold under repurchase agreements	2,844	837
Net change in other short-term borrowings	-45,000	'
Purchase of treasury stock	-278	-63
Net cash used in financing activities	-86,530	-43,073
Net change in cash and cash equivalents	-48,435	21,292
Cash and cash equivalents at beginning of period	128,507	50,949
Cash and cash equivalents at end of period	80,072	72,241
Supplemental cash flow information	'	'
Income taxes paid (received)	266	-815
Interest paid for deposits	6,144	8,444
Interest paid for borrowings	656	702
Non-cash transfer of loans to other real estate owned	14,196	26,944
Non-cash transfer of loans to securities available-for-sale	5,329	'
Non-cash transfer of securities available-for-sale to securities held-to-maturity	237,154	'
Change in dividends declared not paid	510	2,968
Accretion on preferred stock warrants	798	748
Fair value difference on recapture of restricted stock	$43	'

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Stockholders' Equity (USD $)	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
In Thousands, unless otherwise specified	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Dec. 31, 2011	$74,002	$18,628	$70,863	$65,999	$17,107	($3,702)	($94,893)
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Net income (loss)	-1,596	'	'	'	-1,596	'	'
Change in net unrealized gain (loss) on securities available-for-sale, net of $803 and $7,776 tax effect for the periods ended September 30, 2013 and 2012, respectively	1,146	'	'	'	'	1,146	'
Change in restricted stock	'	101	'	-101	'	'	'
Stock based compensation	220	'	'	220	'	'	'
Purchase of treasury stock	-63	'	'	'	'	'	-63
Preferred dividends declared and accrued (5% per preferred share)	-2,968	'	748	'	-3,716	'	'
Balance at Sep. 30, 2012	70,741	18,729	71,611	66,118	11,795	-2,556	-94,956
Balance at Dec. 31, 2012	72,552	18,729	71,869	66,189	12,048	-1,327	-94,956
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Net income (loss)	81,872	'	'	'	81,872	'	'
Change in net unrealized gain (loss) on securities available-for-sale, net of $803 and $7,776 tax effect for the periods ended September 30, 2013 and 2012, respectively	-11,108	'	'	'	'	-11,108	'
Change in restricted stock	'	101	'	-101	'	'	'
Recapture of restricted stock	-612	'	'	-43	'	'	-569
Stock based compensation	123	'	'	123	'	'	'
Purchase of treasury stock	-278	'	'	'	'	'	-278
Preferred dividends declared and accrued (5% per preferred share)	-510	'	798	'	-1,308	'	'
Balance at Sep. 30, 2013	$142,039	$18,830	$72,667	$66,168	$92,612	($12,435)	($95,803)

Consolidated_Statements_of_Cha1

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Changes in Stockholders' Equity	'	'
Change in net unrealized loss on securities available-for-sale, tax effect	$7,776	$803
Preferred dividends declared and accrued, per preferred share (as a percent)	5.00%	5.00%

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2013
Summary of Significant Accounting Policies	'
Summary of Significant Accounting Policies	'
	Note 1 – Summary of Significant Accounting Policies

	The accounting policies followed in the preparation of the interim financial statements are consistent with those used in the preparation of the annual financial information. The interim financial statements reflect all normal and recurring adjustments, which are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These interim financial statements should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2012. Unless otherwise indicated, amounts in the tables contained in the notes are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation.

	The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting practices (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the financial statements.

	All significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2012. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined.

	Recent Accounting Pronouncements

	In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02 “Comprehensive Income (Topic 220) — Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The impact of ASU 2013-02 on the Company’s consolidated financial statements is reflected in the consolidated statement of comprehensive income (loss) and has been reflected in the Company’s financial statements since January 1, 2013.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 2013
Securities	'
Securities	'
	Note 2 – Securities

	Investment Portfolio Management

	Our investment portfolio serves the liquidity and income needs of the Company. While the portfolio serves as an important component of the overall liquidity management at Old Second National Bank (the “Bank”), portions of the portfolio also serve as income producing assets. The size of the portfolio reflects liquidity needs, loan demand and interest income objectives. The Company views the September 30, 2013, securities available-for-sale portfolio ($386.5 million amortized cost and $373.5 million fair value) as a substantial source of liquidity that will allow for loan growth without having to raise deposits. Consistent with the comments above, management views the portion of the portfolio not carried in an unrealized loss position and the Bank’s ability to borrow a substantial amount with securities as collateral providing the Bank a comfortable liquidity position. Portfolio size and composition may be adjusted from time to time.

	Investments are comprised of debt securities and non-marketable equity investments. Until the third quarter 2013, all debt securities had been classified as available-for-sale. Past purchases and sales were done under our management and asset/liability strategies. Securities available-for-sale are carried at fair value. Unrealized gains and losses on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. As of September 1, 2013, securities with a fair value of $237.2 million, and a cost basis of $245.4 million, with an August 31, 2013 unrealized loss of $8.2 million, were transferred from available-for-sale to held-to-maturity. In addition new held-to-maturity securities purchases were made during September. Specifically, two purchases were made of securities issued by the Government National Mortgage Association. In accordance with GAAP, the Company has the positive intent and ability to hold the securities to maturity. Securities held-to-maturity are carried at amortized cost and the discount or premium created in the transfer is accreted or amortized to the maturity or expected payoff date but not an earlier call. The Company has followed and will follow GAAP accounting on all securities holdings.

	Nonmarketable equity investments include Federal Home Loan Bank of Chicago (“FHLBC”) stock and Federal Reserve Bank of Chicago (“FRB”) stock. FHLBC stock was recorded at a value of $5.5 million at September 30, 2013, and $6.4 million at December 31, 2012. FRB stock was recorded at $4.8 million at September 30, 2013, and December 31, 2012. Our FHLBC stock is necessary to maintain access to FHLBC advances.

	The following table summarizes the amortized cost and fair value of the securities portfolio at September 30, 2013 and December 31, 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss (in thousands):

						Gross			Gross
			Amortized			Unrealized			Unrealized			Fair
	September 30, 2013:		Cost			Gains			Losses			Value
	Securities Available-for-Sale
	U.S. Treasury		$	1,554		$	-		$	-6		$	1,548
	U.S. government agencies		1,745			-			-52			1,693
	States and political subdivisions		19,275			731			-165			19,841
	Corporate bonds		22,889			75			-764			22,200
	Collateralized mortgage obligations		51,619			182			-3,676			48,125
	Asset-backed securities		272,236			1,575			-4,827			268,984
	Collateralized debt obligations		17,173			-			-6,086			11,087
	Total Securities Available-for-Sale		$	386,491		$	2,563		$	-15,576		$	373,478
	Securities Held-to-Maturity
	U.S. government agency mortgage-backed		$	35,241		$	547		$	-		$	35,788
	Collateralized mortgage obligations		222,860			1,773			-			224,633
	Total Securities Held-to-Maturity		$	258,101		$	2,320		$	-		$	260,421

	December 31, 2012:
	U.S. Treasury		$	1,500		$	7		$	-		$	1,507
	U.S. government agencies		49,848			122			-120			49,850
	U.S. government agency mortgage-backed		127,716			1,605			-583			128,738
	States and political subdivisions		14,639			1,216			-			15,855
	Corporate bonds		36,355			586			-55			36,886
	Collateralized mortgage obligations		168,795			1,895			-1,090			169,600
	Asset-backed securities		165,347			2,468			-322			167,493
	Collateralized debt obligations		17,941			-			-7,984			9,957
	Total Securities Available-for-Sale		$	582,141		$	7,899		$	-10,154		$	579,886

	The fair value, amortized cost and weighted average yield of debt securities at September 30, 2013, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date, primarily mortgage-backed securities (“MBS”), asset-backed securities, and collateralized debt obligations are shown separately (in thousands):

						Weighted
			Amortized			Average		Fair
	Securities Available-for-Sale		Cost			Yield		Value
	Due in one year or less		$	772		3.58%		$	789
	Due after one year through five years		4,425			2.35%		4,510
	Due after five years through ten years		29,271			3.04%		28,885
	Due after ten years		10,995			4.31%		11,098
			45,463			3.29%		45,282
	Collateralized mortgage obligations		51,619			2.62%		48,125
	Asset-back securites		272,236			1.67%		268,984
	Collateralized debt obligations		17,173			1.62%		11,087
			$	386,491		1.99%		$	373,478
	Securities Held-to-Maturity
	Mortgage-backed securities		$	258,101		3.07%		$	260,421

	Securities with unrealized losses at September 30, 2013, and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities):

			Less than 12 months								Greater than 12 months
	September 30, 2013		in an unrealized loss position								in an unrealized loss position						Total
			Number of		Unrealized			Fair			Number of		Unrealized		Fair		Number of		Unrealized		Fair
	Securities Available-for-Sale		Securities		Losses			Value			Securities		Losses		Value		Securities		Losses		Value
U.S. Treasury		1		$	6		$	1,548		-		$	-	$	-	1		$	6	1,548
U.S. government agencies		1		52			1,693			-		-		-		1		52		1,693
States and political subdivisions		7		165			6,195			-		-		-		7		165		6,195
Corporate bonds		5		717			13,009			2		47		2,162		7		764		15,171
Collateralized mortgage obligations		3		3,676			35,471			-		-		-		3		3,676		35,471
Asset-backed securities		18		4,784			162,705			1		43		3,791		19		4,827		166,496
Collateralized debt obligations		-		-			-			2		6,086		11,087		2		6,086		11,087
		35		$	9,400		$	220,621		5		$	6,176	$	17,040	40		$	15,576	$	237,661


		Less than 12 months								Greater than 12 months
December 31, 2012		in an unrealized loss position								in an unrealized loss position						Total
		Number of		Unrealized			Fair			Number of		Unrealized		Fair		Number of		Unrealized		Fair
Securities Available-for-Sale		Securities		Losses			Value			Securities		Losses		Value		Securities		Losses		Value
U.S. government agencies		4		$	120		$	17,039		-		$	-	$	-	4		$	120	$	17,039
U.S. government agency mortgage-backed		12		583			53,184			-		-		-		12		583		53,184
Corporate bonds		4		55			9,724			-		-		-		4		55		9,724
Collateralized mortgage obligations		6		1,060			37,778			1		30		2,343		7		1,090		40,121
Asset-backed securities		6		322			37,488			-		-		-		6		322		37,488
Collateralized debt obligations		-		-			-			2		7,984		9,957		2		7,984		9,957
		32		$	2,140		$	155,213		3		$	8,014	$	12,300	35		$	10,154	$	167,513

Recognition of other-than-temporary impairment was not necessary in the nine months ended September 30, 2013, or the year ended December 31, 2012. The changes in fair values related primarily to interest rate fluctuations and were not related to credit quality deterioration. Further to this point as shown in tables below, the amount of deferrals and defaults in the pooled collateralized debt obligations (“CDOs”) decreased in the period from December 31, 2012, to September 30, 2013.

Uncertainty in the financial markets in the periods presented has resulted in reduced liquidity for certain investments, particularly the CDOs. In the case of the CDOs fair value measurement, management included a risk premium adjustment as of September 30, 2013, to reflect an estimated yield that a market participant would demand because of uncertainty in cash flows, based on incomplete and sporadic levels of market activity. Accordingly, management continues to designate these securities as Level 3 securities as described in Note 12 of this quarterly report as of September 30, 2013. As of September 30, 2013, management did not have the intent to sell the above securities and it is more likely than not the Company will not sell the securities before recovery of its cost basis.

Below is additional information as it relates to the CDOs, Trapeza 2007-13A, which is secured by a pool of trust preferred securities issued by trusts sponsored by multiple financial institutions.

								Gross			S&P		Number of	Issuance				Issuance
		Amortized			Fair			Unrealized			Credit		Banks in	Deferrals & Defaults				Excess Subordination
		Cost			Value			Loss			Rating 1		Issuance	Amount		Collateral %		Amount		Collateral %
September 30, 2013
Class A1		$	8,157		$	5,619		$	-2,538		BB+		63	$	207,000	27.60%		$	227,472	30.30%
Class A2A		9,016			5,468			-3,548			B+		63	207,000		27.60%		130,472		17.40%
		$	17,173		$	11,087		$	-6,086

December 31, 2012
Class A1		$	9,038		$	5,768		$	-3,270		BB+		63	$	208,000	27.70%		$	190,982	25.50%
Class A2A		8,903			4,189			-4,714			B+		63	208,000		27.70%		93,982		12.50%
		$	17,941		$	9,957		$	-7,984

1 Moody’s credit rating for class A1 and A2A were upgraded to Baa1 and Baa3, respectively, as of September 30, 2013, compared to Baa2 and Ba2 at December 31, 2012. The Fitch ratings for class A1 and A2A were also upgraded to A and BBB, respectively, as of September 30, 2013, compared to BBB and B at December 31, 2012.

Loans

Loans	9 Months Ended
Loans	Sep. 30, 2013
Loans	'
Loans	'
	Note 3 – Loans

	Major classifications of loans were as follows:

			September 30, 2013			December 31, 2012
	Commercial		$	86,822		$	86,941
	Real estate - commercial		554,874			579,687
	Real estate - construction		30,996			42,167
	Real estate - residential		376,859			414,543
	Consumer		2,570			3,101
	Overdraft		544			994
	Lease financing receivables		11,204			6,060
	Other		13,236			16,451
			1,077,105			1,149,944
	Net deferred loan fees		535			106
			$	1,077,640		$	1,150,050

	It is the policy of the Company to review each prospective credit in order to determine if an adequate level of security or collateral was obtained prior to making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans solely within its market area. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector although the real estate related categories listed above represent 89.3% and 90.1% of the portfolio at September 30, 2013, and December 31, 2012, respectively. The Company has been and remains committed to overseeing and managing its loan portfolio to reduce its real estate credit concentrations. Previously, this was done in accordance with the requirements of the Stipulation and Consent to the Issuance of a Consent Order the Bank entered into with the Office of the Controller of the Currency (the “OCC”) on May 16, 2011 (the “Consent Order”), which was terminated on October 17, 2013. Regulatory and Capital matters affecting the Company, including the Consent Order are discussed in more detail in Note 11 of the consolidated financial statements included in this report.

	Aged analysis of past due loans by class of loans were as follows:

	September 30, 2013		30-59 Days			60-89 Days			90 Days or			Total Past			Current			Nonaccrual			Total Loans			Recorded
			Past Due			Past Due			Greater Past			Due												Investment
									Due															90 days or
																								Greater Past
																								Due and
																								Accruing
	Commercial		$	69		$	132		$	-		$	201		$	97,796		$	29		$	98,026		$	-
	Real estate - commercial
	Owner occupied general purpose		165			-			-			165			109,584			3,497			113,246			-
	Owner occupied special purpose		650			227			-			877			162,435			5,947			169,259			-
	Non-owner occupied general purpose		-			-			-			-			128,084			7,273			135,357			-
	Non-owner occupied special purpose		-			-			-			-			75,595			438			76,033			-
	Retail properties		-			-			-			-			39,829			5,056			44,885			-
	Farm		-			-			-			-			16,094			-			16,094			-
	Real estate - construction
	Homebuilder		-			-			-			-			4,563			168			4,731			-
	Land		-			-			-			-			4,640			209			4,849			-
	Commercial speculative		-			-			-			-			8,811			3,534			12,345			-
	All other		-			-			-			-			8,323			748			9,071			-
	Real estate - residential
	Investor		213			-			-			213			122,031			8,307			130,551			-
	Owner occupied		625			-			-			625			112,515			5,858			118,998			-
	Revolving and junior liens		522			75			45			642			124,170			2,498			127,310			45
	Consumer		-			-			-			-			2,570			-			2,570			-
	All other		-			-			-			-			14,315			-			14,315			-
			$	2,244		$	434		$	45		$	2,723		$	1,031,355		$	43,562		$	1,077,640		$	45

	December 31, 2012		30-59 Days			60-89 Days			90 Days or			Total Past			Current			Nonaccrual			Total Loans			Recorded
			Past Due			Past Due			Greater Past			Due												Investment
									Due															90 days or
																								Greater Past
																								Due and
																								Accruing
	Commercial		$	159		$	-		$	-		$	159		$	92,080		$	762		$	93,001		$	-
	Real estate - commercial
	Owner occupied general purpose		1,580			50			-			1,630			119,994			5,487			127,111			-
	Owner occupied special purpose		172			-			-			172			149,439			11,433			161,044			-
	Non-owner occupied general purpose		-			1,046			-			1,046			128,817			13,436			143,299			-
	Non-owner occupied special purpose		-			4,304			-			4,304			69,299			477			74,080			-
	Retail properties		-			-			-			-			37,732			10,532			48,264			-
	Farm		-			-			-			-			23,372			2,517			25,889			-
	Real estate - construction
Homebuilder		-			-			-			-			4,469			1,855			6,324			-
Land		-			-			-			-			2,747			254			3,001			-
Commercial speculative		-			-			-			-			10,755			6,587			17,342			-
All other		300			215			68			583			14,360			557			15,500			68
Real estate - residential
Investor		276			164			-			440			140,141			9,910			150,491			-
Owner occupied		3,151			375			21			3,547			110,735			9,918			124,200			21
Revolving and junior liens		888			203			-			1,091			134,990			3,771			139,852			-
Consumer		3			-			-			3			3,075			23			3,101			-
All other		-			-			-			-			17,551			-			17,551			-
		$	6,529		$	6,357		$	89		$	12,975		$	1,059,556		$	77,519		$	1,150,050		$	89

The Bank had no commitments to any borrower whose loans were classified as impaired at September 30, 2013 and December 31, 2012.

Credit Quality Indicators:
The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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.

Credits that are not covered by the definitions above are “pass” credits, which are not considered to be adversely rated. Loans listed as not rated have outstanding loans or commitments less than $50,000 or are included in groups of homogeneous loans.

Credit Quality Indicators by class of loans were as follows:

September 30, 2013		Pass			Special			Substandard 1			Doubtful			Total
September 30, 2013		Pass			Mention			Substandard 1			Doubtful			Total
Commercial		$	89,051		$	8,711		$	264		$	-		$	98,026
Real estate - commercial
Owner occupied general purpose		97,309			8,560			7,377			-			113,246
Owner occupied special purpose		159,678			1,480			8,101			-			169,259
Non-owner occupied general purpose		118,741			1,574			15,042			-			135,357
Non-owner occupied special purpose		61,874			9,893			4,266			-			76,033
Retail Properties		35,833			3,006			6,046			-			44,885
Farm		14,607			1,487			-			-			16,094
Real estate - construction
Homebuilder		1,216			1,770			1,745			-			4,731
Land		4,640			-			209			-			4,849
Commercial speculative		5,232			3,579			3,534			-			12,345
All other		8,289			34			748			-			9,071
Real estate - residential
Investor		116,627			3,282			10,642			-			130,551
Owner occupied		111,323			383			7,292			-			118,998
Revolving and junior liens		123,435			200			3,675			-			127,310
Consumer		2,569			-			1			-			2,570
All other		14,315			-			-			-			14,315
Total		$	964,739		$	43,959		$	68,942		$	-		$	1,077,640

December 31, 2012		Pass			Special			Substandard 1			Doubtful			Total
December 31, 2012		Pass			Mention			Substandard 1			Doubtful			Total
Commercial		$	88,071		$	3,867		$	1,063		$	-		$	93,001
Real estate - commercial
Owner occupied general purpose		113,118			2,995			10,998			-			127,111
Owner occupied special purpose		134,152			9,036			17,856			-			161,044
Non-owner occupied general purpose		105,192			14,273			23,834			-			143,299
Non-owner occupied special purpose		68,682			3,911			1,487			-			74,080
Retail Properties		32,715			1,873			13,676			-			48,264
Farm		21,262			2,110			2,517			-			25,889
Real estate - construction
Homebuilder		1,318			2,196			2,810			-			6,324
Land		2,747			-			254			-			3,001
Commercial speculative		7,122			-			10,220			-			17,342
All other		14,607			37			856			-			15,500
Real estate - residential
Investor		123,876			14,608			12,007			-			150,491
Owner occupied		110,858			396			12,946			-			124,200
Revolving and junior liens		133,992			166			5,694			-			139,852
Consumer		3,075			-			26			-			3,101
All other		17,331			220			-			-			17,551
Total		$	978,118		$	55,688		$	116,244		$	-		$	1,150,050


1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans

Impaired loans by class of loan as of September 30, 2013 were as follows:

											Nine Months Ended
		As of September 30, 2013									September 30, 2013

		Recorded			Unpaid			Related			Average			Interest
		Investment			Principal			Allowance			Recorded			Income
					Balance						Investment			Recognized
With no related allowance recorded
Commercial		$	29		$	35		$	-		$	113		$	-
Commercial real estate
Owner occupied general purpose		2,657			3,016			-			3,565			3
Owner occupied special purpose		4,647			5,529			-			5,913			-
Non-owner occupied general purpose		9,633			12,131			-			11,995			113
Non-owner occupied special purpose		438			623			-			457			-
Retail properties		5,056			6,293			-			6,918			-
Farm		-			-			-			1,259			-
Construction
Homebuilder		3,039			3,039			-			3,597			120
Land		209			308			-			231			-
Commercial speculative		1,913			2,550			-			2,089			-
All other		297			333			-			188			-
Residential
Investor		6,523			8,580			-			5,845			-
Owner occupied		9,823			11,629			-			9,606			151
Revolving and junior liens		1,968			2,886			-			1,668			5
Consumer		-			-						12			-
Total impaired loans with no recorded allowance		46,232			56,952			-			53,456			392
With an allowance recorded
Commercial		-			-			-			283			-
Commercial real estate
Owner occupied general purpose		935			955			322			974			-
Owner occupied special purpose		1,300			1,493			371			2,777			-
Non-owner occupied general purpose		183			183			57			1,481			-
Non-owner occupied special purpose		-			-			-			-			-
Retail properties		-			-			-			876			-
Farm		-			-			-			-			-
Construction
Homebuilder		168			604			71			97			-
Land		-			-			-			-			-
Commercial speculative		1,621			4,225			100			2,971			-
All other		451			477			241			465			-
Residential
Investor		1,784			2,151			584			3,263			-
Owner occupied		986			1,082			161			3,448			12
Revolving and junior liens		591			623			243			1,527			-
Consumer		-			-			-			-			-
Total impaired loans with a recorded allowance		8,019			11,793			2,150			18,162			12
Total impaired loans		$	54,251		$	68,745		$	2,150		$	71,618		$	404

Impaired loans by class of loans as of December 31, 2012 were as follows:

												Nine Months Ended
		As of December 31, 2012										September 30, 2012
		Recorded			Unpaid				Related			Average			Interest
		Investment			Principal				Allowance			Recorded			Income
					Balance							Investment			Recognized
With no related allowance recorded
Commercial		$	196		$		229		$	-		$	516		$		-
Commercial real estate
Owner occupied general purpose		4,473			5,021				-			4,149			-
Owner occupied special purpose		7,180			8,486				-			10,222			-
Non-owner occupied general purpose		14,356			17,381				-			10,996			210
Non-owner occupied special purpose		477			634				-			933			-
Retail properties		8,780			15,323				-			5,851			-
Farm		2,517			2,517				-			1,335			-
Construction
Homebuilder		4,155			4,729				-			7,952			83
Land		254			308				-			1,021			-
Commercial speculative		2,265			3,451				-			6,297			-
All other		78			168				-			2,204			-
Residential
Investor		5,168			6,979				-			4,500			-
Owner occupied		9,389			11,002				-			10,788			187
Revolving and junior liens		1,368			1,689				-			1,466			2
Consumer		23			23							-			-
Total impaired loans with no recorded allowance		60,679			77,940				-			68,230			482
With an allowance recorded
Commercial		566			619				458			646			-
Commercial real estate
Owner occupied general purpose		1,014			1,057				230			5,173			-
Owner occupied special purpose		4,253			6,200				712			4,505			-
Non-owner occupied general purpose		2,779			3,906				204			9,047			-
Non-owner occupied special purpose		-			-				-			217			-
Retail properties		1,752			1,812				1,102			7,958			-
Farm		-			-				-			347			-
Construction
Homebuilder		26			75				3			2,411			-
Land		-			-				-			-			-
Commercial speculative		4,322			6,613				757			4,554			-
All other		479			649				353			459			-
Residential
Investor		4,742			5,954				477			9,552			-
Owner occupied		5,909			6,923				1,089			6,726			34
Revolving and junior liens		2,464			2,625				874			1,608			-
Consumer		-			-				-			-			-
Total impaired loans with a recorded allowance		28,306			36,433				6,259			53,203			34
Total impaired loans		$	88,985		$	114,373			$	6,259		$	121,433		$	516


Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments.

The specific allocation of the allowance for loan losses on a TDR is determined by either discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category on loans that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment.

TDRs that were modified during the periods three and nine months ended September 30, 2013, were as follows:

		TDR Modifications										TDR Modifications
		Three months ended September 30, 2013										Nine months ended September 30, 2013

		# of		Pre-modification				Post-modification				# of		Pre-modification			Post-modification
		contracts		recorded investment				recorded investment				contracts		recorded investment			recorded investment
Troubled debt restructurings
Real estate - commercial
Deferral3		-		$		-		$		-		1		$	610		$	472
Real estate - residential
Owner occupied
Deferral3		-		-				-				1		137			137
Other5		-		-				-				1		30			29
		-		$	-			$	-			3		$	777		$	638


		TDR Modifications								TDR Modifications
		Three months ended September 30, 2012								Nine months ended September 30, 2012

		# of		Pre-modification			Post-modification			# of		Pre-modification			Post-modification
		contracts		recorded investment			recorded investment			contracts		recorded investment			recorded investment
Troubled debt restructurings
Real estate - commercial
Deferral1		1		$	689		$	433		2		$	898		$	640
Interest2		-		-			-			2		3,381			3,148
Real estate - residential
Investor
Deferral1		1		405			167			2		405			167
Bifurcate3		-		-			-			1		337			88
Owner occupied
Deferral3		-		-			-			1		108			108
Revolving and junior liens
Hamp4		-		-			-			1		117			61

		2		$	1,094		$	600		9		$	5,246		$	4,212


1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note.
2 Interest: Interest rate concession below normal market
3 Deferral: Refers to the deferral of principal payments
4 HAMP: Home Affordable Modification Program
5 Other

TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. The following table presents TDRs that defaulted during the periods shown and were restructured within the 12 month period prior to default:

		TDR Default Activity						TDR Default Activity
		Three Months ending September 30, 2013						Nine Months ending September 30, 2013
Troubled debt restructurings that		# of		Pre-modification outstanding				# of		Pre-modification outstanding
Subsequently Defaulted		contracts		recorded investment				contracts		recorded investment
Real estate - commercial
Owner occupied special purpose		1		$		610		1		$	610
Real estate - residential
Investor		-		-				1		155
Owner occupied		1		175				1		175
Revolving and junior liens		1		30				1		30
		3		$	815			4		$	970


		TDR Default Activity						TDR Default Activity
		Three Months ending September 30, 2012						Nine Months ending September 30, 2012
Troubled debt restructurings that		# of		Pre-modification outstanding				# of		Pre-modification outstanding
Subsequently Defaulted		contracts		recorded investment				contracts		recorded investment
Real estate - construction
Commercial speculative		1		$	460			1		$	460
		1		$	460			1		$	460

Allowance_for_Loan_Losses

Allowance for Loan Losses	9 Months Ended
Allowance for Loan Losses	Sep. 30, 2013
Allowance for Loan Losses	'
Allowance for Loan Losses	'
	Note 4 – Allowance for Loan Losses

	Changes in the allowance for loan losses by segment of loans based on method of impairment for the three and nine months ended September 30, 2013, were as follows:

	Allowance for loan losses:	Commercial		Real Estate		Real Estate		Real Estate		Consumer		Unallocated		Total
	Allowance for loan losses:	Commercial		Commercial1		Construction		Residential		Consumer		Unallocated		Total
	Three Months Ended September 30, 2013
	Beginning balance	$	3,332	$	18,097	$	2,690	$	5,021	$	1,372	$	4,530	$35,042
	Charge-offs	29		851		53		3,594		168		-		4,695
	Recoveries	60		523		15		209		143		-		950
	Provision (release)	-469		-1,354		-252		1,352		162		-1,189		-1,750
	Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

	Nine Months Ended September 30, 2013
	Beginning balance	$	4,517	$	20,100	$	3,837	$	4,535	$	1,178	$	4,430	$38,597
	Charge-offs	308		2,377		951		5,193		474		-		9,303
	Recoveries	104		3,752		1,265		792		390		-		6,303
	Provision (release)	-1,419		-5,060		-1,751		2,854		415		-1,089		-6,050
	Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

	Ending balance: Individually evaluated for impairment	$	-	$	750	$	412	$	988	$	-	$	-	$	2,150
	Ending balance: Collectively evaluated for impairment	$	2,894	$	15,665	$	1,988	$	2,000	$	1,509	$	3,341	$	27,397

	Loans:
	Ending balance	$	98,026	$	554,874	$	30,996	$	376,859	$	2,570	$	14,315	$	1,077,640
	Ending balance: Individually evaluated for impairment	$	29	$	24,849	$	7,698	$	21,675	$	-	$	-	$	54,251
	Ending balance: Collectively evaluated for impairment	$	97,997	$	530,025	$	23,298	$	355,184	$	2,570	$	14,315	$	1,023,389

	1 As of September 30, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $14.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.7 million at September 30, 2013.

	Changes in the allowance for loan losses by segment of loans based on method of impairment for the three and nine months ended September 30, 2012, were as follows:

	Allowance for credit losses:	Commercial		Real Estate		Real Estate		Real Estate		Consumer		Unallocated		Total
	Allowance for credit losses:	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
	Three months Ended
	September 30, 2012
	Balance at beginning of period	$	4,783	$	23,766	$	5,501	$	4,141	$	1,063	$	1,032	$	40,286
	Charge-offs	2		355		909		1,230		186		-		2,682
	Recoveries	22		76		2,202		219		134		-		2,653
	Provision (release)	-251		-939		-2,366		1,342		104		2,110		-
	Ending balance	$	4,552	$	22,548	$	4,428	$	4,472	$	1,115	$	3,142	$	40,257

	Nine months Ended
	September 30, 2012
	Balance at beginning of year	$	5,070	$	30,770	$	7,937	$	6,335	$	884	$	1,001	$	51,997
	Charge-offs	110		12,694		4,251		6,416		463		-		23,934
	Recoveries	32		1,698		3,373		452		355		-		5,910
	Provision (release)	-440		2,774		-2,631		4,101		339		2,141		6,284
	Ending balance	$	4,552	$	22,548	$	4,428	$	4,472	$	1,115	$	3,142	$	40,257

	Ending balance: Individually evaluated for impairment	$	514	$	3,113	$	1,408	$	2,550	$	-	$	-	$	7,585
	Ending balance: Collectively evaluated for impairment	$	4,038	$	19,435	$	3,020	$	1,922	$	1,115	$	3,142	$	32,672

	Financing receivables:
	Ending balance	$	84,667	$	621,715	$	48,606	$	436,837	$	3,167	$	13,297	$	1,208,289
	Ending balance: Individually evaluated for impairment	$	1,157	$	56,176	$	15,988	$	30,919	$	-	$	-	$	104,240
	Ending balance: Collectively evaluated for impairment	$	83,510	$	565,539	$	32,618	$	405,918	$	3,167	$	13,297	$	1,104,049

	1 As of September 30, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $19.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.2 million at September 30, 2012.

Other_Real_Estate_Owned

Other Real Estate Owned	9 Months Ended
	Sep. 30, 2013
Other Real Estate Owned	'
Other Real Estate Owned	'
	Note 5 – Other Real Estate Owned

	Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,

	Other real estate owned	2013		2012		2013		2012
	Balance at beginning of period	$	59,465	$	89,671	$	72,423	$	93,290
	Property additions	3,015		7,594		14,196		26,944
	Development improvements	10		131		60		646
	Less:
	Property disposals, net of gains/losses	11,463		4,829		30,928		20,517
	Period valuation adjustments	1,961		4,474		6,685		12,270
	Balance at end of period	$	49,066	$	88,093	$	49,066	$	88,093

	Activity in the valuation allowance was as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Balance at beginning of period	$	30,487	$	27,469	$	31,454	$	23,462
	Provision for unrealized losses	1,961		4,474		6,537		12,101
	Reductions taken on sales	-7,571		-2,657		-13,305		-6,446
	Other adjustments	-290		-		-99		169
	Balance at end of period	$	24,587	$	29,286	$	24,587	$	29,286

	Expenses related to foreclosed assets, net of lease revenue includes:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Gain on sales, net	$	-608	$	-20	$	-1,175	$	-398
	Provision for unrealized losses	1,961		4,474		6,537		12,101
	Operating expenses	1,500		2,071		4,555		5,886
	Less:
	Lease revenue	309		840		974		2,930
		$	2,544	$	5,685	$	8,943	$	14,659

Deposits

Deposits	9 Months Ended
	Sep. 30, 2013
Deposits	'
Deposits	'
	Note 6 – Deposits

	Major classifications of deposits were as follows:

		September 30, 2013		December 31, 2012
	Noninterest bearing demand	$	373,499	$	379,451
	Savings	227,823		216,305
	NOW accounts	272,632		286,860
	Money market accounts	309,066		323,811
	Certificates of deposit of less than $100,000	299,632		318,844
	Certificates of deposit of $100,000 or more	190,471		191,948
		$	1,673,123	$	1,717,219

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2013
Borrowings	'
Borrowings	'
	Note 7 – Borrowings

	The following table is a summary of borrowings as of September 30, 2013, and December 31, 2012. Junior subordinated debentures are discussed in detail in Note 8:

		September 30, 2013		December 31, 2012
	Securities sold under repurchase agreements	$	20,719	$	17,875
	FHLB advances	55,000		100,000
	Junior subordinated debentures	58,378		58,378
	Subordinated debt	45,000		45,000
	Notes payable and other borrowings	500		500
		$	179,597	$	221,753

	The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized MBS and had a carrying amount of $32.1 million at September 30, 2013, and $26.0 million at December 31, 2012. At September 30, 2013, there was no customer with secured balances exceeding 10% of stockholders’ equity.

	The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC and total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of September 30, 2013, the Bank took an advance of $55.0 million at 0.13% interest on the FHLBC stock valued at $5.5 million and collateralized by $99.9 million of loans of which $44.9 million is available for additional borrowings. This advance matured on October 1, 2013 and was replaced with short term FHLBC advances that matured in October 2013. Previous borrowing capacity at the FRB that was not used at either September 30, 2013, or December 31, 2012 was dropped by the Company in October 2013 as management determined that it was not needed given current and prospective liquidity projections.

	One of the Company’s most significant borrowing relationships continued to be the $45.5 million credit facility with a correspondent bank. That credit began in January 2008 and was originally composed of a $30.5 million senior debt facility, which included $500,000 in term debt, and $45.0 million of subordinated debt. The subordinated debt and the term debt portion of the senior debt facility mature on March 31, 2018. The interest rate on the senior debt facility resets quarterly and at the Company’s option, is based on, either the lender’s prime rate or three-month LIBOR plus 90 basis points. The interest rate on the subordinated debt resets quarterly, and is equal to three-month LIBOR plus 150 basis points. The Company had no principal outstanding balance on the senior line of credit when it matured and the senior line of credit has been terminated. The Company had $500,000 in principal outstanding in term debt and $45.0 million in principal outstanding in subordinated debt at the end of both December 31, 2012, and September 30, 2013. The term debt is secured by all of the outstanding capital stock of the Bank. The Company has made all required interest payments on the outstanding principal amounts outstanding on a timely basis. Pursuant to the Written Agreement dated July 22, 2011 between the Company and the FRB (the “Written Agreement”), the Company must receive the FRB’s approval prior to making any interest payments on the subordinated debt.

	The credit facility agreement contains usual and customary provisions regarding acceleration of the senior debt upon the occurrence of an event of default by the Company under the senior debt agreement. The senior debt agreement also contains certain customary representations and warranties and financial and negative covenants. At September 30, 2013, the Company was out of compliance with one of the financial covenants contained within the credit agreement. Previously, the Company had been out of compliance with two of the financial covenants. The agreement provides that noncompliance is an event of default and as the result of the Company’s failure to comply with a financial covenant, the lender may (i) terminate all commitments to extend further credit, (ii) increase the interest rate on the revolving line of the term debt by 200 basis points, (iii) declare the senior debt immediately due and payable and (iv) exercise all of its rights and remedies at law, in equity and/or pursuant to any or all collateral documents, including foreclosing on the collateral. The total outstanding principal amount of the senior debt is the $500,000 in term debt. Because the subordinated debt is treated as Tier 2 capital for regulatory capital purposes, the senior debt agreement does not provide the lender with any rights of acceleration or other remedies with regard to the subordinated debt upon an event of default caused by the Company’s failure to comply with a financial covenant.

Junior_Subordinated_Debentures

Junior Subordinated Debentures	9 Months Ended
Junior Subordinated Debentures	Sep. 30, 2013
Junior Subordinated Debentures	'
Junior Subordinated Debentures	'
	Note 8 –Junior Subordinated Debentures

	The Company completed the sale of $27.5 million of cumulative trust preferred securities by its unconsolidated subsidiary, Old Second Capital Trust I in June 2003. An additional $4.1 million of cumulative trust preferred securities were sold in July 2003. The costs associated with the issuance of the cumulative trust preferred securities are being amortized over 30 years. The trust preferred securities may remain outstanding for a 30-year term but, subject to regulatory approval, can be called in whole or in part by the Company. The stated call period commenced on June 30, 2008 and a call can be exercised by the Company from time to time thereafter. When not in deferral, cash distributions on the securities are payable quarterly at an annual rate of 7.80%. The Company issued a new $32.6 million subordinated debenture to Old Second Capital Trust I in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities.

	The Company issued an additional $25.0 million of cumulative trust preferred securities through a private placement completed by an additional, unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. Although nominal in amount, the costs associated with that issuance are being amortized over 30 years. These trust preferred securities also mature in 30 years, but subject to the aforementioned regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities are fixed at 6.77% through June 15, 2017 and float at 150 basis points over three-month LIBOR thereafter. The Company issued a new $25.8 million subordinated debenture to the Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities.

	Under the terms of the subordinated debentures issued to each of Old Second Capital Trust I and II, the Company is allowed to defer payments of interest for 20 quarterly periods without default or penalty, but such amounts will continue to accrue. Also during the deferral period, the Company generally may not pay cash dividends on or repurchase its common stock or preferred stock, including the Series B Fixed Rate Cumulative Perpetual Preferred Stock (the “Series B Preferred Stock”), as discussed in Note 15. On August 31, 2010, the Company announced that it elected to defer regularly scheduled interest payments on the $58.4 million of junior subordinated debentures. Because of the deferral on the subordinated debentures, the trusts will defer regularly scheduled dividends on the related trust preferred securities. Both of the debentures issued by the Company are recorded on the consolidated balance sheets as junior subordinated debentures and the related interest expense for each issuance is included in the consolidated statements of operations. The total accumulated unpaid interest on the junior subordinated debentures including compounded interest from July 1, 2010 on the deferred payments, totals $15.7 million at September 30, 2013.

LongTerm_Incentive_Plan

Long-Term Incentive Plan

9 Months Ended

Sep. 30, 2013

Long-Term Incentive Plan

Note 9 –Long-Term Incentive Plan

The Long-Term Incentive Plan (the “Incentive Plan”) authorizes the issuance of up to 1,908,332 shares of the Company’s common stock, including the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Total shares issuable under the Incentive Plan were 45,368 at September 30, 2013. Stock based awards may be granted to selected directors and officers or employees under the Incentive Plan at the discretion of the board of directors. There were no stock options granted in the first nine months of 2013 or 2012. All outstanding stock options were granted for a term of ten years.

Generally, restricted stock and restricted stock units vest three years from the grant date, but the Company’s board of directors has discretionary authority to change some terms including the amount of time until vest date. Awards under the Incentive Plan become fully vested upon a merger or change in control of the Company.

Total compensation cost that has been charged against income for the Incentive Plan was $57,000 in the third quarter of 2013 and $123,000 in the first nine months of 2013. Total compensation cost that has been charged against income for those plans was $67,000 in the third quarter of 2012 and $220,000 in the first nine months of 2012.

There were no stock options exercised during the third quarter of 2013 or 2012. There is no unrecognized compensation cost related to nonvested stock options as all stock options of the Company’s common stock have vested.

A summary of stock option activity in the Incentive Plan for the nine months ending September 30, 2013, is as follows:

Weighted

Average

Remaining

Exercise

Contractual

Aggregate

Price

Term (years)

Intrinsic Value

Beginning outstanding

409,500

28.75

Canceled

-2,000

32.59

Ending outstanding

407,500

28.74

2.28

Exercisable at end of period

407,500

28.74

2.28

Under the Incentive Plan, restricted stock was granted beginning in 2005 and the grant of restricted stock units began in February 2009. Both of these restricted awards have voting and dividend rights and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Further, in first quarter 2013 after completion on Treasury’s auction of the Old Second Bancorp Series B Preferred Stock at a discount, 45,000 unvested restricted stock shares previously awarded were recaptured in addition to 133,943 restricted stock shares that were fully vested. These recaptures provided an income statement benefit of $612,000 included in other noninterest income during the second quarter of 2013. There were no restricted awards issued during the third quarter of 2013 and 155,500 restricted awards issued for the nine months ending September 30, 2013. There were no restricted awards issued during the third quarter of 2012 and 60,000 restricted awards issued for the nine months ending September 30, 2012. Compensation expense is recognized over the vesting period of the restricted award based on the market value of the award at issue date.

A summary of changes in the Company’s nonvested restricted awards for the nine months ending September 30, 2013, is as follows:

September 30, 2013

Weighted

Restricted

Average

Stock Shares

Grant Date

and Units

Fair Value

Nonvested at January 1

327,920

2.21

Granted

155,500

3.28

Vested

-241,920

2.5

Forfeited

-11,000

2.47

Recaptured after Series B auction

-45,000

1.25

Nonvested at September 30

185,500

2.95

Total unrecognized compensation cost of restricted awards was $411,000 as of September 30, 2013, which is expected to be recognized over a weighted-average period of 2.46 years. Total unrecognized compensation cost of restricted awards was $161,000 as of September 30, 2012, which was expected to be recognized over a weighted-average period of 0.93 years.

Earnings_loss_Per_Share

Earnings (loss) Per Share	9 Months Ended
	Sep. 30, 2013
Earnings (loss) Per Share	'
Earnings (loss) Per Share	'
	Note 10 –Earnings (loss) Per Share

	The earnings (loss) per share – both basic and diluted – are included below as of September 30 (in thousands except for share data):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Basic earnings (loss) per share:
	Weighted-average common shares outstanding	13,885,884		14,084,328		13,947,606		14,070,783
	Weighted-average common shares less stock based awards	13,870,884		13,883,008		13,895,136		13,873,819
	Weighted-average common shares stock based awards	231,152		327,920		217,107		332,198
	Net income (loss)	$	72,924	$	120	$	81,872	$	-1,596
	Dividends and accretion of discount on preferred shares	1,323		1,255		3,917		3,716
	Net income (loss) available to common shareholders	71,601		-1,135		77,955		-5,312
	Undistributed earnings (loss)	71,601		-1,135		77,955		-5,312
	Basic earnings (loss) per share common undistributed earnings (loss)	5.08		-0.08		5.52		-0.37
	Basic earnings (loss) per share	$	5.08	$	-0.08	$	5.52	$	-0.37
	Diluted earnings (loss) per share:
	Weighted-average common shares outstanding	13,885,884		14,084,328		13,947,606		14,070,783
	Dilutive effect of restricted shares1	216,152		126,600		164,637		135,234
	Diluted average common shares outstanding	14,102,036		14,210,928		14,112,243		14,206,017
	Net earnings (loss) available to common stockholders	$	71,601	$	-1,135	$	77,955	$	-5,312
	Diluted earnings (loss) per share	$	5.08	$	-0.08	$	5.52	$	-0.37

	Number of antidilutive options excluded from the diluted earnings per share calculation	1,224,839		1,286,839		1,224,839		1,286,839
	1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory_Capital_Matters

Regulatory & Capital Matters	9 Months Ended
Regulatory & Capital Matters	Sep. 30, 2013
Regulatory & Capital Matters	'
Regulatory & Capital Matters	'
	Note 11 – Regulatory & Capital Matters

	On May 16, 2011, the Bank, the wholly-owned banking subsidiary of the Company, entered into a Consent Order with the Office of the Comptroller of the Currency (the “OCC”). Pursuant to the Consent Order, the Bank has agreed to take certain actions and operate in compliance with the Consent Order’s provisions during its terms. On October 17, 2013, the OCC terminated the Consent Order.

	The Bank has exceeded both capital ratio objectives in the now terminated Consent Order since June 30, 2011. At September 30, 2013, the Bank’s Tier 1 capital leverage ratio was 11.08%, up 141 basis points from December 31, 2012, and 233 basis points above the 8.75% objective the Bank had agreed to maintain in the Consent Order. The Bank’s total capital ratio was 17.08%, up 222 basis points from December 31, 2012, and 583 basis points above the objective of 11.25%.

	Even though the Consent Order has been terminated, the Bank is still subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighting of the Bank’s assets, developed by the OCC and the other bank regulatory agencies. In connection with the current economic environment, the Bank’s current level of nonperforming assets and the risk-based capital guidelines, the Bank’s board of directors has determined that the Bank should maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%). The Bank currently exceeds those thresholds.

	On July 22, 2011, the Company entered into a Written Agreement with the FRB. Pursuant to the Written Agreement, the Company has agreed to take certain actions and operate in compliance with the Written Agreement’s provisions during its term. Although the Consent Order was terminated, the Written Agreement is still in effect until terminated, modified or rescinded by the FRB.

	Under the terms of the Written Agreement, the Company is required to, among other things: (i) serve as a source of strength to the Bank, including ensuring that the Bank complied with the now terminated Consent Order it entered into with the OCC on May 16, 2011; (ii) refrain from declaring or paying any dividend, or taking dividends or other payments representing a reduction in the Bank’s capital, each without the prior written consent of the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System (the “Director”); (iii) refrain, along with its nonbank subsidiaries, from making any distributions on subordinated debentures or trust preferred securities without the prior written consent of the FRB and the Director; (iv) refrain, along with its nonbank subsidiaries, from incurring, increasing or guaranteeing any debt, and from purchasing or redeeming any shares of its capital stock, each without the prior written consent of the FRB; (v) provide the FRB with a written plan to maintain sufficient capital at the Company on a consolidated basis; (vi) provide the FRB with a projection of the Company’s planned sources and uses of cash; (vii) comply with certain regulatory notice provisions pertaining to the appointment of any new director or senior executive officer, or the changing of responsibilities of any senior executive officer; and (viii) comply with certain regulatory restrictions on indemnification and severance payments. The Company is also required to submit certain reports to the FRB with respect to the foregoing requirements.

	Bank holding companies are required to maintain minimum levels of capital in accordance with FRB capital guidelines. The general bank and holding company capital adequacy guidelines are described in the accompanying table, as are the capital ratios of the Company and the Bank, as of September 30, 2013, and December 31, 2012. These ratios are calculated on a consistent basis with the ratios disclosed in the most recent filings with the regulatory agencies.

	In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements as well as to bank and savings and loan holding companies. The Basel III Rules not only increase selected minimum regulatory capital ratios, but also introduce a new Common Equity Tier 1 capital ratio and the concept of a capital conservation buffer. The Basel III rules also revise the criteria that certain instruments must meet to qualify as Tier 1 or Tier 2 capital. A number of instruments that now qualify as Tier 1 capital will not qualify under the Basel III rules. The Basel III Rules also permit smaller banking organizations to retain, through a one-time election, the existing treatment of accumulated other comprehensive income. The Basel III Rules have maintained the general structure of the current prompt corrective action framework while incorporating the increased requirements. The Basel III Rules also revise prompt corrective action guidelines to add the Common Equity Tier 1 capital ratio. Generally, the new Basel III Rules become effective on January 1, 2015, although parts of the Basel III Rules will be phased in through 2019. Management is reviewing the new rules to assess their impact on the Company.

	At September 30, 2013, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under current regulatory defined capital ratios. The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Generally, if adequately capitalized, regulatory approval is not required to accept brokered deposits.

	Capital levels and industry defined regulatory minimum required levels:

					Minimum Required			Minimum Required
					for Capital			to be Well
					for Capital			to be Well
		Actual			Adequacy Purposes			Capitalized 1
		Amount		Ratio	Amount		Ratio	Amount		Ratio
	Septembr 30, 2013
	Total capital to risk weighted assets
	Consolidated	$	198,822	15.15%	$	104,989	8.00%		N/A		N/A
	Old Second Bank	224,171		17.08	104,998		8		131,248		10
	Tier 1 capital to risk weighted assets
	Consolidated	132,129		10.07	52,484		4		N/A		N/A
	Old Second Bank	207,607		15.82	52,492		4		78,738		6
	Tier 1 capital to average assets
	Consolidated	132,129		7.11	74,334		4		N/A		N/A
	Old Second Bank	207,607		11.08	74,948		4		93,685		5

	December 31, 2012
	Total capital to risk weighted assets
	Consolidated	$	189,466	13.62%	$	111,287	8.00%		N/A		N/A
	Old Second Bank	206,496		14.86	111,169		8		138,961		10
	Tier 1 capital to risk weighted assets
	Consolidated	94,817		6.81	55,693		4		N/A		N/A
	Old Second Bank	188,873		13.59	55,592		4		83,388		6
	Tier 1 capital to average assets
	Consolidated	94,817		4.85	78,200		4		N/A		N/A
	Old Second Bank	188,873		9.67	78,127		4		97,659		5


	1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”.

	The Company’s credit facility with a correspondent bank includes $45.0 million in subordinated debt. That debt obligation continues to qualify as Tier 2 regulatory capital. In addition, the trust preferred securities continue to qualify as Tier 1 regulatory capital, and the Company treats the maximum amount of this security type allowable under regulatory guidelines as Tier 1 capital. As of September 30, 2013, trust preferred security proceeds of $51.5 million qualified as Tier 1 regulatory capital and $5.1 million qualified as Tier 2 regulatory capital. As of December 31, 2012, trust preferred proceeds of $24.6 million qualified as Tier 1 regulatory capital and $32.0 million qualified as Tier 2 regulatory capital.

	Dividend Restrictions and Deferrals

	In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a Bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years, subject to the capital requirements described above. Other dividend payment restrictions on the Bank and the Company as included in the Written Agreement preclude dividend payment without prior regulatory approval.

	As discussed in Note 8, as of September 30, 2013, the Company had $58.4 million of junior subordinated debentures held by two statutory business trusts that it controls. The Company has the right to defer interest payments on the debentures for a period of up to 20 consecutive quarters, and elected to begin such a deferral in August 2010. However, all deferred interest must be paid before the Company may pay dividends on its common stock. Therefore, the Company will not be able to pay dividends on its common stock until all deferred interest on these debentures has been paid in full. The total amount of such deferred and unpaid interest as of September 30, 2013, was $15.7 million.

	Furthermore, as with the debentures discussed above, the Company is prohibited from paying dividends on its common stock unless it has fully paid all deferred dividends on the Series B Preferred Stock, which the Company announced that it would begin deferring on August 31, 2010. Therefore, in addition to paying all the accrued and unpaid distributions on the debentures set forth above, the Company must also fully pay all deferred and unpaid dividends on the Series B Preferred Stock before it may reinstate the payment of dividends on the common stock. The total amount of deferred Series B Preferred Stock dividends as of September 30, 2013, was $12.3 million. In addition, the Written Agreement contains restrictions on dividend payments.

	Further detail on the subordinated debentures, the Series B Preferred Stock and the deferral of interest and dividends thereon is described in Notes 8 and 15.

Fair_Value_Option_and_Fair_Val

Fair Value Option and Fair Value Measurements	9 Months Ended
Fair Value Option and Fair Value Measurements	Sep. 30, 2013
Fair Value Option and Fair Value Measurements	'
Fair Value Option and Fair Value Measurements	'
	Note 12 – Fair Value Option and Fair Value Measurements

	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are:

	Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

	Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

	Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability.

	Transfers between levels are deemed to have occurred at the end of the reporting period. For the quarters ended September 30, 2013, and 2012 there were no significant transfers between levels.

	Securities (available-for-sale and held-to-maturity) are valued by a third party pricing agent and both the market and income valuation approaches are implemented. The Company uses the following methods and significant assumptions to estimate fair value:

	· Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing.
	· Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date.
	· Other inactive government-sponsored agency securities and auction rate asset backed securities are priced using consensus pricing and dealer quotes.
	· State and political subdivisions are largely grouped by characteristics (e.g.., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities and could be valued with Level 3 measurements.
	· CDOs are collateralized by trust preferred security issuances of other financial institutions. CDOs are valued utilizing a discounted cash flow analysis. To reflect an appropriate fair value measurement, management included a risk premium adjustment to provide an estimate of the amount that a market participant would demand because of uncertainty in cash flows in the discounted cash flow analysis. Changes in unobservable inputs such as future cash flows, prepayment speeds and market rates which may result in a significantly higher or lower fair value measurement. Due to the significant amount of unobservable inputs for the security and limited market activity, these securities are considered Level 3 valuations.
	· Asset-backed securities (see above) are also priced using a single expected cash flow stream model using trades, covers, bids, offers and price for similar bonds as well as prepayment and default projections based on historical statistics of the underlying collateral and current market data. As some of asset-backed securities are auction rate securities, there is additional liquidity risk estimated by the Company. Therefore, the valuation of some asset-backed securities are considered Level 3 valuations
	· Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held for sale is determined using quoted secondary market prices.
	· Lending related commitments to fund certain residential mortgage loans, e.g. residential mortgage loans with locked in interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management.
	· The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness.
	· Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves.
	· Both the credit valuation reserve on current interest rate swap positions and on receivables related to unwound customer interest rate swap positions were determined based upon management’s estimate of the amount of credit risk exposure, including by available collateral protection and/or by utilizing an estimate related to a probability of default as indicated in the Bank credit policy. Such adjustments would result in a Level 3 classification.
	· The fair value of impaired loans with specific allocations of the allowance for loan losses is essentially based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
	· Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized.

	Assets and Liabilities Measured at Fair Value on a Recurring Basis:

	The tables below present the balance of assets and liabilities at September 30, 2013, and December 31, 2012, respectively, measured by the Company at fair value on a recurring basis:

			September 30, 2013
			Level 1			Level 2			Level 3			Total
	Assets:
	Securities available-for-sale
	U.S. Treasury		$	1,548		$	-		$	-		$	1,548
	U.S. government agencies			-			1,693			-			1,693
	States and political subdivisions			-			19,709			132			19,841
	Corporate Bonds			-			22,200			-			22,200
	Collateralized mortgage obligations			-			48,125			-			48,125
	Asset-backed securities						121,772			147,212			268,984
	Collateralized debt obligations			-			-			11,087			11,087
	Loans held-for-sale			-			3,129			-			3,129
	Mortgage servicing rights			-			-			5,456			5,456
	Other assets (Interest rate swap agreements net of swap credit valuation)			-			584			-13			571
	Other assets (Forward MBS)			-			69			-			69
	Total		$	1,548		$	217,281		$	163,874		$	382,703

	Liabilities:
	Other liabilities (Interest rate swap agreements)		$	-		$	584		$	-		$	584
	Other liabilities (Interest rate lock commitments to borrowers)			-			1			-			1
	Total		$	-		$	585		$	-		$	585

			December 31, 2012
			Level 1			Level 2			Level 3			Total
	Assets:
	Securities available-for-sale
	U.S. Treasury		$	1,507		$	-		$	-		$	1,507
	U.S. government agencies		-			49,850			-			49,850
	U.S. government agency mortgage-backed		-			128,738			-			128,738
	States and political subdivisions		-			15,723			132			15,855
	Corporate Bonds		-			36,886			-			36,886
Collateralized mortgage obligations		-			169,600			-			169,600
Asset-backed securities					167,493			-			167,493
Collateralized debt obligations		-			-			9,957			9,957
Loans held-for-sale		-			9,571			-			9,571
Mortgage servicing rights		-			-			4,116			4,116
Other assets (Interest rate swap agreements net of swap credit valuation)		-			1,349			-47			1,302
Other assets (Forward MBS)		-			567			-			567
Total		$	1,507		$	579,777		$	14,158		$	595,442

Liabilities:
Other liabilities (Interest rate swap agreements)		$	-		$	1,349		$	-		$	1,349
Other liabilities (Interest rate lock commitments to borrowers)		-			5			-			5
Total		$	-		$	1,354		$	-		$	1,354

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows:

		Nine months ended September 30, 2013

		Investment securities available-for- sale
		Collateralized Debt			Asset-backed			States and			Mortgage			Interest Rate
		Obligations						Political			Servicing			Swap
								Subdivisons			Rights			Valuation
Beginning balance January 1, 2013		$	9,957		$	-		$	132		$	4,116		$	-47
Transfers into Level 3		-			-			-			-			-
Transfers out of Level 3		-			-			-			-			-
Total gains or losses
Included in earnings (or changes in net assets)		178			485			-			81			34
Included in other comprehensive income		1,898			-1,487			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-			168,753			-			-			-
Issuances		-			-			-			1,259			-
Settlements		-946			-			-			-			-
Sales		-			-20,539			-			-			-
Ending balance June 30, 2013		$	11,087		$	147,212		$	132		$	5,456		$	-13

		Nine months ended September 30, 2012
		Investment securities
		Collateralized Debt			States and			Mortgage			Interest Rate
		Obligations			Political			Servicing			Swap
					Subdivisons			Rights			Valuation
Beginning balance January 1, 2012		$	9,974		$	138		$	3,487		$	-80
Transfers into Level 3		-			-			-			-
Transfers out of Level 3		-			-			-			-
Total gains or losses
Included in earnings (or changes in net assets)		125			-			-1,315			19
Included in other comprehensive income		-441			-			-			-
Purchases, issuances, sales, and settlements
Purchases		-			-			-			-
Issuances		-			-			1,431			-
Settlements		-115			-			-			-
Expirations		-			-			-			-
Ending balance September 30, 2012		$	9,543		$	138		$	3,603		$	-61

The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of September 30, 2013:

Measured at fair value		Fair Value		Valuation Methodology		Unobservable Inputs		Range of Input		Weighted
on a recurring basis:										Average
										of Inputs
Collateralized Debt Obligations		$ 11,087		Discounted Cash Flow		Discount Rate		Libor +		5.70%
Collateralized Debt Obligations		$ 11,087		Discounted Cash Flow		Discount Rate		5.25-6.25%		5.70%
						Prepayment %		0%-76.0%		13.50%
						Default range		3.0%-100.0%		15.70%
Mortgage Servicing rights		5,456		Discounted Cash Flow		Discount Rate		10.00%		10.00%
						Prepayment Speed		10.80%		10.80%

Interest Rate Swap Valuation		-13		Management estimate		Probability of Default		5%-20%		13.40%
Interest Rate Swap Valuation		-13		of credit risk exposure		Probability of Default		5%-20%		13.40%

Asset-backed securities		147,212		Discounted Cash Flow		Credit Risk Premium		1.00%-1.5%		1.30%
Asset-backed securities		147,212		Discounted Cash Flow		Liquidity Risk Premium		1.00%		1.00%

The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2012:

Measured at fair value		Fair Value		Valuation Methodology		Unobservable		Range of Input		Weighted
on a recurring basis:						Inputs				Average
										of Inputs
Collateralized Debt Obligations		$ 9,957		Discounted Cash Flow		Discount Rate		Libor + 6%-7%		6.40%
						Prepayment %		0%-76%		16.40%
						Default range		3.1%-100%		19.10%

Mortgage Servicing rights		4,116		Discounted Cash Flow		Discount Rate		10.50%		10.50%
						Prepayment Speed		15.80%		15.80%

Interest Rate Swap Valuation		-47		Management estimate		Probability of		2%-31%		17.90%
Interest Rate Swap Valuation		-47		of credit risk exposure		Default		2%-31%		17.90%


The $132,000 on the state and political subdivisions line at September 30, 2013, under Level 3 represents a security from a small, local municipality. Given the small dollar amount and size of the municipality involved, this is categorized as Level 3 based on the payment stream received by the Company from the municipality. That payment stream is otherwise an unobservable input. The $147.2 million on the asset – backed securities line at September 30, 2013, under Level 3 represents auction rate securities held at that date. These are categorized as Level 3 based on the Company’s approach of valuing the securities based on pricing from a limited number of brokers and that the pricing is otherwise an unobservable input.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of impaired loans and OREO. For assets measured at fair value on a nonrecurring basis at September 30, 2013, and December 31, 2012, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets:

		September 30, 2013
		Level 1			Level 2			Level 3			Total
Impaired loans1		$	-		$	-		$	5,653		$	5,653
Other real estate owned, net2		-			-			49,066			49,066
Total		$	-		$	-		$	54,719		$	54,719

1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $7.8 million, with a valuation allowance of $2.1 million, resulting in a decrease of specific allocations within the allowance for loan losses of $4.1 million for the nine months ending September 30, 2013.

2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $49.1 million, which is made up of the outstanding balance of $75.8 million, net of a valuation allowance of $24.6 million and participations of $2.1 million, at September 30, 2013.

		December 31, 2012
			Level 1				Level 2				Level 3				Total
Impaired loans1			$	-			$	-			$	21,543			$	21,543
Other real estate owned, net2			-				-				72,423				72,423
Total			$	-			$	-			$	93,966			$	93,966


1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $27.8 million, with a valuation allowance of $6.3 million, resulting in a decrease of specific allocations within the provision for loan losses of $6.8 million for the year ending December 31, 2012.

2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $72.4 million, which is made up of the outstanding balance of $109.7 million, net of a valuation allowance of $31.4 million and participations of $5.9 million, at December 31, 2012, resulting in a charge to expense of $16.4 million for the year ended December 31, 2012.
that a market participant would demand because of uncertainty in cash flows in the discounted cash flow analysis. Changes in unobservable inputs such as future cash flows, prepayment speeds and market rates which may result in a significantly higher or lower fair value measurement. Due to the significant amount of unobservable inputs for the security and limited market activity, these securities are considered Level 3 valuations.

Financial_Instruments_with_Off

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	9 Months Ended
	Sep. 30, 2013
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'
	Note 13 – Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions

	To meet the financing needs of its customers, the Bank, as a subsidiary of the Company, is a party to various financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans as well as financial standby, performance standby and commercial letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for loan commitments and letters of credit are represented by the dollar amount of those instruments. Management generally uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments.

	Interest Rate Swaps

	The Company also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. Due to financial covenant violations relating to nonperforming loans, the Bank had $3.2 million in investment securities pledged to support interest rate swap activity with three correspondent financial institutions at September 30, 2013. The Bank had $7.4 million in investment securities pledged to support interest rate swap activity with two correspondent financial institutions at December 31, 2012. In connection with each transaction, the Bank agreed to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Bank agreed to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate loan and is part of the Company’s interest rate risk management strategy. Because the Bank acts as an intermediary for the client, changes in the fair value of the underlying derivative contracts offset each other and do not generally affect the results of operations. Fair value measurements include an assessment of credit risk related to the client’s ability to perform on their contract position, however, and valuation estimates related to that exposure are discussed in Note 12 above. At September 30, 2013, the notional amount of non-hedging interest rate swaps was $80.3 million with a weighted average maturity of 1.3 years. At December 31, 2012, the notional amount of non-hedging interest rate swaps was $82.1 million with a weighted average maturity of 1.3 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement.

	The Bank also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed by entering into contracts for future deliveries of loans as well as selling forward MBS contracts. Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking income. Fair values are estimated based on observable changes in mortgage interest rates including MBS prices from the date of the commitment.

	The following table presents derivatives not designated as hedging instruments as of September 30, 2013, and periodic changes in the values of the interest rate swaps are reported in other noninterest income. Periodic changes in the value of the forward contracts related to mortgage loan origination are reported in the net gain on sales of mortgage loans.

					Asset Derivatives							Liability Derivatives
		Notional or			Balance Sheet			Fair Value				Balance Sheet			Fair Value
		Contractual			Location							Location
		Amount

	Interest rate swap contracts net of credit valuation		$	80,323		Other Assets			$	571			Other Liabilities			$	584
	Commitments1		211,635			Other Assets			69				N/A			-
	Forward contracts2		12,573			N/A			-				Other Liabilities			1
	Total								$	640						$	585


	1Includes unused loan commitments and interest rate lock commitments.
	2Includes forward MBS contracts and forward loan contracts.

	The following table presents derivatives not designated as hedging instruments as of December 31, 2012.

					Asset Derivatives							Liability Derivatives
		Notional or			Balance Sheet			Fair Value				Balance Sheet			Fair Value
		Contractual			Location							Location
		Amount

	Interest rate swap contracts net of credit valuation		$	82,097		Other Assets			$	1,302			Other Liabilities			$	1,349
	Commitments1		226,135			Other Assets			567				N/A			-
	Forward contracts2		28,000			N/A			-				Other Liabilities			5
	Total								$	1,869						$	1,354


	1Includes unused loan commitments and interest rate lock commitments.
	2Includes forward mortgage backed securities contracts.

	The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers.

	In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of September 30, 2013, and December 31, 2012.

	The following table is a summary of financial instrument commitments (in thousands):

		September 30, 2013											December 31, 2012
		Fixed			Variable				Total				Fixed				Variable			Total
	Letters of credit:
	Borrower:
	Financial standby		$	5		$	3,846			$	3,851			$	5			$	3,378		$	3,383
	Commercial standby		-			51				51				-				51			51
	Performance standby		1,607			2,671				4,278				1,630				4,217			5,847
			1,612			6,568				8,180				1,635				7,646			9,281

	Non-borrower:
	Performance standby		240			1,089				1,329				240				1,125			1,365
			240			1,089				1,329				240				1,125			1,365
	Total letters of credit		$	1,852		$	7,657			$	9,509			$	1,875			$	8,771		$	10,646

Fair_Values_of_Financial_Instr

Fair Values of Financial Instruments	9 Months Ended
Fair Values of Financial Instruments	Sep. 30, 2013
Fair Values of Financial Instruments	'
Fair Values of Financial Instruments	'
	Note 14 – Fair Values of Financial Instruments

	The estimated fair values approximate carrying amount for all items except those described in the following table. Investment security fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The fair value of the CDOs included in investment securities includes a risk premium adjustment to provide an estimate of the amount that a market participant would demand because of uncertainty in cash flows and the methods for determining fair value of securities as discussed in detail in Note 12. As the only market for FHLBC stock is through stock redemption with FHLBC at par, it is not practical to determine any other fair value for the FHLBC investment. Fair values of loans were estimated for portfolios of loans with similar financial characteristics, such as type and fixed or variable interest rate terms. Cash flows were discounted using current rates at which similar loans would be made to borrowers with similar ratings and for similar maturities. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off-balance sheet items is not considered material.

	The carrying amount and estimated fair values of financial instruments were as follows:

		September 30, 2013
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
	Financial assets:
	Cash, due from banks and federal funds sold		$	47,486		$	47,486		$	47,486		$	-		$	-
	Interest bearing deposits with financial institutions		32,586			32,586			32,586			-			-
	Securities available-for-sale		373,478			373,478			1,548			213,499			158,431
	Securities held-to-maturity		258,101			260,421			-			260,421			-
	FHLBC and FRB Stock		10,292			10,292			-			10,292			-
	Bank-owned life insurance		55,005			55,005			-			55,005			-
	Loans held for sale		3,129			3,129			-			3,129			-
	Loans, net		1,048,093			1,047,557			-			-			1,047,557
	Accrued interest receivable		4,473			4,473			-			4,473			-

	Financial liabilities:
	Noninterest bearing deposits		$	373,499		$	373,499		$	373,499		$	-		$	-
	Interest bearing deposits		1,299,624			1,302,082			-			1,302,082			-
	Securities sold under repurchase agreements		20,719			20,719			-			20,719			-
	Other short-term borrowings		55,000			55,000			-			55,000			-
	Junior subordinated debentures		58,378			63,480			37,657			25,823			-
	Subordinated debenture		45,000			39,193			-			39,193			-
	Note payable and other borrowings		500			415			-			415			-
	Borrowing interest payable		15,676			15,676			9,305			6,371			-
	Deposit interest payable		837			837			-			837			-

		December 31, 2012
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
	Financial assets:
	Cash, due from banks and federal funds sold		$	44,221		$	44,221		$	44,221		$	-		$	-
	Interest bearing deposits with financial institutions		84,286			84,286			84,286			-			-
	Securities available-for-sale		579,886			579,886			1,507			568,290			10,089
	FHLBC and FRB Stock		11,202			11,202			-			11,202			-
	Bank-owned life insurance		54,203			54,203			-			54,203			-
	Loans held-for-sale		9,571			9,571			-			9,571			-
	Loans, net		1,111,453			1,118,711			-			-			1,118,711
	Accrued interest receivable		5,252			5,252			-			5,252			-

	Financial liabilities:
	Noninterest bearing deposits		$	379,451		$	379,451		$	379,451		$	-		$	-
	Interest bearing deposits		1,337,768			1,347,603			-			1,347,603			-
	Securities sold under repurchase agreements		17,875			17,875			-			17,875			-
	Other short-term borrowings		100,000			100,000			-			100,000
	Junior subordinated debentures		58,378			38,308			22,725			15,583			-
	Subordinated debenture		45,000			28,206			-			28,206			-
	Note payable and other borrowings		500			302			-			302			-
	Borrowing interest payable		11,740			11,740			6,946			4,794			-
	Deposit interest payable		1,006			1,006			-			1,006			-

Preferred_Stock

Preferred Stock	9 Months Ended
Preferred Stock	Sep. 30, 2013
Preferred Stock	'
Preferred Stock	'
	Note 15 – Preferred Stock

	The Series B Preferred Stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program ( the “CPP”). as implemented by the Treasury. The Series B Preferred Stock qualifies as Tier 1 capital and pays cumulative dividends on the liquidation preference amount on a quarterly basis at a rate of 5% per annum for the first five years, and 9% per annum thereafter. Concurrent with issuing the Series B Preferred Stock, the Company issued to the Treasury a ten year warrant to purchase 815,339 shares of the Company’s common stock at an exercise price of $13.43 per share.

	The Company allocated the $73 million in proceeds received from the Treasury in the first quarter of 2009 between the Series B Preferred Stock and the warrants that were issued. The warrants were classified as equity, and the allocation was based on their relative fair values in accordance with accounting guidance. The fair value was determined for both the Series B Preferred Stock and the warrants as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively.

	As discussed in Note 11, on August 31, 2010, the Company announced that it would begin deferring quarterly cash dividends on its outstanding Series B Preferred Stock. Further, as discussed in Note 8 and Note 11, the Company has elected to defer interest payments on certain of its subordinated debentures. In quarters prior to first quarter 2013, during the period in which preferred stock dividends were deferred such dividends continued to be declared and accrued. However, if the Company fails to pay dividends for an aggregate of six quarters on the Series B Preferred Stock, whether or not consecutive, the holders have the right to appoint representatives to the Company’s board of directors. As the Company elected to defer dividends for more than six quarters, a new director was appointed by the Treasury to join the board during the fourth quarter of 2012. The terms of the Series B Preferred Stock also prevent the Company from paying cash dividends or generally repurchasing its common stock while Series B Preferred Stock dividends are in arrears. The total amount of unpaid and deferred Series B Preferred Stock dividends as of September 30, 2013, was $12.3 million.

	All of the Series B Preferred Stock held by Treasury was sold to third parties, including certain of our directors, in auctions that were completed in the first quarter of 2013. The warrants were also sold at a subsequent auction. At December 31, 2012, the Company carried $71.9 million of Series B Preferred Stock in total stockholders equity. At September 30, 2013, the Company carried $72.7 million of Series B Preferred Stock in total stockholders equity.

	As a result of the completed auctions, the Company’s Board elected to stop accruing the dividend on the Series B Preferred Stock in first quarter 2013. Previously, the Company had accrued the dividend on the Series B Preferred Stock quarterly throughout the deferral period. Given the discount reflected in the results of the auction, the board believes that the Company will likely be able to repurchase the Series B Preferred Stock in the future at a price less than the face amount of the Series B Preferred Stock plus accrued and unpaid dividends. Therefore, under GAAP, the Company did not fully accrue the dividend on the Series B Preferred Stock in the first quarter and did not accrue for it in subsequent quarters. The Company will continue to evaluate whether accruing dividends on the Series B Preferred Stock is appropriate in future periods. Pursuant to the terms of the Series B Preferred Stock, the dividends paid on the Series B Preferred Stock will increase from 5% to 9% in 2014.

Income_Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2013
Income Taxes	'
Income Taxes	'
	Note 16 –Income Taxes

	Income tax expense (benefit) for year to date September 30, 2013 and September 30, 2012 was as follows:

				9/30/13					9/30/12
	Current federal			$	129				$	-
	Current state			35					-
	Deferred federal			2,935					(643		)
	Deferred state			1,049					(552		)
	Change in valuation allowance			(74,145		)			1,195
				$	(69,997	)			$	-

	The following were the components of the deferred tax assets and liabilities as of September 30, 2013 and December 31, 2012:

				9/30/13					12/31/12
	Allowance for loan losses			$	13,700				$	18,236
	Deferred compensation			719					679
	Amortization of core deposit intangible assets			1,484					965
	Goodwill amortization/impairment			15,645					16,796
	Stock option expense			608					785
	OREO write downs			11,072					16,632
	Federal net operating loss (“NOL”) carryforward			26,370					20,736
	State net operating loss (“NOL”) carryforward			11,434					10,186
	Deferred tax credit			1,444					1,444
	Other assets			598					585
	Total deferred tax assets			83,074					87,044

	Accumulated depreciation on premises and equipment			(946		)			(1,063		)
	Accretion on securities			(13		)			(122		)
	Mortgage servicing rights			(2,415		)			(1,819		)
	State tax benefits			(6,982		)			(7,315		)
	Other liabilities			(194		)			(217		)
	Total deferred tax liabilities			(10,550		)			(10,536		)
	Net deferred tax asset before valuation allowance			72,524					76,508
	Tax effect on net unrealized losses on securities			8,704					928
	Valuation allowance			(2,363		)			(76,508		)
	Net deferred tax asset			$	78,865				$	928

	At September 30, 2013, the Company had $75.3 million federal net operating loss carryforward of which, $25.3 million expires in 2030, $31.4 million expires in 2031, $8.6 million expires in 2032, and $10.0 million expires in 2033. The Company had $120.3 million state net operating loss carryforward of which, $90.9 million expires in 2025, and $29.4 million expires in 2021. In addition, the Company had $1.4 million alternative minimum tax credit that can be carried forward indefinitely.

	The components of the provision for deferred income tax expense (benefit) were as follows:

			9/30/13			9/30/12
	Provision for loan losses		$	4,536		$	5,731
	Deferred Compensation		-40			24
	Amortization of core deposit intangible assets		-519			(204		)
	Stock option expense		177			358
	OREO write downs		5,560			(4,358		)
	Federal net operating loss carryforward		-5,634			(2,384		)
	State net operating loss carryforward		-1,248			(852		)
	Depreciation		-117			(210		)
	Net premiums and discounts on securities		-109			85
	Mortgage servicing rights		596			55
	Goodwill amortization/impairment		1,151			1,134
	State tax benefits		-333			154
	Change in valuation allowance		-74,145			1,195
	Other, net		-36			(728		)
	Total deferred tax benefit		$	-70,161		$	-

	At December 31, 2012, the Company had a $76.5 million valuation allowance on deferred tax assets. The valuation allowance was established in 2010 due to significant negative evidence that indicated it was not more likely than not that the Company would utilize the deferred tax asset. During the quarter ended September 30, 2013, the Company evaluated all positive and negative evidence The positive evidence considered included the following: (1) the current quarter results reflect the Company’s sixth consecutive quarter of pre-tax earnings (2) reduced nonperforming assets for the eleventh consecutive quarter, (3) the removal of the Consent Order by the OCC effective October 17, 2013. Negative evidence considered included the decrease in the Company’s net interest margin and reduced noninterest income, primarily from decreased mortgage banking income. Additionally as a tax planning strategy, the Company could elect to sell its bank-owned life insurance policies, generating approximately $11.4 million of taxable income. While the Company does not anticipate completing this sale, this strategy would be considered if necessary to avoid expiration of deferred tax assets. After consideration of all evidence, management concluded it was more likely than not that the Company would utilize a significant portion of its deferred tax asset and, therefore, removed a large portion of the valuation allowance. The remaining valuation allowance remains for assets that are possible to be utilized, but not more likely than not. The Company will continue to evaluate whether that valuation allowance needs to be adjusted in future periods based on all available evidence.

	Effective tax rates differ from federal statutory rates applied to financial statement loss due to the following:

		9/30/13				9/30/12
Tax at statutory federal income tax rate		$	4,156			$	(558	)
Nontaxable interest income, net of disallowed interest deduction		(183		)		(143		)
BOLI income		(553		)		(436		)
State income taxes, net of federal benefit		780				(128		)
Change in valuation allowance		(74,145		)		1,195
Deficiency from restricted stock		10				299
Other, net		(62		)		(229		)
Tax at effective tax rate		$	(69,997	)		$	-

Securities_Tables

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2013
Securities	'
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss	'
	The following table summarizes the amortized cost and fair value of the securities portfolio at September 30, 2013 and December 31, 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss (in thousands):

					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	September 30, 2013:	Cost			Gains			Losses			Value
	Securities Available-for-Sale
	U.S. Treasury	$	1,554		$	-		$	-6		$	1,548
	U.S. government agencies	1,745			-			-52			1,693
	States and political subdivisions	19,275			731			-165			19,841
	Corporate bonds	22,889			75			-764			22,200
	Collateralized mortgage obligations	51,619			182			-3,676			48,125
	Asset-backed securities	272,236			1,575			-4,827			268,984
	Collateralized debt obligations	17,173			-			-6,086			11,087
	Total Securities Available-for-Sale	$	386,491		$	2,563		$	-15,576		$	373,478
	Securities Held-to-Maturity
	U.S. government agency mortgage-backed	$	35,241		$	547		$	-		$	35,788
	Collateralized mortgage obligations	222,860			1,773			-			224,633
	Total Securities Held-to-Maturity	$	258,101		$	2,320		$	-		$	260,421

	December 31, 2012:
	U.S. Treasury	$	1,500		$	7		$	-		$	1,507
	U.S. government agencies	49,848			122			-120			49,850
	U.S. government agency mortgage-backed	127,716			1,605			-583			128,738
	States and political subdivisions	14,639			1,216			-			15,855
	Corporate bonds	36,355			586			-55			36,886
	Collateralized mortgage obligations	168,795			1,895			-1,090			169,600
	Asset-backed securities	165,347			2,468			-322			167,493
	Collateralized debt obligations	17,941			-			-7,984			9,957
	Total Securities Available-for-Sale	$	582,141		$	7,899		$	-10,154		$	579,886
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized debt obligations	'
	The fair value, amortized cost and weighted average yield of debt securities at September 30, 2013, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date, primarily mortgage-backed securities (“MBS”), asset-backed securities, and collateralized debt obligations are shown separately (in thousands):

					Weighted
		Amortized			Average		Fair
	Securities Available-for-Sale	Cost			Yield		Value
	Due in one year or less	$	772		3.58%		$	789
	Due after one year through five years	4,425			2.35%		4,510
	Due after five years through ten years	29,271			3.04%		28,885
	Due after ten years	10,995			4.31%		11,098
		45,463			3.29%		45,282
	Collateralized mortgage obligations	51,619			2.62%		48,125
	Asset-back securites	272,236			1.67%		268,984
	Collateralized debt obligations	17,173			1.62%		11,087
		$	386,491		1.99%		$	373,478
	Securities Held-to-Maturity
	Mortgage-backed securities	$	258,101		3.07%		$	260,421
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	'
	Securities with unrealized losses at September 30, 2013, and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities):

		Less than 12 months								Greater than 12 months
	September 30, 2013	in an unrealized loss position								in an unrealized loss position						Total
		Number of		Unrealized			Fair			Number of		Unrealized		Fair		Number of	Unrealized		Fair
	Securities Available-for-Sale	Securities		Losses			Value			Securities		Losses		Value		Securities	Losses		Value
	U.S. Treasury	1		$	6		$	1,548		-		$	-	$	-	1	$	6	1,548
	U.S. government agencies	1		52			1,693			-		-		-		1	52		1,693
	States and political subdivisions	7		165			6,195			-		-		-		7	165		6,195
	Corporate bonds	5		717			13,009			2		47		2,162		7	764		15,171
	Collateralized mortgage obligations	3		3,676			35,471			-		-		-		3	3,676		35,471
	Asset-backed securities	18		4,784			162,705			1		43		3,791		19	4,827		166,496
	Collateralized debt obligations	-		-			-			2		6,086		11,087		2	6,086		11,087
		35		$	9,400		$	220,621		5		$	6,176	$	17,040	40	$	15,576	$	237,661


		Less than 12 months								Greater than 12 months
	December 31, 2012	in an unrealized loss position								in an unrealized loss position						Total
		Number of		Unrealized			Fair			Number of		Unrealized		Fair		Number of	Unrealized		Fair
	Securities Available-for-Sale	Securities		Losses			Value			Securities		Losses		Value		Securities	Losses		Value
	U.S. government agencies	4		$	120		$	17,039		-		$	-	$	-	4	$	120	$	17,039
	U.S. government agency mortgage-backed	12		583			53,184			-		-		-		12	583		53,184
	Corporate bonds	4		55			9,724			-		-		-		4	55		9,724
	Collateralized mortgage obligations	6		1,060			37,778			1		30		2,343		7	1,090		40,121
	Asset-backed securities	6		322			37,488			-		-		-		6	322		37,488
	Collateralized debt obligations	-		-			-			2		7,984		9,957		2	7,984		9,957
		32		$	2,140		$	155,213		3		$	8,014	$	12,300	35	$	10,154	$	167,513
Schedule of additional information relating to the CDOs	'

								Gross			S&P		Number of	Issuance			Issuance
		Amortized			Fair			Unrealized			Credit		Banks in	Deferrals & Defaults			Excess Subordination
		Cost			Value			Loss			Rating 1		Issuance	Amount		Collateral %	Amount		Collateral %
	September 30, 2013
	Class A1	$	8,157		$	5,619		$	-2,538		BB+		63	$	207,000	27.60%	$	227,472	30.30%
	Class A2A	9,016			5,468			-3,548			B+		63	207,000		27.60%	130,472		17.40%
		$	17,173		$	11,087		$	-6,086

	December 31, 2012
	Class A1	$	9,038		$	5,768		$	-3,270		BB+		63	$	208,000	27.70%	$	190,982	25.50%
	Class A2A	8,903			4,189			-4,714			B+		63	208,000		27.70%	93,982		12.50%
		$	17,941		$	9,957		$	-7,984

	1 Moody’s credit rating for class A1 and A2A were upgraded to Baa1 and Baa3, respectively, as of September 30, 2013, compared to Baa2 and Ba2 at December 31, 2012. The Fitch ratings for class A1 and A2A were also upgraded to A and BBB, respectively, as of September 30, 2013, compared to BBB and B at December 31, 2012.

Loans_Tables

Loans (Tables)	9 Months Ended
Loans (Tables)	Sep. 30, 2013
Loans	'
Schedule of major classifications of loans	'

			September 30, 2013			December 31, 2012
	Commercial		$	86,822		$	86,941
	Real estate - commercial		554,874			579,687
	Real estate - construction		30,996			42,167
	Real estate - residential		376,859			414,543
	Consumer		2,570			3,101
	Overdraft		544			994
	Lease financing receivables		11,204			6,060
	Other		13,236			16,451
			1,077,105			1,149,944
	Net deferred loan fees		535			106
			$	1,077,640		$	1,150,050
Schedule of aged analysis of past due loans by class of loans	'

	September 30, 2013		30-59 Days			60-89 Days			90 Days or			Total Past			Current			Nonaccrual		Total Loans		Recorded
			Past Due			Past Due			Greater Past			Due										Investment
									Due													90 days or
																						Greater Past
																						Due and
																						Accruing
	Commercial		$	69		$	132		$	-		$	201		$	97,796		$	29	$	98,026	$	-
	Real estate - commercial
	Owner occupied general purpose		165			-			-			165			109,584			3,497		113,246		-
	Owner occupied special purpose		650			227			-			877			162,435			5,947		169,259		-
	Non-owner occupied general purpose		-			-			-			-			128,084			7,273		135,357		-
	Non-owner occupied special purpose		-			-			-			-			75,595			438		76,033		-
	Retail properties		-			-			-			-			39,829			5,056		44,885		-
	Farm		-			-			-			-			16,094			-		16,094		-
	Real estate - construction
	Homebuilder		-			-			-			-			4,563			168		4,731		-
	Land		-			-			-			-			4,640			209		4,849		-
	Commercial speculative		-			-			-			-			8,811			3,534		12,345		-
	All other		-			-			-			-			8,323			748		9,071		-
	Real estate - residential
	Investor		213			-			-			213			122,031			8,307		130,551		-
	Owner occupied		625			-			-			625			112,515			5,858		118,998		-
	Revolving and junior liens		522			75			45			642			124,170			2,498		127,310		45
	Consumer		-			-			-			-			2,570			-		2,570		-
	All other		-			-			-			-			14,315			-		14,315		-
			$	2,244		$	434		$	45		$	2,723		$	1,031,355		$	43,562	$	1,077,640	$	45

	December 31, 2012		30-59 Days			60-89 Days			90 Days or			Total Past			Current			Nonaccrual		Total Loans		Recorded
			Past Due			Past Due			Greater Past			Due										Investment
									Due													90 days or
																						Greater Past
																						Due and
																						Accruing
	Commercial		$	159		$	-		$	-		$	159		$	92,080		$	762	$	93,001	$	-
	Real estate - commercial
	Owner occupied general purpose		1,580			50			-			1,630			119,994			5,487		127,111		-
	Owner occupied special purpose		172			-			-			172			149,439			11,433		161,044		-
	Non-owner occupied general purpose		-			1,046			-			1,046			128,817			13,436		143,299		-
	Non-owner occupied special purpose		-			4,304			-			4,304			69,299			477		74,080		-
	Retail properties		-			-			-			-			37,732			10,532		48,264		-
	Farm		-			-			-			-			23,372			2,517		25,889		-
	Real estate - construction
	Homebuilder		-			-			-			-			4,469			1,855		6,324		-
	Land		-			-			-			-			2,747			254		3,001		-
	Commercial speculative		-			-			-			-			10,755			6,587		17,342		-
	All other		300			215			68			583			14,360			557		15,500		68
	Real estate - residential
	Investor		276			164			-			440			140,141			9,910		150,491		-
	Owner occupied		3,151			375			21			3,547			110,735			9,918		124,200		21
	Revolving and junior liens		888			203			-			1,091			134,990			3,771		139,852		-
	Consumer		3			-			-			3			3,075			23		3,101		-
	All other		-			-			-			-			17,551			-		17,551		-
			$	6,529		$	6,357		$	89		$	12,975		$	1,059,556		$	77,519	$	1,150,050	$	89
Schedule of credit quality indicators by class of loans	'

	September 30, 2013		Pass			Special			Substandard 1			Doubtful			Total
	September 30, 2013		Pass			Mention			Substandard 1			Doubtful			Total
	Commercial		$	89,051		$	8,711		$	264		$	-		$	98,026
	Real estate - commercial
	Owner occupied general purpose		97,309			8,560			7,377			-			113,246
	Owner occupied special purpose		159,678			1,480			8,101			-			169,259
	Non-owner occupied general purpose		118,741			1,574			15,042			-			135,357
	Non-owner occupied special purpose		61,874			9,893			4,266			-			76,033
	Retail Properties		35,833			3,006			6,046			-			44,885
	Farm		14,607			1,487			-			-			16,094
	Real estate - construction
	Homebuilder		1,216			1,770			1,745			-			4,731
	Land		4,640			-			209			-			4,849
	Commercial speculative		5,232			3,579			3,534			-			12,345
	All other		8,289			34			748			-			9,071
	Real estate - residential
	Investor		116,627			3,282			10,642			-			130,551
	Owner occupied		111,323			383			7,292			-			118,998
	Revolving and junior liens		123,435			200			3,675			-			127,310
	Consumer		2,569			-			1			-			2,570
	All other		14,315			-			-			-			14,315
	Total		$	964,739		$	43,959		$	68,942		$	-		$	1,077,640

	December 31, 2012		Pass			Special			Substandard 1			Doubtful			Total
	December 31, 2012		Pass			Mention			Substandard 1			Doubtful			Total
	Commercial		$	88,071		$	3,867		$	1,063		$	-		$	93,001
	Real estate - commercial
	Owner occupied general purpose		113,118			2,995			10,998			-			127,111
	Owner occupied special purpose		134,152			9,036			17,856			-			161,044
	Non-owner occupied general purpose		105,192			14,273			23,834			-			143,299
	Non-owner occupied special purpose		68,682			3,911			1,487			-			74,080
	Retail Properties		32,715			1,873			13,676			-			48,264
	Farm		21,262			2,110			2,517			-			25,889
	Real estate - construction
	Homebuilder		1,318			2,196			2,810			-			6,324
	Land		2,747			-			254			-			3,001
	Commercial speculative		7,122			-			10,220			-			17,342
	All other		14,607			37			856			-			15,500
	Real estate - residential
	Investor		123,876			14,608			12,007			-			150,491
	Owner occupied		110,858			396			12,946			-			124,200
	Revolving and junior liens		133,992			166			5,694			-			139,852
	Consumer		3,075			-			26			-			3,101
	All other		17,331			220			-			-			17,551
	Total		$	978,118		$	55,688		$	116,244		$	-		$	1,150,050


	1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans
Schedule of impaired loans by class of loan	'

												Nine Months Ended
			As of September 30, 2013									September 30, 2013

			Recorded			Unpaid			Related			Average			Interest
			Investment			Principal			Allowance			Recorded			Income
						Balance						Investment			Recognized
	With no related allowance recorded
	Commercial		$	29		$	35		$	-		$	113		$	-
	Commercial real estate
	Owner occupied general purpose		2,657			3,016			-			3,565			3
	Owner occupied special purpose		4,647			5,529			-			5,913			-
	Non-owner occupied general purpose		9,633			12,131			-			11,995			113
	Non-owner occupied special purpose		438			623			-			457			-
	Retail properties		5,056			6,293			-			6,918			-
	Farm		-			-			-			1,259			-
	Construction
	Homebuilder		3,039			3,039			-			3,597			120
	Land		209			308			-			231			-
	Commercial speculative		1,913			2,550			-			2,089			-
	All other		297			333			-			188			-
	Residential
	Investor		6,523			8,580			-			5,845			-
	Owner occupied		9,823			11,629			-			9,606			151
	Revolving and junior liens		1,968			2,886			-			1,668			5
	Consumer		-			-						12			-
	Total impaired loans with no recorded allowance		46,232			56,952			-			53,456			392
	With an allowance recorded
	Commercial		-			-			-			283			-
	Commercial real estate
	Owner occupied general purpose		935			955			322			974			-
	Owner occupied special purpose		1,300			1,493			371			2,777			-
	Non-owner occupied general purpose		183			183			57			1,481			-
	Non-owner occupied special purpose		-			-			-			-			-
	Retail properties		-			-			-			876			-
	Farm		-			-			-			-			-
	Construction
	Homebuilder		168			604			71			97			-
	Land		-			-			-			-			-
	Commercial speculative		1,621			4,225			100			2,971			-
	All other		451			477			241			465			-
	Residential
	Investor		1,784			2,151			584			3,263			-
	Owner occupied		986			1,082			161			3,448			12
	Revolving and junior liens		591			623			243			1,527			-
	Consumer		-			-			-			-			-
	Total impaired loans with a recorded allowance		8,019			11,793			2,150			18,162			12
	Total impaired loans		$	54,251		$	68,745		$	2,150		$	71,618		$	404

	Impaired loans by class of loans as of December 31, 2012 were as follows:

													Nine Months Ended
			As of December 31, 2012										September 30, 2012
			Recorded			Unpaid				Related			Average			Interest
			Investment			Principal				Allowance			Recorded			Income
						Balance							Investment			Recognized
	With no related allowance recorded
	Commercial		$	196		$		229		$	-		$	516		$		-
	Commercial real estate
	Owner occupied general purpose		4,473			5,021				-			4,149			-
	Owner occupied special purpose		7,180			8,486				-			10,222			-
	Non-owner occupied general purpose		14,356			17,381				-			10,996			210
	Non-owner occupied special purpose		477			634				-			933			-
Retail properties		8,780			15,323				-			5,851			-
Farm		2,517			2,517				-			1,335			-
Construction
Homebuilder		4,155			4,729				-			7,952			83
Land		254			308				-			1,021			-
Commercial speculative		2,265			3,451				-			6,297			-
All other		78			168				-			2,204			-
Residential
Investor		5,168			6,979				-			4,500			-
Owner occupied		9,389			11,002				-			10,788			187
Revolving and junior liens		1,368			1,689				-			1,466			2
Consumer		23			23							-			-
Total impaired loans with no recorded allowance		60,679			77,940				-			68,230			482
With an allowance recorded
Commercial		566			619				458			646			-
Commercial real estate
Owner occupied general purpose		1,014			1,057				230			5,173			-
Owner occupied special purpose		4,253			6,200				712			4,505			-
Non-owner occupied general purpose		2,779			3,906				204			9,047			-
Non-owner occupied special purpose		-			-				-			217			-
Retail properties		1,752			1,812				1,102			7,958			-
Farm		-			-				-			347			-
Construction
Homebuilder		26			75				3			2,411			-
Land		-			-				-			-			-
Commercial speculative		4,322			6,613				757			4,554			-
All other		479			649				353			459			-
Residential
Investor		4,742			5,954				477			9,552			-
Owner occupied		5,909			6,923				1,089			6,726			34
Revolving and junior liens		2,464			2,625				874			1,608			-
Consumer		-			-				-			-			-
Total impaired loans with a recorded allowance		28,306			36,433				6,259			53,203			34
Total impaired loans		$	88,985		$	114,373			$	6,259		$	121,433		$	516
Schedule of TDRs modified during the period by type of modification	'

			TDR Modifications										TDR Modifications
			Three months ended September 30, 2013										Nine months ended September 30, 2013

			# of		Pre-modification				Post-modification				# of		Pre-modification			Post-modification
			contracts		recorded investment				recorded investment				contracts		recorded investment			recorded investment
	Troubled debt restructurings
	Real estate - commercial
	Deferral3		-		$		-		$		-		1		$	610		$	472
	Real estate - residential
	Owner occupied
	Deferral3		-		-				-				1		137			137
	Other5		-		-				-				1		30			29
			-		$	-			$	-			3		$	777		$	638


			TDR Modifications								TDR Modifications
			Three months ended September 30, 2012								Nine months ended September 30, 2012

			# of		Pre-modification			Post-modification			# of		Pre-modification			Post-modification
			contracts		recorded investment			recorded investment			contracts		recorded investment			recorded investment
	Troubled debt restructurings
	Real estate - commercial
	Deferral1		1		$	689		$	433		2		$	898		$	640
	Interest2		-		-			-			2		3,381			3,148
	Real estate - residential
	Investor
	Deferral1		1		405			167			2		405			167
	Bifurcate3		-		-			-			1		337			88
	Owner occupied
	Deferral3		-		-			-			1		108			108
	Revolving and junior liens
	Hamp4		-		-			-			1		117			61

			2		$	1,094		$	600		9		$	5,246		$	4,212


	1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note.
	2 Interest: Interest rate concession below normal market
	3 Deferral: Refers to the deferral of principal payments
	4 HAMP: Home Affordable Modification Program
	5 Other
Schedule of TDRs that subsequently defaulted	'

			TDR Default Activity						TDR Default Activity
			Three Months ending September 30, 2013						Nine Months ending September 30, 2013
	Troubled debt restructurings that		# of		Pre-modification outstanding				# of		Pre-modification outstanding
	Subsequently Defaulted		contracts		recorded investment				contracts		recorded investment
	Real estate - commercial
	Owner occupied special purpose		1		$		610		1		$	610
	Real estate - residential
	Investor		-		-				1		155
	Owner occupied		1		175				1		175
	Revolving and junior liens		1		30				1		30
			3		$	815			4		$	970


			TDR Default Activity						TDR Default Activity
			Three Months ending September 30, 2012						Nine Months ending September 30, 2012
	Troubled debt restructurings that		# of		Pre-modification outstanding				# of		Pre-modification outstanding
	Subsequently Defaulted		contracts		recorded investment				contracts		recorded investment
	Real estate - construction
	Commercial speculative		1		$	460			1		$	460
			1		$	460			1		$	460

Allowance_for_Loan_Losses_Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
Allowance for Loan Losses (Tables)	Sep. 30, 2013
Allowance for Loan Losses	'
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment	'

	Allowance for loan losses:	Commercial		Real Estate		Real Estate		Real Estate		Consumer		Unallocated		Total
	Allowance for loan losses:	Commercial		Commercial1		Construction		Residential		Consumer		Unallocated		Total
	Three Months Ended September 30, 2013
	Beginning balance	$	3,332	$	18,097	$	2,690	$	5,021	$	1,372	$	4,530	$35,042
	Charge-offs	29		851		53		3,594		168		-		4,695
	Recoveries	60		523		15		209		143		-		950
	Provision (release)	-469		-1,354		-252		1,352		162		-1,189		-1,750
	Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

	Nine Months Ended September 30, 2013
	Beginning balance	$	4,517	$	20,100	$	3,837	$	4,535	$	1,178	$	4,430	$38,597
	Charge-offs	308		2,377		951		5,193		474		-		9,303
	Recoveries	104		3,752		1,265		792		390		-		6,303
	Provision (release)	-1,419		-5,060		-1,751		2,854		415		-1,089		-6,050
	Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

	Ending balance: Individually evaluated for impairment	$	-	$	750	$	412	$	988	$	-	$	-	$	2,150
	Ending balance: Collectively evaluated for impairment	$	2,894	$	15,665	$	1,988	$	2,000	$	1,509	$	3,341	$	27,397

	Loans:
	Ending balance	$	98,026	$	554,874	$	30,996	$	376,859	$	2,570	$	14,315	$	1,077,640
	Ending balance: Individually evaluated for impairment	$	29	$	24,849	$	7,698	$	21,675	$	-	$	-	$	54,251
	Ending balance: Collectively evaluated for impairment	$	97,997	$	530,025	$	23,298	$	355,184	$	2,570	$	14,315	$	1,023,389

	1 As of September 30, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $14.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.7 million at September 30, 2013.


	Allowance for credit losses:	Commercial		Real Estate		Real Estate		Real Estate		Consumer		Unallocated		Total
	Allowance for credit losses:	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
	Three months Ended
	September 30, 2012
	Balance at beginning of period	$	4,783	$	23,766	$	5,501	$	4,141	$	1,063	$	1,032	$	40,286
	Charge-offs	2		355		909		1,230		186		-		2,682
	Recoveries	22		76		2,202		219		134		-		2,653
	Provision (release)	-251		-939		-2,366		1,342		104		2,110		-
	Ending balance	$	4,552	$	22,548	$	4,428	$	4,472	$	1,115	$	3,142	$	40,257

	Nine months Ended
	September 30, 2012
	Balance at beginning of year	$	5,070	$	30,770	$	7,937	$	6,335	$	884	$	1,001	$	51,997
	Charge-offs	110		12,694		4,251		6,416		463		-		23,934
	Recoveries	32		1,698		3,373		452		355		-		5,910
	Provision (release)	-440		2,774		-2,631		4,101		339		2,141		6,284
	Ending balance	$	4,552	$	22,548	$	4,428	$	4,472	$	1,115	$	3,142	$	40,257

	Ending balance: Individually evaluated for impairment	$	514	$	3,113	$	1,408	$	2,550	$	-	$	-	$	7,585
	Ending balance: Collectively evaluated for impairment	$	4,038	$	19,435	$	3,020	$	1,922	$	1,115	$	3,142	$	32,672

	Financing receivables:
	Ending balance	$	84,667	$	621,715	$	48,606	$	436,837	$	3,167	$	13,297	$	1,208,289
	Ending balance: Individually evaluated for impairment	$	1,157	$	56,176	$	15,988	$	30,919	$	-	$	-	$	104,240
	Ending balance: Collectively evaluated for impairment	$	83,510	$	565,539	$	32,618	$	405,918	$	3,167	$	13,297	$	1,104,049

	1 As of September 30, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $19.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.2 million at September 30, 2012.

Other_Real_Estate_Owned_Tables

Other Real Estate Owned (Tables)	9 Months Ended
	Sep. 30, 2013
Other Real Estate Owned	'
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	'

		Three Months Ended				Nine Months Ended
		September 30,				September 30,

	Other real estate owned	2013		2012		2013		2012
	Balance at beginning of period	$	59,465	$	89,671	$	72,423	$	93,290
	Property additions	3,015		7,594		14,196		26,944
	Development improvements	10		131		60		646
	Less:
	Property disposals, net of gains/losses	11,463		4,829		30,928		20,517
	Period valuation adjustments	1,961		4,474		6,685		12,270
	Balance at end of period	$	49,066	$	88,093	$	49,066	$	88,093
Schedule of activity in valuation allowance	'

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Balance at beginning of period	$	30,487	$	27,469	$	31,454	$	23,462
	Provision for unrealized losses	1,961		4,474		6,537		12,101
	Reductions taken on sales	-7,571		-2,657		-13,305		-6,446
	Other adjustments	-290		-		-99		169
	Balance at end of period	$	24,587	$	29,286	$	24,587	$	29,286
Schedule of expenses related to foreclosed assets, net of lease revenue	'

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Gain on sales, net	$	-608	$	-20	$	-1,175	$	-398
	Provision for unrealized losses	1,961		4,474		6,537		12,101
	Operating expenses	1,500		2,071		4,555		5,886
	Less:
	Lease revenue	309		840		974		2,930
		$	2,544	$	5,685	$	8,943	$	14,659

Deposits_Tables

Deposits (Tables)	9 Months Ended
	Sep. 30, 2013
Deposits	'
Schedule of major classifications of deposits	'

		September 30, 2013		December 31, 2012
	Noninterest bearing demand	$	373,499	$	379,451
	Savings	227,823		216,305
	NOW accounts	272,632		286,860
	Money market accounts	309,066		323,811
	Certificates of deposit of less than $100,000	299,632		318,844
	Certificates of deposit of $100,000 or more	190,471		191,948
		$	1,673,123	$	1,717,219

Borrowings_Tables

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2013
Borrowings	'
Summary of borrowings and junior subordinated debentures	'

		September 30, 2013		December 31, 2012
	Securities sold under repurchase agreements	$	20,719	$	17,875
	FHLB advances	55,000		100,000
	Junior subordinated debentures	58,378		58,378
	Subordinated debt	45,000		45,000
	Notes payable and other borrowings	500		500
		$	179,597	$	221,753

LongTerm_Incentive_Plan_Tables

Long-Term Incentive Plan (Tables)	9 Months Ended
Long-Term Incentive Plan (Tables)	Sep. 30, 2013
Long-Term Incentive Plan	'
Summary of stock option activity in Incentive Plan	'
	A summary of stock option activity in the Incentive Plan for the nine months ending September 30, 2013, is as follows:

					Weighted
			Weighted		Average
			Average		Remaining
			Exercise		Contractual	Aggregate
		Shares	Price		Term (years)	Intrinsic Value

	Beginning outstanding	409,500	$	28.75
	Canceled	-2,000	32.59
	Ending outstanding	407,500	$	28.74	2.28	$	-

	Exercisable at end of period	407,500	$	28.74	2.28	$	-
Summary of changes in nonvested shares of restricted share rights	'

		September 30, 2013
			Weighted
		Restricted	Average
		Stock Shares	Grant Date
		and Units	Fair Value
	Nonvested at January 1	327,920	$	2.21
	Granted	155,500	3.28
	Vested	-241,920	2.5
	Forfeited	-11,000	2.47
	Recaptured after Series B auction	-45,000	1.25
	Nonvested at September 30	185,500	$	2.95

Earnings_loss_Per_Share_Tables

Earnings (loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings (loss) Per Share	'
Schedule of earnings (loss) per share	'
	The earnings (loss) per share – both basic and diluted – are included below as of September 30 (in thousands except for share data):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Basic earnings (loss) per share:
	Weighted-average common shares outstanding	13,885,884		14,084,328		13,947,606		14,070,783
	Weighted-average common shares less stock based awards	13,870,884		13,883,008		13,895,136		13,873,819
	Weighted-average common shares stock based awards	231,152		327,920		217,107		332,198
	Net income (loss)	$	72,924	$	120	$	81,872	$	-1,596
	Dividends and accretion of discount on preferred shares	1,323		1,255		3,917		3,716
	Net income (loss) available to common shareholders	71,601		-1,135		77,955		-5,312
	Undistributed earnings (loss)	71,601		-1,135		77,955		-5,312
	Basic earnings (loss) per share common undistributed earnings (loss)	5.08		-0.08		5.52		-0.37
	Basic earnings (loss) per share	$	5.08	$	-0.08	$	5.52	$	-0.37
	Diluted earnings (loss) per share:
	Weighted-average common shares outstanding	13,885,884		14,084,328		13,947,606		14,070,783
	Dilutive effect of restricted shares1	216,152		126,600		164,637		135,234
	Diluted average common shares outstanding	14,102,036		14,210,928		14,112,243		14,206,017
	Net earnings (loss) available to common stockholders	$	71,601	$	-1,135	$	77,955	$	-5,312
	Diluted earnings (loss) per share	$	5.08	$	-0.08	$	5.52	$	-0.37

	Number of antidilutive options excluded from the diluted earnings per share calculation	1,224,839		1,286,839		1,224,839		1,286,839
	1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory_Capital_Matters_Tab

Regulatory & Capital Matters (Tables)	9 Months Ended
Regulatory & Capital Matters (Tables)	Sep. 30, 2013
Regulatory & Capital Matters	'
Schedule of capital levels and industry defined regulatory minimum required levels	'

					Minimum Required			Minimum Required
					for Capital			to be Well
					for Capital			to be Well
		Actual			Adequacy Purposes			Capitalized 1
		Amount		Ratio	Amount		Ratio	Amount		Ratio
	Septembr 30, 2013
	Total capital to risk weighted assets
	Consolidated	$	198,822	15.15%	$	104,989	8.00%		N/A		N/A
	Old Second Bank	224,171		17.08	104,998		8		131,248		10
	Tier 1 capital to risk weighted assets
	Consolidated	132,129		10.07	52,484		4		N/A		N/A
	Old Second Bank	207,607		15.82	52,492		4		78,738		6
	Tier 1 capital to average assets
	Consolidated	132,129		7.11	74,334		4		N/A		N/A
	Old Second Bank	207,607		11.08	74,948		4		93,685		5

	December 31, 2012
	Total capital to risk weighted assets
	Consolidated	$	189,466	13.62%	$	111,287	8.00%		N/A		N/A
	Old Second Bank	206,496		14.86	111,169		8		138,961		10
	Tier 1 capital to risk weighted assets
	Consolidated	94,817		6.81	55,693		4		N/A		N/A
	Old Second Bank	188,873		13.59	55,592		4		83,388		6
	Tier 1 capital to average assets
	Consolidated	94,817		4.85	78,200		4		N/A		N/A
	Old Second Bank	188,873		9.67	78,127		4		97,659		5


	1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”.

Fair_Value_Option_and_Fair_Val1

Fair Value Option and Fair Value Measurements (Tables)	9 Months Ended
Fair Value Option and Fair Value Measurements (Tables)	Sep. 30, 2013
Fair Value Option and Fair Value Measurements	'
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	'

		September 30, 2013
		Level 1			Level 2			Level 3			Total
	Assets:
	Securities available-for-sale
	U.S. Treasury	$	1,548		$	-		$	-		$	1,548
	U.S. government agencies		-			1,693			-			1,693
	States and political subdivisions		-			19,709			132			19,841
	Corporate Bonds		-			22,200			-			22,200
	Collateralized mortgage obligations		-			48,125			-			48,125
	Asset-backed securities					121,772			147,212			268,984
	Collateralized debt obligations		-			-			11,087			11,087
	Loans held-for-sale		-			3,129			-			3,129
	Mortgage servicing rights		-			-			5,456			5,456
	Other assets (Interest rate swap agreements net of swap credit valuation)		-			584			-13			571
	Other assets (Forward MBS)		-			69			-			69
	Total	$	1,548		$	217,281		$	163,874		$	382,703

	Liabilities:
	Other liabilities (Interest rate swap agreements)	$	-		$	584		$	-		$	584
	Other liabilities (Interest rate lock commitments to borrowers)		-			1			-			1
	Total	$	-		$	585		$	-		$	585

		December 31, 2012
		Level 1			Level 2			Level 3			Total
	Assets:
	Securities available-for-sale
	U.S. Treasury	$	1,507		$	-		$	-		$	1,507
	U.S. government agencies	-			49,850			-			49,850
	U.S. government agency mortgage-backed	-			128,738			-			128,738
	States and political subdivisions	-			15,723			132			15,855
	Corporate Bonds	-			36,886			-			36,886
	Collateralized mortgage obligations	-			169,600			-			169,600
	Asset-backed securities				167,493			-			167,493
	Collateralized debt obligations	-			-			9,957			9,957
	Loans held-for-sale	-			9,571			-			9,571
	Mortgage servicing rights	-			-			4,116			4,116
	Other assets (Interest rate swap agreements net of swap credit valuation)	-			1,349			-47			1,302
	Other assets (Forward MBS)	-			567			-			567
	Total	$	1,507		$	579,777		$	14,158		$	595,442

	Liabilities:
	Other liabilities (Interest rate swap agreements)	$	-		$	1,349		$	-		$	1,349
	Other liabilities (Interest rate lock commitments to borrowers)	-			5			-			5
	Total	$	-		$	1,354		$	-		$	1,354
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	'

		Nine months ended September 30, 2013

		Investment securities available-for- sale
		Collateralized Debt			Asset-backed			States and			Mortgage		Interest Rate
		Obligations						Political			Servicing		Swap
								Subdivisons			Rights		Valuation
	Beginning balance January 1, 2013	$	9,957		$	-		$	132		$	4,116	$	-47
	Transfers into Level 3	-			-			-			-		-
	Transfers out of Level 3	-			-			-			-		-
	Total gains or losses
	Included in earnings (or changes in net assets)	178			485			-			81		34
	Included in other comprehensive income	1,898			-1,487			-			-		-
	Purchases, issuances, sales, and settlements
	Purchases	-			168,753			-			-		-
	Issuances	-			-			-			1,259		-
	Settlements	-946			-			-			-		-
	Sales	-			-20,539			-			-		-
	Ending balance June 30, 2013	$	11,087		$	147,212		$	132		$	5,456	$	-13

		Nine months ended September 30, 2012
		Investment securities
		Collateralized Debt			States and			Mortgage			Interest Rate
		Obligations			Political			Servicing			Swap
					Subdivisons			Rights			Valuation
	Beginning balance January 1, 2012	$	9,974		$	138		$	3,487		$	-80
	Transfers into Level 3	-			-			-			-
	Transfers out of Level 3	-			-			-			-
	Total gains or losses
	Included in earnings (or changes in net assets)	125			-			-1,315			19
	Included in other comprehensive income	-441			-			-			-
	Purchases, issuances, sales, and settlements
	Purchases	-			-			-			-
	Issuances	-			-			1,431			-
	Settlements	-115			-			-			-
	Expirations	-			-			-			-
	Ending balance September 30, 2012	$	9,543		$	138		$	3,603		$	-61
Schedule of quantitative information about level 3 fair value measurements	'
	The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of September 30, 2013:

	Measured at fair value	Fair Value		Valuation Methodology		Unobservable Inputs		Range of Input		Weighted
	on a recurring basis:									Average
										of Inputs
	Collateralized Debt Obligations	$ 11,087		Discounted Cash Flow		Discount Rate		Libor +		5.70%
	Collateralized Debt Obligations	$ 11,087		Discounted Cash Flow		Discount Rate		5.25-6.25%		5.70%
						Prepayment %		0%-76.0%		13.50%
						Default range		3.0%-100.0%		15.70%
	Mortgage Servicing rights	5,456		Discounted Cash Flow		Discount Rate		10.00%		10.00%
						Prepayment Speed		10.80%		10.80%

	Interest Rate Swap Valuation	-13		Management estimate		Probability of Default		5%-20%		13.40%
	Interest Rate Swap Valuation	-13		of credit risk exposure		Probability of Default		5%-20%		13.40%

	Asset-backed securities	147,212		Discounted Cash Flow		Credit Risk Premium		1.00%-1.5%		1.30%
	Asset-backed securities	147,212		Discounted Cash Flow		Liquidity Risk Premium		1.00%		1.00%

	The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2012:

	Measured at fair value	Fair Value		Valuation Methodology		Unobservable		Range of Input		Weighted
	on a recurring basis:					Inputs				Average
										of Inputs
	Collateralized Debt Obligations	$ 9,957		Discounted Cash Flow		Discount Rate		Libor + 6%-7%		6.40%
						Prepayment %		0%-76%		16.40%
						Default range		3.1%-100%		19.10%

	Mortgage Servicing rights	4,116		Discounted Cash Flow		Discount Rate		10.50%		10.50%
						Prepayment Speed		15.80%		15.80%

	Interest Rate Swap Valuation	-47		Management estimate		Probability of		2%-31%		17.90%
	Interest Rate Swap Valuation	-47		of credit risk exposure		Default		2%-31%		17.90%
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	'

		September 30, 2013
		Level 1			Level 2			Level 3			Total
	Impaired loans1	$	-		$	-		$	5,653		$	5,653
	Other real estate owned, net2	-			-			49,066			49,066
	Total	$	-		$	-		$	54,719		$	54,719

	1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $7.8 million, with a valuation allowance of $2.1 million, resulting in a decrease of specific allocations within the allowance for loan losses of $4.1 million for the nine months ending September 30, 2013.

	2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $49.1 million, which is made up of the outstanding balance of $75.8 million, net of a valuation allowance of $24.6 million and participations of $2.1 million, at September 30, 2013.

		December 31, 2012
			Level 1				Level 2				Level 3			Total
	Impaired loans1		$	-			$	-			$	21,543		$	21,543
	Other real estate owned, net2		-				-				72,423			72,423
	Total		$	-			$	-			$	93,966		$	93,966


	1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $27.8 million, with a valuation allowance of $6.3 million, resulting in a decrease of specific allocations within the provision for loan losses of $6.8 million for the year ending December 31, 2012.

	2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $72.4 million, which is made up of the outstanding balance of $109.7 million, net of a valuation allowance of $31.4 million and participations of $5.9 million, at December 31, 2012, resulting in a charge to expense of $16.4 million for the year ended December 31, 2012.

Financial_Instruments_with_Off1

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)	9 Months Ended
	Sep. 30, 2013
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'
Schedule of derivatives not designated as hedging instruments	'
	The following table presents derivatives not designated as hedging instruments as of September 30, 2013, and periodic changes in the values of the interest rate swaps are reported in other noninterest income. Periodic changes in the value of the forward contracts related to mortgage loan origination are reported in the net gain on sales of mortgage loans.

					Asset Derivatives							Liability Derivatives
		Notional or			Balance Sheet			Fair Value				Balance Sheet			Fair Value
		Contractual			Location							Location
		Amount

	Interest rate swap contracts net of credit valuation		$	80,323		Other Assets			$	571			Other Liabilities			$	584
	Commitments1		211,635			Other Assets			69				N/A			-
	Forward contracts2		12,573			N/A			-				Other Liabilities			1
	Total								$	640						$	585


	1Includes unused loan commitments and interest rate lock commitments.
	2Includes forward MBS contracts and forward loan contracts.

	The following table presents derivatives not designated as hedging instruments as of December 31, 2012.

					Asset Derivatives							Liability Derivatives
		Notional or			Balance Sheet			Fair Value				Balance Sheet			Fair Value
		Contractual			Location							Location
		Amount

	Interest rate swap contracts net of credit valuation		$	82,097		Other Assets			$	1,302			Other Liabilities			$	1,349
	Commitments1		226,135			Other Assets			567				N/A			-
	Forward contracts2		28,000			N/A			-				Other Liabilities			5
	Total								$	1,869						$	1,354


	1Includes unused loan commitments and interest rate lock commitments.
	2Includes forward mortgage backed securities contracts.
Schedule of financial instrument commitments	'
	The following table is a summary of financial instrument commitments (in thousands):

		September 30, 2013											December 31, 2012
		Fixed			Variable				Total				Fixed				Variable			Total
	Letters of credit:
	Borrower:
	Financial standby		$	5		$	3,846			$	3,851			$	5			$	3,378		$	3,383
	Commercial standby		-			51				51				-				51			51
	Performance standby		1,607			2,671				4,278				1,630				4,217			5,847
			1,612			6,568				8,180				1,635				7,646			9,281

	Non-borrower:
	Performance standby		240			1,089				1,329				240				1,125			1,365
			240			1,089				1,329				240				1,125			1,365
	Total letters of credit		$	1,852		$	7,657			$	9,509			$	1,875			$	8,771		$	10,646

Fair_Values_of_Financial_Instr1

Fair Values of Financial Instruments (Tables)	9 Months Ended
Fair Values of Financial Instruments (Tables)	Sep. 30, 2013
Fair Values of Financial Instruments	'
Schedule of carrying amount and estimated fair values of financial instruments	'

		September 30, 2013
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
	Financial assets:
	Cash, due from banks and federal funds sold		$	47,486		$	47,486		$	47,486		$	-		$	-
	Interest bearing deposits with financial institutions		32,586			32,586			32,586			-			-
	Securities available-for-sale		373,478			373,478			1,548			213,499			158,431
	Securities held-to-maturity		258,101			260,421			-			260,421			-
	FHLBC and FRB Stock		10,292			10,292			-			10,292			-
	Bank-owned life insurance		55,005			55,005			-			55,005			-
	Loans held for sale		3,129			3,129			-			3,129			-
	Loans, net		1,048,093			1,047,557			-			-			1,047,557
	Accrued interest receivable		4,473			4,473			-			4,473			-

	Financial liabilities:
	Noninterest bearing deposits		$	373,499		$	373,499		$	373,499		$	-		$	-
	Interest bearing deposits		1,299,624			1,302,082			-			1,302,082			-
	Securities sold under repurchase agreements		20,719			20,719			-			20,719			-
	Other short-term borrowings		55,000			55,000			-			55,000			-
	Junior subordinated debentures		58,378			63,480			37,657			25,823			-
	Subordinated debenture		45,000			39,193			-			39,193			-
	Note payable and other borrowings		500			415			-			415			-
	Borrowing interest payable		15,676			15,676			9,305			6,371			-
	Deposit interest payable		837			837			-			837			-

		December 31, 2012
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
	Financial assets:
	Cash, due from banks and federal funds sold		$	44,221		$	44,221		$	44,221		$	-		$	-
	Interest bearing deposits with financial institutions		84,286			84,286			84,286			-			-
	Securities available-for-sale		579,886			579,886			1,507			568,290			10,089
	FHLBC and FRB Stock		11,202			11,202			-			11,202			-
	Bank-owned life insurance		54,203			54,203			-			54,203			-
	Loans held-for-sale		9,571			9,571			-			9,571			-
	Loans, net		1,111,453			1,118,711			-			-			1,118,711
	Accrued interest receivable		5,252			5,252			-			5,252			-

	Financial liabilities:
	Noninterest bearing deposits		$	379,451		$	379,451		$	379,451		$	-		$	-
	Interest bearing deposits		1,337,768			1,347,603			-			1,347,603			-
	Securities sold under repurchase agreements		17,875			17,875			-			17,875			-
	Other short-term borrowings		100,000			100,000			-			100,000
	Junior subordinated debentures		58,378			38,308			22,725			15,583			-
	Subordinated debenture		45,000			28,206			-			28,206			-
	Note payable and other borrowings		500			302			-			302			-
	Borrowing interest payable		11,740			11,740			6,946			4,794			-
	Deposit interest payable		1,006			1,006			-			1,006			-

Income_Taxes_Tables

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2013
Income Taxes	'
Schedule of components of income tax expense (benefit)	'

			9/30/13					9/30/12
	Current federal		$	129				$	-
	Current state		35					-
	Deferred federal		2,935					(643		)
	Deferred state		1,049					(552		)
	Change in valuation allowance		(74,145		)			1,195
			$	(69,997	)			$	-
Schedule of components of deferred tax assets and liabilities	'

			9/30/13					12/31/12
	Allowance for loan losses		$	13,700				$	18,236
	Deferred compensation		719					679
	Amortization of core deposit intangible assets		1,484					965
	Goodwill amortization/impairment		15,645					16,796
	Stock option expense		608					785
	OREO write downs		11,072					16,632
	Federal net operating loss (“NOL”) carryforward		26,370					20,736
	State net operating loss (“NOL”) carryforward		11,434					10,186
	Deferred tax credit		1,444					1,444
	Other assets		598					585
	Total deferred tax assets		83,074					87,044

	Accumulated depreciation on premises and equipment		(946		)			(1,063		)
	Accretion on securities		(13		)			(122		)
	Mortgage servicing rights		(2,415		)			(1,819		)
	State tax benefits		(6,982		)			(7,315		)
	Other liabilities		(194		)			(217		)
	Total deferred tax liabilities		(10,550		)			(10,536		)
	Net deferred tax asset before valuation allowance		72,524					76,508
	Tax effect on net unrealized losses on securities		8,704					928
	Valuation allowance		(2,363		)			(76,508		)
	Net deferred tax asset		$	78,865				$	928
Schedule of components of provision for deferred income taxes	'

		9/30/13			9/30/12
	Provision for loan losses	$	4,536		$	5,731
	Deferred Compensation	-40			24
	Amortization of core deposit intangible assets	-519			(204		)
	Stock option expense	177			358
	OREO write downs	5,560			(4,358		)
	Federal net operating loss carryforward	-5,634			(2,384		)
	State net operating loss carryforward	-1,248			(852		)
	Depreciation	-117			(210		)
	Net premiums and discounts on securities	-109			85
	Mortgage servicing rights	596			55
	Goodwill amortization/impairment	1,151			1,134
	State tax benefits	-333			154
	Change in valuation allowance	-74,145			1,195
	Other, net	-36			(728		)
	Total deferred tax benefit	$	-70,161		$	-
Schedule of difference between effective tax rates from federal statutory rates	'

		9/30/13				9/30/12
	Tax at statutory federal income tax rate	$	4,156			$	(558	)
	Nontaxable interest income, net of disallowed interest deduction	(183		)		(143		)
	BOLI income	(553		)		(436		)
	State income taxes, net of federal benefit	780				(128		)
	Change in valuation allowance	(74,145		)		1,195
	Deficiency from restricted stock	10				299
	Other, net	(62		)		(229		)
	Tax at effective tax rate	$	(69,997	)		$	-

Securities_Details

Securities (Details) (USD $)	0 Months Ended	1 Months Ended	9 Months Ended
	Sep. 02, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
	Sep. 02, 2013	item	Sep. 30, 2013	Dec. 31, 2012
Securities	'	'	'	'
Securities with a fair value transferred from available-for-sale to held-to-maturity	$237,200,000	'	'	'
Securities with a cost basis transferred from available-for-sale to held-to-maturity	245,400,000	'	'	'
Securities with an unrealized loss transferred from available-for-sale to held-to-maturity	8,200,000	'	'	'
Number of purchases made of held-to-maturity securities issued by the Government National Mortgage Association	'	2	'	'
FHLBC stock	'	5,500,000	5,500,000	6,400,000
FRB stock	'	4,800,000	4,800,000	4,800,000
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	386,491,000	386,491,000	582,141,000
Gross Unrealized Gains	'	2,563,000	2,563,000	7,899,000
Gross Unrealized Losses	'	-15,576,000	-15,576,000	-10,154,000
Fair Value	'	373,478,000	373,478,000	579,886,000
Securities Held-to-Maturity	'	'	'	'
Amortized Cost	'	258,101,000	258,101,000	'
Gross Unrealized Gains	'	'	2,320,000	'
Fair Value	'	260,421,000	260,421,000	'
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Due in one year or less	'	772,000	772,000	'
Due after one year through five years	'	4,425,000	4,425,000	'
Due after five years through ten years	'	29,271,000	29,271,000	'
Due after ten years	'	10,995,000	10,995,000	'
Debt securities excluding securities not due at a single maturity date	'	45,463,000	45,463,000	'
Total	'	386,491,000	386,491,000	582,141,000
Securities Available-for-Sale, Weighted Average Yield	'	'	'	'
Due in one year or less (as a percent)	'	'	3.58%	'
Due after one year through five years (as a percent)	'	'	2.35%	'
Due after five years through ten years (as a percent)	'	'	3.04%	'
Due after ten years (as a percent)	'	'	4.31%	'
Debt securities (as a percent)	'	'	3.29%	'
Total (as a percent)	'	'	1.99%	'
Securities Available-for-Sale, Fair Value	'	'	'	'
Due in one year or less	'	789,000	789,000	'
Due after one year through five years	'	4,510,000	4,510,000	'
Due after five years through ten years	'	28,885,000	28,885,000	'
Due after ten years	'	11,098,000	11,098,000	'
Debt securities	'	45,282,000	45,282,000	'
Fair Value	'	373,478,000	373,478,000	579,886,000
Securities Held-to-Maturity, Amortized Cost	'	'	'	'
Amortized Cost	'	258,101,000	258,101,000	'
Securities Held-to-Maturity, Fair Value	'	'	'	'
Fair Value	'	260,421,000	260,421,000	'
U.S. Treasury	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	1,554,000	1,554,000	1,500,000
Gross Unrealized Gains	'	'	'	7,000
Gross Unrealized Losses	'	-6,000	-6,000	'
Fair Value	'	1,548,000	1,548,000	1,507,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Total	'	1,554,000	1,554,000	1,500,000
Securities Available-for-Sale, Fair Value	'	'	'	'
Fair Value	'	1,548,000	1,548,000	1,507,000
U.S. government agencies	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	1,745,000	1,745,000	49,848,000
Gross Unrealized Gains	'	'	'	122,000
Gross Unrealized Losses	'	-52,000	-52,000	-120,000
Fair Value	'	1,693,000	1,693,000	49,850,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Total	'	1,745,000	1,745,000	49,848,000
Securities Available-for-Sale, Fair Value	'	'	'	'
Fair Value	'	1,693,000	1,693,000	49,850,000
U.S. government agency mortgage-backed	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	'	'	127,716,000
Gross Unrealized Gains	'	'	'	1,605,000
Gross Unrealized Losses	'	'	'	-583,000
Fair Value	'	'	'	128,738,000
Securities Held-to-Maturity	'	'	'	'
Amortized Cost	'	35,241,000	35,241,000	'
Gross Unrealized Gains	'	'	547,000	'
Fair Value	'	35,788,000	35,788,000	'
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Total	'	'	'	127,716,000
Securities Available-for-Sale, Fair Value	'	'	'	'
Fair Value	'	'	'	128,738,000
Securities Held-to-Maturity, Amortized Cost	'	'	'	'
Amortized Cost	'	35,241,000	35,241,000	'
Securities Held-to-Maturity, Fair Value	'	'	'	'
Fair Value	'	35,788,000	35,788,000	'
States and political subdivisions	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	19,275,000	19,275,000	14,639,000
Gross Unrealized Gains	'	731,000	731,000	1,216,000
Gross Unrealized Losses	'	-165,000	-165,000	'
Fair Value	'	19,841,000	19,841,000	15,855,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Total	'	19,275,000	19,275,000	14,639,000
Securities Available-for-Sale, Fair Value	'	'	'	'
Fair Value	'	19,841,000	19,841,000	15,855,000
Corporate bonds	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	22,889,000	22,889,000	36,355,000
Gross Unrealized Gains	'	75,000	75,000	586,000
Gross Unrealized Losses	'	-764,000	-764,000	-55,000
Fair Value	'	22,200,000	22,200,000	36,886,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Total	'	22,889,000	22,889,000	36,355,000
Securities Available-for-Sale, Fair Value	'	'	'	'
Fair Value	'	22,200,000	22,200,000	36,886,000
Collateralized mortgage obligations	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	51,619,000	51,619,000	168,795,000
Gross Unrealized Gains	'	182,000	182,000	1,895,000
Gross Unrealized Losses	'	-3,676,000	-3,676,000	-1,090,000
Fair Value	'	48,125,000	48,125,000	169,600,000
Securities Held-to-Maturity	'	'	'	'
Amortized Cost	'	222,860,000	222,860,000	'
Gross Unrealized Gains	'	'	1,773,000	'
Fair Value	'	224,633,000	224,633,000	'
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Securities not due at a single maturity date	'	51,619,000	51,619,000	'
Total	'	51,619,000	51,619,000	168,795,000
Securities Available-for-Sale, Weighted Average Yield	'	'	'	'
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	'	'	2.62%	'
Securities Available-for-Sale, Fair Value	'	'	'	'
Securities not due at a single maturity date	'	48,125,000	48,125,000	'
Fair Value	'	48,125,000	48,125,000	169,600,000
Securities Held-to-Maturity, Amortized Cost	'	'	'	'
Amortized Cost	'	222,860,000	222,860,000	'
Securities Held-to-Maturity, Fair Value	'	'	'	'
Fair Value	'	224,633,000	224,633,000	'
Asset-backed securities	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	272,236,000	272,236,000	165,347,000
Gross Unrealized Gains	'	1,575,000	1,575,000	2,468,000
Gross Unrealized Losses	'	-4,827,000	-4,827,000	-322,000
Fair Value	'	268,984,000	268,984,000	167,493,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Securities not due at a single maturity date	'	272,236,000	272,236,000	'
Total	'	272,236,000	272,236,000	165,347,000
Securities Available-for-Sale, Weighted Average Yield	'	'	'	'
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	'	'	1.67%	'
Securities Available-for-Sale, Fair Value	'	'	'	'
Securities not due at a single maturity date	'	268,984,000	268,984,000	'
Fair Value	'	268,984,000	268,984,000	167,493,000
CDOs	'	'	'	'
Securities Available-for-Sale	'	'	'	'
Amortized Cost	'	17,173,000	17,173,000	17,941,000
Gross Unrealized Losses	'	-6,086,000	-6,086,000	-7,984,000
Fair Value	'	11,087,000	11,087,000	9,957,000
Securities Available-for-Sale, Amortized Cost	'	'	'	'
Securities not due at a single maturity date	'	17,173,000	17,173,000	17,941,000
Total	'	17,173,000	17,173,000	17,941,000
Securities Available-for-Sale, Weighted Average Yield	'	'	'	'
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	'	'	1.62%	'
Securities Available-for-Sale, Fair Value	'	'	'	'
Securities not due at a single maturity date	'	11,087,000	11,087,000	9,957,000
Fair Value	'	11,087,000	11,087,000	9,957,000
Mortgage backed securities	'	'	'	'
Securities Held-to-Maturity	'	'	'	'
Amortized Cost	'	258,101,000	258,101,000	'
Fair Value	'	260,421,000	260,421,000	'
Securities Held-to-Maturity, Amortized Cost	'	'	'	'
Amortized Cost	'	258,101,000	258,101,000	'
Securities Held-to-Maturity, Weighted Average Yield	'	'	'	'
Weighted Average Yield (as a percent)	'	'	3.07%	'
Securities Held-to-Maturity, Fair Value	'	'	'	'
Fair Value	'	$260,421,000	$260,421,000	'

Securities_Details_2

Securities (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	security	security
Number of Securities	'	'
Less than 12 months in an unrealized loss position	35	32
Greater than 12 months in an unrealized loss position	5	3
Total	40	35
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	$9,400	$2,140
Greater than 12 months in an unrealized loss position	6,176	8,014
Total	15,576	10,154
Fair Value	'	'
Less than 12 months in an unrealized loss position	220,621	155,213
Greater than 12 months in an unrealized loss position	17,040	12,300
Total	237,661	167,513
U.S. Treasury	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	1	'
Total	1	'
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	6	'
Total	6	'
Fair Value	'	'
Less than 12 months in an unrealized loss position	1,548	'
Total	1,548	'
U.S. government agencies	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	1	4
Total	1	4
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	52	120
Total	52	120
Fair Value	'	'
Less than 12 months in an unrealized loss position	1,693	17,039
Total	1,693	17,039
U.S. government agency mortgage-backed	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	'	12
Total	'	12
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	'	583
Total	'	583
Fair Value	'	'
Less than 12 months in an unrealized loss position	'	53,184
Total	'	53,184
States and political subdivisions	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	7	'
Total	7	'
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	165	'
Total	165	'
Fair Value	'	'
Less than 12 months in an unrealized loss position	6,195	'
Total	6,195	'
Corporate bonds	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	5	4
Greater than 12 months in an unrealized loss position	2	'
Total	7	4
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	717	55
Greater than 12 months in an unrealized loss position	47	'
Total	764	55
Fair Value	'	'
Less than 12 months in an unrealized loss position	13,009	9,724
Greater than 12 months in an unrealized loss position	2,162	'
Total	15,171	9,724
Collateralized mortgage obligations	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	3	6
Greater than 12 months in an unrealized loss position	'	1
Total	3	7
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	3,676	1,060
Greater than 12 months in an unrealized loss position	'	30
Total	3,676	1,090
Fair Value	'	'
Less than 12 months in an unrealized loss position	35,471	37,778
Greater than 12 months in an unrealized loss position	'	2,343
Total	35,471	40,121
Asset-backed securities	'	'
Number of Securities	'	'
Less than 12 months in an unrealized loss position	18	6
Greater than 12 months in an unrealized loss position	1	'
Total	19	6
Unrealized Losses	'	'
Less than 12 months in an unrealized loss position	4,784	322
Greater than 12 months in an unrealized loss position	43	'
Total	4,827	322
Fair Value	'	'
Less than 12 months in an unrealized loss position	162,705	37,488
Greater than 12 months in an unrealized loss position	3,791	'
Total	166,496	37,488
CDOs	'	'
Number of Securities	'	'
Greater than 12 months in an unrealized loss position	2	2
Total	2	2
Unrealized Losses	'	'
Greater than 12 months in an unrealized loss position	6,086	7,984
Total	6,086	7,984
Fair Value	'	'
Greater than 12 months in an unrealized loss position	11,087	9,957
Total	$11,087	$9,957

Securities_Details_3

Securities (Details 3) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Available-for-sale securities	'	'
Gross Unrealized Loss	($15,576)	($10,154)
CDOs	'	'
Available-for-sale securities	'	'
Amortized Cost	17,173	17,941
Fair Value	11,087	9,957
Gross Unrealized Loss	-6,086	-7,984
Class A1	'	'
Available-for-sale securities	'	'
Amortized Cost	8,157	9,038
Fair Value	5,619	5,768
Gross Unrealized Loss	-2,538	-3,270
Number of Banks in Issuance	63	63
Issuance Deferrals & Defaults, Amount	207,000	208,000
Issuance Deferrals & Defaults, Collateral (as a percent)	27.60%	27.70%
Issuance Excess Subordination, Amount	227,472	190,982
Issuance Excess Subordination, Collateral (as a percent)	30.30%	25.50%
Class A2A	'	'
Available-for-sale securities	'	'
Amortized Cost	9,016	8,903
Fair Value	5,468	4,189
Gross Unrealized Loss	-3,548	-4,714
Number of Banks in Issuance	63	63
Issuance Deferrals & Defaults, Amount	207,000	208,000
Issuance Deferrals & Defaults, Collateral (as a percent)	27.60%	27.70%
Issuance Excess Subordination, Amount	$130,472	$93,982
Issuance Excess Subordination, Collateral (as a percent)	17.40%	12.50%

Loans_Details

Loans (Details) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

In Thousands, unless otherwise specified

Investor concentration risk

Overdraft

Lease financing receivables

Other

Commercial

Total real estate

Real estate - commercial

Real estate - construction

Real estate - residential

Consumer

Loans

Total loans, gross

$1,077,105

$1,149,944

$544

$994

$11,204

$6,060

$13,236

$16,451

$86,822

$86,941

$554,874

$579,687

$30,996

$42,167

$376,859

$414,543

$2,570

$3,101

Net deferred loan fees

535

106

Total Loans

$1,077,640

$1,150,050

$1,208,289

$98,026

$93,001

$84,667

$554,874

$621,715

$30,996

$48,606

$376,859

$436,837

$2,570

$3,101

$3,167

Significant concentrations of loans (as a percent)

0.00%

Loans receivable as a percentage of total portfolio

89.30%

90.10%

Loans_Details_2

Loans (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	$2,244	$6,529	'
60-89 Days Past Due	434	6,357	'
90 Days or Greater Past Due	45	89	'
Total Past Due	2,723	12,975	'
Current	1,031,355	1,059,556	'
Nonaccrual	43,562	77,519	'
Total Loans	1,077,640	1,150,050	1,208,289
Recorded Investment 90 days or Greater Past Due and Accruing	45	89	'
Commercial	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	69	159	'
60-89 Days Past Due	132	'	'
Total Past Due	201	159	'
Current	97,796	92,080	'
Nonaccrual	29	762	'
Total Loans	98,026	93,001	84,667
Real estate - commercial	'	'	'
Aged analysis of past due loans	'	'	'
Total Loans	554,874	'	621,715
Real estate - commercial \| Owner occupied general purpose	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	165	1,580	'
60-89 Days Past Due	'	50	'
Total Past Due	165	1,630	'
Current	109,584	119,994	'
Nonaccrual	3,497	5,487	'
Total Loans	113,246	127,111	'
Real estate - commercial \| Owner occupied special purpose	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	650	172	'
60-89 Days Past Due	227	'	'
Total Past Due	877	172	'
Current	162,435	149,439	'
Nonaccrual	5,947	11,433	'
Total Loans	169,259	161,044	'
Real estate - commercial \| Non-owner occupied general purpose	'	'	'
Aged analysis of past due loans	'	'	'
60-89 Days Past Due	'	1,046	'
Total Past Due	'	1,046	'
Current	128,084	128,817	'
Nonaccrual	7,273	13,436	'
Total Loans	135,357	143,299	'
Real estate - commercial \| Non-owner occupied special purpose	'	'	'
Aged analysis of past due loans	'	'	'
60-89 Days Past Due	'	4,304	'
Total Past Due	'	4,304	'
Current	75,595	69,299	'
Nonaccrual	438	477	'
Total Loans	76,033	74,080	'
Real estate - commercial \| Retail properties	'	'	'
Aged analysis of past due loans	'	'	'
Current	39,829	37,732	'
Nonaccrual	5,056	10,532	'
Total Loans	44,885	48,264	'
Real estate - commercial \| Farm	'	'	'
Aged analysis of past due loans	'	'	'
Current	16,094	23,372	'
Nonaccrual	'	2,517	'
Total Loans	16,094	25,889	'
Real estate - construction	'	'	'
Aged analysis of past due loans	'	'	'
Total Loans	30,996	'	48,606
Real estate - construction \| Homebuilder	'	'	'
Aged analysis of past due loans	'	'	'
Current	4,563	4,469	'
Nonaccrual	168	1,855	'
Total Loans	4,731	6,324	'
Real estate - construction \| Land	'	'	'
Aged analysis of past due loans	'	'	'
Current	4,640	2,747	'
Nonaccrual	209	254	'
Total Loans	4,849	3,001	'
Real estate - construction \| Commercial speculative	'	'	'
Aged analysis of past due loans	'	'	'
Current	8,811	10,755	'
Nonaccrual	3,534	6,587	'
Total Loans	12,345	17,342	'
Real estate - construction \| All other	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	'	300	'
60-89 Days Past Due	'	215	'
90 Days or Greater Past Due	'	68	'
Total Past Due	'	583	'
Current	8,323	14,360	'
Nonaccrual	748	557	'
Total Loans	9,071	15,500	'
Recorded Investment 90 days or Greater Past Due and Accruing	'	68	'
Real estate - residential	'	'	'
Aged analysis of past due loans	'	'	'
Total Loans	376,859	'	436,837
Real estate - residential \| Investor	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	213	276	'
60-89 Days Past Due	'	164	'
Total Past Due	213	440	'
Current	122,031	140,141	'
Nonaccrual	8,307	9,910	'
Total Loans	130,551	150,491	'
Real estate - residential \| Owner occupied	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	625	3,151	'
60-89 Days Past Due	'	375	'
90 Days or Greater Past Due	'	21	'
Total Past Due	625	3,547	'
Current	112,515	110,735	'
Nonaccrual	5,858	9,918	'
Total Loans	118,998	124,200	'
Recorded Investment 90 days or Greater Past Due and Accruing	'	21	'
Real estate - residential \| Revolving and junior liens	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	522	888	'
60-89 Days Past Due	75	203	'
90 Days or Greater Past Due	45	'	'
Total Past Due	642	1,091	'
Current	124,170	134,990	'
Nonaccrual	2,498	3,771	'
Total Loans	127,310	139,852	'
Recorded Investment 90 days or Greater Past Due and Accruing	45	'	'
Consumer	'	'	'
Aged analysis of past due loans	'	'	'
30-59 Days Past Due	'	3	'
Total Past Due	'	3	'
Current	2,570	3,075	'
Nonaccrual	'	23	'
Total Loans	2,570	3,101	3,167
All other	'	'	'
Aged analysis of past due loans	'	'	'
Current	14,315	17,551	'
Total Loans	$14,315	$17,551	$13,297

Loans_Details_3

Loans (Details 3) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Greater than

Commercial

Real estate - commercial

Real estate - construction

Real estate - residential

Consumer

All other

Pass

Special Mention

Substandard

Owner occupied general purpose

Owner occupied special purpose

Non-owner occupied general purpose

Non-owner occupied special purpose

Retail properties

Farm

Homebuilder

Land

Commercial speculative

All other

Investor

Owner occupied

Revolving and junior liens

Commercial

Real estate - commercial

Real estate - construction

Real estate - residential

Consumer

All other

Commercial

Real estate - commercial

Real estate - construction

Real estate - residential

All other

Commercial

Real estate - commercial

Real estate - construction

Real estate - residential

Consumer

Owner occupied general purpose

Owner occupied special purpose

Non-owner occupied general purpose

Non-owner occupied special purpose

Retail properties

Farm

Homebuilder

Land

Commercial speculative

All other

Investor

Owner occupied

Revolving and junior liens

Owner occupied general purpose

Owner occupied special purpose

Non-owner occupied general purpose

Non-owner occupied special purpose

Retail properties

Farm

Homebuilder

Commercial speculative

All other

Investor

Owner occupied

Revolving and junior liens

Owner occupied general purpose

Owner occupied special purpose

Non-owner occupied general purpose

Non-owner occupied special purpose

Retail properties

Farm

Homebuilder

Land

Commercial speculative

All other

Investor

Owner occupied

Revolving and junior liens

Loans by risk rating

Loan commitment for inclusion in credit quality analysis

$50,000

Total Loans

$1,077,640,000

$1,150,050,000

$1,208,289,000

$98,026,000

$93,001,000

$84,667,000

$554,874,000

$621,715,000

$113,246,000

$127,111,000

$169,259,000

$161,044,000

$135,357,000

$143,299,000

$76,033,000

$74,080,000

$44,885,000

$48,264,000

$16,094,000

$25,889,000

$30,996,000

$48,606,000

$4,731,000

$6,324,000

$4,849,000

$3,001,000

$12,345,000

$17,342,000

$9,071,000

$15,500,000

$376,859,000

$436,837,000

$130,551,000

$150,491,000

$118,998,000

$124,200,000

$127,310,000

$139,852,000

$2,570,000

$3,101,000

$3,167,000

$14,315,000

$17,551,000

$13,297,000

$964,739,000

$978,118,000

$89,051,000

$88,071,000

$97,309,000

$113,118,000

$159,678,000

$134,152,000

$118,741,000

$105,192,000

$61,874,000

$68,682,000

$35,833,000

$32,715,000

$14,607,000

$21,262,000

$1,216,000

$1,318,000

$4,640,000

$2,747,000

$5,232,000

$7,122,000

$8,289,000

$14,607,000

$116,627,000

$123,876,000

$111,323,000

$110,858,000

$123,435,000

$133,992,000

$2,569,000

$3,075,000

$14,315,000

$17,331,000

$43,959,000

$55,688,000

$8,711,000

$3,867,000

$8,560,000

$2,995,000

$1,480,000

$9,036,000

$1,574,000

$14,273,000

$9,893,000

$3,911,000

$3,006,000

$1,873,000

$1,487,000

$2,110,000

$1,770,000

$2,196,000

$3,579,000

$34,000

$37,000

$3,282,000

$14,608,000

$383,000

$396,000

$200,000

$166,000

$220,000

$68,942,000

$116,244,000

$264,000

$1,063,000

$7,377,000

$10,998,000

$8,101,000

$17,856,000

$15,042,000

$23,834,000

$4,266,000

$1,487,000

$6,046,000

$13,676,000

$2,517,000

$1,745,000

$2,810,000

$209,000

$254,000

$3,534,000

$10,220,000

$748,000

$856,000

$10,642,000

$12,007,000

$7,292,000

$12,946,000

$3,675,000

$5,694,000

$1,000

$26,000

Loans_Details_4

Loans (Details 4) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Recorded Investment	'	'	'
With no related allowance recorded	$46,232	'	$60,679
With an allowance recorded	8,019	'	28,306
Total impaired loans	54,251	'	88,985
Unpaid Principal Balance	'	'	'
With no related allowance recorded	56,952	'	77,940
With an allowance recorded	11,793	'	36,433
Total impaired loans	68,745	'	114,373
Related Allowance	'	'	'
With an allowance recorded	2,150	'	6,259
Average Recorded Investment	'	'	'
With no related allowance recorded	53,456	68,230	'
With an allowance recorded	18,162	53,203	'
Total impaired loans	71,618	121,433	'
Interest Income Recognized	'	'	'
With no related allowance recorded	392	482	'
With an allowance recorded	12	34	'
Total impaired loans	404	516	'
Commercial	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	29	'	196
With an allowance recorded	'	'	566
Unpaid Principal Balance	'	'	'
With no related allowance recorded	35	'	229
With an allowance recorded	'	'	619
Related Allowance	'	'	'
With an allowance recorded	'	'	458
Average Recorded Investment	'	'	'
With no related allowance recorded	113	516	'
With an allowance recorded	283	646	'
Commercial real estate \| Owner occupied general purpose	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	2,657	'	4,473
With an allowance recorded	935	'	1,014
Unpaid Principal Balance	'	'	'
With no related allowance recorded	3,016	'	5,021
With an allowance recorded	955	'	1,057
Related Allowance	'	'	'
With an allowance recorded	322	'	230
Average Recorded Investment	'	'	'
With no related allowance recorded	3,565	4,149	'
With an allowance recorded	974	5,173	'
Interest Income Recognized	'	'	'
With no related allowance recorded	3	'	'
Commercial real estate \| Owner occupied special purpose	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	4,647	'	7,180
With an allowance recorded	1,300	'	4,253
Unpaid Principal Balance	'	'	'
With no related allowance recorded	5,529	'	8,486
With an allowance recorded	1,493	'	6,200
Related Allowance	'	'	'
With an allowance recorded	371	'	712
Average Recorded Investment	'	'	'
With no related allowance recorded	5,913	10,222	'
With an allowance recorded	2,777	4,505	'
Commercial real estate \| Non-owner occupied general purpose	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	9,633	'	14,356
With an allowance recorded	183	'	2,779
Unpaid Principal Balance	'	'	'
With no related allowance recorded	12,131	'	17,381
With an allowance recorded	183	'	3,906
Related Allowance	'	'	'
With an allowance recorded	57	'	204
Average Recorded Investment	'	'	'
With no related allowance recorded	11,995	10,996	'
With an allowance recorded	1,481	9,047	'
Interest Income Recognized	'	'	'
With no related allowance recorded	113	210	'
Commercial real estate \| Non-owner occupied special purpose	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	438	'	477
Unpaid Principal Balance	'	'	'
With no related allowance recorded	623	'	634
Average Recorded Investment	'	'	'
With no related allowance recorded	457	933	'
With an allowance recorded	'	217	'
Commercial real estate \| Retail properties	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	5,056	'	8,780
With an allowance recorded	'	'	1,752
Unpaid Principal Balance	'	'	'
With no related allowance recorded	6,293	'	15,323
With an allowance recorded	'	'	1,812
Related Allowance	'	'	'
With an allowance recorded	'	'	1,102
Average Recorded Investment	'	'	'
With no related allowance recorded	6,918	5,851	'
With an allowance recorded	876	7,958	'
Commercial real estate \| Farm	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	'	'	2,517
Unpaid Principal Balance	'	'	'
With no related allowance recorded	'	'	2,517
Average Recorded Investment	'	'	'
With no related allowance recorded	1,259	1,335	'
With an allowance recorded	'	347	'
Construction \| Homebuilder	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	3,039	'	4,155
With an allowance recorded	168	'	26
Unpaid Principal Balance	'	'	'
With no related allowance recorded	3,039	'	4,729
With an allowance recorded	604	'	75
Related Allowance	'	'	'
With an allowance recorded	71	'	3
Average Recorded Investment	'	'	'
With no related allowance recorded	3,597	7,952	'
With an allowance recorded	97	2,411	'
Interest Income Recognized	'	'	'
With no related allowance recorded	120	83	'
Construction \| Land	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	209	'	254
Unpaid Principal Balance	'	'	'
With no related allowance recorded	308	'	308
Average Recorded Investment	'	'	'
With no related allowance recorded	231	1,021	'
Construction \| Commercial speculative	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	1,913	'	2,265
With an allowance recorded	1,621	'	4,322
Unpaid Principal Balance	'	'	'
With no related allowance recorded	2,550	'	3,451
With an allowance recorded	4,225	'	6,613
Related Allowance	'	'	'
With an allowance recorded	100	'	757
Average Recorded Investment	'	'	'
With no related allowance recorded	2,089	6,297	'
With an allowance recorded	2,971	4,554	'
Construction \| All other	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	297	'	78
With an allowance recorded	451	'	479
Unpaid Principal Balance	'	'	'
With no related allowance recorded	333	'	168
With an allowance recorded	477	'	649
Related Allowance	'	'	'
With an allowance recorded	241	'	353
Average Recorded Investment	'	'	'
With no related allowance recorded	188	2,204	'
With an allowance recorded	465	459	'
Residential \| Investor	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	6,523	'	5,168
With an allowance recorded	1,784	'	4,742
Unpaid Principal Balance	'	'	'
With no related allowance recorded	8,580	'	6,979
With an allowance recorded	2,151	'	5,954
Related Allowance	'	'	'
With an allowance recorded	584	'	477
Average Recorded Investment	'	'	'
With no related allowance recorded	5,845	4,500	'
With an allowance recorded	3,263	9,552	'
Residential \| Owner occupied	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	9,823	'	9,389
With an allowance recorded	986	'	5,909
Unpaid Principal Balance	'	'	'
With no related allowance recorded	11,629	'	11,002
With an allowance recorded	1,082	'	6,923
Related Allowance	'	'	'
With an allowance recorded	161	'	1,089
Average Recorded Investment	'	'	'
With no related allowance recorded	9,606	10,788	'
With an allowance recorded	3,448	6,726	'
Interest Income Recognized	'	'	'
With no related allowance recorded	151	187	'
With an allowance recorded	12	34	'
Residential \| Revolving and junior liens	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	1,968	'	1,368
With an allowance recorded	591	'	2,464
Unpaid Principal Balance	'	'	'
With no related allowance recorded	2,886	'	1,689
With an allowance recorded	623	'	2,625
Related Allowance	'	'	'
With an allowance recorded	243	'	874
Average Recorded Investment	'	'	'
With no related allowance recorded	1,668	1,466	'
With an allowance recorded	1,527	1,608	'
Interest Income Recognized	'	'	'
With no related allowance recorded	5	2	'
Consumer	'	'	'
Recorded Investment	'	'	'
With no related allowance recorded	'	'	23
Unpaid Principal Balance	'	'	'
With no related allowance recorded	'	'	23
Average Recorded Investment	'	'	'
With no related allowance recorded	$12	'	'

Loans_Details_5

Loans (Details 5) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	contract	contract	contract	contract
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	2	3	9
Pre-modification recorded investment	'	$1,094	$777	$5,246
Post-modification recorded investment	'	600	638	4,212
TDR's defaulted	'	'	'	'
# of contracts	3	1	4	1
Pre-modification outstanding recorded investment during the period	815	460	970	460
Real estate - residential \| Owner occupied \| Deferral	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	'	1	1
Pre-modification recorded investment	'	'	137	108
Post-modification recorded investment	'	'	137	108
Real estate - residential \| Owner occupied \| Other	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	'	1	'
Pre-modification recorded investment	'	'	30	'
Post-modification recorded investment	'	'	29	'
Real estate - residential \| Owner occupied special purpose	'	'	'	'
TDR's defaulted	'	'	'	'
# of contracts	1	'	1	'
Pre-modification outstanding recorded investment during the period	610	'	610	'
Real estate - residential \| Investor	'	'	'	'
TDR's defaulted	'	'	'	'
# of contracts	'	'	1	'
Pre-modification outstanding recorded investment during the period	'	'	155	'
Real estate - residential \| Investor \| Deferral	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	1	'	2
Pre-modification recorded investment	'	405	'	405
Post-modification recorded investment	'	167	'	167
Real estate - residential \| Investor \| Bifurcate	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	'	'	1
Pre-modification recorded investment	'	'	'	337
Post-modification recorded investment	'	'	'	88
Real estate - residential \| Revolving and junior liens	'	'	'	'
TDR's defaulted	'	'	'	'
# of contracts	1	'	1	'
Pre-modification outstanding recorded investment during the period	30	'	30	'
Real estate - residential \| Revolving and junior liens \| HAMP	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	'	'	1
Pre-modification recorded investment	'	'	'	117
Post-modification recorded investment	'	'	'	61
Real estate - commercial \| Deferral	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	1	1	2
Pre-modification recorded investment	'	689	610	898
Post-modification recorded investment	'	433	472	640
Real estate - commercial \| Interest	'	'	'	'
Troubled debt restructurings	'	'	'	'
# of contracts modified during the period	'	'	'	2
Pre-modification recorded investment	'	'	'	3,381
Post-modification recorded investment	'	'	'	3,148
Real estate - commercial \| Owner occupied	'	'	'	'
TDR's defaulted	'	'	'	'
# of contracts	1	'	1	'
Pre-modification outstanding recorded investment during the period	175	'	175	'
Real estate - construction \| Commercial speculative	'	'	'	'
TDR's defaulted	'	'	'	'
# of contracts	'	1	'	1
Pre-modification outstanding recorded investment during the period	'	$460	'	$460

Allowance_for_Loan_Losses_Deta

Allowance for Loan Losses (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	$35,042	$40,286	$38,597	$51,997	'
Charge-offs	4,695	2,682	9,303	23,934	'
Recoveries	950	2,653	6,303	5,910	'
Provision (release)	-1,750	'	-6,050	6,284	'
Ending Balance	29,547	40,257	29,547	40,257	'
Ending balance: Individually evaluated for impairment	2,150	7,585	2,150	7,585	'
Ending balance: Collectively evaluated for impairment	27,397	32,672	27,397	32,672	'
Loans:	'	'	'	'	'
Ending balance	1,077,640	1,208,289	1,077,640	1,208,289	1,150,050
Ending balance: Individually evaluated for impairment	54,251	104,240	54,251	104,240	'
Ending balance: Collectively evaluated for impairment	1,023,389	1,104,049	1,023,389	1,104,049	'
Substandard	'	'	'	'	'
Loans:	'	'	'	'	'
Ending balance	68,942	'	68,942	'	116,244
Commercial	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	3,332	4,783	4,517	5,070	'
Charge-offs	29	2	308	110	'
Recoveries	60	22	104	32	'
Provision (release)	-469	-251	-1,419	-440	'
Ending Balance	2,894	4,552	2,894	4,552	'
Ending balance: Individually evaluated for impairment	'	514	'	514	'
Ending balance: Collectively evaluated for impairment	2,894	4,038	2,894	4,038	'
Loans:	'	'	'	'	'
Ending balance	98,026	84,667	98,026	84,667	93,001
Ending balance: Individually evaluated for impairment	29	1,157	29	1,157	'
Ending balance: Collectively evaluated for impairment	97,997	83,510	97,997	83,510	'
Commercial \| Substandard	'	'	'	'	'
Loans:	'	'	'	'	'
Ending balance	264	'	264	'	1,063
Real Estate Commercial	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	18,097	23,766	20,100	30,770	'
Charge-offs	851	355	2,377	12,694	'
Recoveries	523	76	3,752	1,698	'
Provision (release)	-1,354	-939	-5,060	2,774	'
Ending Balance	16,415	22,548	16,415	22,548	'
Ending balance: Individually evaluated for impairment	750	3,113	750	3,113	'
Ending balance: Collectively evaluated for impairment	15,665	19,435	15,665	19,435	'
Loans:	'	'	'	'	'
Ending balance	554,874	621,715	554,874	621,715	'
Ending balance: Individually evaluated for impairment	24,849	56,176	24,849	56,176	'
Ending balance: Collectively evaluated for impairment	530,025	565,539	530,025	565,539	'
Real Estate Commercial \| Substandard high risk pool	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Ending Balance	2,700	2,200	2,700	2,200	'
Loans:	'	'	'	'	'
Ending balance	14,400	19,700	14,400	19,700	'
Real Estate Construction	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	2,690	5,501	3,837	7,937	'
Charge-offs	53	909	951	4,251	'
Recoveries	15	2,202	1,265	3,373	'
Provision (release)	-252	-2,366	-1,751	-2,631	'
Ending Balance	2,400	4,428	2,400	4,428	'
Ending balance: Individually evaluated for impairment	412	1,408	412	1,408	'
Ending balance: Collectively evaluated for impairment	1,988	3,020	1,988	3,020	'
Loans:	'	'	'	'	'
Ending balance	30,996	48,606	30,996	48,606	'
Ending balance: Individually evaluated for impairment	7,698	15,988	7,698	15,988	'
Ending balance: Collectively evaluated for impairment	23,298	32,618	23,298	32,618	'
Real Estate Residential	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	5,021	4,141	4,535	6,335	'
Charge-offs	3,594	1,230	5,193	6,416	'
Recoveries	209	219	792	452	'
Provision (release)	1,352	1,342	2,854	4,101	'
Ending Balance	2,988	4,472	2,988	4,472	'
Ending balance: Individually evaluated for impairment	988	2,550	988	2,550	'
Ending balance: Collectively evaluated for impairment	2,000	1,922	2,000	1,922	'
Loans:	'	'	'	'	'
Ending balance	376,859	436,837	376,859	436,837	'
Ending balance: Individually evaluated for impairment	21,675	30,919	21,675	30,919	'
Ending balance: Collectively evaluated for impairment	355,184	405,918	355,184	405,918	'
Consumer	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	1,372	1,063	1,178	884	'
Charge-offs	168	186	474	463	'
Recoveries	143	134	390	355	'
Provision (release)	162	104	415	339	'
Ending Balance	1,509	1,115	1,509	1,115	'
Ending balance: Collectively evaluated for impairment	1,509	1,115	1,509	1,115	'
Loans:	'	'	'	'	'
Ending balance	2,570	3,167	2,570	3,167	3,101
Ending balance: Collectively evaluated for impairment	2,570	3,167	2,570	3,167	'
Consumer \| Substandard	'	'	'	'	'
Loans:	'	'	'	'	'
Ending balance	1	'	1	'	26
Unallocated	'	'	'	'	'
Allowance for loan losses:	'	'	'	'	'
Beginning Balance	4,530	1,032	4,430	1,001	'
Provision (release)	-1,189	2,110	-1,089	2,141	'
Ending Balance	3,341	3,142	3,341	3,142	'
Ending balance: Collectively evaluated for impairment	3,341	3,142	3,341	3,142	'
Loans:	'	'	'	'	'
Ending balance	14,315	13,297	14,315	13,297	17,551
Ending balance: Collectively evaluated for impairment	$14,315	$13,297	$14,315	$13,297	'

Other_Real_Estate_Owned_Detail

Other Real Estate Owned (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve	'	'	'	'
Balance at beginning of period	$59,465	$89,671	$72,423	$93,290
Property additions	3,015	7,594	14,196	26,944
Development improvements	10	131	60	646
Less: Property Disposals, net of gains/losses	11,463	4,829	30,928	20,517
Less: Period valuation adjustments	1,961	4,474	6,685	12,270
Balance at end of period	49,066	88,093	49,066	88,093
Activity in the valuation allowance	'	'	'	'
Balance at beginning of period	30,487	27,469	31,454	23,462
Provision for unrealized losses	1,961	4,474	6,537	12,101
Reduction taken on sales	-7,571	-2,657	-13,305	-6,446
Other adjustments	-290	'	-99	169
Balance at end of period	24,587	29,286	24,587	29,286
Expenses related to foreclosed assets, net of lease revenue	'	'	'	'
Gain on sales, net	-608	-20	-1,175	-398
Provision for unrealized losses	1,961	4,474	6,537	12,101
Operating expenses	1,500	2,071	4,555	5,886
Less: Lease revenue	309	840	974	2,930
Expenses related to foreclosed assets, net of lease revenue	$2,544	$5,685	$8,943	$14,659

Deposits_Details

Deposits (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Deposits	'	'
Noninterest bearing demand	$373,499	$379,451
Savings	227,823	216,305
NOW accounts	272,632	286,860
Money market accounts	309,066	323,811
Certificates of deposit of less than $100,000	299,632	318,844
Certificates of deposit of $100,000 or more	190,471	191,948
Total deposits	$1,673,123	$1,717,219

Borrowings_Details

Borrowings (Details) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Jan. 31, 2008

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Securities sold under repurchase agreements

FHLB advances

Subordinated debt

Notes payable and other borrowings

Credit facility with LaSalle Bank National Association (now Bank of America)

Senior debt facility

Term debt

Junior subordinated debentures

Line of credit

item

Minimum

Maximum

item

LIBOR

Prime rate

Borrowings

Total borrowings

$179,597,000

$221,753,000

$20,719,000

$17,875,000

$55,000,000

$100,000,000

$45,000,000

$500,000

$58,378,000

Maturity

'1 day

'90 days

Carrying amount of securities secured

32,100,000

26,000,000

Number of customers having secured balances exceeding specified percentage of stockholders equity

Threshold percentage of stockholders' equity

10.00%

Borrowings at FHLBC as percentage of total assets

35.00%

Borrowings at FHLBC as percentage of book value of certain mortgage loans

60.00%

FHLBC advance amount

55,000,000

Rate of interest on FHLBC stock (as a percent)

0.13%

Bank owned FHLBC stock

5,500,000

6,400,000

5,500,000

Total funding availability

99,900,000

Amount available for additional borrowings

44,900,000

Maximum borrowing capacity

45,500,000

30,500,000

500,000

Face amount

45,000,000

Variable interest rate base

'three-month LIBOR

'Prime rate

Basis points added to reference rate (as a percent)

1.50%

0.90%

Principal outstanding balance

Number of financial covenants for which the entity continued to be out of compliance

Increase in basis points on non compliance of covenant (as a percent)

2.00%

Junior_Subordinated_Debentures1

Junior Subordinated Debentures (Details) (USD $)	1 Months Ended		9 Months Ended	1 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Jul. 31, 2003	Jun. 30, 2003	Sep. 30, 2013	Apr. 30, 2007	Sep. 30, 2013
	Old Second Capital Trust I	Old Second Capital Trust I	Old Second Capital Trust I	Old Second Capital Trust II	Old Second Capital Trust II
Junior subordinated debentures	'	'	'	'	'
Proceeds from sale of cumulative trust preferred securities	$4.10	$27.50	'	$25	'
Amortization period	'	'	'30 years	'	'30 years
Maturity Period	'	'	'30 years	'	'30 years
Cash distribution rate of trust preferred securities (as a percent)	'	'	7.80%	'	'
Cash distribution fixed rate of trust preferred securities (as a percent)	'	'	'	'	6.77%
Cash distribution, floating rate base	'	'	'	'	'three-month LIBOR
Basis points added to cash distribution floating rate base (as a percent)	'	'	'	'	1.50%

Junior_Subordinated_Debentures2

Junior Subordinated Debentures (Details 2) (Junior subordinated debentures, USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Aug. 31, 2010
	Q	Aug. 31, 2010
Junior subordinated debentures	'	'
Period of interest payments that may be deferred (in quarters)	20	'
Face amount	'	$58.40
Total accumulated unpaid interest including compounded interest	15.7	'
Old Second Capital Trust I	'	'
Junior subordinated debentures	'	'
Amount issued to trust	32.6	'
Old Second Capital Trust II	'	'
Junior subordinated debentures	'	'
Amount issued to trust	$25.80	'

LongTerm_Incentive_Plan_Detail

Long-Term Incentive Plan (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Jun. 30, 2013

Sep. 30, 2013

Stock options

Restricted stock and restricted stock units

Restricted awards

Long-Term Incentive Plan

Number of shares authorized

1,908,332

Number of shares issuable

45,368

Granted (in shares)

Term of stock options granted

'10 years

Total compensation cost

$57,000

$67,000

$123,000

$220,000

Exercised (in shares)

Total unrecognized compensation cost

Balance outstanding at the beginning of the period (in shares)

409,500

Canceled (in shares)

-2,000

Balance outstanding at the end of the period (in shares)

407,500

Exercisable at end of period (in shares)

407,500

Weighted Average Exercise Price

Balance outstanding at the beginning of the period (in dollars per share)

$28.75

Canceled (in dollars per share)

$32.59

Balance outstanding at the end of the period (in dollars per share)

$28.74

Exercisable at end of period (in dollars per share)

$28.74

Weighted Average Remaining Contractual Term (years)

Balance outstanding at the end of the period

'2 years 3 months 11 days

Exercisable at end of period

'2 years 3 months 11 days

Nonvested shares of restricted shares rights

Nonvested at the beginning of the period (in shares)

327,920

Granted (in shares)

155,500

60,000

Vested (in shares)

-241,920

Forfeited (in shares)

-11,000

Recaptured after Series B auction (in shares)

-45,000

Nonvested at the end of the period (in shares)

185,500

Weighted Average Grant Date Fair Value

Nonvested at the beginning of the period (in dollars per share)

$2.21

Granted (in dollars per share)

$3.28

Vested (in dollars per share)

$2.50

Forfeited (in dollars per share)

$2.47

Recaptured after Series B auction (in dollars per share)

$1.25

Nonvested at the end of the period (in dollars per share)

$2.95

Restricted stock vested and recaptured (in shares)

133,943

Benefit on recapture of restricted stock

612,000

Total unrecognized compensation cost of restricted awards

$411,000

$161,000

$411,000

$161,000

Expected weighted-average period for recognition of unrecognized compensation

'2 years 5 months 16 days

'11 months 5 days

Earnings_loss_Per_Share_Detail

Earnings (loss) Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic earnings (loss) per share:	'	'	'	'
Weighted-average common shares outstanding	13,885,884	14,084,328	13,947,606	14,070,783
Weighted-average common shares less stock based awards	13,870,884	13,883,008	13,895,136	13,873,819
Weighted-average common shares stock based awards	231,152	327,920	217,107	332,198
Net income (loss)	$72,924	$120	$81,872	($1,596)
Dividends and accretion of discount on preferred shares	1,323	1,255	3,917	3,716
Net income (loss) available to common stockholders	71,601	-1,135	77,955	-5,312
Undistributed earnings (loss)	71,601	-1,135	77,955	-5,312
Basic earnings (loss) per share common undistributed earnings (loss) (in dollars per share)	$5.08	($0.08)	$5.52	($0.37)
Basic earnings (loss) per share (in dollars per share)	$5.08	($0.08)	$5.52	($0.37)
Diluted earnings (loss) per share:	'	'	'	'
Weighted-average common shares outstanding	13,885,884	14,084,328	13,947,606	14,070,783
Diluted average common shares outstanding	14,102,036	14,210,928	14,112,243	14,206,017
Net earnings (loss) available to common stockholders	$71,601	($1,135)	$77,955	($5,312)
Diluted earnings (loss) per share (in dollars per share)	$5.08	($0.08)	$5.52	($0.37)
Restricted awards	'	'	'	'
Diluted earnings (loss) per share:	'	'	'	'
Dilutive effect of restricted awards (in shares)	216,152	126,600	164,637	135,234
Stock options	'	'	'	'
Diluted earnings (loss) per share:	'	'	'	'
Number of antidilutive options excluded from the diluted earnings per share calculation (in shares)	1,224,839	1,286,839	1,224,839	1,286,839

Regulatory_Capital_Matters_Det

Regulatory & Capital Matters (Details) (USD $)	9 Months Ended		9 Months Ended				9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2011
			Series B Preferred Stock	Bank of America credit facility, subordinated debt	Bank of America credit facility, subordinated debt	Junior subordinated debentures	Junior subordinated debentures	Old Second National Bank	Old Second National Bank	Old Second National Bank	Old Second National Bank
						businesstrust	Maximum			Minimum	OCC Consent Order Plan
							Q
Regulatory & Capital Matters	'	'	'	'	'	'	'	'	'	'	'
Tier One leverage ratio, basis point increase (as a percent)	'	'	'	'	'	'	'	1.41%	'	'	'
Actual over target Tier One leverage ratio, basis point increase (as a percent)	'	'	'	'	'	'	'	2.33%	'	'	'
Risk-based capital ratio, basis point increase (as a percent)	'	'	'	'	'	'	'	2.22%	'	'	'
Actual over target risk-based capital ratio, basis point increase (as a percent)	'	'	'	'	'	'	'	5.83%	'	'	'
Total capital to risk weighted assets, Amount	'	'	'	'	'	'	'	'	'	'	'
Actual at period end	$198,822,000	$189,466,000	'	'	'	'	'	$224,171,000	$206,496,000	'	'
Minimum Required for Capital Adequacy Purposes	104,989,000	111,287,000	'	'	'	'	'	104,998,000	111,169,000	'	'
Minimum Required to Be Well Capitalized	'	'	'	'	'	'	'	131,248,000	138,961,000	'	'
Total capital to risk weighted assets, Ratio	'	'	'	'	'	'	'	'	'	'	'
Risk-based capital ratio (as a percent)	15.15%	13.62%	'	'	'	'	'	17.08%	14.86%	12.00%	11.25%
Minimum Required for Capital Adequacy Purposes (as a percent)	8.00%	8.00%	'	'	'	'	'	8.00%	8.00%	'	'
Minimum Required to Be Well Capitalized (as a percent)	'	'	'	'	'	'	'	10.00%	10.00%	'	'
Tier 1 capital to risk weighted assets, Amount	'	'	'	'	'	'	'	'	'	'	'
Actual	132,129,000	94,817,000	'	'	'	'	'	207,607,000	188,873,000	'	'
Minimum Required for Capital Adequacy Purposes	52,484,000	55,693,000	'	'	'	'	'	52,492,000	55,592,000	'	'
Minimum Required to Be Well Capitalized	'	'	'	'	'	'	'	78,738,000	83,388,000	'	'
Tier 1 capital to risk weighted assets, Ratio	'	'	'	'	'	'	'	'	'	'	'
Actual (as a percent)	10.07%	6.81%	'	'	'	'	'	15.82%	13.59%	'	'
Minimum Required for Capital Adequacy Purposes (as a percent)	4.00%	4.00%	'	'	'	'	'	4.00%	4.00%	'	'
Minimum Required to Be Well Capitalized (as a percent)	'	'	'	'	'	'	'	6.00%	6.00%	'	'
Tier 1 capital to average assets, Amount	'	'	'	'	'	'	'	'	'	'	'
Actual	132,129,000	94,817,000	'	'	'	'	'	207,607,000	188,873,000	'	'
Minimum Required for Capital Adequacy Purposes	74,334,000	78,200,000	'	'	'	'	'	74,948,000	78,127,000	'	'
Minimum Required to Be Well Capitalized	'	'	'	'	'	'	'	93,685,000	97,659,000	'	'
Tier 1 capital to average assets, Ratio	'	'	'	'	'	'	'	'	'	'	'
Tier 1 capital leverage ratio (as a percent)	7.11%	4.85%	'	'	'	'	'	11.08%	9.67%	8.00%	8.75%
Minimum Required for Capital Adequacy Purposes (as a percent)	4.00%	4.00%	'	'	'	'	'	4.00%	4.00%	'	'
Minimum Required to Be Well Capitalized (as a percent)	'	'	'	'	'	'	'	5.00%	5.00%	'	'
Other regulatory capital information	'	'	'	'	'	'	'	'	'	'	'
Subordinated debt	45,000,000	45,000,000	'	45,000,000	'	'	'	'	'	'	'
Trust preferred proceeds qualified as Tier 1 regulatory capital	'	'	'	51,500,000	24,600,000	'	'	'	'	'	'
Trust preferred proceeds qualified as Tier 2 regulatory capital	'	'	'	5,100,000	32,000,000	'	'	'	'	'	'
Dividend Restrictions and Deferrals	'	'	'	'	'	'	'	'	'	'	'
Number of previous years retained profit considered for dividend payment	'2 years	'	'	'	'	'	'	'	'	'	'
Junior subordinated debenture	58,378,000	58,378,000	'	'	'	58,400,000	'	'	'	'	'
Number of statutory business trusts that hold junior subordinated debentures	'	'	'	'	'	2	'	'	'	'	'
Number of quarterly periods for deferral of interest	'	'	'	'	'	'	20	'	'	'	'
Total amount of deferred and unpaid interest	'	'	'	'	'	15,700,000	'	'	'	'	'
Deferred preferred stock dividends	'	'	$12,300,000	'	'	'	'	'	'	'	'

Fair_Value_Option_and_Fair_Val2

Fair Value Option and Fair Value Measurements (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Fair Value Option and Fair Value Measurements	'	'	'
Significant transfers between levels	$0	$0	'
Assets:	'	'	'
Securities available-for-sale	373,478	'	579,886
Mortgage servicing rights	5,456	'	4,116
U.S. Treasury	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,548	'	1,507
U.S. government agencies	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,693	'	49,850
U.S. government agency mortgage-backed	'	'	'
Assets:	'	'	'
Securities available-for-sale	'	'	128,738
States and political subdivisions	'	'	'
Assets:	'	'	'
Securities available-for-sale	19,841	'	15,855
Corporate bonds	'	'	'
Assets:	'	'	'
Securities available-for-sale	22,200	'	36,886
Collateralized mortgage obligations	'	'	'
Assets:	'	'	'
Securities available-for-sale	48,125	'	169,600
Asset-backed securities	'	'	'
Assets:	'	'	'
Securities available-for-sale	268,984	'	167,493
CDOs	'	'	'
Assets:	'	'	'
Securities available-for-sale	11,087	'	9,957
Level 1	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,548	'	1,507
Level 2	'	'	'
Assets:	'	'	'
Securities available-for-sale	213,499	'	568,290
Loans held-for-sale	3,129	'	9,571
Level 3	'	'	'
Assets:	'	'	'
Securities available-for-sale	158,431	'	10,089
Recurring basis \| Level 1	'	'	'
Assets:	'	'	'
Total financial assets	1,548	'	1,507
Recurring basis \| Level 1 \| U.S. Treasury	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,548	'	1,507
Recurring basis \| Level 2	'	'	'
Assets:	'	'	'
Loans held-for-sale	3,129	'	9,571
Total financial assets	217,281	'	579,777
Liabilities:	'	'	'
Liabilities at fair value	585	'	1,354
Recurring basis \| Level 2 \| Interest rate swap agreements net of swap credit valuation	'	'	'
Assets:	'	'	'
Other assets	584	'	1,349
Liabilities:	'	'	'
Other liabilities	584	'	1,349
Recurring basis \| Level 2 \| Forward MBS	'	'	'
Assets:	'	'	'
Other assets	69	'	567
Recurring basis \| Level 2 \| Interest rate lock commitments to borrowers	'	'	'
Liabilities:	'	'	'
Other liabilities	1	'	5
Recurring basis \| Level 2 \| U.S. government agencies	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,693	'	49,850
Recurring basis \| Level 2 \| U.S. government agency mortgage-backed	'	'	'
Assets:	'	'	'
Securities available-for-sale	'	'	128,738
Recurring basis \| Level 2 \| States and political subdivisions	'	'	'
Assets:	'	'	'
Securities available-for-sale	19,709	'	15,723
Recurring basis \| Level 2 \| Corporate bonds	'	'	'
Assets:	'	'	'
Securities available-for-sale	22,200	'	36,886
Recurring basis \| Level 2 \| Collateralized mortgage obligations	'	'	'
Assets:	'	'	'
Securities available-for-sale	48,125	'	169,600
Recurring basis \| Level 2 \| Asset-backed securities	'	'	'
Assets:	'	'	'
Securities available-for-sale	121,772	'	167,493
Recurring basis \| Level 3	'	'	'
Assets:	'	'	'
Mortgage servicing rights	5,456	'	4,116
Total financial assets	163,874	'	14,158
Recurring basis \| Level 3 \| Interest rate swap agreements net of swap credit valuation	'	'	'
Assets:	'	'	'
Other assets	-13	'	-47
Recurring basis \| Level 3 \| States and political subdivisions	'	'	'
Assets:	'	'	'
Securities available-for-sale	132	'	132
Recurring basis \| Level 3 \| Asset-backed securities	'	'	'
Assets:	'	'	'
Securities available-for-sale	147,212	'	'
Recurring basis \| Level 3 \| CDOs	'	'	'
Assets:	'	'	'
Securities available-for-sale	11,087	'	9,957
Recurring basis \| Total	'	'	'
Assets:	'	'	'
Loans held-for-sale	3,129	'	9,571
Mortgage servicing rights	5,456	'	4,116
Total financial assets	382,703	'	595,442
Liabilities:	'	'	'
Liabilities at fair value	585	'	1,354
Recurring basis \| Total \| Interest rate swap agreements net of swap credit valuation	'	'	'
Assets:	'	'	'
Other assets	571	'	1,302
Liabilities:	'	'	'
Other liabilities	584	'	1,349
Recurring basis \| Total \| Forward MBS	'	'	'
Assets:	'	'	'
Other assets	69	'	567
Recurring basis \| Total \| Interest rate lock commitments to borrowers	'	'	'
Liabilities:	'	'	'
Other liabilities	1	'	5
Recurring basis \| Total \| U.S. Treasury	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,548	'	1,507
Recurring basis \| Total \| U.S. government agencies	'	'	'
Assets:	'	'	'
Securities available-for-sale	1,693	'	49,850
Recurring basis \| Total \| U.S. government agency mortgage-backed	'	'	'
Assets:	'	'	'
Securities available-for-sale	'	'	128,738
Recurring basis \| Total \| States and political subdivisions	'	'	'
Assets:	'	'	'
Securities available-for-sale	19,841	'	15,855
Recurring basis \| Total \| Corporate bonds	'	'	'
Assets:	'	'	'
Securities available-for-sale	22,200	'	36,886
Recurring basis \| Total \| Collateralized mortgage obligations	'	'	'
Assets:	'	'	'
Securities available-for-sale	48,125	'	169,600
Recurring basis \| Total \| Asset-backed securities	'	'	'
Assets:	'	'	'
Securities available-for-sale	268,984	'	167,493
Recurring basis \| Total \| CDOs	'	'	'
Assets:	'	'	'
Securities available-for-sale	$11,087	'	$9,957

Fair_Value_Option_and_Fair_Val3

Fair Value Option and Fair Value Measurements (Details 2) (USD $)	9 Months Ended									9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2013	Sep. 30, 2012
	Interest rate swap valuation	Interest rate swap valuation	CDOs	CDOs	Asset-backed securities	States and political subdivisions	States and political subdivisions	States and political subdivisions	States and political subdivisions	Mortgage servicing rights	Mortgage servicing rights
Changes in Level 3	'	'	'	'	'	'	'	'	'	'	'
Balance at the beginning of the period	($47)	($80)	$9,957	$9,974	'	$132	$132	$138	$138	$4,116	$3,487
Total gains or losses	'	'	'	'	'	'	'	'	'	'	'
Included in earnings (or changes in net assets)	34	19	178	125	485	'	'	'	'	81	-1,315
Included in other comprehensive income	'	'	1,898	-441	-1,487	'	'	'	'	'	'
Purchases, issuances, sales, and settlements	'	'	'	'	'	'	'	'	'	'	'
Purchases	'	'	'	'	168,753	'	'	'	'	'	'
Issuances	'	'	'	'	'	'	'	'	'	1,259	1,431
Settlements	'	'	-946	-115	'	'	'	'	'	'	'
Sales	'	'	'	'	-20,539	'	'	'	'	'	'
Balance at the end of the period	($13)	($61)	$11,087	$9,543	$147,212	$132	$132	$138	$138	$5,456	$3,603

Fair_Value_Option_and_Fair_Val4

Fair Value Option and Fair Value Measurements (Details 3) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	373,478	579,886
Mortgage servicing rights, fair value	5,456	4,116
Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	158,431	10,089
Collateralized Debt Obligations	'	'
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	11,087	9,957
Asset-backed securities	'	'
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	268,984	167,493
Recurring basis \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Mortgage servicing rights, fair value	5,456	4,116
Recurring basis \| Interest Rate Swap Valuation \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Interest rate swap valuation, fair value	-13	-47
Recurring basis \| Interest Rate Swap Valuation \| Management estimate of credit risk exposure \| Level 3 \| Minimum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk rating & probability of default (as a percent)	5.00%	2.00%
Recurring basis \| Interest Rate Swap Valuation \| Management estimate of credit risk exposure \| Level 3 \| Maximum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk rating & probability of default (as a percent)	20.00%	31.00%
Recurring basis \| Interest Rate Swap Valuation \| Management estimate of credit risk exposure \| Level 3 \| Weighted Average of Inputs	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk rating & probability of default (as a percent)	13.40%	17.90%
Recurring basis \| Collateralized Debt Obligations \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	11,087	9,957
Recurring basis \| Collateralized Debt Obligations \| Discounted Cash Flow \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate, description of variable rate basis	'LIBOR	'LIBOR
Recurring basis \| Collateralized Debt Obligations \| Discounted Cash Flow \| Level 3 \| Minimum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate, spread on variable rate (as a percent)	5.25%	6.00%
Prepayment speed (as a percent)	0.00%	0.00%
Credit risk rating & probability of default (as a percent)	3.00%	3.10%
Recurring basis \| Collateralized Debt Obligations \| Discounted Cash Flow \| Level 3 \| Maximum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate, spread on variable rate (as a percent)	6.25%	7.00%
Prepayment speed (as a percent)	76.00%	76.00%
Credit risk rating & probability of default (as a percent)	100.00%	100.00%
Recurring basis \| Collateralized Debt Obligations \| Discounted Cash Flow \| Level 3 \| Weighted Average of Inputs	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate (as a percent)	5.70%	6.40%
Prepayment speed (as a percent)	13.50%	16.40%
Credit risk rating & probability of default (as a percent)	15.70%	19.10%
Recurring basis \| Mortgage Servicing rights \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Mortgage servicing rights, fair value	5,456	4,116
Recurring basis \| Mortgage Servicing rights \| Discounted Cash Flow \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate (as a percent)	10.00%	10.50%
Prepayment speed (as a percent)	10.80%	15.80%
Recurring basis \| Mortgage Servicing rights \| Discounted Cash Flow \| Level 3 \| Weighted Average of Inputs	'	'
Quantitative information about Level 3 fair value measurements	'	'
Discount rate (as a percent)	10.00%	10.50%
Prepayment speed (as a percent)	10.80%	15.80%
Recurring basis \| Asset-backed securities \| Level 3	'	'
Quantitative information about Level 3 fair value measurements	'	'
Securities available-for-sale	147,212	'
Asset-backed securities	147,212	'
Liquidity risk premium (as a percent)	1.00%	'
Recurring basis \| Asset-backed securities \| Level 3 \| Weighted Average of Inputs	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk rating & probability of default (as a percent)	1.00%	'
Recurring basis \| Asset-backed securities \| Discounted Cash Flow \| Level 3 \| Minimum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk premium (as a percent)	1.00%	'
Recurring basis \| Asset-backed securities \| Discounted Cash Flow \| Level 3 \| Maximum, Range of Input	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk premium (as a percent)	1.50%	'
Recurring basis \| Asset-backed securities \| Discounted Cash Flow \| Level 3 \| Weighted Average of Inputs	'	'
Quantitative information about Level 3 fair value measurements	'	'
Credit risk rating & probability of default (as a percent)	1.30%	'

Fair_Value_Option_and_Fair_Val5

Fair Value Option and Fair Value Measurements (Details 4) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Jun. 30, 2013

Dec. 31, 2012

Jun. 30, 2012

Dec. 31, 2011

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Nonrecurring basis

Impaired loans

Other real estate owned, net

Level 3

Total

Carrying Amount

Impaired loans

Other real estate owned, net

Impaired loans

Other real estate owned, net

Assets and liabilities measured at fair value

Total

$7,800,000

$27,800,000

$54,719,000

$93,966,000

$5,653,000

$21,543,000

$49,066,000

$72,423,000

$54,719,000

$93,966,000

$5,653,000

$21,543,000

$49,066,000

$72,423,000

Valuation allowance

2,150,000

6,259,000

2,100,000

6,300,000

Decrease of specific allocations within the allowance for loan losses

4,100,000

6,800,000

Carrying value of other real estate owned

49,066,000

88,093,000

49,066,000

88,093,000

59,465,000

72,423,000

89,671,000

93,290,000

72,400,000

49,100,000

Outstanding balance

109,700,000

75,800,000

OREO Valuation allowance

24,587,000

29,286,000

24,587,000

29,286,000

30,487,000

31,454,000

27,469,000

23,462,000

31,400,000

24,600,000

OREO participations

5,900,000

2,100,000

OREO charge to expense

$1,961,000

$4,474,000

$6,685,000

$12,270,000

$16,400,000

Financial_Instruments_with_Off2

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
	institution	institution
Not designated as hedging instruments	'	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'	'
Asset Derivatives, Fair Value	$640,000	$1,869,000
Liability Derivatives, Fair Value	585,000	1,354,000
Interest rate swap agreements net of swap credit valuation	'	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'	'
Investment securities pledged with financial institutions, dollars	3,200,000	7,400,000
Investment securities pledged with financial institutions, number	3	2
Interest rate swap agreements net of swap credit valuation \| Not designated as hedging instruments	'	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'	'
Weighted average maturity	'1 year 3 months 18 days	'1 year 3 months 18 days
Notional or Contractual Amount	80,323,000	82,097,000
Asset Derivatives, Fair Value	571,000	1,302,000
Liability Derivatives, Fair Value	584,000	1,349,000
Commitments \| Not designated as hedging instruments	'	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'	'
Notional or Contractual Amount	211,635,000	226,135,000
Asset Derivatives, Fair Value	69,000	567,000
Forward contracts \| Not designated as hedging instruments	'	'
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	'	'
Notional or Contractual Amount	12,573,000	28,000,000
Liability Derivatives, Fair Value	$1,000	$5,000

Financial_Instruments_with_Off3

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	$9,509	$10,646
Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,852	1,875
Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	7,657	8,771
Letters of credit: Borrower	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	8,180	9,281
Letters of credit: Borrower \| Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,612	1,635
Letters of credit: Borrower \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	6,568	7,646
Letters of credit: Borrower \| Financial standby	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	3,851	3,383
Letters of credit: Borrower \| Financial standby \| Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	5	5
Letters of credit: Borrower \| Financial standby \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	3,846	3,378
Letters of credit: Borrower \| Commercial standby	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	51	51
Letters of credit: Borrower \| Commercial standby \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	51	51
Letters of credit: Borrower \| Performance standby	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	4,278	5,847
Letters of credit: Borrower \| Performance standby \| Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,607	1,630
Letters of credit: Borrower \| Performance standby \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	2,671	4,217
Letters of credit: Non-borrower	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,329	1,365
Letters of credit: Non-borrower \| Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	240	240
Letters of credit: Non-borrower \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,089	1,125
Letters of credit: Non-borrower \| Performance standby	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	1,329	1,365
Letters of credit: Non-borrower \| Performance standby \| Fixed	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	240	240
Letters of credit: Non-borrower \| Performance standby \| Variable	'	'
Company's contractual commitments due to letters of credit	'	'
Total letters of credit	$1,089	$1,125

Fair_Values_of_Financial_Instr2

Fair Values of Financial Instruments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financial assets:	'	'
Cash, due from banks and federal funds sold	$47,486	$44,221
Interest bearing deposits with financial institutions	32,586	84,286
Securities available-for-sale	373,478	579,886
Securities held-to-maturity	258,101	'
FHLBC and FRB stock	10,292	11,202
Bank-owned life insurance	55,005	54,203
Financial liabilities:	'	'
Noninterest bearing deposits	373,499	379,451
Other short-term borrowings	55,000	100,000
Junior subordinated debentures	58,378	58,378
Level 1	'	'
Financial assets:	'	'
Cash, due from banks and federal funds sold	47,486	44,221
Interest bearing deposits with financial institutions	32,586	84,286
Securities available-for-sale	1,548	1,507
Financial liabilities:	'	'
Noninterest bearing deposits	373,499	379,451
Junior subordinated debentures	37,657	22,725
Borrowing interest payable	9,305	6,946
Level 2	'	'
Financial assets:	'	'
Securities available-for-sale	213,499	568,290
Securities held-to-maturity	260,421	'
FHLBC and FRB stock	10,292	11,202
Bank-owned life insurance	55,005	54,203
Loans held for sale	3,129	9,571
Accrued interest receivable	4,473	5,252
Financial liabilities:	'	'
Interest bearing deposits	1,302,082	1,347,603
Securities sold under repurchase agreements	20,719	17,875
Other short-term borrowings	55,000	100,000
Junior subordinated debentures	25,823	15,583
Subordinated debenture	39,193	28,206
Note payable and other borrowings	415	302
Borrowing interest payable	6,371	4,794
Deposit interest payable	837	1,006
Level 3	'	'
Financial assets:	'	'
Securities available-for-sale	158,431	10,089
Loans, net	1,047,557	1,118,711
Carrying Amount	'	'
Financial assets:	'	'
Cash, due from banks and federal funds sold	47,486	44,221
Interest bearing deposits with financial institutions	32,586	84,286
Securities available-for-sale	373,478	579,886
Securities held-to-maturity	258,101	'
FHLBC and FRB stock	10,292	11,202
Bank-owned life insurance	55,005	54,203
Loans held for sale	3,129	9,571
Loans, net	1,048,093	1,111,453
Accrued interest receivable	4,473	5,252
Financial liabilities:	'	'
Noninterest bearing deposits	373,499	379,451
Interest bearing deposits	1,299,624	1,337,768
Securities sold under repurchase agreements	20,719	17,875
Other short-term borrowings	55,000	100,000
Junior subordinated debentures	58,378	58,378
Subordinated debenture	45,000	45,000
Note payable and other borrowings	500	500
Borrowing interest payable	15,676	11,740
Deposit interest payable	837	1,006
Fair Value	'	'
Financial assets:	'	'
Cash, due from banks and federal funds sold	47,486	44,221
Interest bearing deposits with financial institutions	32,586	84,286
Securities available-for-sale	373,478	579,886
Securities held-to-maturity	260,421	'
FHLBC and FRB stock	10,292	11,202
Bank-owned life insurance	55,005	54,203
Loans held for sale	3,129	9,571
Loans, net	1,047,557	1,118,711
Accrued interest receivable	4,473	5,252
Financial liabilities:	'	'
Noninterest bearing deposits	373,499	379,451
Interest bearing deposits	1,302,082	1,347,603
Securities sold under repurchase agreements	20,719	17,875
Other short-term borrowings	55,000	100,000
Junior subordinated debentures	63,480	38,308
Subordinated debenture	39,193	28,206
Note payable and other borrowings	415	302
Borrowing interest payable	15,676	11,740
Deposit interest payable	$837	$1,006

Preferred_Stock_Details

Preferred Stock (Details) (USD $)	3 Months Ended			9 Months Ended			9 Months Ended
	Mar. 31, 2009	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Mar. 31, 2009	Sep. 30, 2013	Mar. 31, 2009
				Series B Preferred Stock	Series B Preferred Stock	Series B Preferred Stock	Warrants	Warrants
				Q
Common and preferred stock	'	'	'	'	'	'	'	'
Period for payment of cumulative dividends using the initial cumulative dividend rate	'	'	'	'5 years	'	'	'	'
Cumulative dividends rate, thereafter (as a percent)	'	'	'	9.00%	'	'	'	'
Cumulative dividends, initial rate for the first five years (as a percent)	'	'	'	5.00%	'	'	'	'
Warrants, term	'	'	'	'	'	'	'10 years	'
Warrants to purchase the Company's common stock, initially authorized (in shares)	'	'	'	'	'	'	815,339	'
Warrants, exercise price (in dollars per share)	'	'	'	'	'	'	$13.43	'
Proceeds from the Treasury	$73,000,000	'	'	'	'	'	'	'
Fair value	'	'	'	'	'	68,200,000	'	4,800,000
Number of quarters in which if the Company did not pay dividends, will allow the holder the right to appoint representatives to the Company's board of directors	'	'	'	6	'	'	'	'
Unpaid and deferred dividends	'	'	'	12,300,000	'	'	'	'
Preferred stock	'	$72,667,000	$71,869,000	$72,700,000	$71,900,000	'	'	'
Increased dividend rate in 2014 (as a percent)	'	'	'	9.00%	'	'	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Components of income tax expense (benefit)	'	'	'	'
Current federal	'	$129	'	'
Current state	'	35	'	'
Deferred federal	'	2,935	-643	'
Deferred state	'	1,049	-552	'
Change in valuation allowance	'	-74,145	1,195	'
Income tax expense (benefit)	-69,997	-69,997	'	'
Deferred tax assets	'	'	'	'
Allowance for loan losses	13,700	13,700	'	18,236
Deferred compensation	719	719	'	679
Amortization of core deposit intangible assets	1,484	1,484	'	965
Goodwill amortization/impairment	15,645	15,645	'	16,796
Stock option expense	608	608	'	785
OREO write downs	11,072	11,072	'	16,632
Federal net operating loss ("NOL") carryforward	26,370	26,370	'	20,736
State net operating loss ("NOL") carryforward	11,434	11,434	'	10,186
Deferred tax credit	1,444	1,444	'	1,444
Other assets	598	598	'	585
Total deferred tax assets	83,074	83,074	'	87,044
Deferred tax liabilities	'	'	'	'
Accumulated depreciation on premises and equipment	-946	-946	'	-1,063
Accretion on securities	-13	-13	'	-122
Mortgage servicing rights	-2,415	-2,415	'	-1,819
State tax benefits	-6,982	-6,982	'	-7,315
Other liabilities	-194	-194	'	-217
Total deferred tax liabilities	-10,550	-10,550	'	-10,536
Net deferred tax asset before valuation allowance	72,524	72,524	'	76,508
Tax effect of net unrealized loss on investments	8,704	8,704	'	928
Valuation Allowance	-2,363	-2,363	'	-76,508
Net deferred tax asset	$78,865	$78,865	'	$928

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	Sep. 30, 2013
In Millions, unless otherwise specified	Sep. 30, 2013
Alternative minimum tax credit	'
Net operating loss carryforward	'
Alternative minimum tax credit that can be carried forward	$1.40
Federal	'
Net operating loss carryforward	'
Net operating loss carryforward	75.3
Federal \| 2030	'
Net operating loss carryforward	'
Net operating loss carryforward	25.3
Federal \| 2031	'
Net operating loss carryforward	'
Net operating loss carryforward	31.4
Federal \| 2032	'
Net operating loss carryforward	'
Net operating loss carryforward	8.6
Federal \| 2033	'
Net operating loss carryforward	'
Net operating loss carryforward	10
State	'
Net operating loss carryforward	'
Net operating loss carryforward	120.3
State \| 2021	'
Net operating loss carryforward	'
Net operating loss carryforward	29.4
State \| 2025	'
Net operating loss carryforward	'
Net operating loss carryforward	$90.90

Income_Taxes_Details_3

Income Taxes (Details 3) (USD $)	3 Months Ended	9 Months Ended
Income Taxes (Details 3) (USD $)	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
Components of the provision for deferred income taxes	'	'	'
Provision for loan losses	'	$4,536,000	$5,731,000
Deferred compensation	'	-40,000	24,000
Amortization of core deposit intangible assets	'	-519,000	-204,000
Stock option expense	'	177,000	358,000
OREO write downs	'	5,560,000	-4,358,000
Federal net operating loss carryforward	'	-5,634,000	-2,384,000
State net operating loss carryforward	'	-1,248,000	-852,000
Depreciation	'	-117,000	-210,000
Net premiums and discounts on securities	'	-109,000	85,000
Mortgage servicing rights	'	596,000	55,000
Goodwill amortization/impairment	'	1,151,000	1,134,000
State tax benefits	'	-333,000	154,000
Change in valuation allowance	'	-74,145,000	1,195,000
Other, net	'	-36,000	-728,000
Total deferred tax benefit	'	-70,161,000	'
Taxable income from sale of bank-owned life insurance policies	'	11,400,000	'
Difference between effective tax rates and federal statutory rates applied to financial statement income	'	'	'
Tax at statutory federal income tax rate	'	4,156,000	-558,000
Nontaxable interest income, net of disallowed interest deduction	'	-183,000	-143,000
BOLI income	'	-553,000	-436,000
State income taxes, net of federal benefit	'	780,000	-128,000
Change in valuation allowance	'	-74,145,000	1,195,000
Deficiency from Restricted Stock	'	10,000	299,000
Other, net	'	-62,000	-229,000
Income tax expense (benefit)	($69,997,000)	($69,997,000)	'