Mainsource Financial (MSFG) 10-Q 7 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 07, 2014
Document and Entity Information	'	'
Entity Registrant Name	'MAINSOURCE FINANCIAL GROUP	'
Entity Central Index Key	'0000720002	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	21,687,075
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets	'	'
Cash and due from banks	$60,150	$55,826
Money market funds and federal funds sold	9,764	5,494
Cash and cash equivalents	69,914	61,320
Interest bearing time deposits	1,915	'
Securities available for sale	840,101	891,106
Loans held for sale	4,779	5,999
Loans, net of allowance for loan losses of $24,549 and $27,609	1,728,675	1,644,317
Restricted stock, at cost	15,625	15,629
Premises and equipment, net	55,157	55,957
Goodwill	64,900	64,900
Purchased intangible assets	3,872	5,125
Cash surrender value of life insurance	61,682	61,292
Interest receivable and other assets	53,332	54,219
Total assets	2,899,952	2,859,864
Deposits	'	'
Noninterest bearing	464,058	436,550
Interest bearing	1,757,641	1,764,078
Total deposits	2,221,699	2,200,628
Other borrowings	34,490	38,594
Federal Home Loan Bank (FHLB) advances	240,343	247,858
Subordinated debentures	41,239	46,394
Other liabilities	29,391	20,864
Total liabilities	2,567,162	2,554,338
Shareholders' equity	'	'
Preferred stock, no par value: Authorized shares - 400,000; Issued shares - 0; Outstanding shares - 0; Aggregate liquidation preference - $0	'	'
Common stock $.50 stated value: Authorized shares - 100,000,000; Issued shares - 20,996,415 and 20,940,298; Outstanding shares - 20,460,763 and 20,417,224	10,537	10,508
Treasury stock - 535,652 and 523,074 at cost	-8,708	-8,495
Additional paid-in capital	225,539	224,793
Retained earnings	93,682	77,586
Accumulated other comprehensive income	11,740	1,134
Total shareholders' equity	332,790	305,526
Total liabilities and shareholders' equity	$2,899,952	$2,859,864

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
CONSOLIDATED BALANCE SHEETS	'	'
Loans, allowance for loan losses (in dollars)	$24,549	$27,609
Preferred stock, par value (in dollars per share)	'	'
Preferred stock, Authorized shares	400,000	400,000
Preferred stock, Issued shares	0	0
Preferred stock, Outstanding shares	0	0
Preferred stock, Aggregate liquidation preference (in dollars)	$0	$0
Common stock, stated value (in dollars per share)	$0.50	$0.50
Common stock, Authorized shares	100,000,000	100,000,000
Common stock, Issued shares	20,996,415	20,940,298
Common stock, Outstanding shares	20,460,763	20,417,224
Treasury stock, shares	535,652	523,074

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income	'	'	'	'
Loans, including fees	$19,133	$19,185	$57,384	$57,800
Securities	5,888	6,182	18,289	17,876
Other interest income	20	10	55	53
Total interest income	25,041	25,377	75,728	75,729
Interest expense	'	'	'	'
Deposits	844	1,166	2,764	3,799
Federal Home Loan Bank advances	862	819	2,562	2,510
Subordinated debentures	312	421	975	1,284
Other borrowings	21	18	60	50
Total interest expense	2,039	2,424	6,361	7,643
Net interest income	23,002	22,953	69,367	68,086
Provision for loan losses	'	1,000	1,500	3,734
Net interest income after provision for loan losses	23,002	21,953	67,867	64,352
Non-interest income	'	'	'	'
Mortgage banking	1,677	1,553	4,655	5,496
Trust and investment product fees	1,087	1,238	3,503	3,542
Service charges on deposit accounts	5,429	5,518	15,321	15,128
Net realized gains/(loss) on securities (includes $0 and ($4) accumulated other comprehensive income (AOCI) reclassifications for unrealized losses on available-for-sale securities in 2014 and includes $2 and $835 accumulated other comprehensive income reclassifications for unrealized net gains on available-for-sale securities in 2013)	'	2	-4	835
Increase in cash surrender value of life insurance	328	350	978	1,042
Interchange income	1,912	1,804	5,671	5,317
Gain/(loss) on sale and write-down of OREO	-9	-38	-47	-356
Other income	721	756	1,546	1,805
Total non-interest income	11,145	11,183	31,623	32,809
Non-interest expense	'	'	'	'
Salaries and employee benefits	13,000	13,090	40,272	39,407
Net occupancy	1,819	1,737	5,731	5,315
Equipment	2,669	2,583	7,568	7,378
Intangibles amortization	389	455	1,253	1,413
Telecommunications	430	450	1,298	1,356
Stationery printing and supplies	317	281	876	917
FDIC assessment	385	431	1,185	1,335
Marketing	769	647	2,127	2,656
Collection expense	156	625	987	2,434
Prepayment penalty on FHLB advance	'	'	'	2,239
Consultant expense	350	475	1,050	1,225
Interchange expense	605	491	1,666	1,404
Other expenses	2,288	2,224	7,172	7,393
Total non-interest expense	23,177	23,489	71,185	74,472
Income before income tax	10,970	9,647	28,305	22,689
Income tax expense (includes - and ($1) income tax benefit from AOCI reclassification in 2014 and - and $292 income tax expense from AOCI reclassification items in 2013)	2,513	2,015	5,869	3,742
Net income	8,457	7,632	22,436	18,947
Preferred dividends and discount accretion	'	-99	'	-504
Redemption of preferred stock	'	-148	'	-148
Net income available to common shareholders	$8,457	$7,385	$22,436	$18,295
Cash dividends declared per common share (in dollars per share)	$0.11	$0.08	$0.31	$0.20
Net income per common share - basic (in dollars per share)	$0.41	$0.36	$1.10	$0.90
Net income per common share - diluted (in dollars per share)	$0.41	$0.36	$1.09	$0.90

CONSOLIDATED_STATEMENTS_OF_INC1

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF INCOME	'	'	'	'
Net realized gains/(loss) on securities, accumulated other comprehensive income (AOCI) reclassifications for unrealized net gains on available-for-sale securities	$0	$2	($4)	$835
Income tax expense, AOCI reclassification items	$0	$0	($1)	$292

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)	'	'	'	'
Net income	$8,457	$7,632	$22,436	$18,947
Other comprehensive income/(loss):	'	'	'	'
Unrealized holding gains/(losses) on securities available for sale	-1,597	-1,907	16,039	-29,234
Reclassification adjustment for (gains)/losses included in net income	'	-2	4	-835
Tax effect	542	667	-5,437	10,524
Other comprehensive income/(loss)	-1,055	-1,242	10,606	-19,545
Comprehensive income/(loss)	$7,402	$6,390	$33,042	($598)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Operating Activities	'	'
Net income	$22,436	$18,947
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Provision for loan losses	1,500	3,734
Depreciation expense	4,375	4,309
Securities amortization, net	1,417	2,505
Stock based compensation expense	551	502
Stock portion of director retainer fee expense	270	282
Amortization of purchased intangible assets	1,253	1,413
Amortization of mortgage servicing rights	750	1,232
Earnings on cash surrender value of life insurance policies	-978	-1,042
(Recovery) of valuation allowance on mortgage servicing rights	-50	-650
Prepayment penalty on FHLB advance	'	2,239
Securities (gains)/losses, net	4	-835
Loss on sale and write-down of OREO	47	356
Gain on loans sold	-2,914	-4,716
Loans originated for sale	-115,118	-185,631
Proceeds from loan sales	119,252	201,484
Change in other assets and liabilities	2,192	5,146
Net cash provided by operating activities	34,987	49,275
Investing Activities	'	'
Net change in interest bearing time deposits	-1,915	'
Purchases of securities available for sale	-35,236	-203,148
Proceeds from calls, maturities, and payments on securities available for sale	78,891	101,427
Proceeds from sales of securities available for sale	21,972	79,136
Proceeds from sale of OREO	3,002	4,441
Proceeds from life insurance benefit	588	'
Loan originations and payment, net	-87,977	-68,623
Purchases of premises and equipment	-3,575	-6,787
Purchase of life insurance policies	'	-504
Proceeds from redemption of restricted stock	4	9
Net cash provided/(used) by investing activities	-24,246	-94,049
Financing Activities	'	'
Net change in deposits	21,071	-17,212
Net change in other borrowings	-4,104	-4,084
Repayment of FHLB advances	-722,515	-326,000
Proceeds from FHLB advances	715,000	430,000
Purchase of treasury shares	-319	-204
Proceeds from exercise of stock options, including tax benefit	60	383
Repayment of subordinated debentures, net	-5,000	'
Repurchase of preferred stock	'	-15,100
Cash dividends on preferred stock	'	-470
Cash dividends on common stock	-6,340	-4,075
Net cash (used)/provided by financing activities	-2,147	63,238
Net change in cash and cash equivalents	8,594	18,464
Cash and cash equivalents, beginning of year	61,320	65,650
Cash and cash equivalents, end of period	69,914	84,114
Supplemental cash flow information	'	'
Interest paid	6,669	8,028
Income taxes paid	2,405	1,380
Supplemental non cash disclosure	'	'
Loan balances transferred to foreclosed real estate	$2,119	$2,904

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
BASIS OF PRESENTATION	'
BASIS OF PRESENTATION	'
	NOTE 1 - BASIS OF PRESENTATION
	The significant accounting policies followed by MainSource Financial Group, Inc. (“Company”) for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. The consolidated interim financial statements have been prepared according to accounting principles generally accepted in the United States of America and in accordance with the instructions for Form 10-Q. The interim statements do not include all information and footnotes normally included in the annual financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the periods reported have been included in the accompanying unaudited consolidated financial statements and all such adjustments are of a normal recurring nature. Some items in prior period financial statements were reclassified to conform to current presentation. It is suggested that these consolidated financial statements and notes be read in conjunction with the financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

STOCK_PLANS_AND_STOCK_BASED_CO

STOCK PLANS AND STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 2014
STOCK PLANS AND STOCK BASED COMPENSATION	'
STOCK PLANS AND STOCK BASED COMPENSATION	'
	NOTE 2 - STOCK PLANS AND STOCK BASED COMPENSATION
	From time to time, common stock and options to buy common stock are granted to directors and officers of the Company under the MainSource Financial Group, Inc. 2007 Stock Incentive Plan (the “2007 Stock Incentive Plan”), which was adopted and approved by the Board of Directors of the Company on January 16, 2007. The plan was effective upon the approval of the plan by the Company’s shareholders, which occurred on April 26, 2007 at the Company’s annual meeting of shareholders. The 2007 Stock Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, stock bonuses and restricted stock awards. Incentive stock options may be granted only to employees. An aggregate of 650,000 shares of common stock are reserved for issuance under the 2007 Stock Incentive Plan. Shares issuable under the 2007 Stock Incentive Plan will be authorized from unissued shares of common stock or treasury shares. The 2007 Stock Incentive Plan is in addition to, and not in replacement of, the MainSource Financial Group, Inc. 2003 Stock Option Plan (the “2003 Option Plan”), which was approved by the Company’s Board of Directors on January 21, 2003, and was effective upon approval by the Company’s shareholders on April 23, 2003. The 2003 Option Plan provided for the grant of up to 607,754 incentive and nonstatutory stock options. Upon the approval of the 2007 Stock Incentive Plan, no further awards of options may be made under the 2003 Option Plan. Unexercised options which were previously issued under the 2003 Option Plan have not been terminated, but will otherwise continue in accordance with the 2003 Option Plan and the agreements pursuant to which the options were issued. All stock options granted under either the 2003 Option Plan or the 2007 Stock Incentive Plan have an exercise price that is at least equal to the fair market value of the Company’s common stock on the date the options were granted. The maximum option term is ten years, and options vest immediately for the directors’ grant and over four years for the officers’ grant, except as otherwise determined by the Executive Compensation Committee of the Board of Directors.
	All share-based payments to employees, including grants of employee stock options, are recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values.  For options with graded vesting, the Company values the stock option grants and recognizes compensation expense as if each vesting portion of the award was a single award.
	The following table summarizes stock option activity:
			Nine Months Ended
			September 30, 2014
			Shares		Weighted
					Average
					Exercise Price
	Outstanding, beginning of year		402,139		$	13.79
	Granted		31,327		16.11
	Exercised		(6,500	)	9.24
	Forfeited or expired		(48,726	)	18.48
	Outstanding, period end		378,240		$	13.46
	Options exercisable at period end		251,254		$	13.41
	Fully vested and expected to vest		369,481		$	13.44
	The following table details stock options outstanding:
			September 30,			December 31,
			2014			2013
	Stock options vested and currently exercisable:
	Number		251,254			295,680
	Weighted average exercise price		$	13.41		$	14.21
	Aggregate intrinsic value		$	1,119		$	1,327
	Weighted average remaining life (in years)		3.5			3.9
	The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of our common stock as of the reporting date. The Company recorded $42 and $124 in stock compensation expense during the three and nine months ended September 30, 2014 and $26 and $98 in stock compensation expense during the three and nine months ended September 30, 2013 to salaries and employee benefits. There were 29,389 options granted in the first quarter of 2014 and 1,938 options granted in the second quarter of 2014.  2,500 and 49,783 options were granted in the first and second quarters of 2013.  There were no options granted in the third quarter of 2014 or 2013.  In order to calculate the fair value of the options granted in 2014, the following weighted-average assumptions were used as of the grant dates:  risk free interest rate of 2.07%, expected option life 7.0 years, expected price volatility 28.1%, and dividend yield of 2.49%.  The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation model. This model requires the input of subjective assumptions that will usually have a significant impact on the fair value estimate. Expected volatilities are based on historical volatility of the Company’s stock, and other factors. Expected dividends are based on dividend trends and the market price of the Company’s stock price at grant. The Company uses historical data to estimate option exercises within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.
	Unrecognized stock option compensation expense related to unvested awards for the remainder of 2014 and beyond is estimated as follows:
	Year		(in thousands)
	October 2014 - December 2014		$	36
	2015		170
	2016		93
	2017		38
	During the second quarter of 2013, the Executive Compensation Committee of the Board of Directors of the Company granted restricted stock awards in lieu of cash awards to certain executive officers pursuant to the Company’s long-term incentive plan (the “LTIP”). Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The value of the awards was determined by multiplying the award amount by the closing price of a share of Company common stock on the grant date, April 10, 2013 ($13.67). The restricted stock awards vest as follows — 80% on the second anniversary of the date of grant and 20% on the third anniversary of the date of grant. A total of 10,792 shares of common stock of the Company were granted in 2013.
	Also in 2013 and the first,  second, and third quarters of 2014, the Executive Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers and other employees pursuant to the Company’s LTIP. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The value of the awards was determined by multiplying the award amount by the closing price of a share of Company common stock on the grant date. The restricted stock awards vest as follows — 100% on the third anniversary of the date of grant. A total of 21,726 shares of common stock were granted in the first quarter of 2014 at a weighted average cost of $16.12 per share; 10,611 shares of common stock were granted in the second quarter of 2014 at a weighted average cost of $16.53 and 2,000 shares of common stock were granted in the third quarter of 2014 at a weighted average cost of $17.32.  A total of 47,971 shares of common stock of the Company were granted in 2013.
	A summary of changes in the Company’s non-vested restricted shares for 2014 follows:
			Restricted		Weighted Average
			Shares		Grant Date
					Fair Value
	Non-vested at January 1, 2014		105,283		$	12.85
	Granted		34,337		16.3
	Vested		(47,697	)	11.43
	Forfeited		—		—
	Non-vested at September 30, 2014		91,923		$	14.88
	As of  September 30, 2014, there was $865 of total unrecognized compensation costs related to non-vested restricted stock awards granted under the 2007 Stock Incentive Plan that will be recognized over the remaining vesting period of approximately 1.4 years. The recognized compensation costs related to the 2007 Stock Incentive Plan were $125 and $427 for the three and nine month periods ending September 30, 2014 and $157 and $403 for the three and nine month periods ending September 30, 2013.
	In the first quarter of 2013, members of the Board of Directors received the fourth installment of Company common stock for their annual retainer for the previous Board year that ended on the date of the 2013 annual meeting of shareholders. In the second quarter of 2013, members of the Board of Directors received their entire annual retainer in restricted Company stock for the following Board year ended with the 2014 annual meeting of shareholders. The 2013 award vested quarterly for all directors who remained on the Board of Directors on the vesting date, with 25% of the award vesting on each of May 1, August 1, and November 1, 2013, and February 1, 2014. The value of the 2013 retainer award was determined by multiplying the award amount by the closing price of the stock on the issuance date.
	In the second quarter of 2014, members of the Board of Directors received their entire annual retainer in restricted Company stock for the following Board year that ends with the 2015 annual meeting of shareholders. The 2014 award vested quarterly for all directors who remained on the Board of Directors on the vesting date, with 25% of the award vesting on each of May 1, August 1, and November 1, 2014, and February 1, 2015. The value of the 2014 retainer award was determined by multiplying the award amount by the closing price of the stock on the issuance date.
	For all awards, other expense is recognized over the three month period of the awards based on the fair value of the stock at the issue dates. Shares awarded by quarter were as follows:
	Quarter			Shares		Price per Share
	2013	1Q		7,200		$	13.38
		2Q		26,100		$	13.79
	2014	2Q		21,780		$	16.53
	A total of $90 and $90 was recognized as other expense in the third quarter of 2014 and 2013 respectively for these grants and $270 and $187 was recognized in the first nine months of 2014 and 2013 respectively.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2014
SECURITIES	'
SECURITIES	'
	NOTE 3 - SECURITIES
	The amortized cost and fair value of securities available for sale and related unrealized gains/losses recognized in accumulated other comprehensive income was as follows:
				Gross			Gross
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	As of September 30, 2014
	Available for Sale
	U. S. government agency	$	577	$	5		$	—		$	582
	State and municipal	304,700		19,304			(306		)	323,698
	Mortgage-backed securities-residential (GSE’s)	154,664		3,499			(1,259		)	156,904
	Collateralized mortgage obligations (GSE’s)	354,174		2,180			(5,635		)	350,719
	Equity securities	4,689		—			—			4,689
	Other securities	3,508		1			—			3,509
	Total available for sale	$	822,312	$	24,989		$	(7,200	)	$	840,101
	As of December 31, 2013
	Available for Sale
	U. S. government agency	$	793	$	5		$	—		$	798
	State and municipal	321,151		12,173			(2,212		)	331,112
	Mortgage-backed securities-residential (GSE’s)	186,054		3,175			(3,800		)	185,429
	Collateralized mortgage obligations (GSE’s)	372,896		1,642			(9,229		)	$	365,309
	Equity securities	4,939		—			—			4,939
	Other securities	3,527		—			(8		)	3,519
	Total available for sale	$	889,360	$	16,995		$	(15,249	)	$	891,106
	The amortized cost and fair value of the investment securities portfolio are shown by expected maturity.  Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Securities not due at a single maturity or with no maturity are shown separately.
		Available
		for Sale
	September 30, 2014	Amortized Cost		Fair Value
	Within one year	$	15,516	$	15,707
	One through five years	51,381		53,390
	Six through ten years	128,201		135,014
	After ten years	113,687		123,678
	Mortgage-backed securities-residential (Government Sponsored Entity)	154,664		156,904
	Collateralized mortgage obligations (Government Sponsored Entity)	354,174		350,719
	Equity securities	4,689		4,689
	Total available for sale securities	$	822,312	$	840,101
	Proceeds from sales of securities available for sale were $21,972 and $79,136 for the nine months ended September 30, 2014 and 2013, respectively. Gross gains of $542 and $912 and gross losses of $546 and $77 were realized on these sales during 2014 and 2013, respectively.
	Proceeds from sales of securities available for sale were $0 and $782 for the three months ended September 30, 2014 and 2013, respectively. Gross gains of $0 and $2 and gross losses of $0 and $0 were realized on these sales during 2014 and 2013, respectively.
	Below is a summary of securities with unrealized losses as of September 30, 2014 and December 31, 2013 presented by length of time the securities have been in a continuous unrealized loss position.
		Less than 12 months					12 months or longer						Total
	September 30, 2014	Fair Value		Unrealized			Fair Value			Unrealized			Fair Value		Unrealized
	Description of securities			Losses						Losses					Losses
	State and municipal	$	2,489	$	(11	)	$	15,981		$	(295	)	$	18,470	$	(306	)
	Mortgage-backed securities-residential (GSE’s)	10,200		(26		)	49,874			(1,233		)	60,074		(1,259		)
	Collateralized mortgage obligations (GSE’s)	75,368		(648		)	150,728			(4,987		)	226,096		(5,635		)
	Total temporarily impaired	$	88,057	$	(685	)	$	216,583		$	(6,515	)	304,640		$	(7,200	)
		Less than 12 months					12 months or longer						Total
	December 31, 2013	Fair Value		Unrealized			Fair Value			Unrealized			Fair Value		Unrealized
	Description of securities			Losses						Losses					Losses
	State and municipal	$	31,660	$	(1,791	)	$	4,153		$	(421	)	$	35,813	$	(2,212	)
	Mortgage-backed securities-residential (GSE’s)	114,036		(3,800		)	—			—			114,036		(3,800		)
	Collateralized mortgage obligations (GSE’s)	267,579		(9,040		)	4,100			(189		)	271,679		(9,229		)
	Other securities	—		—			993			(8		)	993		(8		)
	Total temporarily impaired	$	413,275	$	(14,631	)	$	9,246		$	(618	)	$	422,521	$	(15,249	)
	Other-Than-Temporary-Impairment
	Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under ASC 320. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in ASC 325-10.
	In determining OTTI under ASC 320, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.
	When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.
	As of September 30, 2014, the Company’s securities portfolio consisted of 1,009 securities, 108 of which were in an unrealized loss position.  Unrealized losses on state and municipal securities of $306 have not been recognized into income because management has the ability to hold for a period of time sufficient to allow for any anticipated recovery in fair value and it is unlikely that management will be required to sell the securities before their anticipated recovery. The decline in value is primarily attributable to temporary illiquidity and the current rate environment and not necessarily the expected cash flows of the individual securities. The Company monitors the financial condition of these issuers. The fair value of these debt securities is expected to recover as the securities approach their maturity date.
	At September 30, 2014, almost all of the mortgage-backed securities held by the Company were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value of approximately $1,259 is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2014.
	The Company’s collateralized mortgage obligation securities portfolio includes agency collateralized mortgage obligations with a market value of $350,719 which had unrealized losses of approximately $5,635 at September 30, 2014. The Company monitors to insure it has adequate credit support and as of September 30, 2014, the Company believes there is no OTTI and does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. All securities are investment grade.

LOANS_AND_ALLOWANCE

LOANS AND ALLOWANCE	9 Months Ended
	Sep. 30, 2014
LOANS AND ALLOWANCE	'
LOANS AND ALLOWANCE	'
	NOTE 4 - LOANS AND ALLOWANCE
	Loans were as follows:
		September 30,			December 31,
		2014			2013
	Commercial
	Commercial and industrial	$	229,669		$	180,378
	Agricultural	48,314			30,323
	Commercial Real Estate
	Farm	73,253			76,082
	Hotel	80,588			108,226
	Construction and development	47,427			35,731
	Other	564,703			546,970
	Residential
	1-4 family	406,562			403,733
	Home equity	258,017			244,277
	Consumer
	Direct	43,987			45,129
	Indirect	704			1,077
	Total loans	1,753,224			1,671,926
	Allowance for loan losses	(24,549		)	(27,609		)
	Net loans	$	1,728,675		$	1,644,317
	Activity in the allowance for loan losses for the nine months ended September 30, 2014 and 2013 and the recorded investment of loans and allowances by portfolio segment and impairment method as of September 30, 2014 and December 31, 2013 were as follows:
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, January 1, 2014	$	3,291		$	20,210		$	3,409		$	699		$	27,609
	Provision charged to expense	(699		)	(548		)	1,427			1,320			1,500
	Losses charged off	(166		)	(4,786		)	(1,925		)	(2,166		)	(9,043		)
	Recoveries	1,048			2,112			298			1,025			4,483
	Balance, September 30, 2014	$	3,474		$	16,988		$	3,209		$	878		$	24,549
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, January 1, 2013	$	3,894		$	24,157		$	3,180		$	996		$	32,227
	Provision charged to expense	366			506			1,659			1,203			3,734
	Losses charged off	(1,058		)	(5,270		)	(1,767		)	(2,364		)	(10,459		)
	Recoveries	262			564			375			1,146			2,347
	Balance, September 30, 2013	$	3,464		$	19,957		$	3,447		$	981		$	27,849
	As of September 30, 2014
	Ending Balance individually evaluated for impairment	$	12		$	1,676		$	95		$	—		$	1,783
	Ending Balance collectively evaluated for impairment	3,462			15,312			3,114			878			22,766
	Total ending allowance balance	$	3,474		$	16,988		$	3,209		$	878		$	24,549
	Loans
	Ending Balance individually evaluated for impairment	$	537		$	24,232		$	10,167		$	118		$	35,054
	Ending Balance collectively evaluated for impairment	277,446			741,739			654,412			44,573			1,718,170
	Total ending loan balance excludes $5,108 of accrued interest	$	277,983		$	765,971		$	664,579		$	44,691		$	1,753,224
	As of December 31, 2013	Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Ending Balance individually evaluated for impairment	$	13		$	1,167		$	105		$	2		$	1,287
	Ending Balance collectively evaluated for impairment	3,278			19,043			3,304			697			26,322
	Total ending allowance balance	$	3,291		$	20,210		$	3,409		$	699		$	27,609
	Loans
	Ending Balance individually evaluated for impairment	$	300		$	21,240		$	10,797		$	785		$	33,122
	Ending Balance collectively evaluated for impairment	210,401			745,769			637,213			45,421			1,638,804
	Total ending loan balance excludes $5,043 of accrued interest	$	210,701		$	767,009		$	648,010		$	46,206		$	1,671,926
	The recorded investment in loans excludes accrued interest receivable due to immateriality.
	The allowance for loans collectively evaluated for impairment consists of reserves on groups of similar loans based on historical loss experience adjusted for other factors, as well as reserves on certain loans that are classified but determined not to be impaired based on an analysis which incorporates probability of default with a loss given default scenario. The reserves on these loans totaled $2,856 at September 30, 2014 and $5,783 at December 31, 2013.
	Activity in the allowance for loan losses for the three months ended September 30, 2014 and 2013 was as follows:
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, July 1, 2014	$	3,201		$	16,994		$	3,110		$	562		$	23,867
	Provision charged to expense	(685		)	(548		)	464			769			—
Losses charged off	(17		)	(131		)	(548		)	(795		)	(1,491		)
Recoveries	975			673			183			342			2,173
Balance, September 30, 2014	$	3,474		$	16,988		$	3,209		$	878		$	24,549
	Commercial			Commercial			Residential			Consumer			Total
				Real Estate
Allowance for loan loss
Balance, July 1, 2013	$	3,635		$	20,108		$	3,459		$	800		$	28,002
Provision charged to expense	(121		)	175			288			658			1,000
Losses charged off	(91		)	(584		)	(448		)	(864		)	(1,987		)
Recoveries	41			258			148			387			834
Balance, September 30, 2013	$	3,464		$	19,957		$	3,447		$	981		$	27,849
The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2014.  Performing troubled debt restructurings totaling $2,706 were excluded as allowed by ASC 310-40.
September 30, 2014	Unpaid			Recorded			Allowance
	Principal			Investment			for Loan
	Balance						Losses Allocated
With an allowance recorded
Commercial
Commercial and industrial	$	88		$	71		$	12
Commercial Real Estate
Farm	76			76			21
Hotel	1,912			1,909			617
Construction and development	—			—			—
Other	3,084			2,633			1,038
Residential
1-4 Family	831			788			90
Home Equity	169			169			5
Consumer
Direct	—			—			—
Subtotal — impaired with allowance recorded	6,160			5,646			1,783
With no related allowance recorded
Commercial
Commercial & industrial	128			55
Agricultural	413			411
Commercial Real Estate
Farm	1,010			772
Hotel	11,487			11,441
Construction and development	84			78
Other	6,732			4,617
Residential
1-4 Family	7,816			6,869
Home Equity	2,548			2,341
Consumer
Direct	141			115
Indirect	3			3
Subtotal — impaired with no allowance recorded	30,362			26,702			—
Total impaired loans	$	36,522		$	32,348		$	1,783
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013.  Performing troubled debt restructurings totaling $6,593 were excluded as allowed by ASC 310-40.
December 31, 2013	Unpaid			Recorded			Allowance
	Principal			Investment			for Loan
	Balance						Losses Allocated
With an allowance recorded
Commercial
Commercial and industrial	$	194		$	177		$	13
Agricultural`	—			—			—
Commercial Real Estate
Farm	625			436			61
Hotel	—			—			—
Construction and development	—			—			—
Other	7,309			6,382			1,106
Residential
1-4 Family	1,089			981			102
Home Equity	50			50			3
Consumer
Direct	126			126			2
Indirect	—			—			—
Subtotal — impaired with allowance recorded	9,393			8,152			1,287
With no related allowance recorded
Commercial
Commercial & industrial	204			123
Agricultural	—			—
Commercial Real Estate
Farm	767			657
Hotel	—			—
Construction and development	942			795
Other	8,651			6,377
Residential
1-4 Family	8,931			8,007
Home Equity	1,860			1,759
Consumer
Direct	675			649
Indirect	11			10
Subtotal — impaired with no allowance recorded	22,041			18,377			—
Total impaired loans	$	31,434		$	26,529		$	1,287
The following tables present the average balance of impaired loans and interest income and cash basis interest recognized for the nine month periods ending September 30, 2014 and September 30, 2013, excluding performing troubled debt restructurings as allowed by ASC 310-40.
Nine months ended September 30, 2014	Average			Interest			Cash Basis
	Balance			Income			Income
	Impaired Loans			Recognized			Recognized
Commercial
Commercial & Industrial	$	247		$	9		$	9
Agricultural	206			—			—
Commercial Real Estate
Farm	921			—			—
Hotel	6,225			—			—
Construction and development	318			—			—
Other	10,305			75			75
Residential
1-4 Family	8,108			16			16
Home Equity	2,472			11			11
Consumer
Direct	276			7			7
Indirect	6			6			6
	$	29,084		$	124		$	124
Nine months ended September 30, 2013	Average			Interest			Cash Basis
	Balance			Income			Income
	Impaired Loans			Recognized			Recognized
Commercial
Commercial & Industrial	$	1,171		$	4		$	4
Agricultural	—			—			—
Commercial Real Estate
Farm	1,426			11			11
Hotel	1,492			1			1
Construction and development	1,694			45			45
Other	19,501			55			55
Residential
1-4 Family	10,716			3			3
Home Equity	2,572			4			4
Consumer
Direct	922			16			16
Indirect	15			—			—
	$	39,509		$	139		$	139
The following tables present the average balance of impaired loans and interest income and cash basis interest recognized for the three month periods ending September 30, 2014 and September 30, 2013, excluding performing troubled debt restructurings as allowed by ASC 310-40.
Three months ended September 30, 2014	Average			Interest			Cash Basis
	Balance			Income			Income
	Impaired Loans			Recognized			Recognized
Commercial
Commercial & Industrial	$	211		$	1		$	1
Agricultural	412			—			—
Commercial Real Estate
Farm	852			—			—
Hotel	12,450			—			—
Construction and development	78			—			—
Other	8,656			4			4
Residential
1-4 Family	7,449			11			11
Home Equity	2,629			4			4
Consumer
Direct	104			2			2
Indirect	2			5			5
	$	32,843		$	27		$	27
Three months ended September 30, 2013	Average			Interest			Cash Basis
	Balance			Income			Income
	Impaired Loans			Recognized			Recognized
Commercial
Commercial & Industrial	$	751		$	2		$	2
Agricultural	—			—			—
Commercial Real Estate
Farm	1,255			3			3
Hotel	—			1			1
Construction and development	1,302			44			44
Other	16,472			23			23
Residential
1-4 Family	10,421			—			—
Home Equity	2,500			1			1
Consumer
Direct	858			5			5
Indirect	12			—			—
	$	33,571		$	79		$	79
The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2014 and December 31, 2013:
	Non-accrual						Past due over
							90 days and
							still accruing
	September 30,			December 31,			September 30,			December 31,
	2014			2013			2014			2013
Commercial
Commercial and industrial	$	38		$	159					$	14
Agricultural	410			—
Commercial Real Estate
Farm	848			1,093
Hotel	1,912			—
Construction and development	78			329
Other	4,832			11,489
Residential
1-4 Family	6,363			7,635			59
Home Equity	1,552			1,452
Consumer
Direct	77			174
Indirect	3			10
Total	$	16,113		$	22,341		$	59		$	14
The following table presents the aging of the recorded investment in past due loans as of September 30, 2014 by class of loans:
September 30, 2014	Total			30-59 Days			60-89 Days			Greater than			Total			Loans Not
	Loans			Past Due			Past Due			90 Days			Past Due			Past Due
										Past Due
Commercial
Commercial and industrial	$	229,669		$	210		$	54		$	39		$	303		$	229,366
Agricultural	48,314			—			—			—			—			48,314
Commercial Real Estate
Farm	73,253			—			—			332			332			72,921
Hotel	80,588			1,912			—			—			1,912			78,676
Construction and development	47,427			—			—			—			—			47,427
Other	564,703			137			206			2,262			2,605			562,098
Residential
1-4 Family	406,562			1,587			1,660			3,387			6,634			399,928
Home Equity	258,017			876			482			967			2,325			255,692
Consumer
Direct	43,987			42			3			58			103			43,884
Indirect	704			—			—			3			3			701
Total — excludes $5,108 of accrued interest	$	1,753,224		$	4,764		$	2,405		$	7,048		$	14,217		$	1,739,007
The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 by class of loans:
December 31, 2013	Total			30-59 Days			60-89 Days			Greater than			Total			Loans Not
	Loans			Past Due			Past Due			90 Days			Past Due			Past Due
										Past Due
Commercial
Commercial and industrial	$	180,378		$	64		$	24		$	72		$	160		$	180,218
Agricultural	30,323			—			—			—			—			30,323
Commercial Real Estate
Farm	76,082			—			—			697			697			75,385
Hotel	108,226			—			—			—			—			108,226
Construction and development	35,731			466			—			329			795			34,936
Other	546,970			984			187			5,944			7,115			539,855
Residential
1-4 Family	403,733			7,381			1,969			4,936			14,286			389,447
Home Equity	244,277			646			313			1,025			1,984			242,293
Consumer
Direct	45,129			192			32			126			350			44,779
Indirect	1,077			2			4			—			6			1,071
Total — excludes $5,043 of accrued interest	$	1,671,926		$	9,735		$	2,529		$	13,129		$	25,393		$	1,646,533
Troubled Debt Restructurings
During the periods ending September 30, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk.
Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from 60 months to 30 years. Modifications involving an extension of the maturity date were for periods ranging from 6 months to 14 months.
The total of troubled debt restructurings at September 30, 2014 and December 31, 2013 was $20,554 and $14,347 respectively.  The large increase in the TDR balance is the result of one credit relationship which was structured into an A/B note in the second quarter of 2014 with the B note being written off.  Included in the TDR totals are non-accrual loans of $1,569 and $3,566 at September 30, 2014 and December 31, 2013.  The Company has allocated $697 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2014. The Company has committed to lend additional amounts totaling $0 to customers with outstanding loans that are classified as troubled debt restructurings. At December 31, 2013, the comparable numbers were $534 of specific reserves and $0 of commitments.
The troubled debt restructurings resulted in no change to the allowance for loan losses for the three month periods ending September 30, 2014 and 2013 and decreased the allowance for loan losses by $20 and increased the allowance for loan losses by $30 for the nine month periods ending September 30, 2014 and 2013.  These troubled debt restructurings resulted in charge offs of $0 and $22 during the three month periods ending September 30, 2014 and 2013 and $3,848 and $442 during the nine month periods ending September 30, 2014 and 2013.
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine month period ending September 30, 2014:
			Pre-Modification			Post-Modification
			Outstanding Recorded			Outstanding Recorded
For the nine month period ending September 30, 2014	Number of Loans		Investment			Investment
Commercial real estate
Hotel	2		$	15,362		$	11,550
Other	2		1,015			1,015
Residential
1-4 Family	1		140			140
Home Equity	1		34			34
Consumer
Direct	1		26			26
Total	7		$	16,577		$	12,765
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine month period ending September 30, 2013:
			Pre-Modification			Post-Modification
			Outstanding Recorded			Outstanding Recorded
For the nine month period ending September 30, 2013	Number of Loans		Investment			Investment
Commercial real estate
Other	1		$	28		$	28
Commercial real estate
Other	3		344			344
Residential
1-4 Family	5		261			261
Home equity	1		20			20
Consumer
Direct	1		30			30
Total	11		$	683		$	683
The following table presents loans by class modified as troubled debt restructurings that occurred during the three month periods ending September 30, 2014 and 2013:
			Pre-Modification			Post-Modification
			Outstanding Recorded			Outstanding Recorded
For the three month period ending September 30, 2014	Number of Loans		Investment			Investment
Residential
Home Equity	1		$	34		$	34
Consumer
Direct	1		26			26
Total	2		$	60		$	60
			Pre-Modification			Post-Modification
			Outstanding Recorded			Outstanding Recorded
For the three month period ending September 30, 2013	Number of Loans		Investment			Investment
Residential
1-4 Family	—		$	—		$	—
Total	—		$	—		$	—
The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the nine month period ending September 30, 2014:
For the nine month period ending September 30, 2014	Number of Loans		Recorded Investment
Commercial real estate:
Other	1		$	1,431
Residential
1-4 Family	1		53
Home Equity	1		14
Total	3		$	1,498
The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the nine month period ending September 30, 2013:
For the nine month period ending September 30, 2013	Number of Loans		Recorded Investment
Residential:
1-4 Family	2		$	89
Home Equity	1		15
Consumer
Direct	1		4
Total	4		$	108
The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three month period ending September 30, 2014:
For the three month period ending September 30, 2014	Number of Loans		Recorded Investment
Residential:
Home Equity	1		$	14
Total	1		$	14
The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three month period ending September 30, 2013:
For the three month period ending September 30, 2013	Number of Loans		Recorded Investment
Residential:
1-4 Family	1		$	52
Home Equity	1		15
Consumer
Direct	1		4
Total	3		$	71
A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.  The troubled debt restructurings that subsequently defaulted described above resulted in no change in the allowance for loan losses and no  charge offs during the three month periods ending September 30, 2014 and 2013, respectively.  For the nine month periods ending September 30, 2014 and 2013, the troubled debt restructurings that subsequently defaulted increased the allowance for loan losses by $0 and $0 and resulted in charge offs of $36 and $0.
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.
The terms of certain other loans were modified during the three month period ending September 30, 2014 that did not meet the definition of a troubled debt restructuring. These loans have a total recorded investment as of September 30, 2014 of $162. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of the borrower to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial and commercial real estate loans individually by classifying the loans as to credit risk. This analysis includes credit relationships with an outstanding balance greater than $1 million on an annual basis. The Company uses the following definitions for risk ratings:
Special Mention — Loans classified as special mention have above average risk that requires management’s ongoing attention. The borrower may have demonstrated the inability to generate profits or to maintain net worth, chronic delinquency and/or a demonstrated lack of willingness or capacity to meet obligations.
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 classified by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Non-accrual — Loans classified as non-accrual are loans where the further accrual of interest is stopped because payment in full of principal and interest is not expected. In most cases, the principal and interest has been in default for a period of 90 days or more.
As of September 30, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
September 30, 2014	Pass			Special			Substandard			Non-accrual
				Mention
Commercial
Commercial and industrial	$	189,192		$	5,537		$	1,867		$	38
Agricultural	47,494			—			410			410
Commercial Real Estate
Farm	71,357			976			72			848
Hotel	64,614			2,575			11,487			1,912
Construction and development	47,147			—			—			78
Other	427,484			16,231			8,811			4,832
Total	$	847,288		$	25,319		$	22,647		$	8,118
At December 31, 2013, the risk category of loans by class of loans was as follows:
December 31, 2013	Pass			Special			Substandard			Non-accrual
				Mention
Commercial
Commercial and industrial	$	144,744		$	4,538		$	1,250		$	159
Agricultural	30,206			—			—			—
Commercial Real Estate
Farm	73,006			105			—			1,093
Hotel	61,195			31,401			15,630			—
Construction and development	34,672			—			466			329
Other	388,719			20,893			9,931			11,489
Total	$	732,542		$	56,937		$	27,277		$	13,070
Loans not analyzed individually as part of the above described process are classified by delinquency. These loans are primarily smaller (<$250) commercial, smaller commercial real estate (<$250), residential mortgage and consumer loans. All commercial, commercial real estate, consumer loans fully or partially secured by 1-4 family residential real estate that are 60-89 days past due will be classified as Watch. If loans are greater than 90 days past due, they will be classified as Substandard. Smaller commercial and commercial real estate loans on non-accrual are included in the non-accrual tables above. Consumer loans not secured by 1-4 family residential real estate that are 60-119 days past due will be classified Substandard while loans greater than 119 days will be classified as Loss. As of September 30, 2014 and December 31, 2013, the grading of loans by category of loans is as follows:
September 30, 2014	Performing			Watch			Substandard
Commercial
Commercial and industrial	$	33,035		$	—		$	—
Commercial Real Estate
Construction and development	202			—			—
Other	107,336			9			—
Total	$	140,573		$	9		$	—
December 31, 2013	Performing			Watch			Substandard
Commercial
Commercial and industrial	$	29,664		$	23		$	—
Agricultural	117			—			—
Commercial Real Estate
Farm	1,878			—			—
Construction and development	264			—			—
Other	115,938			—			—
Total	$	147,861		$	23		$	—
September 30, 2014	Performing			Watch			Substandard
Residential
1-4 Family	$	401,515		$	1,660		$	3,387
Home Equity	257,002			48			967
Total	$	658,517		$	1,708		$	4,354
December 31, 2013	Performing			Watch			Substandard
Residential
1-4 Family	$	396,098		2,703			4,932
Home Equity	242,825			424			1,028
Total	$	638,923		$	3,127		$	5,960
September 30, 2014	Performing			Substandard			Loss
Consumer
Direct	$	43,923		$	15		$	49
Indirect	704			—			—
Total	$	44,627		$	15		$	49
December 31, 2013	Performing			Substandard			Loss
Consumer
Direct	$	44,955		$	47		$	127
Indirect	1,067			10			—
Total	$	46,022		$	57		$	127

OTHER_REAL_ESTATE_OWNED

OTHER REAL ESTATE OWNED	9 Months Ended
	Sep. 30, 2014
OTHER REAL ESTATE OWNED	'
OTHER REAL ESTATE OWNED	'
	NOTE 5 — OTHER REAL ESTATE OWNED
	Other real estate owned is recorded in other assets on the balance sheet. Activity in other real estate owned was as follows:
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Beginning Balance	$	3,723		$	5,183		$	4,120		$	6,677
	Transfer to other real estate owned	220			816			2,119			2,904
	Sales — out of other real estate owned	(753		)	(1,120		)	(2,929		)	(4,155		)
	Write-down	—			(95		)	(120		)	(642		)
	Ending Balance — September 30	$	3,190		$	4,784		$	3,190		$	4,784
	The value of the sale amount above is the carrying value of the property when it was sold.
	Activity in the valuation account for other real estate was as follows:
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Beginning Balance	$	(391	)	$	(1,353	)	$	(1,328	)	$	(1,672	)
	Impairments during year	—			(95		)	(120		)	(642		)
	Recovery on impairments	—			—			—			—
	Reductions	33			74			1,090			940
	Ending Balance — September 30	$	(358	)	$	(1,374	)	$	(358	)	$	(1,374	)
	Expenses related to foreclosed assets for the period ending September 30 include:
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Write downs	$	—		$	95		$	120		$	642
	Losses / (gains) on sales	9			(57		)	(73		)	(286		)
	Net loss / (gain)	$	9		$	38		$	47		$	356
	Operating expenses	$	28		$	79		$	120		$	290

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2014
DEPOSITS.	'
DEPOSITS	'
	NOTE 6 — DEPOSITS
		September 30,		December 31,
		2014		2013
	Noninterest-bearing demand	$	464,058	$	436,550
	Interest-bearing demand	917,369		884,128
	Savings	527,829		501,494
	Certificates of deposit of $100 or more	100,874		129,132
	Other certificates and time deposits	211,569		249,324
	Total deposits	$	2,221,699	$	2,200,628

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2014
EARNINGS PER SHARE	'
EARNINGS PER SHARE	'
	NOTE 7 - EARNINGS PER SHARE
	Earnings per common share (EPS) were computed as follows:
		September 30, 2014					September 30, 2013
	For the three months ended:	Net		Weighted	Per		Net			Weighted	Per
		Income		Average	Share		Income			Average	Share
				Shares	Amount					Shares	Amount
	Basic earnings per common share:
	Net income	$	8,457	20,459,709			$	7,632		20,400,808
	Redemption of preferred shares	—					(148		)
	Preferred dividends and accretion	—					(99		)
	Net income available to common shareholders	$	8,457	20,459,709	$	0.41	$	7,385		20,400,808	$	0.36
	Effect of dilutive warrants			72,978						—
	Effect of dilutive stock options			68,757						51,013
	Net income available to common shareholders and assumed conversions	$	8,457	20,601,444	$	0.41	$	7,385		20,451,821	$	0.36
	Stock options for 123,964 common shares in 2014 and stock options for 290,146 common shares and stock warrants for 571,906 common shares in 2013 were not considered in computing diluted earnings per share because they were antidilutive.
		September 30, 2014					September 30, 2013
	For the nine months ended:	Net		Weighted	Per		Net			Weighted	Per
		Income		Average	Share		Income			Average	Share
				Shares	Amount					Shares	Amount
	Basic earnings per common share:
	Net income	$	22,436	20,448,054			$	18,947		20,363,514
	Redemption of preferred shares						(148		)
	Preferred dividends and accretion	—					(504		)
	Net income available to common shareholders	$	22,436	20,448,054	$	1.1	$	18,295		20,363,514	$	0.9
	Effect of dilutive warrants			67,184						—
	Effect of dilutive stock options			66,102						56,681
	Net income available to common shareholders and assumed conversions	$	22,436	20,581,340	$	1.09	$	18,295		20,420,195	$	0.9
	Stock options for 176,211 common shares in 2014 and stock options for 284,407 common shares and stock warrants for 571,906 common shares in 2013 were not considered in computing diluted earnings per share because they were antidilutive.

FAIR_VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2014
FAIR VALUE	'
FAIR VALUE	'
	NOTE 8 — FAIR VALUE
	ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
	Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
	Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
	Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
	The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or using market data utilizing pricing models, primarily Interactive Data Corporation (IDC), that vary based upon asset class and include available trade, bid, and other market information. Matrix pricing is used for most municipals, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. The grouping of securities is done according to insurer, credit support, state of issuance, and rating to incorporate additional spreads and municipal curves. For the general market municipals, the Thomson Municipal Market Data curve is used to determine the initial curve for determining the price, movement, and yield relationships with the municipal market (Level 2 inputs). Level 3 securities are largely comprised of small, local municipality issuances. Fair values are derived through consideration of funding type, maturity and other features of the issuance, and include reviewing financial statements, earnings forecasts, industry trends and the valuation of comparative issuers. In most cases, the book value of the security is used as the fair value as meaningful pricing data is not readily available. Twice a year, a sample of prices supplied by the pricing agent is validated by comparison to prices obtained from other third party sources.
	The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals or industry accepted valuation methods. In a limited number of situations, the Company’s appraisal department is determining the value of appraisal. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the loan officers to adjust for differences between the comparable sales and income data available as well as costs to sell. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. These adjustments typically range from 0%-50%. Impaired loans are evaluated quarterly for additional impairment and take into account changing market conditions, specific information in the market the property is located, and the overall economic climate as well as overall changes in the credit. The Company’s Appraisal Manager has the overall responsibility for all appraisals. The Company’s loan officer responsible for the loan, the special assets officer, as well as the senior officers of the Company review the adjustments made to the appraisal for market and disposal costs on the loan.
	The fair value of servicing rights is based on a valuation model from a third party 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. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs).
	The fair value of other real estate owned is measured based on the value of the collateral securing those assets and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers (third party). The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Fair values are reviewed on at least an annual basis. The Company normally applies an internal discount to the value of appraisals used in the fair value evaluation of OREO. The deductions take into account changing business factors and market conditions as well as disposal costs. These deductions range from 0% to 50%. As noted in the impaired loans discussion above, the Company’s Appraisal Manager has the overall responsibility for all appraisals. The Appraisal Manager reports to the Vice President of Credit Administration who reports to the Chief Credit Officer of the Company.
	The fair value of mortgage banking derivatives are based on derivative valuation models using market data inputs as of the valuation date (Level 2). The mortgage banking derivative is classified as Interest receivable and other assets on the balance sheet.
	Assets and Liabilities Measured on a Recurring Basis
	Assets and liabilities measured at fair value under ASC 820 on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:
					Fair Value Measurements at
					September 30, 2014 Using:
								Significant
					Quoted Prices in			Other			Significant
					Active Markets for			Observable			Unobservable
		Carrying			Identical Assets			Inputs			Inputs
	(Dollars in thousands)	Value			(Level 1)			(Level 2)			(Level 3)
	Financial Assets
	Investment securities available-for sale
	U. S. government agency	$	582					$	582
	States and municipals	323,698						310,841			12,857
	Mortgage-backed securities — residential —Government Sponsored Entity	156,904						156,904
	Collateralized mortgage obligations — Government Sponsored Entity	350,719						350,719
	Equity securities	4,689			4,689
	Other securities	3,509						1,002			2,507
	Total investment securities available-for-sale	$	840,101		$	4,689		$	820,048		$	15,364
	Mortgage banking derivative	$	750					$	750
					Fair Value Measurements at
					December 31, 2013 Using:
								Significant
					Quoted Prices in			Other			Significant
					Active Markets for			Observable			Unobservable
		Carrying			Identical Assets			Inputs			Inputs
	(Dollars in thousands)	Value			(Level 1)			(Level 2)			(Level 3)
	Financial Assets
	Investment securities available-for sale
	U. S. government agency	$	798					$	798
	States and municipals	331,112						316,692			14,420
	Mortgage-backed securities — residential —Government Sponsored Entity	185,429						185,429
	Collateralized mortgage obligations — Government Sponsored Entity	365,309						365,309
	Equity securities	4,939			4,689			250
	Other securities	3,519						993			2,526
	Total investment securities available-for-sale	$	891,106		$	4,689		$	869,221		$	17,196
	Mortgage banking derivative	$	525					$	525
	There were no transfers between Level 1 and Level 2 during the third quarter of 2014 or 2013 or the first nine months of 2014 or 2013.
	The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2014 and 2013:
	Three months ended September 30:
	States and municipal	2014			2013
	Beginning balance, July 1	$	13,083		$	14,688
	Total gains or losses (realized / unrealized)
	Included in other comprehensive income	(8		)	(12		)
	Settlements	(218		)	(206		)
	Ending balance, September 30	$	12,857		$	14,470
	Equity securities	2014			2013
	Beginning balance, July 1	$	—		$	250
	Total gains or losses (realized / unrealized)
	Settlements	—			—
	Ending balance, September 30	$	—		$	250
	Other securities	2014			2013
	Beginning balance, July 1	$	2,511		$	2,542
	Total gains or losses (realized / unrealized)
Included in other comprehensive income	(4		)	(8		)
Ending balance, September 30	$	2,507		$	2,534
Nine months ended September 30:
States and municipal	2014			2013
Beginning balance, January 1	$	14,420		$	15,470
Total gains or losses (realized / unrealized)
Included in other comprehensive income	15			(84		)
Settlements	(1,578		)	(916		)
Ending balance, September 30	$	12,857		$	14,470
Equity securities	2014			2013
Beginning balance, January 1	$	250		$	250
Total gains or losses (realized / unrealized)
Settlements	(250		)	—
Ending balance, September 30	$	—		$	250
Other securities	2014			2013
Beginning balance, January 1	$	2,526		$	2,557
Total gains or losses (realized / unrealized)
Included in other comprehensive income	(19		)	(23		)
Ending balance, September 30	$	2,507		$	2,534
The Company’s state and municipal security valuations were supported by analysis prepared by an independent third party. Fair values are derived through consideration of funding type, maturity and other features of the issuance, and include reviewing financial statements, earnings forecasts, industry trends and the valuation of comparative issuers. In most cases, the book value of the security is used as the fair value as meaningful pricing data is not readily available.
The Company’s equity security valuation was supported by an analysis prepared by the Company’s Investments Manager. Fair value is derived through consideration of funding type, maturity and other features of the issuance, and include reviewing financial statements, earnings forecasts, industry trends and the valuation of comparative issuers. In this case, the book value of the security is used as the fair value as meaningful pricing data is not readily available.
The Company’s other security valuation was supported by analysis prepared by an independent third party. Fair values are derived through consideration of funding type, maturity and other features of the issuance, and include reviewing financial statements, earnings forecasts, industry trends and the valuation of comparative issuers. In most cases, the book value of the security is used as the fair value as meaningful pricing data is not readily available.
Assets and Liabilities Measured on a Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
				Fair Value Measurements at September 30, 2014 Using
	September 30, 2014			Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
				for		Observable		Inputs (Level 3)
				Identical Assets		Inputs (Level 2)
				(Level 1)
Assets:
Impaired loans
Farm real estate	$	55						$	55
Hotel	1,292							1,292
Other commercial real estate	1,313							1,313
Total impaired loans	$	2,660						$	2,660
Impaired servicing rights	$	1,459						$	1,459
Other real estate owned
Other commercial real estate	$	198						$	198
1-4 family	28							28
Total other real estate owned	$	226						$	226
				Fair Value Measurements at December 31, 2013 Using
	December 31, 2013			Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
				for		Observable		Inputs (Level 3)
				Identical Assets		Inputs (Level 2)
				(Level 1)
Assets:
Impaired loans
Commercial and industrial	$	76						$	76
Farm estate	375							375
Construction and development	226							226
Other commercial real estate	5,112							5,112
Total impaired loans	$	5,789						$	5,789
Impaired servicing rights	$	1,794						$	1,794
Other real estate owned
Construction and development	$	522						$	522
Home equity	67							67
Other commercial real estate	425							425
Total other real estate owned	$	1,014						$	1,014
The following represent impairment charges recognized during the period:
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $4,232, with a valuation allowance of $1,572 at September 30, 2014. The Company recorded a charge of $1,061 to provision expense associated with these loans for the three months ended September 30, 2014 and a charge of $941 provision expense associated with these loans for the nine month period ended September 30, 2014.  The Company recorded a charge of $526 of provision expense associated with these loans for the three month period ended September 30, 2013 and $842 of provision expense associated with these loans for the nine month period ended September 30, 2013.   At December 31, 2013, impaired loans had a gross carrying amount of $6,879 with a valuation allowance of $1,090. A breakdown of these loans by portfolio class at September 30, 2014 is as follows:
	Gross			Valuation			Net
	Balance			Allowance
Farm real estate	$	76		$	21		$	55
Hotel	1,909			617			1,292
Other commercial real estate	2,247			934			1,313
Ending Balance	$	4,232		$	1,572		$	2,660
Impaired tranches of servicing rights were carried at a fair value of $1,459, which is made up of the gross outstanding balance of $1,784, net of a valuation allowance of $325.  A recovery of $50 was included in the both the third quarter and the nine month period ending September 30, 2014.  A recovery of $225 was included in the third quarter 2013 earnings and a recovery of $650 was included in the nine month period ending September 30, 2013.  At December 31, 2013, impaired servicing rights were carried at a fair value of $1,794 which was made up of the gross outstanding balance of $2,169, net of a valuation allowance of $375.
Other real estate owned is evaluated at the time a property is acquired through foreclosure or shortly thereafter. Fair value is based on appraisals by qualified licensed appraisers. At September 30, 2014, other real estate owned was carried at a fair value of $226, which is made up of the gross outstanding balance of $256, net of a valuation allowance of $30. During the third quarter of 2014, these properties were written down by $0.  For the first nine months of 2014, these properties were written down by $30.  During the third quarter of 2013, these properties were written down by $95. For the first nine months of 2013, these properties were written down by $193.  At December 31, 2013, other real estate was carried at a fair value of $1,014, which is made up of the gross outstanding balance of $1,362, net of a valuation allowance of $348. A breakdown of these properties by portfolio class at September 30, 2014 is as follows:
	Gross			Valuation			Net
	Balance			Allowance
Other commercial real estate	$	219		$	21		$	198
1-4 family	37			9			28
Ending Balance	$	256		$	30		$	226
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2014 and December 31, 2013. Impaired commercial, commercial real estate loans, and other real estate owned that are deemed collateral dependent are valued based on the fair value of the underlying collateral. These estimates are based on the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property and other related factors to estimate the current value of the collateral.
September 30, 2014	Fair Value			Valuation		Unobservable		Range
	(in thousands)			Technique(s)		Input(s)
Impaired Loans:
Farm real estate	55			Sales comparison approach		Adjustment for differences between comparable sales		40%
								40% Avg
Hotel	1,292			Income approach		Adjustment for type of property, current status of property		20%
								20% Avg
Other commercial real estate	1,313			Sales comparison approach		Adjustment for differences between comparable sales, type of property, current status of property		0%-50%
								43% Avg
	$	2,660
Other real estate owned:
Other commercial real estate	$	198		Sales comparison approach		Adjustment for differences between comparable sales.		10%
								10% Avg
1-4 Family	28			Sales comparison approach		Adjustment for differences between comparable sales.		10%
								10% Avg
	$	226
Mortgage servicing rights	$	1,459		Cash flow analysis		Discount rate		10%
December 31, 2013	Fair Value			Valuation		Unobservable		Range
	(in thousands)			Technique(s)		Input(s)
Impaired Loans:
Commercial & industrial	$	76		Sales comparison approach		Adjustment for differences between comparable sales		0%-10%
								10% Avg
Farm real estate	375			Sales comparison approach		Adjustment for differences between comparable sales		40%
								40% Avg
Other/ 1-4 Family	5,338			Sales comparison approach		Adjustment for differences between comparable sales, type of property, current status of property		0%-40%
								25% Avg
	5,789
Other real estate owned:
Construction and development	$	522		Sales comparison approach		Adjustment for differences between comparable sales.		10%
								10%Avg
Other & Home Equity	492			Sales comparison approach		Adjustment for differences between comparable sales.		10%-15%
								10%Avg
	1,014
Mortgage servicing rights	1,794			Cash flow analysis		Discount rate		10%
The carrying amounts and estimated fair values of financial instruments, not previously presented, are as follows:
September 30, 2014	Carrying			Level 1		Level 2		Level 3		Total
	Amount
Financial assets:
Cash and cash equivalents	$	69,914		60,150		9,764				69,914
Interest bearing time deposits	1,915					1,915				1,915
Loans including loans held for sale, net	1,730,793					4,928		1,732,588		1,737,516
Restricted stock	15,625									N/A
Interest receivable	9,266					4,158		5,108		9,266
Financial liabilities
Deposits	(2,221,699		)	(464,058	)	(1,756,444	)			(2,220,502	)
Other borrowings	(34,490		)			(34,490	)			(34,490	)
FHLB advances	(240,343		)			(244,060	)			(244,060	)
Interest payable	(491		)			(491	)			(491	)
Subordinated debentures	(41,239		)			(20,560	)			(20,560	)
December 31, 2013	Carrying			Level 1			Level 2			Level 3		Total
	Amount
Financial assets:
Cash and cash equivalents	$	61,320		$	55,826		$	5,494				$	61,320
Loans including loans held for sale, net	1,644,527						6,158			1,657,199		1,663,357
Restricted stock	15,629											N/A
Interest receivable	9,616						4,573			5,043		9,616
Financial liabilities
Deposits	(2,200,628		)	(436,550		)	(1,764,719		)			(2,201,269		)
Other borrowings	(38,594		)				(38,594		)			(38,594		)
FHLB advances	(247,858		)				(252,402		)			(252,402		)
Interest payable	(799		)				(799		)			(799		)
Subordinated debentures	(46,394		)				(23,130		)			(23,130		)
The difference between the loan balance included above and the amounts shown in Note 4 are the impaired loans discussed above.
The methods and assumptions, not previously presented, used to estimate fair values are described as follows:
(a) Cash and Cash Equivalents
The carrying amounts of cash, short-term instruments, and interest bearing time deposits approximate fair values and are classified as either Level 1 or Level 2. Noninterest bearing deposits are Level 1 whereas interest bearing due from bank accounts, fed funds sold, and interest bearing time deposits are Level 2.
(b) Restricted Stock
It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.
(c) Loans, Net
Fair values of loans are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.  Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.
(d) Deposits
The fair values disclosed for non-interest bearing deposits are, by definition, equal to the amount payable on demand at the reporting date resulting in a Level 1 classification. The carrying amounts of variable rate interest bearing deposits approximate their fair values at the reporting date resulting in a Level 1 classification.  Fair values for fixed rate interest bearing deposits are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.
(e) Borrowings
The fair values of the Company’s FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates resulting in a Level 2 classification.
The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.
The fair values of the Company’s Other borrowings are estimated using discounted cash flow analyses based on the current borrowing rates resulting in a Level 2 classification.
(f) Accrued Interest Receivable/Payable
The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification based on the level of the asset or liability with which the accrual is associated.

REGULATORY_CAPITAL

REGULATORY CAPITAL	9 Months Ended
	Sep. 30, 2014
REGULATORY CAPITAL	'
REGULATORY CAPITAL	'
	NOTE 9 — REGULATORY CAPITAL
	Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. The assigned capital category is largely determined by three ratios that are calculated according to the regulations. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet exposures. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies about the risk inherent in the entity’s activities that are not part of the calculated ratios.
	Actual and required capital amounts and ratios are presented below:
						Required for
		Actual				Adequate Capital				To Be Well Capitalized
	September 30, 2014	Amount		Ratio		Amount		Ratio		Amount	Ratio
	MainSource Financial Group
	Total capital (to risk-weighted assets)	$	315,877	16.7	%	$	150,959	8	%	N/A	N/A
	Tier 1 capital (to risk-weighted assets)	292,278		15.5		75,480		4		N/A	N/A
	Tier 1 capital (to average assets)	292,278		10.5		111,444		4		N/A	N/A
	MainSource Bank
	Total capital (to risk-weighted assets)	296,075		15.8	%	149,956		8	%	187,445	10	%
	Tier 1 capital (to risk-weighted assets)	272,633		14.5		74,978		4		112,467	6
	Tier 1 capital (to average assets)	272,633		9.9		110,107		4		137,634	5
						Required for				To Comply with
		Actual				Adequate Capital				Regulatory Agreement
	December 31, 2013	Amount		Ratio		Amount		Ratio		Amount	Ratio
	MainSource Financial Group
	Total capital (to risk-weighted assets)	$	302,181	16.7	%	$	145,150	8	%	N/A	N/A
	Tier 1 capital (to risk-weighted assets)	279,440		15.4		72,575		4		N/A	N/A
	Tier 1 capital (to average assets)	279,440		10.1		110,428		4		N/A	N/A
	MainSource Bank
	Total capital (to risk-weighted assets)	283,653		15.7	%	144,147		8	%	180,184	10	%
	Tier 1 capital (to risk-weighted assets)	261,069		14.5		72,074		4		108,111	6
	Tier 1 capital (to average assets)	261,069		9.6		109,090		4		136,363	5
	Management believes as of September 30, 2014, the Company and the Bank met all capital adequacy requirements to which they are subject to be considered well-capitalized. The Company is a source of additional financial strength to the Bank with its $15,500 in cash and its ability to downstream additional capital to the Bank.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	NOTE 10 — INCOME TAXES
	In accordance with ASC 740-270-50-1, Accounting for Interim Reporting, the provision for income taxes was recorded at September 30, 2014 and 2013 based on the current estimate of the effective annual rate.  The effective tax rate for the third quarter of 2014 was 22.9% versus 20.9% for the same period 2013.  For the first nine months of 2014 and 2013, the effective tax rate was 20.7% and 16.5% respectively.  The increase in the rate in 2014 was due to the increase in pre-tax income in 2014 with tax exempt income remaining constant.  The difference between the Company’s actual rate and the 35% statutory rate is due primarily to the amount of tax exempt interest received and to a smaller extent to tax credits that the Company is able to use.

SUBSEQUENT_EVENT_ACQUISITION

SUBSEQUENT EVENT - ACQUISITION	9 Months Ended
	Sep. 30, 2014
SUBSEQUENT EVENT - ACQUISITION.	'
SUBSEQUENT EVENT - ACQUISITION	'
	NOTE 11 — SUBSEQUENT EVENT - ACQUISITION
	The Company’s management and board of directors have periodically conducted strategic reviews as part of their ongoing efforts to improve its banking franchise and enhance shareholder value. In connection with these strategic reviews, the Company has considered potential acquisition targets, including banking institutions in Indiana, Ohio and Kentucky. On April 7, 2014, the Company announced that its board of directors had approved and entered into a definitive agreement  to acquire MBT Bancorp (MBT), headquartered in West Harrison, Indiana.  MBT is the holding company for The Merchant’s Bank and Trust Company (Merchants), which operates six branches in Dearborn County, Indiana and certain suburban communities of Cincinnati, Ohio.  The merger agreement provides that shareholders of MBT may elect to receive either 2.055 shares of MainSource common stock or $35.16 in cash for each share of MBT common stock owned, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration of 60% common stock and 40% cash.  The merger was completed on October 17, 2014 and as of that date, Merchants was merged into the Bank.  At the date of the merger, Merchants had approximately $228.1 million in assets, $187.0 million in loans, $183.6 million in deposits, and $25.1 million in equity.  The Company anticipates approximately 1,226,300 shares being issued and $14.0 million cash being paid.  As of the date that the Company’s third quarter 2014 consolidated financial statements are issued, all of the information required to be disclosed by the Accounting Standards Codification No. 805 was not available since, given the short period between the October 17, 2014 acquisition date and the financial statement issuance, the calculation of the fair value of all material MBT Bancorp assets acquired and liabilities assumed had not yet been completed.  The Company anticipates recording all of the activity related to the merger in the fourth quarter of 2014.

STOCK_PLANS_AND_STOCK_BASED_CO1

STOCK PLANS AND STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2014
STOCK PLANS AND STOCK BASED COMPENSATION	'
Summary of stock option activity	'
			Nine Months Ended
			September 30, 2014
			Shares		Weighted
					Average
					Exercise Price
	Outstanding, beginning of year		402,139		$	13.79
	Granted		31,327		16.11
	Exercised		(6,500	)	9.24
	Forfeited or expired		(48,726	)	18.48
	Outstanding, period end		378,240		$	13.46
	Options exercisable at period end		251,254		$	13.41
	Fully vested and expected to vest		369,481		$	13.44
Schedule of details of stock options outstanding	'
			September 30,			December 31,
			2014			2013
	Stock options vested and currently exercisable:
	Number		251,254			295,680
	Weighted average exercise price		$	13.41		$	14.21
	Aggregate intrinsic value		$	1,119		$	1,327
	Weighted average remaining life (in years)		3.5			3.9
Schedule of unrecognized stock option compensation expense related to unvested awards	'
	Year		(in thousands)
	October 2014 - December 2014		$	36
	2015		170
	2016		93
	2017		38
Summary of changes in the non-vested restricted shares	'
			Restricted		Weighted Average
			Shares		Grant Date
					Fair Value
	Non-vested at January 1, 2014		105,283		$	12.85
	Granted		34,337		16.3
	Vested		(47,697	)	11.43
	Forfeited		—		—
	Non-vested at September 30, 2014		91,923		$	14.88
Schedule of shares awarded	'
	Quarter			Shares		Price per Share
	2013	1Q		7,200		$	13.38
		2Q		26,100		$	13.79
	2014	2Q		21,780		$	16.53

SECURITIES_Tables

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2014
SECURITIES	'
Schedule of amortized cost and fair value of securities available for sale and related unrealized gains/losses recognized in accumulated other comprehensive income	'
				Gross			Gross
		Amortized		Unrealized			Unrealized			Fair
		Cost		Gains			Losses			Value
	As of September 30, 2014
	Available for Sale
	U. S. government agency	$	577	$	5		$	—		$	582
	State and municipal	304,700		19,304			(306		)	323,698
	Mortgage-backed securities-residential (GSE’s)	154,664		3,499			(1,259		)	156,904
	Collateralized mortgage obligations (GSE’s)	354,174		2,180			(5,635		)	350,719
	Equity securities	4,689		—			—			4,689
	Other securities	3,508		1			—			3,509
	Total available for sale	$	822,312	$	24,989		$	(7,200	)	$	840,101
	As of December 31, 2013
	Available for Sale
	U. S. government agency	$	793	$	5		$	—		$	798
	State and municipal	321,151		12,173			(2,212		)	331,112
	Mortgage-backed securities-residential (GSE’s)	186,054		3,175			(3,800		)	185,429
	Collateralized mortgage obligations (GSE’s)	372,896		1,642			(9,229		)	$	365,309
	Equity securities	4,939		—			—			4,939
	Other securities	3,527		—			(8		)	3,519
	Total available for sale	$	889,360	$	16,995		$	(15,249	)	$	891,106
Schedule of contractual maturities of securities	'
		Available
		for Sale
	September 30, 2014	Amortized Cost		Fair Value
	Within one year	$	15,516	$	15,707
	One through five years	51,381		53,390
	Six through ten years	128,201		135,014
	After ten years	113,687		123,678
	Mortgage-backed securities-residential (Government Sponsored Entity)	154,664		156,904
	Collateralized mortgage obligations (Government Sponsored Entity)	354,174		350,719
	Equity securities	4,689		4,689
	Total available for sale securities	$	822,312	$	840,101
Schedule of securities in a continuous unrealized loss position with unrealized losses presented by length of time	'
		Less than 12 months					12 months or longer						Total
	September 30, 2014	Fair Value		Unrealized			Fair Value			Unrealized			Fair Value		Unrealized
	Description of securities			Losses						Losses					Losses
	State and municipal	$	2,489	$	(11	)	$	15,981		$	(295	)	$	18,470	$	(306	)
	Mortgage-backed securities-residential (GSE’s)	10,200		(26		)	49,874			(1,233		)	60,074		(1,259		)
	Collateralized mortgage obligations (GSE’s)	75,368		(648		)	150,728			(4,987		)	226,096		(5,635		)
	Total temporarily impaired	$	88,057	$	(685	)	$	216,583		$	(6,515	)	304,640		$	(7,200	)
		Less than 12 months					12 months or longer						Total
	December 31, 2013	Fair Value		Unrealized			Fair Value			Unrealized			Fair Value		Unrealized
	Description of securities			Losses						Losses					Losses
	State and municipal	$	31,660	$	(1,791	)	$	4,153		$	(421	)	$	35,813	$	(2,212	)
	Mortgage-backed securities-residential (GSE’s)	114,036		(3,800		)	—			—			114,036		(3,800		)
	Collateralized mortgage obligations (GSE’s)	267,579		(9,040		)	4,100			(189		)	271,679		(9,229		)
	Other securities	—		—			993			(8		)	993		(8		)
	Total temporarily impaired	$	413,275	$	(14,631	)	$	9,246		$	(618	)	$	422,521	$	(15,249	)

LOANS_AND_ALLOWANCE_Tables

LOANS AND ALLOWANCE (Tables)	9 Months Ended
	Sep. 30, 2014
LOANS AND ALLOWANCE	'
Schedule of loans	'
		September 30,			December 31,
		2014			2013
	Commercial
	Commercial and industrial	$	229,669		$	180,378
	Agricultural	48,314			30,323
	Commercial Real Estate
	Farm	73,253			76,082
	Hotel	80,588			108,226
	Construction and development	47,427			35,731
	Other	564,703			546,970
	Residential
	1-4 family	406,562			403,733
	Home equity	258,017			244,277
	Consumer
	Direct	43,987			45,129
	Indirect	704			1,077
	Total loans	1,753,224			1,671,926
	Allowance for loan losses	(24,549		)	(27,609		)
	Net loans	$	1,728,675		$	1,644,317
Schedule of activity in the allowance for loan losses	'
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, January 1, 2014	$	3,291		$	20,210		$	3,409		$	699		$	27,609
	Provision charged to expense	(699		)	(548		)	1,427			1,320			1,500
	Losses charged off	(166		)	(4,786		)	(1,925		)	(2,166		)	(9,043		)
	Recoveries	1,048			2,112			298			1,025			4,483
	Balance, September 30, 2014	$	3,474		$	16,988		$	3,209		$	878		$	24,549
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, January 1, 2013	$	3,894		$	24,157		$	3,180		$	996		$	32,227
	Provision charged to expense	366			506			1,659			1,203			3,734
	Losses charged off	(1,058		)	(5,270		)	(1,767		)	(2,364		)	(10,459		)
	Recoveries	262			564			375			1,146			2,347
	Balance, September 30, 2013	$	3,464		$	19,957		$	3,447		$	981		$	27,849
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, July 1, 2014	$	3,201		$	16,994		$	3,110		$	562		$	23,867
	Provision charged to expense	(685		)	(548		)	464			769			—
	Losses charged off	(17		)	(131		)	(548		)	(795		)	(1,491		)
	Recoveries	975			673			183			342			2,173
	Balance, September 30, 2014	$	3,474		$	16,988		$	3,209		$	878		$	24,549
		Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Allowance for loan loss
	Balance, July 1, 2013	$	3,635		$	20,108		$	3,459		$	800		$	28,002
	Provision charged to expense	(121		)	175			288			658			1,000
	Losses charged off	(91		)	(584		)	(448		)	(864		)	(1,987		)
	Recoveries	41			258			148			387			834
	Balance, September 30, 2013	$	3,464		$	19,957		$	3,447		$	981		$	27,849
Schedule of balance in the allowance for loan losses and the recorded investment by portfolio segment and impairment method	'
	As of September 30, 2014
	Ending Balance individually evaluated for impairment	$	12		$	1,676		$	95		$	—		$	1,783
	Ending Balance collectively evaluated for impairment	3,462			15,312			3,114			878			22,766
	Total ending allowance balance	$	3,474		$	16,988		$	3,209		$	878		$	24,549
	Loans
	Ending Balance individually evaluated for impairment	$	537		$	24,232		$	10,167		$	118		$	35,054
	Ending Balance collectively evaluated for impairment	277,446			741,739			654,412			44,573			1,718,170
	Total ending loan balance excludes $5,108 of accrued interest	$	277,983		$	765,971		$	664,579		$	44,691		$	1,753,224
	As of December 31, 2013	Commercial			Commercial			Residential			Consumer			Total
					Real Estate
	Ending Balance individually evaluated for impairment	$	13		$	1,167		$	105		$	2		$	1,287
	Ending Balance collectively evaluated for impairment	3,278			19,043			3,304			697			26,322
	Total ending allowance balance	$	3,291		$	20,210		$	3,409		$	699		$	27,609
	Loans
	Ending Balance individually evaluated for impairment	$	300		$	21,240		$	10,797		$	785		$	33,122
	Ending Balance collectively evaluated for impairment	210,401			745,769			637,213			45,421			1,638,804
	Total ending loan balance excludes $5,043 of accrued interest	$	210,701		$	767,009		$	648,010		$	46,206		$	1,671,926
Schedule of loans individually evaluated for impairment by class of loans	'
	September 30, 2014	Unpaid			Recorded			Allowance
		Principal			Investment			for Loan
		Balance						Losses Allocated
	With an allowance recorded
	Commercial
	Commercial and industrial	$	88		$	71		$	12
	Commercial Real Estate
	Farm	76			76			21
	Hotel	1,912			1,909			617
	Construction and development	—			—			—
	Other	3,084			2,633			1,038
	Residential
	1-4 Family	831			788			90
	Home Equity	169			169			5
	Consumer
	Direct	—			—			—
	Subtotal — impaired with allowance recorded	6,160			5,646			1,783
	With no related allowance recorded
	Commercial
	Commercial & industrial	128			55
	Agricultural	413			411
	Commercial Real Estate
	Farm	1,010			772
	Hotel	11,487			11,441
	Construction and development	84			78
	Other	6,732			4,617
	Residential
	1-4 Family	7,816			6,869
	Home Equity	2,548			2,341
	Consumer
	Direct	141			115
	Indirect	3			3
	Subtotal — impaired with no allowance recorded	30,362			26,702			—
	Total impaired loans	$	36,522		$	32,348		$	1,783
	December 31, 2013	Unpaid			Recorded			Allowance
		Principal			Investment			for Loan
		Balance						Losses Allocated
	With an allowance recorded
	Commercial
	Commercial and industrial	$	194		$	177		$	13
	Agricultural`	—			—			—
	Commercial Real Estate
	Farm	625			436			61
	Hotel	—			—			—
	Construction and development	—			—			—
	Other	7,309			6,382			1,106
	Residential
	1-4 Family	1,089			981			102
	Home Equity	50			50			3
	Consumer
	Direct	126			126			2
	Indirect	—			—			—
	Subtotal — impaired with allowance recorded	9,393			8,152			1,287
	With no related allowance recorded
	Commercial
	Commercial & industrial	204			123
	Agricultural	—			—
	Commercial Real Estate
	Farm	767			657
	Hotel	—			—
	Construction and development	942			795
	Other	8,651			6,377
	Residential
1-4 Family	8,931			8,007
Home Equity	1,860			1,759
Consumer
Direct	675			649
Indirect	11			10
Subtotal — impaired with no allowance recorded	22,041			18,377			—
Total impaired loans	$	31,434		$	26,529		$	1,287
Schedule of average balance of impaired loans and interest income and cash basis interest recognized	'
	Nine months ended September 30, 2014	Average			Interest			Cash Basis
		Balance			Income			Income
		Impaired Loans			Recognized			Recognized
	Commercial
	Commercial & Industrial	$	247		$	9		$	9
	Agricultural	206			—			—
	Commercial Real Estate
	Farm	921			—			—
	Hotel	6,225			—			—
	Construction and development	318			—			—
	Other	10,305			75			75
	Residential
	1-4 Family	8,108			16			16
	Home Equity	2,472			11			11
	Consumer
	Direct	276			7			7
	Indirect	6			6			6
		$	29,084		$	124		$	124
	Nine months ended September 30, 2013	Average			Interest			Cash Basis
		Balance			Income			Income
		Impaired Loans			Recognized			Recognized
	Commercial
	Commercial & Industrial	$	1,171		$	4		$	4
	Agricultural	—			—			—
	Commercial Real Estate
	Farm	1,426			11			11
	Hotel	1,492			1			1
	Construction and development	1,694			45			45
	Other	19,501			55			55
	Residential
	1-4 Family	10,716			3			3
	Home Equity	2,572			4			4
	Consumer
	Direct	922			16			16
	Indirect	15			—			—
		$	39,509		$	139		$	139
	Three months ended September 30, 2014	Average			Interest			Cash Basis
		Balance			Income			Income
		Impaired Loans			Recognized			Recognized
	Commercial
	Commercial & Industrial	$	211		$	1		$	1
	Agricultural	412			—			—
	Commercial Real Estate
	Farm	852			—			—
	Hotel	12,450			—			—
	Construction and development	78			—			—
	Other	8,656			4			4
	Residential
	1-4 Family	7,449			11			11
	Home Equity	2,629			4			4
	Consumer
	Direct	104			2			2
	Indirect	2			5			5
		$	32,843		$	27		$	27
	Three months ended September 30, 2013	Average			Interest			Cash Basis
		Balance			Income			Income
		Impaired Loans			Recognized			Recognized
	Commercial
	Commercial & Industrial	$	751		$	2		$	2
	Agricultural	—			—			—
	Commercial Real Estate
	Farm	1,255			3			3
	Hotel	—			1			1
Construction and development	1,302			44			44
Other	16,472			23			23
Residential
1-4 Family	10,421			—			—
Home Equity	2,500			1			1
Consumer
Direct	858			5			5
Indirect	12			—			—
	$	33,571		$	79		$	79
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans	'
		Non-accrual						Past due over
								90 days and
								still accruing
		September 30,			December 31,			September 30,			December 31,
		2014			2013			2014			2013
	Commercial
	Commercial and industrial	$	38		$	159					$	14
	Agricultural	410			—
	Commercial Real Estate
	Farm	848			1,093
	Hotel	1,912			—
	Construction and development	78			329
	Other	4,832			11,489
	Residential
	1-4 Family	6,363			7,635			59
	Home Equity	1,552			1,452
	Consumer
	Direct	77			174
	Indirect	3			10
	Total	$	16,113		$	22,341		$	59		$	14
Schedule of aging of the recorded investment in past due loans	'
	September 30, 2014	Total			30-59 Days			60-89 Days			Greater than			Total			Loans Not
		Loans			Past Due			Past Due			90 Days			Past Due			Past Due
											Past Due
	Commercial
	Commercial and industrial	$	229,669		$	210		$	54		$	39		$	303		$	229,366
	Agricultural	48,314			—			—			—			—			48,314
	Commercial Real Estate
	Farm	73,253			—			—			332			332			72,921
	Hotel	80,588			1,912			—			—			1,912			78,676
	Construction and development	47,427			—			—			—			—			47,427
	Other	564,703			137			206			2,262			2,605			562,098
	Residential
	1-4 Family	406,562			1,587			1,660			3,387			6,634			399,928
	Home Equity	258,017			876			482			967			2,325			255,692
	Consumer
	Direct	43,987			42			3			58			103			43,884
	Indirect	704			—			—			3			3			701
	Total — excludes $5,108 of accrued interest	$	1,753,224		$	4,764		$	2,405		$	7,048		$	14,217		$	1,739,007
	December 31, 2013	Total			30-59 Days			60-89 Days			Greater than			Total			Loans Not
		Loans			Past Due			Past Due			90 Days			Past Due			Past Due
											Past Due
	Commercial
	Commercial and industrial	$	180,378		$	64		$	24		$	72		$	160		$	180,218
	Agricultural	30,323			—			—			—			—			30,323
	Commercial Real Estate
	Farm	76,082			—			—			697			697			75,385
	Hotel	108,226			—			—			—			—			108,226
	Construction and development	35,731			466			—			329			795			34,936
	Other	546,970			984			187			5,944			7,115			539,855
	Residential
	1-4 Family	403,733			7,381			1,969			4,936			14,286			389,447
	Home Equity	244,277			646			313			1,025			1,984			242,293
	Consumer
	Direct	45,129			192			32			126			350			44,779
	Indirect	1,077			2			4			—			6			1,071
	Total — excludes $5,043 of accrued interest	$	1,671,926		$	9,735		$	2,529		$	13,129		$	25,393		$	1,646,533
Schedule of loans by class modified as troubled debt restructurings	'
				Pre-Modification			Post-Modification
				Outstanding Recorded			Outstanding Recorded
	For the nine month period ending September 30, 2014	Number of Loans		Investment			Investment
	Commercial real estate
	Hotel	2		$	15,362		$	11,550
	Other	2		1,015			1,015
	Residential
	1-4 Family	1		140			140
	Home Equity	1		34			34
	Consumer
	Direct	1		26			26
	Total	7		$	16,577		$	12,765
				Pre-Modification			Post-Modification
				Outstanding Recorded			Outstanding Recorded
	For the nine month period ending September 30, 2013	Number of Loans		Investment			Investment
	Commercial real estate
	Other	1		$	28		$	28
	Commercial real estate
	Other	3		344			344
	Residential
	1-4 Family	5		261			261
	Home equity	1		20			20
	Consumer
	Direct	1		30			30
	Total	11		$	683		$	683
				Pre-Modification			Post-Modification
				Outstanding Recorded			Outstanding Recorded
	For the three month period ending September 30, 2014	Number of Loans		Investment			Investment
	Residential
	Home Equity	1		$	34		$	34
	Consumer
	Direct	1		26			26
	Total	2		$	60		$	60
				Pre-Modification			Post-Modification
				Outstanding Recorded			Outstanding Recorded
	For the three month period ending September 30, 2013	Number of Loans		Investment			Investment
	Residential
	1-4 Family	—		$	—		$	—
	Total	—		$	—		$	—
Schedule of loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'
	For the nine month period ending September 30, 2014	Number of Loans		Recorded Investment
	Commercial real estate:
	Other	1		$	1,431
	Residential
	1-4 Family	1		53
	Home Equity	1		14
	Total	3		$	1,498
	For the nine month period ending September 30, 2013	Number of Loans		Recorded Investment
	Residential:
	1-4 Family	2		$	89
	Home Equity	1		15
	Consumer
	Direct	1		4
	Total	4		$	108
	For the three month period ending September 30, 2014	Number of Loans		Recorded Investment
	Residential:
	Home Equity	1		$	14
	Total	1		$	14
	For the three month period ending September 30, 2013	Number of Loans		Recorded Investment
	Residential:
	1-4 Family	1		$	52
	Home Equity	1		15
	Consumer
	Direct	1		4
	Total	3		$	71
Schedule of risk category of loans by class of loans	'
	September 30, 2014	Pass			Special			Substandard			Non-accrual
					Mention
	Commercial
	Commercial and industrial	$	189,192		$	5,537		$	1,867		$	38
	Agricultural	47,494			—			410			410
	Commercial Real Estate
	Farm	71,357			976			72			848
	Hotel	64,614			2,575			11,487			1,912
	Construction and development	47,147			—			—			78
	Other	427,484			16,231			8,811			4,832
	Total	$	847,288		$	25,319		$	22,647		$	8,118
	December 31, 2013	Pass			Special			Substandard			Non-accrual
					Mention
	Commercial
	Commercial and industrial	$	144,744		$	4,538		$	1,250		$	159
	Agricultural	30,206			—			—			—
	Commercial Real Estate
	Farm	73,006			105			—			1,093
	Hotel	61,195			31,401			15,630			—
	Construction and development	34,672			—			466			329
	Other	388,719			20,893			9,931			11,489
	Total	$	732,542		$	56,937		$	27,277		$	13,070
Schedule of performing/non performing loans by category of loans	'
	September 30, 2014	Performing			Watch			Substandard
	Commercial
	Commercial and industrial	$	33,035		$	—		$	—
	Commercial Real Estate
	Construction and development	202			—			—
	Other	107,336			9			—
	Total	$	140,573		$	9		$	—
	December 31, 2013	Performing			Watch			Substandard
	Commercial
	Commercial and industrial	$	29,664		$	23		$	—
	Agricultural	117			—			—
	Commercial Real Estate
	Farm	1,878			—			—
	Construction and development	264			—			—
	Other	115,938			—			—
	Total	$	147,861		$	23		$	—
	September 30, 2014	Performing			Watch			Substandard
	Residential
	1-4 Family	$	401,515		$	1,660		$	3,387
	Home Equity	257,002			48			967
	Total	$	658,517		$	1,708		$	4,354
	December 31, 2013	Performing			Watch			Substandard
	Residential
	1-4 Family	$	396,098		2,703			4,932
	Home Equity	242,825			424			1,028
	Total	$	638,923		$	3,127		$	5,960
	September 30, 2014	Performing			Substandard			Loss
	Consumer
	Direct	$	43,923		$	15		$	49
	Indirect	704			—			—
	Total	$	44,627		$	15		$	49
	December 31, 2013	Performing			Substandard			Loss
	Consumer
	Direct	$	44,955		$	47		$	127
	Indirect	1,067			10			—
	Total	$	46,022		$	57		$	127

OTHER_REAL_ESTATE_OWNED_Tables

OTHER REAL ESTATE OWNED (Tables)	9 Months Ended
	Sep. 30, 2014
OTHER REAL ESTATE OWNED	'
Schedule of Activity in other real estate owned	'
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Beginning Balance	$	3,723		$	5,183		$	4,120		$	6,677
	Transfer to other real estate owned	220			816			2,119			2,904
	Sales — out of other real estate owned	(753		)	(1,120		)	(2,929		)	(4,155		)
	Write-down	—			(95		)	(120		)	(642		)
	Ending Balance — September 30	$	3,190		$	4,784		$	3,190		$	4,784
Schedule of activity in the valuation account for other real estate	'
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Beginning Balance	$	(391	)	$	(1,353	)	$	(1,328	)	$	(1,672	)
	Impairments during year	—			(95		)	(120		)	(642		)
	Recovery on impairments	—			—			—			—
	Reductions	33			74			1,090			940
	Ending Balance — September 30	$	(358	)	$	(1,374	)	$	(358	)	$	(1,374	)
Schedule of expenses related to foreclosed assets	'
		Three months ended September 30						Nine months ended September 30
		2014			2013			2014			2013
	Write downs	$	—		$	95		$	120		$	642
	Losses / (gains) on sales	9			(57		)	(73		)	(286		)
	Net loss / (gain)	$	9		$	38		$	47		$	356
	Operating expenses	$	28		$	79		$	120		$	290

DEPOSITS_Tables

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2014
DEPOSITS.	'
Schedule of deposits	'
		September 30,		December 31,
		2014		2013
	Noninterest-bearing demand	$	464,058	$	436,550
	Interest-bearing demand	917,369		884,128
	Savings	527,829		501,494
	Certificates of deposit of $100 or more	100,874		129,132
	Other certificates and time deposits	211,569		249,324
	Total deposits	$	2,221,699	$	2,200,628

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2014
EARNINGS PER SHARE	'
Schedule of earnings per common share (EPS) computation	'
		September 30, 2014					September 30, 2013
	For the three months ended:	Net		Weighted	Per		Net			Weighted	Per
		Income		Average	Share		Income			Average	Share
				Shares	Amount					Shares	Amount
	Basic earnings per common share:
	Net income	$	8,457	20,459,709			$	7,632		20,400,808
	Redemption of preferred shares	—					(148		)
	Preferred dividends and accretion	—					(99		)
	Net income available to common shareholders	$	8,457	20,459,709	$	0.41	$	7,385		20,400,808	$	0.36
	Effect of dilutive warrants			72,978						—
	Effect of dilutive stock options			68,757						51,013
	Net income available to common shareholders and assumed conversions	$	8,457	20,601,444	$	0.41	$	7,385		20,451,821	$	0.36
		September 30, 2014					September 30, 2013
	For the nine months ended:	Net		Weighted	Per		Net			Weighted	Per
		Income		Average	Share		Income			Average	Share
				Shares	Amount					Shares	Amount
	Basic earnings per common share:
	Net income	$	22,436	20,448,054			$	18,947		20,363,514
	Redemption of preferred shares						(148		)
	Preferred dividends and accretion	—					(504		)
	Net income available to common shareholders	$	22,436	20,448,054	$	1.1	$	18,295		20,363,514	$	0.9
	Effect of dilutive warrants			67,184						—
	Effect of dilutive stock options			66,102						56,681
	Net income available to common shareholders and assumed conversions	$	22,436	20,581,340	$	1.09	$	18,295		20,420,195	$	0.9

FAIR_VALUE_Tables

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2014
FAIR VALUE	'
Schedule of assets and liabilities measured at fair value on a recurring basis	'
					Fair Value Measurements at
					September 30, 2014 Using:
								Significant
					Quoted Prices in			Other			Significant
					Active Markets for			Observable			Unobservable
		Carrying			Identical Assets			Inputs			Inputs
	(Dollars in thousands)	Value			(Level 1)			(Level 2)			(Level 3)
	Financial Assets
	Investment securities available-for sale
	U. S. government agency	$	582					$	582
	States and municipals	323,698						310,841			12,857
	Mortgage-backed securities — residential —Government Sponsored Entity	156,904						156,904
	Collateralized mortgage obligations — Government Sponsored Entity	350,719						350,719
	Equity securities	4,689			4,689
	Other securities	3,509						1,002			2,507
	Total investment securities available-for-sale	$	840,101		$	4,689		$	820,048		$	15,364
	Mortgage banking derivative	$	750					$	750
					Fair Value Measurements at
					December 31, 2013 Using:
								Significant
					Quoted Prices in			Other			Significant
					Active Markets for			Observable			Unobservable
		Carrying			Identical Assets			Inputs			Inputs
	(Dollars in thousands)	Value			(Level 1)			(Level 2)			(Level 3)
	Financial Assets
	Investment securities available-for sale
	U. S. government agency	$	798					$	798
	States and municipals	331,112						316,692			14,420
	Mortgage-backed securities — residential —Government Sponsored Entity	185,429						185,429
	Collateralized mortgage obligations — Government Sponsored Entity	365,309						365,309
	Equity securities	4,939			4,689			250
	Other securities	3,519						993			2,526
	Total investment securities available-for-sale	$	891,106		$	4,689		$	869,221		$	17,196
	Mortgage banking derivative	$	525					$	525
Schedule of reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	'
	Three months ended September 30:
	States and municipal	2014			2013
	Beginning balance, July 1	$	13,083		$	14,688
	Total gains or losses (realized / unrealized)
	Included in other comprehensive income	(8		)	(12		)
	Settlements	(218		)	(206		)
	Ending balance, September 30	$	12,857		$	14,470
	Equity securities	2014			2013
	Beginning balance, July 1	$	—		$	250
	Total gains or losses (realized / unrealized)
	Settlements	—			—
	Ending balance, September 30	$	—		$	250
	Other securities	2014			2013
	Beginning balance, July 1	$	2,511		$	2,542
	Total gains or losses (realized / unrealized)
	Included in other comprehensive income	(4		)	(8		)
	Ending balance, September 30	$	2,507		$	2,534
	Nine months ended September 30:
	States and municipal	2014			2013
	Beginning balance, January 1	$	14,420		$	15,470
	Total gains or losses (realized / unrealized)
	Included in other comprehensive income	15			(84		)
	Settlements	(1,578		)	(916		)
	Ending balance, September 30	$	12,857		$	14,470
	Equity securities	2014			2013
	Beginning balance, January 1	$	250		$	250
	Total gains or losses (realized / unrealized)
	Settlements	(250		)	—
	Ending balance, September 30	$	—		$	250
	Other securities	2014			2013
	Beginning balance, January 1	$	2,526		$	2,557
	Total gains or losses (realized / unrealized)
	Included in other comprehensive income	(19		)	(23		)
	Ending balance, September 30	$	2,507		$	2,534
Schedule of assets and liabilities measured at fair value on a non-recurring basis	'
					Fair Value Measurements at September 30, 2014 Using
		September 30, 2014			Quoted Prices in		Significant		Significant
					Active Markets		Other		Unobservable
					for		Observable		Inputs (Level 3)
					Identical Assets		Inputs (Level 2)
					(Level 1)
	Assets:
	Impaired loans
	Farm real estate	$	55						$	55
	Hotel	1,292							1,292
	Other commercial real estate	1,313							1,313
	Total impaired loans	$	2,660						$	2,660
	Impaired servicing rights	$	1,459						$	1,459
	Other real estate owned
	Other commercial real estate	$	198						$	198
	1-4 family	28							28
	Total other real estate owned	$	226						$	226
					Fair Value Measurements at December 31, 2013 Using
		December 31, 2013			Quoted Prices in		Significant		Significant
					Active Markets		Other		Unobservable
					for		Observable		Inputs (Level 3)
					Identical Assets		Inputs (Level 2)
					(Level 1)
	Assets:
	Impaired loans
	Commercial and industrial	$	76						$	76
	Farm estate	375							375
	Construction and development	226							226
	Other commercial real estate	5,112							5,112
	Total impaired loans	$	5,789						$	5,789
	Impaired servicing rights	$	1,794						$	1,794
	Other real estate owned
	Construction and development	$	522						$	522
	Home equity	67							67
	Other commercial real estate	425							425
	Total other real estate owned	$	1,014						$	1,014
Schedule of breakdown of impaired loans by portfolio class	'
		Gross			Valuation			Net
		Balance			Allowance
	Farm real estate	$	76		$	21		$	55
	Hotel	1,909			617			1,292
	Other commercial real estate	2,247			934			1,313
	Ending Balance	$	4,232		$	1,572		$	2,660
Schedule of properties by portfolio class, net	'
		Gross			Valuation			Net
		Balance			Allowance
	Other commercial real estate	$	219		$	21		$	198
	1-4 family	37			9			28
	Ending Balance	$	256		$	30		$	226
Schedule of quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	'
	September 30, 2014	Fair Value			Valuation		Unobservable		Range
		(in thousands)			Technique(s)		Input(s)
	Impaired Loans:
	Farm real estate	55			Sales comparison approach		Adjustment for differences between comparable sales		40%
									40% Avg
	Hotel	1,292			Income approach		Adjustment for type of property, current status of property		20%
									20% Avg
	Other commercial real estate	1,313			Sales comparison approach		Adjustment for differences between comparable sales, type of property, current status of property		0%-50%
									43% Avg
		$	2,660
	Other real estate owned:
	Other commercial real estate	$	198		Sales comparison approach		Adjustment for differences between comparable sales.		10%
									10% Avg
	1-4 Family	28			Sales comparison approach		Adjustment for differences between comparable sales.		10%
									10% Avg
		$	226
	Mortgage servicing rights	$	1,459		Cash flow analysis		Discount rate		10%
	December 31, 2013	Fair Value			Valuation		Unobservable		Range
		(in thousands)			Technique(s)		Input(s)
	Impaired Loans:
	Commercial & industrial	$	76		Sales comparison approach		Adjustment for differences between comparable sales		0%-10%
									10% Avg
	Farm real estate	375			Sales comparison approach		Adjustment for differences between comparable sales		40%
									40% Avg
	Other/ 1-4 Family	5,338			Sales comparison approach		Adjustment for differences between comparable sales, type of property, current status of property		0%-40%
									25% Avg
		5,789
	Other real estate owned:
	Construction and development	$	522		Sales comparison approach		Adjustment for differences between comparable sales.		10%
									10%Avg
	Other & Home Equity	492			Sales comparison approach		Adjustment for differences between comparable sales.		10%-15%
									10%Avg
		1,014
	Mortgage servicing rights	1,794			Cash flow analysis		Discount rate		10%
Schedule of carrying amounts and estimated fair values of financial instruments	'
	September 30, 2014	Carrying			Level 1		Level 2		Level 3		Total
		Amount
	Financial assets:
	Cash and cash equivalents	$	69,914		60,150		9,764				69,914
	Interest bearing time deposits	1,915					1,915				1,915
	Loans including loans held for sale, net	1,730,793					4,928		1,732,588		1,737,516
	Restricted stock	15,625									N/A
	Interest receivable	9,266					4,158		5,108		9,266
	Financial liabilities
	Deposits	(2,221,699		)	(464,058	)	(1,756,444	)			(2,220,502	)
	Other borrowings	(34,490		)			(34,490	)			(34,490	)
	FHLB advances	(240,343		)			(244,060	)			(244,060	)
	Interest payable	(491		)			(491	)			(491	)
	Subordinated debentures	(41,239		)			(20,560	)			(20,560	)
	December 31, 2013	Carrying			Level 1			Level 2			Level 3		Total
		Amount
	Financial assets:
	Cash and cash equivalents	$	61,320		$	55,826		$	5,494				$	61,320
	Loans including loans held for sale, net	1,644,527						6,158			1,657,199		1,663,357
	Restricted stock	15,629											N/A
	Interest receivable	9,616						4,573			5,043		9,616
	Financial liabilities
	Deposits	(2,200,628		)	(436,550		)	(1,764,719		)			(2,201,269		)
	Other borrowings	(38,594		)				(38,594		)			(38,594		)
	FHLB advances	(247,858		)				(252,402		)			(252,402		)
	Interest payable	(799		)				(799		)			(799		)
	Subordinated debentures	(46,394		)				(23,130		)			(23,130		)

REGULATORY_CAPITAL_Tables

REGULATORY CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2014
REGULATORY CAPITAL	'
Schedule of actual and required capital amounts and ratios	'
						Required for
		Actual				Adequate Capital				To Be Well Capitalized
	September 30, 2014	Amount		Ratio		Amount		Ratio		Amount	Ratio
	MainSource Financial Group
	Total capital (to risk-weighted assets)	$	315,877	16.7	%	$	150,959	8	%	N/A	N/A
	Tier 1 capital (to risk-weighted assets)	292,278		15.5		75,480		4		N/A	N/A
	Tier 1 capital (to average assets)	292,278		10.5		111,444		4		N/A	N/A
	MainSource Bank
	Total capital (to risk-weighted assets)	296,075		15.8	%	149,956		8	%	187,445	10	%
	Tier 1 capital (to risk-weighted assets)	272,633		14.5		74,978		4		112,467	6
	Tier 1 capital (to average assets)	272,633		9.9		110,107		4		137,634	5
						Required for				To Comply with
		Actual				Adequate Capital				Regulatory Agreement
	December 31, 2013	Amount		Ratio		Amount		Ratio		Amount	Ratio
	MainSource Financial Group
	Total capital (to risk-weighted assets)	$	302,181	16.7	%	$	145,150	8	%	N/A	N/A
	Tier 1 capital (to risk-weighted assets)	279,440		15.4		72,575		4		N/A	N/A
	Tier 1 capital (to average assets)	279,440		10.1		110,428		4		N/A	N/A
	MainSource Bank
	Total capital (to risk-weighted assets)	283,653		15.7	%	144,147		8	%	180,184	10	%
	Tier 1 capital (to risk-weighted assets)	261,069		14.5		72,074		4		108,111	6
	Tier 1 capital (to average assets)	261,069		9.6		109,090		4		136,363	5

STOCK_PLANS_AND_STOCK_BASED_CO2

STOCK PLANS AND STOCK BASED COMPENSATION (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Apr. 26, 2007

Apr. 23, 2003

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

2007 Stock Incentive Plan

2003 Option Plan

Officers

Maximum

Maximum

Stock-based compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares reserved for issuance under the plan

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

650,000

607,754

Award term

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'10 years

'

'

Vesting period

'

'

'

'

'

'

'

'

'

'

'

'

'

'4 years

'

'

'

Shares

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Outstanding, beginning of year (in shares)

'

'

'

'

'

'

402,139

'

'

'

402,139

'

'

'

'

'

'

Granted (in shares)

'

'

'

'

0

1,938

29,389

0

49,783

2,500

31,327

'

'

'

'

'

'

Exercised (in shares)

'

'

'

'

'

'

'

'

'

'

-6,500

'

'

'

'

'

'

Forfeited or expired (in shares)

'

'

'

'

'

'

'

'

'

'

-48,726

'

'

'

'

'

'

Outstanding at end of year (in shares)

'

'

'

'

378,240

'

'

'

'

'

378,240

'

402,139

'

'

'

'

Options exercisable at period end (in shares)

'

'

'

'

251,254

'

'

'

'

'

251,254

'

295,680

'

'

'

'

Fully vested and expected to vest (in shares)

'

'

'

'

369,481

'

'

'

'

'

369,481

'

'

'

'

'

'

Weighted Average Exercise Price

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Outstanding, beginning of year (in dollars per share)

'

'

'

'

'

'

$13.79

'

'

'

$13.79

'

'

'

'

'

'

Granted (in dollars per share)

'

'

'

'

'

'

'

'

'

'

$16.11

'

'

'

'

'

'

Exercised (in dollars per share)

'

'

'

'

'

'

'

'

'

'

$9.24

'

'

'

'

'

'

Forfeited or expired (in dollars per share)

'

'

'

'

'

'

'

'

'

'

$18.48

'

'

'

'

'

'

Outstanding at end of year (in dollars per share)

'

'

'

'

$13.46

'

'

'

'

'

$13.46

'

$13.79

'

'

'

'

Options exercisable at period end (in dollars per share)

'

'

'

'

$13.41

'

'

'

'

'

$13.41

'

$14.21

'

'

'

'

Fully vested and expected to vest (in dollars per share)

'

'

'

'

$13.44

'

'

'

'

'

$13.44

'

'

'

'

'

'

Stock options vested and currently exercisable:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number (in shares)

'

'

'

'

251,254

'

'

'

'

'

251,254

'

295,680

'

'

'

'

Weighted average exercise price (in dollars per share)

'

'

'

'

$13.41

'

'

'

'

'

$13.41

'

$14.21

'

'

'

'

Aggregate intrinsic value (in dollars)

'

'

'

'

$1,119

'

'

'

'

'

$1,119

'

$1,327

'

'

'

'

Weighted average remaining life

'

'

'

'

'

'

'

'

'

'

'3 years 6 months

'

'3 years 10 months 24 days

'

'

'

'

Compensation expense disclosure

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Compensation expense

90

90

270

187

42

'

'

26

'

'

124

98

'

'

'

'

'

Fair value of options granted using the weighted average assumptions as of grant date

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Risk-free interest rate (as a percent)

'

'

'

'

'

'

'

'

'

'

2.07%

'

'

'

'

'

'

Expected term

'

'

'

'

'

'

'

'

'

'

'7 years

'

'

'

'

'

'

Expected price volatility (as a percent)

'

'

'

'

'

'

'

'

'

'

28.10%

'

'

'

'

'

'

Dividend yield (as a percent)

'

'

'

'

'

'

'

'

'

'

2.49%

'

'

'

'

'

'

Unrecognized stock option compensation expense related to unvested awards

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

October 2014 - December 2014

'

'

'

'

'

'

'

'

'

'

36

'

'

'

'

'

'

2015

'

'

'

'

'

'

'

'

'

'

170

'

'

'

'

'

'

2016

'

'

'

'

'

'

'

'

'

'

93

'

'

'

'

'

'

2017

'

'

'

'

'

'

'

'

'

'

$38

'

'

'

'

'

'

STOCK_PLANS_AND_STOCK_BASED_CO3

STOCK PLANS AND STOCK BASED COMPENSATION (Details 2) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2014

Jun. 30, 2014

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Jun. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2014

Jun. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Restricted stock

2007 Stock Incentive Plan

2007 Stock Incentive Plan

2007 Stock Incentive Plan

2007 Stock Incentive Plan

Executive officers

Executive officers

Executive officers and other employees

Executive officers and other employees

Executive officers and other employees

Executive officers and other employees

Directors

Directors

Restricted stock

Restricted stock

Restricted stock

Restricted stock

Stock-based compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Recognition period of other expense

'

'

'

'

'

'3 months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares awarded

'

21,780

'

26,100

7,200

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Closing price of common stock (in dollars per share)

'

$16.53

'

$13.79

$13.38

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the beginning of the period (in shares)

'

'

'

'

'

'

'

105,283

'

'

'

'

'

'

'

'

'

'

'

'

Granted (in shares)

'

'

'

'

'

'

'

34,337

10,792

'

2,000

10,611

21,726

47,971

'

'

'

'

'

'

Vested (in shares)

'

'

'

'

'

'

'

-47,697

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the end of the period (in shares)

'

'

'

'

'

'

'

91,923

'

'

'

'

'

'

'

'

'

'

'

'

Weighted Average Grant Date Fair Value

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the beginning of the period (in dollars per share)

'

'

'

'

'

'

'

$12.85

'

'

'

'

'

'

'

'

'

'

'

'

Granted (in dollars per share)

'

'

'

'

'

'

'

$16.30

'

'

$17.32

$16.53

$16.12

'

'

'

'

'

'

'

Vested (in dollars per share)

'

'

'

'

'

'

'

$11.43

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the end of the period (in dollars per share)

'

'

'

'

'

'

'

$14.88

'

'

'

'

'

'

'

'

'

'

'

'

Additional disclosures

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Vesting percentage of stock awards on second anniversary of grant date

'

'

'

'

'

'

'

'

'

80.00%

'

'

'

'

'

'

'

'

'

'

Vesting percentage of stock awards on third anniversary of grant date

'

'

'

'

'

'

'

'

'

20.00%

100.00%

'

'

'

'

'

'

'

'

'

Unrecognized compensation costs

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$865

'

$865

'

Remaining vesting period over which unrecognized compensation cost will be recognized

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'1 year 4 months 24 days

'

Compensation expense

$90

'

$90

'

'

$270

$187

'

'

'

'

'

'

'

'

'

$125

$157

$427

$403

Quarterly vesting percentage of stock awards

'

'

'

'

'

'

'

'

'

'

'

'

'

'

25.00%

25.00%

'

'

'

'

SECURITIES_Details

SECURITIES (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
	item		item
Available for sale securities	'	'	'	'	'
Amortized Cost	$822,312	'	$822,312	'	$889,360
Gross Unrealized Gains	'	'	24,989	'	16,995
Gross Unrealized Losses	'	'	-7,200	'	-15,249
Fair Value	840,101	'	840,101	'	891,106
Available for Sale, Amortized Cost	'	'	'	'	'
Within one year	15,516	'	15,516	'	'
One through five years	51,381	'	51,381	'	'
Six through ten years	128,201	'	128,201	'	'
After ten years	113,687	'	113,687	'	'
Equity securities	4,689	'	4,689	'	'
Total available for sale securities	822,312	'	822,312	'	889,360
Available for Sale, Fair Value	'	'	'	'	'
Within one year	15,707	'	15,707	'	'
One through five years	53,390	'	53,390	'	'
Six through ten years	135,014	'	135,014	'	'
After ten years	123,678	'	123,678	'	'
Equity securities	4,689	'	4,689	'	'
Fair Value	840,101	'	840,101	'	891,106
Available for sale securities	'	'	'	'	'
Proceeds from sales of securities	0	782	21,972	79,136	'
Gross gains realized on sales	0	2	542	912	'
Gross losses realized on sales	0	0	546	77	'
Securities in a continuous unrealized loss position with unrealized losses presented by length of time	'	'	'	'	'
Less than 12 months, Fair Value	88,057	'	88,057	'	413,275
Less than 12 months, Unrealized Losses	-685	'	-685	'	-14,631
12 months or longer, Fair Value	216,583	'	216,583	'	9,246
12 months or longer, Unrealized Losses	-6,515	'	-6,515	'	-618
Total Fair Value	304,640	'	304,640	'	422,521
Total Unrealized Losses	-7,200	'	-7,200	'	-15,249
Other-Than-Temporary-Impairment	'	'	'	'	'
Number of general segments segregated in investment securities portfolio	'	'	2	'	'
Number of security in the portfolio	'	'	1,009	'	'
Number of portfolio security in unrealized loss position	108	'	108	'	'
Decline in fair value of security attributable to change in interest rates and illiquidity	'	'	1,259	'	'
U. S. government agency	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	577	'	577	'	793
Gross Unrealized Gains	'	'	5	'	5
Fair Value	582	'	582	'	798
Available for Sale, Amortized Cost	'	'	'	'	'
Total available for sale securities	577	'	577	'	793
Available for Sale, Fair Value	'	'	'	'	'
Fair Value	582	'	582	'	798
State and municipal	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	304,700	'	304,700	'	321,151
Gross Unrealized Gains	'	'	19,304	'	12,173
Gross Unrealized Losses	'	'	-306	'	-2,212
Fair Value	323,698	'	323,698	'	331,112
Available for Sale, Amortized Cost	'	'	'	'	'
Total available for sale securities	304,700	'	304,700	'	321,151
Available for Sale, Fair Value	'	'	'	'	'
Fair Value	323,698	'	323,698	'	331,112
Securities in a continuous unrealized loss position with unrealized losses presented by length of time	'	'	'	'	'
Less than 12 months, Fair Value	2,489	'	2,489	'	31,660
Less than 12 months, Unrealized Losses	-11	'	-11	'	-1,791
12 months or longer, Fair Value	15,981	'	15,981	'	4,153
12 months or longer, Unrealized Losses	-295	'	-295	'	-421
Total Fair Value	18,470	'	18,470	'	35,813
Total Unrealized Losses	-306	'	-306	'	-2,212
Mortgage-backed securities-residential (GSE's)	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	154,664	'	154,664	'	186,054
Gross Unrealized Gains	'	'	3,499	'	3,175
Gross Unrealized Losses	'	'	-1,259	'	-3,800
Fair Value	156,904	'	156,904	'	185,429
Available for Sale, Amortized Cost	'	'	'	'	'
Debt securities without single maturity date	154,664	'	154,664	'	'
Total available for sale securities	154,664	'	154,664	'	186,054
Available for Sale, Fair Value	'	'	'	'	'
Debt securities without single maturity date	156,904	'	156,904	'	'
Fair Value	156,904	'	156,904	'	185,429
Securities in a continuous unrealized loss position with unrealized losses presented by length of time	'	'	'	'	'
Less than 12 months, Fair Value	10,200	'	10,200	'	114,036
Less than 12 months, Unrealized Losses	-26	'	-26	'	-3,800
12 months or longer, Fair Value	49,874	'	49,874	'	'
12 months or longer, Unrealized Losses	-1,233	'	-1,233	'	'
Total Fair Value	60,074	'	60,074	'	114,036
Total Unrealized Losses	-1,259	'	-1,259	'	-3,800
Collateralized mortgage obligations (GSE's)	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	354,174	'	354,174	'	372,896
Gross Unrealized Gains	'	'	2,180	'	1,642
Gross Unrealized Losses	'	'	-5,635	'	-9,229
Fair Value	350,719	'	350,719	'	365,309
Available for Sale, Amortized Cost	'	'	'	'	'
Debt securities without single maturity date	354,174	'	354,174	'	'
Total available for sale securities	354,174	'	354,174	'	372,896
Available for Sale, Fair Value	'	'	'	'	'
Debt securities without single maturity date	350,719	'	350,719	'	'
Fair Value	350,719	'	350,719	'	365,309
Securities in a continuous unrealized loss position with unrealized losses presented by length of time	'	'	'	'	'
Less than 12 months, Fair Value	75,368	'	75,368	'	267,579
Less than 12 months, Unrealized Losses	-648	'	-648	'	-9,040
12 months or longer, Fair Value	150,728	'	150,728	'	4,100
12 months or longer, Unrealized Losses	-4,987	'	-4,987	'	-189
Total Fair Value	226,096	'	226,096	'	271,679
Total Unrealized Losses	-5,635	'	-5,635	'	-9,229
Other-Than-Temporary-Impairment	'	'	'	'	'
Other than temporary impairment on available for sale securities	'	'	0	'	'
Equity securities	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	4,689	'	4,689	'	4,939
Fair Value	4,689	'	4,689	'	4,939
Available for Sale, Amortized Cost	'	'	'	'	'
Total available for sale securities	4,689	'	4,689	'	4,939
Available for Sale, Fair Value	'	'	'	'	'
Fair Value	4,689	'	4,689	'	4,939
Other securities	'	'	'	'	'
Available for sale securities	'	'	'	'	'
Amortized Cost	3,508	'	3,508	'	3,527
Gross Unrealized Gains	'	'	1	'	'
Gross Unrealized Losses	'	'	'	'	-8
Fair Value	3,509	'	3,509	'	3,519
Available for Sale, Amortized Cost	'	'	'	'	'
Total available for sale securities	3,508	'	3,508	'	3,527
Available for Sale, Fair Value	'	'	'	'	'
Fair Value	3,509	'	3,509	'	3,519
Securities in a continuous unrealized loss position with unrealized losses presented by length of time	'	'	'	'	'
12 months or longer, Fair Value	'	'	'	'	993
12 months or longer, Unrealized Losses	'	'	'	'	-8
Total Fair Value	'	'	'	'	993
Total Unrealized Losses	'	'	'	'	($8)

LOANS_AND_ALLOWANCE_Details

LOANS AND ALLOWANCE (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Loans and allowance	'	'	'	'	'	'
Total loans	$1,753,224	'	$1,671,926	'	'	'
Reserves on loans	2,856	'	5,783	'	'	'
Allowance for loan losses	-24,549	-23,867	-27,609	-27,849	-28,002	-32,227
Net loans	1,728,675	'	1,644,317	'	'	'
Commercial	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	277,983	'	210,701	'	'	'
Allowance for loan losses	-3,474	-3,201	-3,291	-3,464	-3,635	-3,894
Commercial | Commercial and industrial	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	229,669	'	180,378	'	'	'
Commercial | Agricultural	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	48,314	'	30,323	'	'	'
Commercial Real Estate	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	765,971	'	767,009	'	'	'
Allowance for loan losses	-16,988	-16,994	-20,210	-19,957	-20,108	-24,157
Commercial Real Estate | Farm	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	73,253	'	76,082	'	'	'
Commercial Real Estate | Hotel	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	80,588	'	108,226	'	'	'
Commercial Real Estate | Construction and development	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	47,427	'	35,731	'	'	'
Commercial Real Estate | Other	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	564,703	'	546,970	'	'	'
Residential	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	664,579	'	648,010	'	'	'
Allowance for loan losses	-3,209	-3,110	-3,409	-3,447	-3,459	-3,180
Residential | 1-4 family	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	406,562	'	403,733	'	'	'
Residential | Home equity	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	258,017	'	244,277	'	'	'
Consumer	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	44,691	'	46,206	'	'	'
Allowance for loan losses	-878	-562	-699	-981	-800	-996
Consumer | Direct	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	43,987	'	45,129	'	'	'
Consumer | Indirect	'	'	'	'	'	'
Loans and allowance	'	'	'	'	'	'
Total loans	$704	'	$1,077	'	'	'

LOANS_AND_ALLOWANCE_Details_2

LOANS AND ALLOWANCE (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Allowance for loan losses	'	'	'	'	'
Balance at the beginning of the period	$23,867	$28,002	$27,609	$32,227	'
Provision charged to expense	'	1,000	1,500	3,734	'
Losses charged off	-1,491	-1,987	-9,043	-10,459	'
Recoveries	2,173	834	4,483	2,347	'
Balance at the end of the period	24,549	27,849	24,549	27,849	'
Allowance for loan losses	'	'	'	'	'
Ending Balance individually evaluated for impairment	1,783	'	1,783	'	1,287
Ending Balance collectively evaluated for impairment	22,766	'	22,766	'	26,322
Total ending allowance balance	24,549	27,849	24,549	27,849	'
Loans	'	'	'	'	'
Ending Balance individually evaluated for impairment	35,054	'	35,054	'	33,122
Ending Balance collectively evaluated for impairment	1,718,170	'	1,718,170	'	1,638,804
Total ending loan balance excluding accrued interest	1,753,224	'	1,753,224	'	1,671,926
Accrued interest	5,108	'	5,108	'	5,043
Commercial	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Balance at the beginning of the period	3,201	3,635	3,291	3,894	'
Provision charged to expense	-685	-121	-699	366	'
Losses charged off	-17	-91	-166	-1,058	'
Recoveries	975	41	1,048	262	'
Balance at the end of the period	3,474	3,464	3,474	3,464	'
Allowance for loan losses	'	'	'	'	'
Ending Balance individually evaluated for impairment	12	'	12	'	13
Ending Balance collectively evaluated for impairment	3,462	'	3,462	'	3,278
Total ending allowance balance	3,474	3,464	3,474	3,464	'
Loans	'	'	'	'	'
Ending Balance individually evaluated for impairment	537	'	537	'	300
Ending Balance collectively evaluated for impairment	277,446	'	277,446	'	210,401
Total ending loan balance excluding accrued interest	277,983	'	277,983	'	210,701
Commercial Real Estate	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Balance at the beginning of the period	16,994	20,108	20,210	24,157	'
Provision charged to expense	-548	175	-548	506	'
Losses charged off	-131	-584	-4,786	-5,270	'
Recoveries	673	258	2,112	564	'
Balance at the end of the period	16,988	19,957	16,988	19,957	'
Allowance for loan losses	'	'	'	'	'
Ending Balance individually evaluated for impairment	1,676	'	1,676	'	1,167
Ending Balance collectively evaluated for impairment	15,312	'	15,312	'	19,043
Total ending allowance balance	16,988	19,957	16,988	19,957	'
Loans	'	'	'	'	'
Ending Balance individually evaluated for impairment	24,232	'	24,232	'	21,240
Ending Balance collectively evaluated for impairment	741,739	'	741,739	'	745,769
Total ending loan balance excluding accrued interest	765,971	'	765,971	'	767,009
Residential	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Balance at the beginning of the period	3,110	3,459	3,409	3,180	'
Provision charged to expense	464	288	1,427	1,659	'
Losses charged off	-548	-448	-1,925	-1,767	'
Recoveries	183	148	298	375	'
Balance at the end of the period	3,209	3,447	3,209	3,447	'
Allowance for loan losses	'	'	'	'	'
Ending Balance individually evaluated for impairment	95	'	95	'	105
Ending Balance collectively evaluated for impairment	3,114	'	3,114	'	3,304
Total ending allowance balance	3,209	3,447	3,209	3,447	'
Loans	'	'	'	'	'
Ending Balance individually evaluated for impairment	10,167	'	10,167	'	10,797
Ending Balance collectively evaluated for impairment	654,412	'	654,412	'	637,213
Total ending loan balance excluding accrued interest	664,579	'	664,579	'	648,010
Consumer	'	'	'	'	'
Allowance for loan losses	'	'	'	'	'
Balance at the beginning of the period	562	800	699	996	'
Provision charged to expense	769	658	1,320	1,203	'
Losses charged off	-795	-864	-2,166	-2,364	'
Recoveries	342	387	1,025	1,146	'
Balance at the end of the period	878	981	878	981	'
Allowance for loan losses	'	'	'	'	'
Ending Balance individually evaluated for impairment	'	'	'	'	2
Ending Balance collectively evaluated for impairment	878	'	878	'	697
Total ending allowance balance	878	981	878	981	'
Loans	'	'	'	'	'
Ending Balance individually evaluated for impairment	118	'	118	'	785
Ending Balance collectively evaluated for impairment	44,573	'	44,573	'	45,421
Total ending loan balance excluding accrued interest	$44,691	'	$44,691	'	$46,206

LOANS_AND_ALLOWANCE_Details_3

LOANS AND ALLOWANCE (Details 3) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
LOANS AND ALLOWANCE	'	'	'	'	'
Performing troubled debt restructurings excluded as allowed	$2,706	'	$2,706	'	$6,593
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	6,160	'	6,160	'	9,393
With no related allowance recorded	30,362	'	30,362	'	22,041
Total impaired loans	36,522	'	36,522	'	31,434
Recorded Investment	'	'	'	'	'
With an allowance recorded	5,646	'	5,646	'	8,152
With no related allowance recorded	26,702	'	26,702	'	18,377
Total impaired loans	32,348	'	32,348	'	26,529
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	1,783	'	1,783	'	1,287
Total impaired loans	1,783	'	1,783	'	1,287
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	32,843	33,571	29,084	39,509	'
Interest Income Recognized	'	'	'	'	'
Average Balance	27	79	124	139	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	27	79	124	139	'
Commercial	'	'	'	'	'
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	12	'	12	'	13
Commercial | Commercial and industrial	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	88	'	88	'	194
With no related allowance recorded	128	'	128	'	204
Recorded Investment	'	'	'	'	'
With an allowance recorded	71	'	71	'	177
With no related allowance recorded	55	'	55	'	123
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	12	'	12	'	13
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	211	751	247	1,171	'
Interest Income Recognized	'	'	'	'	'
Average Balance	1	2	9	4	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	1	2	9	4	'
Commercial | Agricultural	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With no related allowance recorded	413	'	413	'	'
Recorded Investment	'	'	'	'	'
With no related allowance recorded	411	'	411	'	'
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	412	'	206	'	'
Commercial Real Estate	'	'	'	'	'
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	1,676	'	1,676	'	1,167
Commercial Real Estate | Farm	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	76	'	76	'	625
With no related allowance recorded	1,010	'	1,010	'	767
Recorded Investment	'	'	'	'	'
With an allowance recorded	76	'	76	'	436
With no related allowance recorded	772	'	772	'	657
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	21	'	21	'	61
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	852	1,255	921	1,426	'
Interest Income Recognized	'	'	'	'	'
Average Balance	'	3	'	11	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	'	3	'	11	'
Commercial Real Estate | Hotel	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	1,912	'	1,912	'	'
With no related allowance recorded	11,487	'	11,487	'	'
Recorded Investment	'	'	'	'	'
With an allowance recorded	1,909	'	1,909	'	'
With no related allowance recorded	11,441	'	11,441	'	'
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	617	'	617	'	'
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	12,450	'	6,225	1,492	'
Interest Income Recognized	'	'	'	'	'
Average Balance	'	1	'	1	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	'	1	'	1	'
Commercial Real Estate | Construction and development	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With no related allowance recorded	84	'	84	'	942
Recorded Investment	'	'	'	'	'
With no related allowance recorded	78	'	78	'	795
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	78	1,302	318	1,694	'
Interest Income Recognized	'	'	'	'	'
Average Balance	'	44	'	45	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	'	44	'	45	'
Commercial Real Estate | Other	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	3,084	'	3,084	'	7,309
With no related allowance recorded	6,732	'	6,732	'	8,651
Recorded Investment	'	'	'	'	'
With an allowance recorded	2,633	'	2,633	'	6,382
With no related allowance recorded	4,617	'	4,617	'	6,377
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	1,038	'	1,038	'	1,106
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	8,656	16,472	10,305	19,501	'
Interest Income Recognized	'	'	'	'	'
Average Balance	4	23	75	55	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	4	23	75	55	'
Residential	'	'	'	'	'
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	95	'	95	'	105
Residential | 1-4 Family	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	831	'	831	'	1,089
With no related allowance recorded	7,816	'	7,816	'	8,931
Recorded Investment	'	'	'	'	'
With an allowance recorded	788	'	788	'	981
With no related allowance recorded	6,869	'	6,869	'	8,007
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	90	'	90	'	102
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	7,449	10,421	8,108	10,716	'
Interest Income Recognized	'	'	'	'	'
Average Balance	11	'	16	3	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	11	'	16	3	'
Residential | Home Equity	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	169	'	169	'	50
With no related allowance recorded	2,548	'	2,548	'	1,860
Recorded Investment	'	'	'	'	'
With an allowance recorded	169	'	169	'	50
With no related allowance recorded	2,341	'	2,341	'	1,759
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	5	'	5	'	3
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	2,629	2,500	2,472	2,572	'
Interest Income Recognized	'	'	'	'	'
Average Balance	4	1	11	4	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	4	1	11	4	'
Consumer	'	'	'	'	'
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	'	'	'	'	2
Consumer | Direct	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With an allowance recorded	'	'	'	'	126
With no related allowance recorded	141	'	141	'	675
Recorded Investment	'	'	'	'	'
With an allowance recorded	'	'	'	'	126
With no related allowance recorded	115	'	115	'	649
Allowance for Loan Losses Allocated	'	'	'	'	'
With an allowance recorded	'	'	'	'	2
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	104	858	276	922	'
Interest Income Recognized	'	'	'	'	'
Average Balance	2	5	7	16	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	2	5	7	16	'
Consumer | Indirect	'	'	'	'	'
Unpaid Principal Balance	'	'	'	'	'
With no related allowance recorded	3	'	3	'	11
Recorded Investment	'	'	'	'	'
With no related allowance recorded	3	'	3	'	10
Average Balance Impaired Loans	'	'	'	'	'
Average Balance	2	12	6	15	'
Interest Income Recognized	'	'	'	'	'
Average Balance	5	'	6	'	'
Cash Basis Interest Recognized	'	'	'	'	'
Total impaired loans	$5	'	$6	'	'

LOANS_AND_ALLOWANCE_Details_4

LOANS AND ALLOWANCE (Details 4) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	$16,113	$22,341
Past due over 90 days and still accruing	59	14
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	1,753,224	1,671,926
30-59 Days Past Due	4,764	9,735
60-89 Days Past Due	2,405	2,529
Greater than 90 Days Past Due	7,048	13,129
Total Past Due	14,217	25,393
Loans Not Past Due	1,739,007	1,646,533
Accrued interest	5,108	5,043
Commercial	'	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	277,983	210,701
Commercial | Commercial and industrial	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	38	159
Past due over 90 days and still accruing	'	14
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	229,669	180,378
30-59 Days Past Due	210	64
60-89 Days Past Due	54	24
Greater than 90 Days Past Due	39	72
Total Past Due	303	160
Loans Not Past Due	229,366	180,218
Commercial | Agricultural	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	410	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	48,314	30,323
Loans Not Past Due	48,314	30,323
Commercial Real Estate	'	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	765,971	767,009
Commercial Real Estate | Farm	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	848	1,093
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	73,253	76,082
Greater than 90 Days Past Due	332	697
Total Past Due	332	697
Loans Not Past Due	72,921	75,385
Commercial Real Estate | Hotel	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	1,912	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	80,588	108,226
30-59 Days Past Due	1,912	'
Total Past Due	1,912	'
Loans Not Past Due	78,676	108,226
Commercial Real Estate | Construction and development	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	78	329
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	47,427	35,731
30-59 Days Past Due	'	466
Greater than 90 Days Past Due	'	329
Total Past Due	'	795
Loans Not Past Due	47,427	34,936
Commercial Real Estate | Other	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	4,832	11,489
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	564,703	546,970
30-59 Days Past Due	137	984
60-89 Days Past Due	206	187
Greater than 90 Days Past Due	2,262	5,944
Total Past Due	2,605	7,115
Loans Not Past Due	562,098	539,855
Residential	'	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	664,579	648,010
Residential | 1-4 Family	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	6,363	7,635
Past due over 90 days and still accruing	59	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	406,562	403,733
30-59 Days Past Due	1,587	7,381
60-89 Days Past Due	1,660	1,969
Greater than 90 Days Past Due	3,387	4,936
Total Past Due	6,634	14,286
Loans Not Past Due	399,928	389,447
Residential | Home Equity	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	1,552	1,452
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	258,017	244,277
30-59 Days Past Due	876	646
60-89 Days Past Due	482	313
Greater than 90 Days Past Due	967	1,025
Total Past Due	2,325	1,984
Loans Not Past Due	255,692	242,293
Consumer	'	'
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	44,691	46,206
Consumer | Direct	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	77	174
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	43,987	45,129
30-59 Days Past Due	42	192
60-89 Days Past Due	3	32
Greater than 90 Days Past Due	58	126
Total Past Due	103	350
Loans Not Past Due	43,884	44,779
Consumer | Indirect	'	'
Recorded investment in nonaccrual and loans past due over 90 days still on accrual and aging of recorded investment in past due	'	'
Non-accrual	3	10
Aging of the recorded investment in past due loans	'	'
Total ending loan balance excluding accrued interest	704	1,077
30-59 Days Past Due	'	2
60-89 Days Past Due	'	4
Greater than 90 Days Past Due	3	'
Total Past Due	3	6
Loans Not Past Due	$701	$1,071

LOANS_AND_ALLOWANCE_Details_5

LOANS AND ALLOWANCE (Details 5) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
	item	item	item	item
Additional disclosures	'	'	'	'	'
Total of troubled debt restructurings	$20,554	'	$20,554	'	$14,347
Number of credit relationship which result into increase in TDR balance	'	'	1	'	'
Allocated specific reserves	697	'	697	'	534
Amounts Company has committed to lend to customers with outstanding loans classified as troubled debt restructurings	0	'	0	'	0
Increase (decrease) in allowance for loan losses due to troubled debt restructurings	0	0	-20	30	'
Charge offs due to troubled debt restructurings	0	22	3,848	442	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	2	'	7	11	'
Pre-Modification Outstanding Recorded Investment	60	'	16,577	683	'
Post-Modification Outstanding Recorded Investment	60	'	12,765	683	'
Loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'	'	'	'	'
Number of Loans	1	3	3	4	'
Recorded Investment	14	71	1,498	108	'
Period of contractually past due loans under the modified terms, to be considered in payment default	'	'	'90 days	'	'
Allowance for loan losses increased due to troubled debt restructurings	0	0	0	0	'
Charge offs due to troubled debt restructurings	0	0	36	0	'
Recorded investment of loans modified other than troubled debt restructurings	162	'	162	'	'
Non-accrual	'	'	'	'	'
Additional disclosures	'	'	'	'	'
Total of troubled debt restructurings	1,569	'	1,569	'	3,566
Commercial | Commercial and industrial	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	'	'	'	1	'
Pre-Modification Outstanding Recorded Investment	'	'	'	28	'
Post-Modification Outstanding Recorded Investment	'	'	'	28	'
Commercial Real Estate | Other	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	'	'	2	3	'
Pre-Modification Outstanding Recorded Investment	'	'	1,015	344	'
Post-Modification Outstanding Recorded Investment	'	'	1,015	344	'
Loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'	'	'	'	'
Number of Loans	'	'	1	'	'
Recorded Investment	'	'	1,431	'	'
Commercial Real Estate | Hotel	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	'	'	2	'	'
Pre-Modification Outstanding Recorded Investment	'	'	15,362	'	'
Post-Modification Outstanding Recorded Investment	'	'	11,550	'	'
Residential | 1-4 Family	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	'	'	1	5	'
Pre-Modification Outstanding Recorded Investment	'	'	140	261	'
Post-Modification Outstanding Recorded Investment	'	'	140	261	'
Loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'	'	'	'	'
Number of Loans	'	1	1	2	'
Recorded Investment	'	52	53	89	'
Residential | Home Equity	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	1	'	1	1	'
Pre-Modification Outstanding Recorded Investment	34	'	34	20	'
Post-Modification Outstanding Recorded Investment	34	'	34	20	'
Loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'	'	'	'	'
Number of Loans	1	1	1	1	'
Recorded Investment	14	15	14	15	'
Consumer | Direct	'	'	'	'	'
Loans by class modified as troubled debt restructurings	'	'	'	'	'
Number of Loans	1	'	1	1	'
Pre-Modification Outstanding Recorded Investment	26	'	26	30	'
Post-Modification Outstanding Recorded Investment	26	'	26	30	'
Loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification	'	'	'	'	'
Number of Loans	'	1	'	1	'
Recorded Investment	'	$4	'	$4	'
Minimum	'	'	'	'	'
Troubled debt restructurings	'	'	'	'	'
Period of modifications involving a reduction of the stated interest rate of the loan	'	'	'60 months	'	'
Period of modifications involving an extension of the maturity date	'	'	'6 months	'	'
Maximum	'	'	'	'	'
Troubled debt restructurings	'	'	'	'	'
Period of modifications involving a reduction of the stated interest rate of the loan	'	'	'30 years	'	'
Period of modifications involving an extension of the maturity date	'	'	'14 months	'	'

LOANS_AND_ALLOWANCE_Details_6

LOANS AND ALLOWANCE (Details 6) (USD $)

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Dec. 31, 2013

Pass

Pass

Special Mention

Special Mention

Performing

Performing

Watch

Watch

Substandard

Substandard

Non-accrual

Non-accrual

Minimum

Minimum

Minimum

Minimum

Minimum

Maximum

Consumer loans not secured by 1-4 family residential real estate

Consumer loans not secured by 1-4 family residential real estate

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Commercial Real Estate

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Residential

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Watch

Substandard

Non-accrual

Loss

Watch

Minimum

Maximum

Maximum

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Commercial and industrial

Agricultural

Agricultural

Agricultural

Agricultural

Agricultural

Agricultural

Agricultural

Maximum

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Hotel

Hotel

Hotel

Hotel

Hotel

Hotel

Hotel

Hotel

Hotel

Construction and development

Construction and development

Construction and development

Construction and development

Construction and development

Construction and development

Construction and development

Construction and development

Construction and development

Other

Other

Other

Other

Other

Other

Other

Other

Other

Other

Other

Other

Other

Performing

Performing

Watch

Watch

Substandard

Substandard

1-4 Family

1-4 Family

1-4 Family

1-4 Family

1-4 Family

1-4 Family

1-4 Family

1-4 Family

Home equity

Home equity

Home equity

Home equity

Home equity

Home equity

Home equity

Home equity

Performing

Performing

Substandard

Substandard

Loss

Loss

Direct

Direct

Direct

Direct

Direct

Direct

Direct

Direct

Indirect

Indirect

Indirect

Indirect

Indirect

Substandard

Substandard

Pass

Pass

Special Mention

Special Mention

Performing

Performing

Watch

Substandard

Substandard

Non-accrual

Non-accrual

Pass

Pass

Performing

Substandard

Non-accrual

Pass

Pass

Special Mention

Special Mention

Performing

Substandard

Non-accrual

Non-accrual

Pass

Pass

Special Mention

Special Mention

Substandard

Substandard

Non-accrual

Pass

Pass

Performing

Performing

Substandard

Non-accrual

Non-accrual

Pass

Pass

Special Mention

Special Mention

Performing

Performing

Watch

Substandard

Substandard

Non-accrual

Non-accrual

Performing

Performing

Watch

Watch

Substandard

Substandard

Performing

Performing

Watch

Watch

Substandard

Substandard

Performing

Performing

Substandard

Substandard

Loss

Loss

Performing

Performing

Substandard

Risk category of loans

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'

Credit relationships with an outstanding balance

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$1,000,000

'

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Period for which principal and interest has been in default

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'90 days

'

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Loans

1,753,224,000

1,671,926,000

847,288,000

732,542,000

25,319,000

56,937,000

140,573,000

147,861,000

9,000

23,000

22,647,000

27,277,000

8,118,000

13,070,000

'

'

'

'

'

'

'

'

277,983,000

210,701,000

'

229,669,000

180,378,000

189,192,000

144,744,000

5,537,000

4,538,000

33,035,000

29,664,000

23,000

1,867,000

1,250,000

38,000

159,000

48,314,000

30,323,000

47,494,000

30,206,000

117,000

410,000

410,000

765,971,000

767,009,000

'

73,253,000

76,082,000

71,357,000

73,006,000

976,000

105,000

1,878,000

72,000

848,000

1,093,000

80,588,000

108,226,000

64,614,000

61,195,000

2,575,000

31,401,000

11,487,000

15,630,000

1,912,000

47,427,000

35,731,000

47,147,000

34,672,000

202,000

264,000

466,000

78,000

329,000

564,703,000

546,970,000

427,484,000

388,719,000

16,231,000

20,893,000

107,336,000

115,938,000

9,000

8,811,000

9,931,000

4,832,000

11,489,000

664,579,000

648,010,000

658,517,000

638,923,000

1,708,000

3,127,000

4,354,000

5,960,000

406,562,000

403,733,000

401,515,000

396,098,000

1,660,000

2,703,000

3,387,000

4,932,000

258,017,000

244,277,000

257,002,000

242,825,000

48,000

424,000

967,000

1,028,000

44,691,000

46,206,000

44,627,000

46,022,000

15,000

57,000

49,000

127,000

43,987,000

45,129,000

43,923,000

44,955,000

15,000

47,000

49,000

127,000

704,000

1,077,000

704,000

1,067,000

10,000

Loans classified by delinquency

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$250,000

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$250,000

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Period of loans past due

'

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'60 days

'90 days

'

'119 days

'89 days

'60 days

'119 days

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OTHER_REAL_ESTATE_OWNED_Detail

OTHER REAL ESTATE OWNED (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Activity in other real estate owned	'	'	'	'
Beginning Balance	$3,723	$5,183	$4,120	$6,677
Transfer to other real estate owned	220	816	2,119	2,904
Sale - out of other real estate owned	-753	-1,120	-2,929	-4,155
Write-down	'	-95	-120	-642
Ending Balance	3,190	4,784	3,190	4,784
Valuation allowance on other real estate owned	'	'	'	'
Beginning Balance	-391	-1,353	-1,328	-1,672
Impairments during year	'	-95	-120	-642
Reductions	33	74	1,090	940
Ending Balance	-358	-1,374	-358	-1,374
Expenses related to foreclosed assets	'	'	'	'
Write downs	'	95	120	642
Losses/(gains) on sales	9	-57	-73	-286
Net loss / (gain)	9	38	47	356
Operating expenses	$28	$79	$120	$290

DEPOSITS_Details

DEPOSITS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
DEPOSITS.	'	'
Noninterest-bearing demand	$464,058	$436,550
Interest-bearing demand	917,369	884,128
Savings	527,829	501,494
Certificates of deposit of $100 or more	100,874	129,132
Other certificates and time deposits	211,569	249,324
Total deposits	$2,221,699	$2,200,628

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Income	'	'	'	'
Net income	$8,457	$7,632	$22,436	$18,947
Redemption of preferred shares	'	-148	'	-148
Preferred dividends and accretion	'	-99	'	-504
Net income available to common shareholders	8,457	7,385	22,436	18,295
Net income available to common shareholders and assumed conversions	$8,457	$7,385	$22,436	$18,295
Weighted Average Shares	'	'	'	'
Net income available to common shareholders (in shares)	20,459,709	20,400,808	20,448,054	20,363,514
Effect of dilutive warrants (in shares)	72,978	'	67,184	'
Effect of dilutive stock options (in shares)	68,757	51,013	66,102	56,681
Net income available to common shareholders and assumed conversions (in shares)	20,601,444	20,451,821	20,581,340	20,420,195
Per Share Amount	'	'	'	'
Net income available to common shareholders (in dollars per share)	$0.41	$0.36	$1.10	$0.90
Net income available to common shareholders and assumed conversions (in dollars per share)	$0.41	$0.36	$1.09	$0.90
Stock options	'	'	'	'
Anti-dilutive securities	'	'	'	'
Common shares not considered in computing diluted earnings per share	123,964	290,146	176,211	284,407
Stock warrants	'	'	'	'
Anti-dilutive securities	'	'	'	'
Common shares not considered in computing diluted earnings per share	'	571,906	'	571,906

FAIR_VALUE_Details

FAIR VALUE (Details)	9 Months Ended
	Sep. 30, 2014
	item
FAIR VALUE	'
Number of times a sample of prices supplied by the pricing agent is validated by comparison to prices obtained from other third party sources	2
Minimum | Impaired Loans	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'
Adjustments for differences between the comparable sales and income (as a percent)	0.00%
Minimum | Other real estate owned	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'
Adjustments for differences between the comparable sales and income (as a percent)	0.00%
Maximum | Impaired Loans	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'
Adjustments for differences between the comparable sales and income (as a percent)	50.00%
Maximum | Other real estate owned	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'
Adjustments for differences between the comparable sales and income (as a percent)	50.00%

FAIR_VALUE_Details_2

FAIR VALUE (Details 2) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
Financial Assets	'	'	'
Total securities available-for-sale	$840,101	$891,106	'
Transfers of assets from Level 1 to Level 2	0	'	0
Transfers of assets from Level 2 to Level 1	0	'	0
U. S. government agency	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	582	798	'
States and municipals	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	323,698	331,112	'
Mortgage-backed securities - residential - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	156,904	185,429	'
Collateralized mortgage obligations - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	350,719	365,309	'
Equity securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	4,689	4,939	'
Other securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	3,509	3,519	'
Recurring basis | Carrying Value	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	840,101	891,106	'
Mortgage banking derivatives	750	525	'
Recurring basis | Carrying Value | U. S. government agency	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	582	798	'
Recurring basis | Carrying Value | States and municipals	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	323,698	331,112	'
Recurring basis | Carrying Value | Mortgage-backed securities - residential - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	156,904	185,429	'
Recurring basis | Carrying Value | Collateralized mortgage obligations - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	350,719	365,309	'
Recurring basis | Carrying Value | Equity securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	4,689	4,939	'
Recurring basis | Carrying Value | Other securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	3,509	3,519	'
Recurring basis | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	4,689	4,689	'
Recurring basis | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	4,689	4,689	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2)	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	820,048	869,221	'
Mortgage banking derivatives	750	525	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2) | U. S. government agency	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	582	798	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2) | States and municipals	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	310,841	316,692	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - residential - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	156,904	185,429	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations - Government Sponsored Entity	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	350,719	365,309	'
Recurring basis | Fair Value | Significant Other Observable Inputs (Level 2) | Other securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	1,002	993	'
Recurring basis | Fair Value | Significant Unobservable Inputs (Level 3)	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	15,364	17,196	'
Recurring basis | Fair Value | Significant Unobservable Inputs (Level 3) | States and municipals	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	12,857	14,420	'
Recurring basis | Fair Value | Significant Unobservable Inputs (Level 3) | Equity securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	'	250	'
Recurring basis | Fair Value | Significant Unobservable Inputs (Level 3) | Other securities	'	'	'
Financial Assets	'	'	'
Total securities available-for-sale	$2,507	$2,526	'

FAIR_VALUE_Details_3

FAIR VALUE (Details 3) (Significant Unobservable Inputs (Level 3), Recurring basis, USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2013

Dec. 31, 2012

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

States and municipals

States and municipals

States and municipals

States and municipals

Equity securities

Equity securities

Equity securities

Equity securities

Other securities

Other securities

Other securities

Other securities

Reconciliation and income statement classification of gains and losses

'

'

'

'

'

'

'

'

'

'

'

'

Balance at the beginning of the period

$13,083

$14,688

$14,420

$15,470

$250

$250

$250

$250

$2,511

$2,542

$2,526

$2,557

Included in other comprehensive income

-8

-12

15

-84

'

'

'

'

-4

-8

-19

-23

Settlements

-218

-206

-1,578

-916

-250

'

'

'

'

'

'

'

Balance at the end of the period

$12,857

$14,470

$12,857

$14,470

'

$250

$250

$250

$2,507

$2,534

$2,507

$2,534

FAIR_VALUE_Details_4

FAIR VALUE (Details 4) (Non-recurring basis, USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Assets:	'	'	'	'	'
Total impaired loans	$2,660	'	$2,660	'	$5,789
Impaired servicing rights	1,459	'	1,459	'	1,794
Other real estate owned	226	'	226	'	1,014
Gross carrying amount of impaired loans	4,232	'	4,232	'	6,879
Valuation allowance of impaired loans	1,572	'	1,572	'	1,090
Provision expenses of impaired loans	1,061	526	941	842	'
Gross outstanding balance of servicing rights	1,784	'	1,784	'	2,169
Valuation allowance of servicing rights	325	'	325	'	375
Change occurred in the valuation allowance	-50	-225	-50	-650	'
Write-down of other real estate owned	0	95	30	193	'
Breakdown of properties by portfolio class	'	'	'	'	'
Gross outstanding balance of other real estate owned	256	'	256	'	1,362
Valuation allowance of other real estate owned	30	'	30	'	348
Other real estate owned	226	'	226	'	1,014
Commercial and industrial	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	'	'	'	'	76
Farm real estate	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	55	'	55	'	375
Gross carrying amount of impaired loans	76	'	76	'	'
Valuation allowance of impaired loans	21	'	21	'	'
Hotel	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	1,292	'	1,292	'	'
Gross carrying amount of impaired loans	1,909	'	1,909	'	'
Valuation allowance of impaired loans	617	'	617	'	'
Construction and development	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	'	'	'	'	226
Other real estate owned	'	'	'	'	522
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	'	'	'	'	522
Other	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	1,313	'	1,313	'	5,112
Other real estate owned	198	'	198	'	425
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	198	'	198	'	425
Other commercial real estate	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	1,313	'	1,313	'	'
Other real estate owned	198	'	198	'	'
Gross carrying amount of impaired loans	2,247	'	2,247	'	'
Valuation allowance of impaired loans	934	'	934	'	'
Breakdown of properties by portfolio class	'	'	'	'	'
Gross outstanding balance of other real estate owned	219	'	219	'	'
Valuation allowance of other real estate owned	21	'	21	'	'
Other real estate owned	198	'	198	'	'
1-4 family	'	'	'	'	'
Assets:	'	'	'	'	'
Other real estate owned	28	'	28	'	'
Breakdown of properties by portfolio class	'	'	'	'	'
Gross outstanding balance of other real estate owned	37	'	37	'	'
Valuation allowance of other real estate owned	9	'	9	'	'
Other real estate owned	28	'	28	'	'
Home equity	'	'	'	'	'
Assets:	'	'	'	'	'
Other real estate owned	'	'	'	'	67
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	'	'	'	'	67
Significant Unobservable Inputs (Level 3)	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	2,660	'	2,660	'	5,789
Impaired servicing rights	1,459	'	1,459	'	1,794
Other real estate owned	226	'	226	'	1,014
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	226	'	226	'	1,014
Significant Unobservable Inputs (Level 3) | Commercial and industrial	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	'	'	'	'	76
Significant Unobservable Inputs (Level 3) | Farm real estate	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	55	'	55	'	375
Significant Unobservable Inputs (Level 3) | Hotel	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	1,292	'	1,292	'	'
Significant Unobservable Inputs (Level 3) | Construction and development	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	'	'	'	'	226
Other real estate owned	'	'	'	'	522
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	'	'	'	'	522
Significant Unobservable Inputs (Level 3) | Other	'	'	'	'	'
Assets:	'	'	'	'	'
Total impaired loans	1,313	'	1,313	'	5,112
Other real estate owned	198	'	198	'	425
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	198	'	198	'	425
Significant Unobservable Inputs (Level 3) | 1-4 family	'	'	'	'	'
Assets:	'	'	'	'	'
Other real estate owned	28	'	28	'	'
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	28	'	28	'	'
Significant Unobservable Inputs (Level 3) | Home equity	'	'	'	'	'
Assets:	'	'	'	'	'
Other real estate owned	'	'	'	'	67
Breakdown of properties by portfolio class	'	'	'	'	'
Other real estate owned	'	'	'	'	$67

FAIR_VALUE_Details_5

FAIR VALUE (Details 5) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Impaired Loans | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	0.00%	'
Impaired Loans | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	50.00%	'
Other real estate owned | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	0.00%	'
Other real estate owned | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	50.00%	'
Non-recurring basis | Level 3 | Impaired Loans	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	2,660	5,789
Non-recurring basis | Level 3 | Impaired Loans | Commercial & Industrial	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	'	76
Non-recurring basis | Level 3 | Impaired Loans | Commercial & Industrial | Sales comparison approach | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	0.00%
Non-recurring basis | Level 3 | Impaired Loans | Commercial & Industrial | Sales comparison approach | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Impaired Loans | Commercial & Industrial | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Impaired Loans | Farm real estate	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	55	375
Non-recurring basis | Level 3 | Impaired Loans | Farm real estate | Sales comparison approach	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	40.00%	40.00%
Non-recurring basis | Level 3 | Impaired Loans | Farm real estate | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	40.00%	40.00%
Non-recurring basis | Level 3 | Impaired Loans | Hotel	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	1,292	'
Non-recurring basis | Level 3 | Impaired Loans | Hotel | Income approach	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	20.00%	'
Non-recurring basis | Level 3 | Impaired Loans | Hotel | Income approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	20.00%	'
Non-recurring basis | Level 3 | Impaired Loans | Other commercial real estate	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	1,313	'
Non-recurring basis | Level 3 | Impaired Loans | Other commercial real estate | Sales comparison approach | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	0.00%	'
Non-recurring basis | Level 3 | Impaired Loans | Other commercial real estate | Sales comparison approach | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	50.00%	'
Non-recurring basis | Level 3 | Impaired Loans | Other commercial real estate | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	43.00%	'
Non-recurring basis | Level 3 | Impaired Loans | Other & 1-4 Family	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	'	5,338
Non-recurring basis | Level 3 | Impaired Loans | Other & 1-4 Family | Sales comparison approach | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	0.00%
Non-recurring basis | Level 3 | Impaired Loans | Other & 1-4 Family | Sales comparison approach | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	40.00%
Non-recurring basis | Level 3 | Impaired Loans | Other & 1-4 Family | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	25.00%
Non-recurring basis | Level 3 | Other real estate owned	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	226	1,014
Non-recurring basis | Level 3 | Other real estate owned | Other commercial real estate	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	198	'
Non-recurring basis | Level 3 | Other real estate owned | Other commercial real estate | Sales comparison approach	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	10.00%	'
Non-recurring basis | Level 3 | Other real estate owned | Other commercial real estate | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	10.00%	'
Non-recurring basis | Level 3 | Other real estate owned | 1-4 family	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	28	'
Non-recurring basis | Level 3 | Other real estate owned | 1-4 family | Sales comparison approach	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	10.00%	'
Non-recurring basis | Level 3 | Other real estate owned | 1-4 family | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	10.00%	'
Non-recurring basis | Level 3 | Other real estate owned | Construction and development	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	'	522
Non-recurring basis | Level 3 | Other real estate owned | Construction and development | Sales comparison approach	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Other real estate owned | Construction and development | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Other real estate owned | Other and Home equity	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	'	492
Non-recurring basis | Level 3 | Other real estate owned | Other and Home equity | Sales comparison approach | Minimum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Other real estate owned | Other and Home equity | Sales comparison approach | Maximum	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	15.00%
Non-recurring basis | Level 3 | Other real estate owned | Other and Home equity | Sales comparison approach | Average	'	'
Unobservable Inputs	'	'
Adjustment for differences between comparable sales, type of property, current status of property (as a percent)	'	10.00%
Non-recurring basis | Level 3 | Mortgage servicing rights	'	'
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value	'	'
Fair Value	1,459	1,794
Non-recurring basis | Level 3 | Mortgage servicing rights | Cash flow analysis	'	'
Unobservable Inputs	'	'
Discount rate (as a percent)	10.00%	10.00%

FAIR_VALUE_Details_6

FAIR VALUE (Details 6) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Financial assets	'	'
Interest bearing time deposits	$1,915	'
Restricted stock	15,625	15,629
Interest receivable	5,108	5,043
Level 1	'	'
Financial assets	'	'
Cash and cash equivalents	60,150	55,826
Financial liabilities	'	'
Deposits	-464,058	-436,550
Level 2	'	'
Financial assets	'	'
Cash and cash equivalents	9,764	5,494
Interest bearing time deposits	1,915	'
Loan including loans held for sale, net	4,928	6,158
Interest receivable	4,158	4,573
Financial liabilities	'	'
Deposits	-1,756,444	-1,764,719
Other borrowings	-34,490	-38,594
FHLB advances	-244,060	-252,402
Interest payable	-491	-799
Subordinated debentures	-20,560	-23,130
Level 3	'	'
Financial assets	'	'
Loan including loans held for sale, net	1,732,588	1,657,199
Interest receivable	5,108	5,043
Carrying Amount	'	'
Financial assets	'	'
Cash and cash equivalents	69,914	61,320
Interest bearing time deposits	1,915	'
Loan including loans held for sale, net	1,730,793	1,644,527
Restricted stock	15,625	15,629
Interest receivable	9,266	9,616
Financial liabilities	'	'
Deposits	-2,221,699	-2,200,628
Other borrowings	-34,490	-38,594
FHLB advances	-240,343	-247,858
Interest payable	-491	-799
Subordinated debentures	-41,239	-46,394
Fair Value	'	'
Financial assets	'	'
Cash and cash equivalents	69,914	61,320
Interest bearing time deposits	1,915	'
Loan including loans held for sale, net	1,737,516	1,663,357
Interest receivable	9,266	9,616
Financial liabilities	'	'
Deposits	-2,220,502	-2,201,269
Other borrowings	-34,490	-38,594
FHLB advances	-244,060	-252,402
Interest payable	-491	-799
Subordinated debentures	($20,560)	($23,130)

REGULATORY_CAPITAL_Details

REGULATORY CAPITAL (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
	item
REGULATORY CAPITAL	'	'	'	'
Number of ratios calculated according to the regulations for determining assigned capital category	3	'	'	'
Total capital (to risk-weighted assets)	'	'	'	'
Actual, Amount	$315,877	$302,181	'	'
Required for Adequate Capital, Amount	150,959	145,150	'	'
Actual, Ratio (as a percent)	16.70%	16.70%	'	'
Required for Adequate Capital, Ratio (as a percent)	8.00%	8.00%	'	'
Tier 1 capital (to risk-weighted assets)	'	'	'	'
Actual, Amount	292,278	279,440	'	'
Required for Adequate Capital, Amount	75,480	72,575	'	'
Actual, Ratio (as a percent)	15.50%	15.40%	'	'
Required for Adequate Capital, Ratio (as a percent)	4.00%	4.00%	'	'
Tier 1 capital (to average assets)	'	'	'	'
Actual, Amount	292,278	279,440	'	'
Required for Adequate Capital, Amount	111,444	110,428	'	'
Actual, Ratio (as a percent)	10.50%	10.10%	'	'
Required for Adequate Capital, Ratio (as a percent)	4.00%	4.00%	'	'
Cash	69,914	61,320	84,114	65,650
Parent Company	'	'	'	'
Tier 1 capital (to average assets)	'	'	'	'
Cash	15,500	'	'	'
MainSource Bank	'	'	'	'
Total capital (to risk-weighted assets)	'	'	'	'
Actual, Amount	296,075	283,653	'	'
Required for Adequate Capital, Amount	149,956	144,147	'	'
To Be Well Capitalized, Amount	187,445	180,184	'	'
Actual, Ratio (as a percent)	15.80%	15.70%	'	'
Required for Adequate Capital, Ratio (as a percent)	8.00%	8.00%	'	'
To Be Well Capitalized, Ratio (as a percent)	10.00%	10.00%	'	'
Tier 1 capital (to risk-weighted assets)	'	'	'	'
Actual, Amount	272,633	261,069	'	'
Required for Adequate Capital, Amount	74,978	72,074	'	'
To Be Well Capitalized, Amount	112,467	108,111	'	'
Actual, Ratio (as a percent)	14.50%	14.50%	'	'
Required for Adequate Capital, Ratio (as a percent)	4.00%	4.00%	'	'
To Be Well Capitalized, Ratio (as a percent)	6.00%	6.00%	'	'
Tier 1 capital (to average assets)	'	'	'	'
Actual, Amount	272,633	261,069	'	'
Required for Adequate Capital, Amount	110,107	109,090	'	'
To Be Well Capitalized, Amount	$137,634	$136,363	'	'
Actual, Ratio (as a percent)	9.90%	9.60%	'	'
Required for Adequate Capital, Ratio (as a percent)	4.00%	4.00%	'	'
To Be Well Capitalized, Ratio	5.00%	5.00%	'	'

INCOME_TAXES_Details

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Differences between effective tax rates and the federal statutory rate applied to income before income taxes	'	'	'	'
Effective tax rate (as a percent)	22.90%	20.90%	20.70%	16.50%
Statutory rate (as a percent)	'	'	35.00%	'

SUBSEQUENT_EVENT_ACQUISITION_D

SUBSEQUENT EVENT - ACQUISITION (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Apr. 07, 2014	Apr. 07, 2014	Oct. 17, 2014
			MBT Bancorp	MBT Bancorp	MBT Bancorp
			item	Anticipates	Merchants
					Subsequent event
ACQUISITION	'	'	'	'	'
Number of branches spanning from Dearborn County, Indiana to suburban communities in greater Cincinnati, Ohio	'	'	6	'	'
Number of common shares received in exchange for each common stock owned	'	'	2.055	'	'
Cash received in exchange for each common stock owned (in dollars per share)	'	'	$35.16	'	'
Total consideration in common stock (as a percent)	'	'	60.00%	'	'
Total consideration in cash (as a percent)	'	'	40.00%	'	'
Shares issued	'	'	'	1,226,300	'
Cash payment	'	'	'	$14,000,000	'
Assets	2,899,952,000	2,859,864,000	'	'	228,100,000
Loans	1,728,675,000	1,644,317,000	'	'	187,000,000
Deposits	2,221,699,000	2,200,628,000	'	'	183,600,000
Total equity	$332,790,000	$305,526,000	'	'	$25,100,000