NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) NOTE 5 LOANS AND ALLOWANCE 2003 2002 =========================================================================================================== Loans at December 31: Commercial and industrial loans ..........................................$ 443,140 $ 406,644 Agricultural production financing and other loans to farmers ............. 95,048 85,059 Real estate loans: Construction ........................................................ 149,865 133,896 Commercial and farmland ............................................. 564,578 401,561 Residential ......................................................... 866,477 746,349 Individuals' loans for household and other personal expenditures ......... 196,093 206,083 Tax-exempt loans ......................................................... 16,363 12,615 Other loans .............................................................. 21,939 12,170 --------- --------- 2,353,503 2,004,377 Allowance for loan losses................................................ (25,493) (22,417) --------- --------- Total loans .........................................................$2,328,010 $1,981,960 ========= ========= 2003 2002 2001 =========================================================================== Allowance for loan losses: Balance, January 1 ............... $ 22,417 $ 15,141 $ 12,454 Allowance acquired in acquisitions 3,727 6,902 2,085 Provision for losses ............. 9,477 7,174 3,576 Recoveries on loans .............. 2,011 1,313 573 Loans charged off ................ (12,139) (8,113) (3,547) -------- -------- -------- Balance, December 31 ............. $ 25,493 $ 22,417 $ 15,141 ======== ======== ======== 2003 2002 2001 ============================================================================================ At December 31: Non-accrual loans .................. $19,453 $14,134 $ 6,327 Loans contractually past due 90 days or more other than nonaccruing ... 6,530 6,676 4,828 Restructured loans ................. 641 2,508 3,511 ------- ------- ------- Total non-performing loans..... $26,624 $23,318 $14,666 ======= ======= ======= Information on nonaccruing, contractually past due 90 days or more other than nonaccruing and restructured loans is summarized below: 38