NPAs were $9.1 million at December 31, 2012, compared to $10.7 million in the preceding quarter and $12.5 million a year ago. Nonperforming loans declined to $4.5 million at December 31, 2012, as compared to $4.9 million at September 30, 2012, and $7.4 million a year ago. Other real estate owned (OREO) was $4.5 million at year end 2012, compared to $5.8 million in the preceding quarter and $5.2 million at the end of 2011.

Loans measured for impairment totaled $13.1 million at December 31, 2012, compared to $13.1 million at the end of September 30, 2012, and $9.5 million in the fourth quarter a year ago. 

At December 31, 2012, there were $3.5 million of restructured loans included in nonaccrual loans, as compared to $3.7 million at September 30, 2012, and $2.2 million at December 31, 2011. At December 31, 2012, there were $8.6 million in performing restructured loans that were not included in nonaccrual loans, as compared to $7.9 million at September 30, 2012, and $2.3 million at December 31, 2011. "Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans," said Schierhorn. "We present restructured loans that are performing separately from those that are in nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans."

The coverage ratio of the allowance for loan losses to nonperforming loans increased to 362.13% at December 31, 2012, compared to 337.43% three months earlier, and 224.20% a year ago. The allowance for loan losses was $16.4 million, or 2.33% of portfolio loans at year end 2012, compared to $16.5 million, or 2.46% of portfolio loans at the end of the preceding quarter and $16.5 million, or 2.56% of portfolio loans a year ago.    

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