Allowance for Loan Losses and Credit Quality of Loans (Tables)

12 Months Ended

Dec. 31, 2015

Allowance for Loan Losses and Credit Quality of Loans [Abstract]

The following table illustrates the changes in the allowance for loan losses by portfolio segment for the years ended December 31, 2015, 2014 and 2013:

Allowance for Loan Losses (in thousands)

	Commercial Loans			Consumer Loans			Residential Real Estate Mortgages			Unallocated			Total
Balance as of December 31, 2014	$	32,433		$	26,720		$	7,130		$	76		$	66,359
Charge-offs		(5,718	)		(18,140	)		(2,229	)		-			(26,087	)
Recoveries		1,014			3,127			320			-			4,461
Provision		(2,184	)		17,546			2,739			184			18,285
Ending Balance as of December 31, 2015	$	25,545		$	29,253		$	7,960		$	260		$	63,018

Balance as of December 31, 2013	$	35,090		$	27,694		$	6,520		$	130		$	69,434
Charge-offs		(9,414	)		(16,642	)		(1,417	)		-			(27,473	)
Recoveries		1,774			2,800			285			-			4,859
Provision		4,983			12,868			1,742			(54	)		19,539
Ending Balance as of December 31, 2014	$	32,433		$	26,720		$	7,130		$	76		$	66,359

Balance as of December 31, 2012	$	35,624		$	27,162		$	6,252		$	296		$	69,334
Charge-offs		(10,459	)		(15,459	)		(1,771	)		-			(27,689	)
Recoveries		1,957			3,136			272			-			5,365
Provision		7,968			12,855			1,767			(166	)		22,424
Ending Balance as of December 31, 2013	$	35,090		$	27,694		$	6,520		$	130		$	69,434

The following table illustrates the allowance for loan losses and the recorded investment by portfolio segment as of December 31, 2015 and 2014:

Allowance for Loan Losses and Recorded Investment in Loans (in thousands)

	Commercial Loans		Consumer Loans		Residential Real Estate Mortgages		Unallocated		Total
As of December 31, 2015
Allowance for loan losses	$	25,545	$	29,253	$	7,960	$	260	$	63,018

Allowance for loans individually evaluated for impairment		2,005		-		-				2,005

Allowance for loans collectively evaluated for impairment	$	23,540	$	29,253	$	7,960	$	260	$	61,013


Ending balance of loans	$	2,589,707	$	2,096,646	$	1,196,780			$	5,883,133

Ending balance of originated loans individually evaluated for impairment		12,253		7,693		6,017				25,963
Ending balance of acquired loans individually evaluated for impairment		1,205		-		-				1,205
Ending balance of acquired loans collectively evaluated for impairment		284,524		95,427		230,358				610,309
Ending balance of originated loans collectively evaluated for impairment	$	2,291,725	$	1,993,526	$	960,405			$	5,245,656


As of December 31, 2014
Allowance for loan losses	$	32,433	$	26,720	$	7,130	$	76	$	66,359

Allowance for loans individually evaluated for impairment		1,100		-		-				1,100

Allowance for loans collectively evaluated for impairment	$	31,333	$	26,720	$	7,130	$	76	$	65,259


Ending balance of loans	$	2,479,745	$	1,999,811	$	1,115,715			$	5,595,271

Ending balance of originated loans individually evaluated for impairment		11,079		5,498		3,544				20,121
Ending balance of acquired loans individually evaluated for impairment		5,675		-		-				5,675
Ending balance of acquired loans collectively evaluated for impairment		327,656		147,256		266,747				741,659
Ending balance of originated loans collectively evaluated for impairment	$	2,135,335	$	1,847,057	$	845,424			$	4,827,816

Past due and nonperforming loans by loan class

The following table sets forth information with regard to past due and nonperforming loans by loan class:

Age Analysis of Past Due Financing Receivables As of December 31, 2015 (in thousands)

	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Non-Accrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	782	$	23	$	-	$	805	$	2,817	$	640,696	$	644,318
Commercial Real Estate		39		32		-		71		5,546		1,189,280		1,194,897
Agricultural		94		-		-		94		897		33,633		34,624
Agricultural Real Estate		-		-		-		-		1,046		28,172		29,218
Business Banking		912		394		-		1,306		4,247		395,368		400,921
		1,827		449		-		2,276		14,553		2,287,149		2,303,978

Consumer Loans
Indirect		15,731		2,963		2,271		20,965		1,786		1,454,499		1,477,250
Home Equity		3,396		1,671		340		5,407		4,835		454,473		464,715
Direct		425		201		28		654		49		58,551		59,254
		19,552		4,835		2,639		27,026		6,670		1,967,523		2,001,219
Residential Real Estate Mortgages		3,301		365		696		4,362		7,713		954,347		966,422
	$	24,680	$	5,649	$	3,335	$	33,664	$	28,936	$	5,209,019	$	5,271,619


ACQUIRED
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	-	$	68,991	$	68,991
Commercial Real Estate		-		-		-		-		1,313		165,630		166,943
Business Banking		288		-		-		288		307		49,200		49,795
		288		-		-		288		1,620		283,821		285,729

Consumer Loans
Indirect		143		11		1		155		104		27,516		27,775
Home Equity		327		132		-		459		457		62,811		63,727
Direct		76		20		-		96		43		3,786		3,925
		546		163		1		710		604		94,113		95,427
Residential Real Estate Mortgages		1,443		293		326		2,062		2,584		225,712		230,358
	$	2,277	$	456	$	327	$	3,060	$	4,808	$	603,646	$	611,514
Total Loans	$	26,957	$	6,105	$	3,662	$	36,724	$	33,744	$	5,812,665	$	5,883,133

Age Analysis of Past Due Financing Receivables As of December 31, 2014 (in thousands)

	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Non-Accrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	-	$	735	$	-	$	735	$	1,012	$	613,400	$	615,147
Commercial Real Estate		192		-		-		192		4,127		1,064,549		1,068,868
Agricultural		-		-		-		-		817		32,130		32,947
Agricultural Real Estate		19		-		-		19		565		24,390		24,974
Business Banking		799		235		84		1,118		6,910		390,407		398,435
		1,010		970		84		2,064		13,431		2,124,876		2,140,371

Consumer Loans
Indirect		16,434		3,154		1,991		21,579		1,964		1,286,507		1,310,050
Home Equity		4,591		1,428		821		6,840		6,596		479,444		492,880
Direct		560		157		52		769		84		54,941		55,794
		21,585		4,739		2,864		29,188		8,644		1,820,892		1,858,724
Residential Real Estate Mortgages		2,901		96		1,256		4,253		8,770		835,819		848,842
	$	25,496	$	5,805	$	4,204	$	35,505	$	30,845	$	4,781,587	$	4,847,937


ACQUIRED
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	3,009	$	72,255	$	75,264
Commercial Real Estate		-		-		-		-		2,666		197,222		199,888
Business Banking		5		15		-		20		665		57,494		58,179
		5		15		-		20		6,340		326,971		333,331

Consumer Loans
Indirect		518		5		54		577		106		64,540		65,223
Home Equity		190		60		5		255		557		75,904		76,716
Direct		31		-		7		38		33		5,246		5,317
		739		65		66		870		696		145,690		147,256
Residential Real Estate Mortgages		1,162		265		671		2,098		3,193		261,456		266,747
	$	1,906	$	345	$	737	$	2,988	$	10,229	$	734,117	$	747,334
Total Loans	$	27,402	$	6,150	$	4,941	$	38,493	$	41,074	$	5,515,704	$	5,595,271

Impaired loans and specific reserve allocations

The following provides additional information on loans specifically evaluated for impairment for the years ended December 31, 2015 and 2014

Impaired Loans
	December 31, 2015							December 31, 2014
(in thousands)	Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance			Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance
ORIGINATED
With no related allowance recorded:
Commercial Loans
Commercial	$	2,244	$	2,490				$	1,748	$	1,901
Commercial Real Estate		3,165		3,175					4,505		4,520
Agricultural		576		1,164					20		26
Agricultural Real Estate		618		744					1,147		1,441
Business Banking		983		1,033					896		1,301
Total Commercial Loans		7,586		8,606					8,316		9,189

Consumer Loans
Indirect		12		21					-		-
Home Equity		7,681		8,574					5,498		6,033
Total Consumer Loans		7,693		8,595					5,498		6,033

Residential Real Estate Mortgages		6,017		6,627					3,544		3,959
Total		21,296		23,828					17,358		19,181

With an allowance recorded:
Commercial Loans
Commercial		457		457			300		-		-			-
Commercial Real Estate		4,210		6,059			970		2,763		4,611			600
Total Commercial Loans		4,667		6,516			1,270		2,763		4,611			600

ACQUIRED
With no related allowance recorded:
Commercial Loans
Commercial Real Estate		-		-					2,666		3,830
Total Commercial Loans		-		-					2,666		3,830

With an allowance recorded:
Commercial Loans
Commercial		1,205		1,321			735		3,009		4,668			500
Total	$	27,168	$	31,665		$	2,005	$	25,796	$	32,290		$	1,100

The following table summarizes the average recorded investments on loans specifically evaluated for impairment and the interest income recognized for the years ended December 31, 2015, 2014 and 2013:

	December 31, 2015				December 31, 2014				December 31, 2013
(in thousands)	Average Recorded Investment		Interest Income Recognized Accrual		Average Recorded Investment		Interest Income Recognized Accrual		Average Recorded Investment		Interest Income Recognized Accrual
ORIGINATED
Commercial Loans
Commercial	$	2,219	$	71	$	1,954	$	115	$	3,488	$	-
Commercial Real Estate		8,538		164		9,679		169		11,085		95
Agricultural		148		1		91		1		1,035		1
Agricultural Real Estate		628		45		1,346		46		1,067		47
Business Banking		960		21		610		55		127		61
Consumer Loans
Home Equity		7,070		374		5,198		267		3,120		145
Residential Real Estate Mortgages		5,128		219		3,039		119		2,085		69
ACQUIRED
Commercial Loans
Commercial		2,045		-		5,756		-		-		-
Commercial Real Estate		5,734		-		3,386		-		1,310		-
Total	$	32,470	$	895	$	31,059	$	772	$	23,317	$	418

Financing receivable credit quality by loan class

The following tables illustrate the Company's credit quality by loan class for the years ended December 31, 2015 and 2014:

Credit Quality Indicators December 31, 2015
(In thousands)
ORIGINATED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	604,405	$	1,144,832	$	33,565	$	27,320	$	1,810,122
Special Mention		9,726		21,587		311		429		32,053
Substandard		30,187		28,478		740		1,469		60,874
Doubtful		-		-		8		-		8
Total	$	644,318	$	1,194,897	$	34,624	$	29,218	$	1,903,057

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	386,397					$	386,397
Classified		14,524						14,524
Total	$	400,921					$	400,921

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,473,193	$	459,540	$	59,177	$	1,991,910
Nonperforming		4,057		5,175		77		9,309
Total	$	1,477,250	$	464,715	$	59,254	$	2,001,219

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	958,013	$	958,013
Nonperforming		8,409		8,409
Total	$	966,422	$	966,422

Credit Quality Indicators

December 31, 2015

(In thousands)

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Total
Pass	$	67,241	$	154,871	$	-	$	222,112
Special Mention		802		2,174		-		2,976
Substandard		948		9,898		-		10,846
Doubtful		-		-		-		-
Total	$	68,991	$	166,943	$	-	$	235,934

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	46,032	$	46,032
Classified		3,763		3,763
Total	$	49,795	$	49,795

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	27,670	$	63,270	$	3,882	$	94,822
Nonperforming		105		457		43		605
Total	$	27,775	$	63,727	$	3,925	$	95,427

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	227,448	$	227,448
Nonperforming		2,910		2,910
Total	$	230,358	$	230,358

Credit Quality Indicators

December 31, 2014

(In thousands)

ORIGINATED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	570,884	$	1,023,856	$	30,481	$	23,443	$	1,648,664
Special Mention		6,022		17,341		275		42		23,680
Substandard		38,241		27,671		2,183		1,489		69,584
Doubtful		-		-		8		-		8
Total	$	615,147	$	1,068,868	$	32,947	$	24,974	$	1,741,936

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	379,445					$	379,445
Classified		18,990						18,990
Total	$	398,435					$	398,435

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,306,095	$	485,463	$	55,658	$	1,847,216
Nonperforming		3,955		7,417		136		11,508
Total	$	1,310,050	$	492,880	$	55,794	$	1,858,724

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	838,816	$	838,816
Nonperforming		10,026		10,026
Total	$	848,842	$	848,842

Credit Quality Indicators

December 31, 2014

(In thousands)

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Total
Pass	$	63,630	$	186,036	$	-	$	249,666
Special Mention		2,840		2,646		-		5,486
Substandard		8,794		11,206				20,000
Doubtful		-		-		-		-
Total	$	75,264	$	199,888	$	-	$	275,152

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	53,264	$	53,264
Classified		4,915		4,915
Total	$	58,179	$	58,179

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	65,063	$	76,154	$	5,277	$	146,494
Nonperforming		160		562		40		762
Total	$	65,223	$	76,716	$	5,317	$	147,256

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	262,883	$	262,883
Nonperforming		3,864		3,864
Total	$	266,747	$	266,747

Troubled debt restructurings on financing receivables

The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring for the years ended December 31, 2015 and 2014:

	Year ended December 31, 2015
	Number of contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial		1	$	186	$	186
Small Business		1		220		171
Total Commercial		2		406		357

Consumer
Home Equity		50		3,664		3,261
Total Consumer		50		3,664		3,261

Residential Real Estate		37		3,085		3,085

Total Troubled Debt Restructurings		89	$	7,155	$	6,703

	Year ended December 31, 2014
	Number of contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Small Business		3	$	920	$	842
Total Commercial		3		920		842

Consumer
Indirect		1		34		18
Home Equity		56		3,322		2,599
Total Consumer		57		3,356		2,617

Residential Real Estate		27		2,717		2,088

Total Troubled Debt Restructurings		87	$	6,993	$	5,547

The following table illustrates the recorded investment and number of modifications for TDRs within the years ended December 31, 2015 and 2014 where a concession has been made and subsequently defaulted during the period:

	Year ended December 31, 2015				Year ended December 31, 2014
	Number of contracts		Recorded Investment		Number of contracts		Recorded Investment
Consumer
Indirect		-	$	-		1	$	34
Home Equity		4		344		6		269
Total Consumer		4		344		7		303

Residential Real Estate		3		208		6		429

Total Troubled Debt Restructurings		7	$	552		13	$	732