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Allowance for Loan Losses and Credit Quality of Loans (Tables)
 3 Months Ended
Mar. 31, 2016
Allowance for Loan Losses and Credit Quality of Loans [Abstract]  
Portfolio and Class Segments
The following table illustrates the portfolio and class segments for the Company’s loan portfolio:
  
Portfolio
Class
Commercial Loans
Commercial
 
Commercial Real Estate
 
Agricultural
 
Agricultural Real Estate
 
Business Banking
 
 
Consumer Loans
Indirect
 
Home Equity
 
Direct
 
 
Residential Real Estate Mortgages
 
 
Allowance for Loan Losses by Portfolio
The following tables illustrate the changes in the allowance for loan losses by our portfolio segments for the three months ended March 31, 2016 and 2015:
 
Three months ended March 31,
 
Commercial Loans
  
Consumer Loans
  
Residential Real Estate Mortgages
  
Unallocated
  
Total
 
Balance as of December 31, 2015
 
$
25,545
  
$
29,253
  
$
7,960
  
$
260
  
$
63,018
 
Charge-offs
  
(437
)
  
(5,413
)
  
(709
)
  
-
   
(6,559
)
Recoveries
  
765
   
974
   
22
   
-
   
1,761
 
Provision
  
(574
)
  
6,221
   
711
   
(260
)
  
6,098
 
Ending Balance as of March 31, 2016
 
$
25,299
  
$
31,035
  
$
7,984
  
$
-
  
$
64,318
 
 
                    
Balance as of December 31, 2014
 
$
32,433
  
$
26,720
  
$
7,130
  
$
76
  
$
66,359
 
Charge-offs
  
(798
)
  
(4,378
)
  
(504
)
  
-
   
(5,680
)
Recoveries
  
234
   
748
   
56
   
-
   
1,038
 
Provision
  
(591
)
  
3,066
   
1,016
   
151
   
3,642
 
Ending Balance as of March 31, 2015
 
$
31,278
  
$
26,156
  
$
7,698
  
$
227
  
$
65,359
 

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments as of March 31, 2016 and December 31, 2015:
 
Allowance for Loan Losses and Recorded Investment in Loans
(in thousands)
 
 
 
Commercial Loans
  
Consumer Loans
  
Residential Real Estate Mortgages
  
Unallocated
  
Total
 
As of March 31, 2016
               
Allowance for loan losses
 
$
25,299
  
$
31,035
  
$
7,984
  
$
-
  
$
64,318
 
 
                    
Allowance for loans individually evaluated for impairment
  
2,970
   
-
   
-
       
2,970
 
 
                    
Allowance for loans collectively evaluated for impairment
 
$
22,329
  
$
31,035
  
$
7,984
  
$
-
  
$
61,348
 
 
                    
Ending balance of loans
 
$
2,617,111
  
$
2,138,877
  
$
1,211,821
      
$
5,967,809
 
 
                    
Ending balance of originated loans individually evaluated for impairment
  
19,691
   
8,262
   
6,214
       
34,167
 
Ending balance of acquired loans individually evaluated for impairment
  
1,205
   
-
   
-
       
1,205
 
Ending balance of acquired loans collectively evaluated for impairment
  
278,425
   
86,309
   
224,983
       
589,717
 
Ending balance of originated loans collectively evaluated for impairment
 
$
2,317,790
  
$
2,044,306
  
$
980,624
      
$
5,342,720
 
 
                    
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
 
 
Past Due and Nonperforming Loans by Loan Class
The following tables set forth information with regard to past due and nonperforming loans by loan class as of March 31, 2016 and December 31, 2015:
 
Age Analysis of Past Due Financing Receivables
As of March 31, 2016
(in thousands)
 
  
31-60 Days
Past Due
Accruing
  
61-90 Days
Past Due
Accruing
  
Greater Than
90 DaysPast
DueAccruing
  
TotalPast Due
Accruing
  
Non-Accrual
  
Current
  
RecordedTotal
Loans
 
ORIGINATED
                     
Commercial Loans
                     
Commercial
 
$
616
  
$
-
  
$
-
  
$
616
  
$
2,903
  
$
652,992
  
$
656,511
 
Commercial Real Estate
  
73
   
661
   
-
   
734
   
13,207
   
1,202,805
   
1,216,746
 
Agricultural
  
-
   
-
   
-
   
-
   
952
   
33,431
   
34,383
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
479
   
29,440
   
29,919
 
Business Banking
  
1,794
   
40
   
-
   
1,834
   
4,181
   
393,907
   
399,922
 
 
  
2,483
   
701
   
-
   
3,184
   
21,722
   
2,312,575
   
2,337,481
 
 
                            
Consumer Loans
                            
Indirect
  
12,305
   
2,600
   
1,634
   
16,539
   
1,582
   
1,518,228
   
1,536,349
 
Home Equity
  
3,083
   
618
   
241
   
3,942
   
3,743
   
449,595
   
457,280
 
Direct
  
368
   
118
   
65
   
551
   
110
   
58,278
   
58,939
 
 
  
15,756
   
3,336
   
1,940
   
21,032
   
5,435
   
2,026,101
   
2,052,568
 
Residential Real Estate Mortgages
  
2,195
   
793
   
161
   
3,149
   
6,992
   
976,697
   
986,838
 
 
 
$
20,434
  
$
4,830
  
$
2,101
  
$
27,365
  
$
34,149
  
$
5,315,373
  
$
5,376,887
 
 
                            
ACQUIRED
                            
Commercial Loans
                            
Commercial
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
65,412
  
$
65,412
 
Commercial Real Estate
  
-
   
-
   
-
   
-
   
1,314
   
167,131
   
168,445
 
Business Banking
  
463
   
-
   
-
   
463
   
416
   
44,894
   
45,773
 
 
  
463
   
-
   
-
   
463
   
1,730
   
277,437
   
279,630
 
 
                            
Consumer Loans
                            
Indirect
  
71
   
7
   
1
   
79
   
79
   
21,689
   
21,847
 
Home Equity
  
359
   
20
   
10
   
389
   
340
   
60,199
   
60,928
 
Direct
  
14
   
7
   
-
   
21
   
65
   
3,448
   
3,534
 
 
  
444
   
34
   
11
   
489
   
484
   
85,336
   
86,309
 
Residential Real Estate Mortgages
  
922
   
568
   
73
   
1,563
   
2,581
   
220,839
   
224,983
 
  
$
1,829
  
$
602
  
$
84
  
$
2,515
  
$
4,795
  
$
583,612
  
$
590,922
 
  Total Loans
 
$
22,263
  
$
5,432
  
$
2,185
  
$
29,880
  
$
38,944
  
$
5,898,985
  
$
5,967,809
 
 
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 DaysPast
DueAccruing
  
TotalPast Due
Accruing
  
Non-Accrual
  
Current
  
RecordedTotal
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
 
Impaired Loans and Specific Reserve Allocations
The following table provides information on loans specifically evaluated for impairment as of March 31, 2016 and December 31, 2015:
 
 
 
March 31, 2016
  
December 31, 2015
 
(in thousands)
 
Recorded
Investment
Balance(Book)
  
UnpaidPrincipal
Balance(Legal)
 
RelatedAllowance
  
Recorded
Investment
Balance(Book)
  
UnpaidPrincipal
Balance(Legal)
 
RelatedAllowance
 
ORIGINATED
                
With no related allowance recorded:
                
Commercial Loans
                
Commercial
 
$
2,334
  
$
2,581
    
$
2,244
  
$
2,490
   
Commercial Real Estate
  
7,910
   
7,920
     
3,165
   
3,175
   
Agricultural
  
18
   
24
     
576
   
1,164
   
Agricultural Real Estate
  
613
   
739
     
618
   
744
   
Business Banking
  
972
   
1,029
     
983
   
1,033
   
Total Commercial Loans
  
11,847
   
12,293
     
7,586
   
8,606
   
 
                    
Consumer Loans
                    
Indirect
  
10
   
20
     
12
   
21
   
Home Equity
  
8,252
   
9,161
     
7,681
   
8,574
   
    Total Consumer Loans
  
8,262
   
9,181
     
7,693
   
8,595
   
 
                    
Residential Real Estate Mortgages
  
6,214
   
6,935
     
6,017
   
6,627
   
Total
 
$
26,323
  
$
28,409
    
$
21,296
  
$
23,828
   
 
                    
With an allowance recorded:
                    
Commercial Loans
                    
Commercial
 
$
453
  
$
453
  
$
325
  
$
457
  
$
457
  
$
300
 
Commercial Real Estate
  
7,391
   
9,239
   
1,910
   
4,210
   
6,059
   
970
 
       Total Commercial Loans
  
7,844
   
9,692
   
2,235
   
4,667
   
6,516
   
1,270
 
                         
ACQUIRED
                        
                         
With an allowance recorded:
                        
Commercial Loans
                        
          Commercial Real Estate
  
1,205
   
1,321
   
735
   
1,205
   
1,321
   
735
 
    Total Commercial Loans
  
1,205
   
1,321
   
735
   
1,205
   
1,321
   
735
 
                         
Total:
 
$
35,372
  
$
39,422
  
$
2,970
  
$
27,168
  
$
31,665
  
$
2,005
 
 

The following tables summarize the average recorded investments on impaired loans specifically evaluated for impairment and the interest income recognized for the three months ended March 31, 2016 and 2015:
 
 
 
For the three months ended
 
 
 
March 31, 2016
  
March 31, 2015
 
(in thousands)
 
Average Recorded Investment
  
Interest Income Recognized
  
Average Recorded Investment
  
Interest Income Recognized
 
ORIGINATED
            
Commercial Loans
            
Commercial
 
$
2,773
  
$
19
  
$
1,689
  
$
25
 
Commercial Real Estate
  
13,509
   
100
   
9,125
   
41
 
Agricultural
  
158
   
-
   
20
   
-
 
Agricultural Real Estate
  
616
   
11
   
636
   
11
 
Business Banking
  
978
   
6
   
873
   
4
 
Consumer Loans
                
Indirect
  
11
   
-
   
9
   
-
 
Home Equity
  
8,003
   
121
   
6,388
   
72
 
Direct
  
-
   
-
   
2
   
-
 
Residential Real Estate Mortgage
  
6,121
   
67
   
4,265
   
30
 
Total Originated
 
$
32,169
  
$
324
  
$
23,007
  
$
183
 
                 
ACQUIRED
                
Commercial Loans
                
Commercial
  
-
   
-
   
2,883
   
-
 
Commercial Real Estate
  
1,205
   
-
   
7,136
   
-
 
Total Acquired
 
$
1,205
  
$
-
  
$
10,019
  
$
-
 
Total Loans
 
$
33,374
  
$
324
  
$
33,026
  
$
183
 
 
Financing Receivable Credit Quality by Loan Class
The following tables illustrate the Company’s credit quality by loan class as of March 31, 2016 and December 31, 2015:
 
Credit Quality Indicators
As of March 31, 2016
 
ORIGINATED
           
Commercial Credit Exposure
By Internally Assigned Grade:
  Commercial  
 Commercial Real
Estate
  Agricultural  
Agricultural Real
Estate
 
 
  
Total
 
Pass
 
$
614,475
  
$
1,161,375
  
$
33,744
  
$
28,618
  
$
1,838,212
 
Special Mention
  
14,130
   
19,483
   
1
   
366
   
33,980
 
Substandard
  
27,906
   
35,888
   
630
   
935
   
65,359
 
Doubtful
  
-
   
-
   
8
   
-
   
8
 
Total
 
$
656,511
  
$
1,216,746
  
$
34,383
  
$
29,919
  
$
1,937,559
 
 
                    
Business Banking Credit Exposure
By Internally Assigned Grade:
  
Business Banking
             
 
  
Total
 
Non-classified
 
$
386,194
              
$
386,194
 
Classified
  
13,728
               
13,728
 
Total
 
$
399,922
              
$
399,922
 
 
                    
Consumer Credit Exposure
By Payment Activity:
  
Indirect
  
Home Equity
   
Direct
     
 
  
Total
 
Performing
 
$
1,533,133
  
$
453,296
  
$
58,764
      
$
2,045,193
 
Nonperforming
  
3,216
   
3,984
   
175
       
7,375
 
Total
 
$
1,536,349
  
$
457,280
  
$
58,939
      
$
2,052,568
 
 
                    
Residential Mortgage Credit Exposure
By Payment Activity:
 
 Residential
Mortgage
             
 
  
Total
 
Performing
 
$
979,685
              
$
979,685
 
Nonperforming
  
7,153
               
7,153
 
Total
 
$
986,838
              
$
986,838
 
 
Credit Quality Indicators
As of March 31, 2016
 
ACQUIRED
        
Commercial Credit Exposure By Internally Assigned Grade:
 
Commercial
  
Commercial Real
Estate
   Total 
Pass
 
$
61,898
  
$
155,813
     
$
217,711
 
Special Mention
  
1,824
   
2,855
      
4,679
 
Substandard
  
1,690
   
9,777
      
11,467
 
Total
 
$
65,412
  
$
168,445
     
$
233,857
 
 
               
Business Banking Credit Exposure By Internally Assigned Grade:
  
Business Banking
           
Total
 
Non-classified
 
$
42,271
         
$
42,271
 
Classified
  
3,502
          
3,502
 
Total
 
$
45,773
         
$
45,773
 
 
               
Consumer Credit Exposure By Payment Activity:
 
  
Indirect
   
Home Equity
 
 
  
Direct
   
Total
 
Performing
 
$
21,767
  
$
60,578
  
$
3,469
  
$
85,814
 
Nonperforming
  
80
   
350
   
65
   
495
 
Total
 
$
21,847
  
$
60,928
  
$
3,534
  
$
86,309
 
 
               
Residential Mortgage Credit Exposure By Payment Activity:
  
Residential Mortgage
           
Total
 
Performing
 
$
222,329
          
$
222,329
 
Nonperforming
  
2,654
           
2,654
 
Total
 
$
224,983
          
$
224,983
 
 

Credit Quality Indicators
As of December 31, 2015
 
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
 
Total
                    
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
As of December 31, 2015
 
ACQUIRED
        
Commercial Credit Exposure By Internally Assigned Grade:
  
Commercial
 
 
Commercial Real
Estate
     
 
  
Total
 
Pass
 
$
67,241
  
$
154,871
     
$
222,112
 
Special Mention
  
802
   
2,174
      
2,976
 
Substandard
  
948
   
9,898
      
10,846
 
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