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Loans and Leases | 6 Months Ended
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Jun. 30, 2018
Loans and Leases Receivable Disclosure [Abstract] |
Loans and Leases | Loans and Leases Loans and Leases at June 30, 2018 and December 31, 2017 were as follows:
| 6/30/2018 |  | 12/31/2017
(in thousands) | Originated |  | Acquired |  | Total Loans and Leases |  | Originated |  | Acquired |  | Total Loans and Leases
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture | $ | 95,618 |  |  | $ | 0 |  |  | $ | 95,618 |  |  | $ | 108,608 |  |  | $ | 0 |  |  | $ | 108,608 |
Commercial and industrial other | 939,058 |  |  | 45,965 |  |  | 985,023 |  |  | 932,067 |  |  | 50,976 |  |  | 983,043 |
Subtotal commercial and industrial | 1,034,676 |  |  | 45,965 |  |  | 1,080,641 |  |  | 1,040,675 |  |  | 50,976 |  |  | 1,091,651 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 232,922 |  |  | 1,432 |  |  | 234,354 |  |  | 202,486 |  |  | 1,480 |  |  | 203,966 |
Agriculture | 143,229 |  |  | 236 |  |  | 143,465 |  |  | 129,712 |  |  | 247 |  |  | 129,959 |
Commercial real estate other | 1,737,686 |  |  | 189,722 |  |  | 1,927,408 |  |  | 1,660,782 |  |  | 206,020 |  |  | 1,866,802 |
Subtotal commercial real estate | 2,113,837 |  |  | 191,390 |  |  | 2,305,227 |  |  | 1,992,980 |  |  | 207,747 |  |  | 2,200,727 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 207,820 |  |  | 24,425 |  |  | 232,245 |  |  | 212,812 |  |  | 28,444 |  |  | 241,256 |
Mortgages | 1,075,865 |  |  | 21,501 |  |  | 1,097,366 |  |  | 1,039,040 |  |  | 22,645 |  |  | 1,061,685 |
Subtotal residential real estate | 1,283,685 |  |  | 45,926 |  |  | 1,329,611 |  |  | 1,251,852 |  |  | 51,089 |  |  | 1,302,941 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect | 12,051 |  |  | 0 |  |  | 12,051 |  |  | 12,144 |  |  | 0 |  |  | 12,144 |
Consumer and other | 52,128 |  |  | 906 |  |  | 53,034 |  |  | 50,214 |  |  | 765 |  |  | 50,979 |
Subtotal consumer and other | 64,179 |  |  | 906 |  |  | 65,085 |  |  | 62,358 |  |  | 765 |  |  | 63,123 |
Leases | 14,461 |  |  | 0 |  |  | 14,461 |  |  | 14,467 |  |  | 0 |  |  | 14,467 |
Total loans and leases | 4,510,838 |  |  | 284,187 |  |  | 4,795,025 |  |  | 4,362,332 |  |  | 310,577 |  |  | 4,672,909 |
Less: unearned income and deferred costs and fees | (3,832 | ) |  | 0 |  |  | (3,832 | ) |  | (3,789 | ) |  | 0 |  |  | (3,789 | )
Total loans and leases, net of unearned income and deferred costs and fees | $ | 4,507,006 |  |  | $ | 284,187 |  |  | $ | 4,791,193 |  |  | $ | 4,358,543 |  |  | $ | 310,577 |  |  | $ | 4,669,120 |
The outstanding principal balance and the related carrying amount of the Company’s loans acquired in the VIST Bank acquisition are as follows at June 30, 2018 and December 31, 2017:
(in thousands) | 6/30/2018 |  | 12/31/2017
Acquired Credit Impaired Loans |  |  |  |  |
Outstanding principal balance | $ | 13,675 |  |  | $ | 14,337 |
Carrying amount | 11,539 |  |  | 11,962 |
Acquired Non-Credit Impaired Loans |  |  |  |  |
Outstanding principal balance | 275,173 |  |  | 301,128 |
Carrying amount | 272,648 |  |  | 298,615 |
Total Acquired Loans |  |  |  |  |
Outstanding principal balance | 288,848 |  |  | 315,465 |
Carrying amount | 284,187 |  |  | 310,577 |
The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. Management reviews these policies and procedures on a regular basis. The Company discussed its lending policies and underwriting guidelines for its various lending portfolios in Note 5 – “Loans and Leases” in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no significant changes in these policies and guidelines since the date of that report. As such, these policies are reflective of new originations as well as those balances held at June 30, 2018. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan origination, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments are due. Generally loans are placed on nonaccrual status if principal or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question as well as when required by regulatory agencies. When interest accrual is discontinued, all unpaid accrued interest is reversed. Payments received on loans on nonaccrual are generally applied to reduce the principal balance of the loan. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has established a payment history, and future payments are reasonably assured. When management determines that the collection of principal in full is not probable, management will charge-off a partial amount or full amount of the loan balance. Management considers specific facts and circumstances relative to each individual credit in making such a determination. For residential and consumer loans, management uses specific regulatory guidance and thresholds for determining charge-offs. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing after the date of acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. To the extent we cannot reasonably estimate cash flows, interest income recognition is discontinued. The Company has determined that it can reasonably estimate future cash flows on our acquired loans that are past due 90 days or more and accruing interest and the Company expects to fully collect the carrying value of the loans. The below table is an age analysis of past due loans, segregated by originated and acquired loan and lease portfolios, and by class of loans, as of June 30, 2018 and December 31, 2017.
June 30, 2018
(in thousands) | 30-89 days |  | 90 days or more |  | Current Loans |  | Total Loans |  | 90 days and accruing 1 |  | Nonaccrual
Originated Loans and Leases |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture | $ | 0 |  |  | $ | 0 |  |  | $ | 95,618 |  |  | $ | 95,618 |  |  | $ | 0 |  |  | $ | 0 |
Commercial and industrial other | 515 |  |  | 940 |  |  | 937,603 |  |  | 939,058 |  |  | 0 |  |  | 4,576 |
Subtotal commercial and industrial | 515 |  |  | 940 |  |  | 1,033,221 |  |  | 1,034,676 |  |  | 0 |  |  | 4,576 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 0 |  |  | 0 |  |  | 232,922 |  |  | 232,922 |  |  | 0 |  |  | 0 |
Agriculture | 0 |  |  | 0 |  |  | 143,229 |  |  | 143,229 |  |  | 0 |  |  | 0 |
Commercial real estate other | 1,252 |  |  | 1,855 |  |  | 1,734,579 |  |  | 1,737,686 |  |  | 0 |  |  | 5,431 |
Subtotal commercial real estate | 1,252 |  |  | 1,855 |  |  | 2,110,730 |  |  | 2,113,837 |  |  | 0 |  |  | 5,431 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 835 |  |  | 566 |  |  | 206,419 |  |  | 207,820 |  |  | 0 |  |  | 1,300 |
Mortgages | 2,402 |  |  | 2,206 |  |  | 1,071,257 |  |  | 1,075,865 |  |  | 0 |  |  | 7,425 |
Subtotal residential real estate | 3,237 |  |  | 2,772 |  |  | 1,277,676 |  |  | 1,283,685 |  |  | 0 |  |  | 8,725 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect | 284 |  |  | 86 |  |  | 11,681 |  |  | 12,051 |  |  | 0 |  |  | 211 |
Consumer and other | 587 |  |  | 63 |  |  | 51,478 |  |  | 52,128 |  |  | 0 |  |  | 139 |
Subtotal consumer and other | 871 |  |  | 149 |  |  | 63,159 |  |  | 64,179 |  |  | 0 |  |  | 350 |
Leases | 0 |  |  | 0 |  |  | 14,461 |  |  | 14,461 |  |  | 0 |  |  | 0 |
Total loans and leases | 5,875 |  |  | 5,716 |  |  | 4,499,247 |  |  | 4,510,838 |  |  | 0 |  |  | 19,082 |
Less: unearned income and deferred costs and fees | 0 |  |  | 0 |  |  | (3,832 | ) |  | (3,832 | ) |  | 0 |  |  | 0 |
Total originated loans and leases, net of unearned income and deferred costs and fees | $ | 5,875 |  |  | $ | 5,716 |  |  | $ | 4,495,415 |  |  | $ | 4,507,006 |  |  | $ | 0 |  |  | $ | 19,082 |
Acquired Loans and Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial other | 0 |  |  | 82 |  |  | 45,883 |  |  | 45,965 |  |  | 59 |  |  | 23 |
Subtotal commercial and industrial | 0 |  |  | 82 |  |  | 45,883 |  |  | 45,965 |  |  | 59 |  |  | 23 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 0 |  |  | 0 |  |  | 1,432 |  |  | 1,432 |  |  | 0 |  |  | 0 |
Agriculture | 0 |  |  | 0 |  |  | 236 |  |  | 236 |  |  | 0 |  |  | 0 |
Commercial real estate other | 231 |  |  | 2,245 |  |  | 187,246 |  |  | 189,722 |  |  | 568 |  |  | 232 |
Subtotal commercial real estate | 231 |  |  | 2,245 |  |  | 188,914 |  |  | 191,390 |  |  | 568 |  |  | 232 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 320 |  |  | 341 |  |  | 23,764 |  |  | 24,425 |  |  | 61 |  |  | 1,130 |
Mortgages | 554 |  |  | 671 |  |  | 20,276 |  |  | 21,501 |  |  | 422 |  |  | 1,288 |
Subtotal residential real estate | 874 |  |  | 1,012 |  |  | 44,040 |  |  | 45,926 |  |  | 483 |  |  | 2,418 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer and other | 3 |  |  | 0 |  |  | 903 |  |  | 906 |  |  | 0 |  |  | 0 |
Subtotal consumer and other | 3 |  |  | 0 |  |  | 903 |  |  | 906 |  |  | 0 |  |  | 0 |
Total acquired loans and leases, net of unearned income and deferred costs and fees | $ | 1,108 |  |  | $ | 3,339 |  |  | $ | 279,740 |  |  | $ | 284,187 |  |  | $ | 1,110 |  |  | $ | 2,673 |
December 31, 2017
(in thousands) | 30-89 days |  | 90 days or more |  | Current Loans |  | Total Loans |  | 90 days and accruing 1 |  | Nonaccrual
Originated loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture | $ | 0 |  |  | $ | 0 |  |  | $ | 108,608 |  |  | $ | 108,608 |  |  | $ | 0 |  |  | $ | 0 |
Commercial and industrial other | 431 |  |  | 849 |  |  | 930,787 |  |  | 932,067 |  |  | 0 |  |  | 2,852 |
Subtotal commercial and industrial | 431 |  |  | 849 |  |  | 1,039,395 |  |  | 1,040,675 |  |  | 0 |  |  | 2,852 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 0 |  |  | 0 |  |  | 202,486 |  |  | 202,486 |  |  | 0 |  |  | 0 |
Agriculture | 0 |  |  | 0 |  |  | 129,712 |  |  | 129,712 |  |  | 0 |  |  | 0 |
Commercial real estate other | 1,583 |  |  | 2,125 |  |  | 1,657,074 |  |  | 1,660,782 |  |  | 0 |  |  | 5,402 |
Subtotal commercial real estate | 1,583 |  |  | 2,125 |  |  | 1,989,272 |  |  | 1,992,980 |  |  | 0 |  |  | 5,402 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 1,045 |  |  | 448 |  |  | 211,319 |  |  | 212,812 |  |  | 0 |  |  | 1,537 |
Mortgages | 3,153 |  |  | 2,692 |  |  | 1,033,195 |  |  | 1,039,040 |  |  | 0 |  |  | 6,108 |
Subtotal residential real estate | 4,198 |  |  | 3,140 |  |  | 1,244,514 |  |  | 1,251,852 |  |  | 0 |  |  | 7,645 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect | 449 |  |  | 205 |  |  | 11,490 |  |  | 12,144 |  |  | 6 |  |  | 278 |
Consumer and other | 130 |  |  | 42 |  |  | 50,042 |  |  | 50,214 |  |  | 38 |  |  | 76 |
Subtotal consumer and other | 579 |  |  | 247 |  |  | 61,532 |  |  | 62,358 |  |  | 44 |  |  | 354 |
Leases | 0 |  |  | 0 |  |  | 14,467 |  |  | 14,467 |  |  | 0 |  |  | 0 |
Total loans and leases | 6,791 |  |  | 6,361 |  |  | 4,349,180 |  |  | 4,362,332 |  |  | 44 |  |  | 16,253 |
Less: unearned income and deferred costs and fees | 0 |  |  | 0 |  |  | (3,789 | ) |  | (3,789 | ) |  | 0 |  |  | 0 |
Total originated loans and leases, net of unearned income and deferred costs and fees | $ | 6,791 |  |  | $ | 6,361 |  |  | $ | 4,345,391 |  |  | $ | 4,358,543 |  |  | $ | 44 |  |  | $ | 16,253 |
Acquired loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial other | 12 |  |  | 61 |  |  | 50,903 |  |  | 50,976 |  |  | 61 |  |  | 0 |
Subtotal commercial and industrial | 12 |  |  | 61 |  |  | 50,903 |  |  | 50,976 |  |  | 61 |  |  | 0 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | 0 |  |  | 0 |  |  | 1,480 |  |  | 1,480 |  |  | 0 |  |  | 0 |
Agriculture | 0 |  |  | 0 |  |  | 247 |  |  | 247 |  |  | 0 |  |  | 0 |
Commercial real estate other | 167 |  |  | 727 |  |  | 205,126 |  |  | 206,020 |  |  | 515 |  |  | 546 |
Subtotal commercial real estate | 167 |  |  | 727 |  |  | 206,853 |  |  | 207,747 |  |  | 515 |  |  | 546 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 601 |  |  | 564 |  |  | 27,279 |  |  | 28,444 |  |  | 130 |  |  | 1,604 |
Mortgages | 472 |  |  | 942 |  |  | 21,231 |  |  | 22,645 |  |  | 440 |  |  | 1,114 |
Subtotal residential real estate | 1,073 |  |  | 1,506 |  |  | 48,510 |  |  | 51,089 |  |  | 570 |  |  | 2,718 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer and other | 4 |  |  | 0 |  |  | 761 |  |  | 765 |  |  | 0 |  |  | 0 |
Subtotal consumer and other | 4 |  |  | 0 |  |  | 761 |  |  | 765 |  |  | 0 |  |  | 0 |
Covered loans | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total acquired loans and leases, net of unearned income and deferred costs and fees | $ | 1,256 |  |  | $ | 2,294 |  |  | $ | 307,027 |  |  | $ | 310,577 |  |  | $ | 1,146 |  |  | $ | 3,264 |
1 Includes acquired loans that were recorded at fair value at the acquisition date.

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + References No definition available. + Details
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