Loans:

Loan balances were as follows:

(In Thousands of Dollars)	March 31, 2017			December 31, 2016
Originated loans:
Commercial real estate
Owner occupied	$	116,108		$	109,750
Non-owner occupied		165,916			165,861
Farmland		41,157			34,155
Other		77,456			70,823
Commercial
Commercial and industrial		178,194			171,145
Agricultural		26,564			24,598
Residential real estate
1-4 family residential		237,841			224,222
Home equity lines of credit		62,593			59,642
Consumer
Indirect		161,596			156,633
Direct		27,835			26,663
Other		7,517			7,611
Total originated loans	$	1,102,777		$	1,051,103
Acquired loans:
Commercial real estate
Owner occupied	$	59,376		$	60,928
Non-owner occupied		23,931			24,949
Farmland		51,315			54,204
Other		14,130			14,665
Commercial
Commercial and industrial		30,719			33,626
Agricultural		14,832			16,024
Residential real estate
1-4 family residential		107,502			112,015
Home equity lines of credit		33,657			34,795
Consumer
Direct		19,543			21,681
Other		157			247
Total acquired loans	$	355,162		$	373,134
Net Deferred loan costs		3,522			3,398
Allowance for loan losses		(11,319	)		(10,852	)
Net loans	$	1,450,142		$	1,416,783

Purchased credit impaired loans

As part of the NBOH acquisition the Company acquired various loans that displayed evidence of deterioration of credit quality since origination and which was probable that all contractually required payments would not be collected. The carrying amounts and contractually required payments of these loans which are included in the loan balances above are summarized in the following tables:

(In Thousands of Dollars)	March 31, 2017		December 31, 2016
Commercial real estate
Owner occupied	$	662	$	689
Non-owner occupied		410		436
Commercial
Commercial and industrial		1,171		1,213
Total outstanding balance	$	2,243	$	2,338
Carrying amount, net of allowance of $0 in 2017 and 2016	$	1,790	$	1,864

Accretable yield, or income expected to be collected, is shown in the table below:

(In Thousands of Dollars)	Three Months Ended March 31, 2017
Beginning balance	$	247
New loans purchased	0
Accretion of income		(19	)
Ending balance	$	228

The key assumptions considered include probability of default and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income and principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. There were no adjustments to forecasted cash flows that impacted the allowance for loan losses for the three months ended March 31, 2017.

The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2017 and 2016:

Three Months Ended March 31, 2017

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	3,577		$	1,874		$	2,205		$	2,766		$	430	$	10,852
Provision for loan losses		77			17			109			576			271		1,050
Loans charged off		(140	)		(102	)		(6	)		(695	)		0		(943	)
Recoveries		124			57			13			166			0		360
Total ending allowance balance	$	3,638		$	1,846		$	2,321		$	2,813		$	701	$	11,319

Three Months Ended March 31, 2016

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	3,127	$	1,373	$	1,845		$	2,160		$	473	$	8,978
Provision for loan losses		43		64		75			446			152		780
Loans charged off		0		0		(34	)		(544	)		0		(578	)
Recoveries		11		15		28			156			0		210
Total ending allowance balance	$	3,181	$	1,452	$	1,914		$	2,218		$	625	$	9,390

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on impairment method as of March 31, 2017 and December 31, 2016. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable, which is not considered to be material:

March 31, 2017

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	35	$	4	$	56	$	0	$	0	$	95
Collectively evaluated for impairment		3,603		1,842		2,259		2,813		701		11,218
Acquired loans		0		0		6		0		0		6
Acquired with deteriorated credit quality		0		0		0		0		0		0
Total ending allowance balance	$	3,638	$	1,846	$	2,321	$	2,813	$	701	$	11,319

Loans:
Loans individually evaluated for impairment	$	2,306	$	336	$	3,601	$	52	$	0	$	6,295
Loans collectively evaluated for impairment		397,475		204,206		296,612		202,328		0		1,100,621
Acquired loans		147,563		44,608		140,883		19,701		0		352,755
Acquired with deteriorated credit quality		928		862		0		0		0		1,790
Total ending loans balance	$	548,272	$	250,012	$	441,096	$	222,081	$	0	$	1,461,461

December 31, 2016

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	44	$	4	$	48	$	0	$	0	$	96
Collectively evaluated for impairment		3,491		1,763		2,153		2,766		430		10,603
Acquired loans		42		107		4		0		0		153
Acquired with deteriorated credit quality		0		0		0		0		0		0
Total ending allowance balance	$	3,577	$	1,874	$	2,205	$	2,766	$	430	$	10,852

Loans:
Loans individually evaluated for impairment	$	3,457	$	477	$	3,308	$	96	$	0	$	7,338
Loans collectively evaluated for impairment		376,632		195,146		280,215		196,081		0		1,048,074
Acquired loans		153,228		48,536		146,672		21,923		0		370,359
Acquired with deteriorated credit quality		968		896		0		0		0		1,864
Total ending loans balance	$	534,285	$	245,055	$	430,195	$	218,100	$	0	$	1,427,635

The following tables present information related to impaired loans by class of loans as of March 31, 2017 and December 31, 2016:

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
March 31, 2017
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,443	$	926	$	0
Non-owner occupied		18		18		0
Farmland		94		93		0
Commercial
Commercial and industrial		204		183		0
Agricultural		126		80		0
Residential real estate
1-4 family residential		2,649		2,401		0
Home equity lines of credit		345		326		0
Consumer		127		52		0
Subtotal		5,006		4,079		0

With an allowance recorded:
Commercial real estate
Owner occupied		167		167		9
Non-owner occupied		1,102		1,102		26
Farmland		0		0		0
Commercial
Commercial and industrial		73		73		4
Agricultural		0		0		0
Residential real estate
1-4 family residential		813		791		61
Home equity lines of credit		83		83		1
Subtotal		2,238		2,216		101
Total	$	7,244	$	6,295	$	101

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2016
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,974	$	1,456	$	0
Non-owner occupied		332		331		0
Commercial
Commercial and industrial		205		184		0
Residential real estate
1-4 family residential		2,650		2,403		0
Home equity lines of credit		195		179		0
Consumer		205		96		0
Subtotal		5,561		4,649		0

With an allowance recorded:
Commercial real estate
Owner occupied		173		173		14
Non-owner occupied		1,118		1,118		30
Farmland		380		379		42
Commercial
Commercial and industrial		75		75		4
Agricultural		219		218		107
Residential real estate
1-4 family residential		661		642		51
Home equity lines of credit		84		84		1
Subtotal		2,710		2,689		249
Total	$	8,271	$	7,338	$	249

The following tables present the average recorded investment in impaired loans by class and interest income recognized by loan class for the three month periods ended March 31, 2017 and 2016:

	Average Recorded Investment				Interest Income Recognized
	For Three Months Ended March 31,				For Three Months Ended March 31,
(In Thousands of Dollars)	2017		2016		2017		2016
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,051	$	2,307	$	2	$	10
Non-owner occupied		226		336		0		4
Commercial
Commercial and industrial		210		614		1		5
Residential real estate
1-4 family residential		2,380		2,292		37		38
Home equity lines of credit		227		240		4		3
Consumer		74		116		3		3
Subtotal		4,168		5,905		47		63

With an allowance recorded:
Commercial real estate
Owner occupied		422		1,589		2		9
Non-owner occupied		1,107		1,469		14		19
Commercial
Commercial and industrial		273		80		1		1
Residential real estate
1-4 family residential		773		749		8		9
Home equity lines of credit		82		86		1		1
Consumer		1	0		0		0
Subtotal		2,658		3,973		26		39
Total	$	6,826	$	9,878	$	73	$	102

Cash basis interest recognized during the three month periods ended March 31, 2017 and 2016 was materially equal to interest income recognized.

Nonaccrual loans and loans past due 90 days or more still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of March 31, 2017 and December 31, 2016:

	March 31, 2017				December 31, 2016
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Originated loans:
Commercial real estate
Owner occupied	$	806	$	0	$	958	$	0
Non-owner occupied		17		0		343		0
Farmland		55		0		58		0
Commercial
Commercial and industrial		309		40		400		0
Agricultural		3		0		12		0
Residential real estate
1-4 family residential		1,857		467		1,929		295
Home equity lines of credit		196		85		202		118
Consumer
Indirect		368		262		298		438
Direct		7		0		9		65
Other		0		18		0		16
Total originated loans	$	3,618	$	872	$	4,209	$	932
Acquired loans:
Commercial real estate
Owner occupied	$	59	$	0	$	85	$	0
Other		8		0		24		0
Farmland		93		0		380		0
Commercial
Commercial and industrial		894		0		961		0
Agricultural		98		0		236		0
Residential real estate
1-4 family residential		370		156		386		545
Home equity lines of credit		124		86		119		109
Consumer
Direct		94		81		89		95
Total acquired loans	$	1,740	$	323	$	2,280	$	749
Total loans	$	5,358	$	1,195	$	6,489	$	1,681

The following tables present the aging of the recorded investment in past due loans as of March 31, 2017 and December 31, 2016 by class of loans:

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
March 31, 2017
Originated loans:
Commercial real estate
Owner occupied	$	176	$	0	$	806	$	982	$	114,795	$	115,777
Non-owner occupied		0		0		17		17		165,456		165,473
Farmland		0		0		55		55		41,057		41,112
Other		0		0		0		0		77,156		77,156
Commercial
Commercial and industrial		0		143		349		492		177,325		177,817
Agricultural		38		0		3		41		26,603		26,644
Residential real estate
1-4 family residential		2,066		556		2,324		4,946		232,357		237,303
Home equity lines of credit		63		84		281		428		62,203		62,631
Consumer
Indirect		1,850		359		630		2,839		163,990		166,829
Direct		554		119		7		680		27,356		28,036
Other		29		10		18		57		7,460		7,517
Total originated loans:	$	4,776	$	1,271	$	4,490	$	10,537	$	1,095,758	$	1,106,295
Acquired loans:
Commercial real estate
Owner occupied	$	0	$	0	$	59	$	59	$	59,317	$	59,376
Non-owner occupied		65		200		0		265		23,666		23,931
Farmland		0		0		93		93		51,222		51,315
Other		0		0		8		8		14,124		14,132
Commercial
Commercial and industrial		65		0		894		959		29,760		30,719
Agricultural		195		0		98		293		14,539		14,832
Residential real estate
1-4 family residential		664		299		526		1,489		106,015		107,504
Home equity lines of credit		126		113		210		449		33,209		33,658
Consumer
Direct		426		58		175		659		18,884		19,543
Other		0		0		0		0		156		156
Total acquired loans	$	1,541	$	670	$	2,063	$	4,274	$	350,892	$	355,166
Total loans	$	6,317	$	1,941	$	6,553	$	14,811	$	1,446,650	$	1,461,461

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2016
Originated loans:
Commercial real estate
Owner occupied	$	0	$	0	$	958	$	958	$	108,475	$	109,433
Non-owner occupied		0		0		343		343		165,105		165,448
Farmland		0		0		58		58		34,057		34,115
Other		0		0		0		0		70,542		70,542
Commercial
Commercial and industrial		90		0		400		490		170,242		170,732
Agricultural		0		29		12		41		24,632		24,673
Residential real estate
1-4 family residential		3,368		356		2,224		5,948		217,752		223,700
Home equity lines of credit		77		37		320		434		59,248		59,682
Consumer
Indirect		2,844		696		736		4,276		157,437		161,713
Direct		744		213		74		1,031		25,815		26,846
Other		92		28		16		136		7,476		7,612
Total originated loans	$	7,215	$	1,359	$	5,141	$	13,715	$	1,040,781	$	1,054,496
Acquired loans:
Commercial real estate
Owner occupied	$	8	$	205	$	85	$	298	$	60,630	$	60,928
Non-owner occupied		134		0		0		134		24,815		24,949
Farmland		83		0		380		463		53,741		54,204
Other		0		0		24		24		14,642		14,666
Commercial
Commercial and industrial		278		0		961		1,239		32,387		33,626
Agricultural		21		0		236		257		15,767		16,024
Residential real estate
1-4 family residential		1,556		504		931		2,991		109,027		112,018
Home equity lines of credit		152		9		228		389		34,406		34,795
Consumer
Direct		938		184		184		1,306		20,376		21,682
Other		100		0		0		100		147		247
Total acquired loans	$	3,270	$	902	$	3,029	$	7,201	$	365,938	$	373,139
Total loans	$	10,485	$	2,261	$	8,170	$	20,916	$	1,406,719	$	1,427,635