Loans and Allowance (Tables)

6 Months Ended

Jun. 30, 2016

Composition of loan portfolio by loan class

The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated:



	June 30, 2016			December 31, 2015
Commercial and industrial loans	$	1,084,890		$	1,057,075
Agricultural production financing and other loans to farmers	95,131			97,711
Real estate loans:
Construction	352,980			366,704
Commercial and farmland	1,869,703			1,802,921
Residential	758,870			786,105
Home Equity	374,159			348,613
Individuals' loans for household and other personal expenditures	75,205			74,717
Lease financing receivables, net of unearned income	388			588
Other commercial loans	180,103			159,388
Loans	$	4,791,429		$	4,693,822
Allowance for loan losses	(62,186		)	(62,453		)
Net Loans	$	4,729,243		$	4,631,369

Changes in allowance for loan losses

The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2016, and June 30, 2015:



	Three Months Ended June 30, 2016
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, April 1	$	26,264		$	22,317		$	2,647		$	10,856		$	2	$	62,086
Provision for losses	400			200			44			146					790
Recoveries on loans	683			276			107			273					1,339
Loans charged off	(1,026		)	(513		)	(114		)	(376		)			(2,029		)
Balances, June 30, 2016	$	26,321		$	22,280		$	2,684		$	10,899		$	2	$	62,186



	Six Months Ended June 30, 2016
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, January 1	$	26,478		$	22,145		$	2,689		$	11,139		$	2	$	62,453
Provision for losses	539			414			77			310					1,340
Recoveries on loans	975			1,228			185			585					2,973
Loans charged off	(1,671		)	(1,507		)	(267		)	(1,135		)			(4,580		)
Balances, June 30, 2016	$	26,321		$	22,280		$	2,684		$	10,899		$	2	$	62,186



	Three Months Ended June 30, 2015
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, April 1	$	30,007		$	16,383		$	3,138		$	13,269		$	4	$	62,801
Provision for losses	1,190			(502		)	(200		)	(72		)	1		417
Recoveries on loans	437			147			101			747					1,432
Loans charged off	(155		)	(200		)	(112		)	(1,633		)			(2,100		)
Balances, June 30, 2015	$	31,479		$	15,828		$	2,927		$	12,311		$	5	$	62,550



	Six Months Ended June 30, 2015
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, January 1	$	28,824		$	19,327		$	2,658		$	13,152		$	3	$	63,964
Provision for losses	3,024			(3,398		)	327			462			2		417
Recoveries on loans	887			559			179			879					2,504
Loans charged off	(1,256		)	(660		)	(237		)	(2,182		)			(4,335		)
Balances, June 30, 2015	$	31,479		$	15,828		$	2,927		$	12,311		$	5	$	62,550

Allowance for credit losses and loan portfolio by loan segment

The following tables show the Corporation’s allowance for loan losses and loan portfolio by segment as of the periods indicated:



	June 30, 2016
	Commercial		Commercial Real Estate		Consumer		Residential		Finance Leases		Total
Allowance Balances:
Individually evaluated for impairment	$	1,573	$	276			$	69			$	1,918
Collectively evaluated for impairment	24,748		21,824		$	2,684	10,808		$	2	60,066
Loans Acquired with Deteriorated Credit Quality			180				22				202
Total Allowance for Loan Losses	$	26,321	$	22,280	$	2,684	$	10,899	$	2	$	62,186
Loan Balances:
Individually evaluated for impairment	$	7,841	$	21,118			$	3,462			$	32,421
Collectively evaluated for impairment	1,345,826		2,155,077		$	75,205	1,126,707		$	388	4,703,203
Loans Acquired with Deteriorated Credit Quality	6,457		46,488				2,860				55,805
Loans	$	1,360,124	$	2,222,683	$	75,205	$	1,133,029	$	388	$	4,791,429



	December 31, 2015
	Commercial		Commercial Real Estate		Consumer		Residential		Finance Leases		Total
Allowance Balances:
Individually evaluated for impairment	$	1,277	$	243			$	169			$	1,689
Collectively evaluated for impairment	25,201		21,753		$	2,689	10,966		$	2	60,611
Loans Acquired with Deteriorated Credit Quality			149				4				153
Total Allowance for Loan Losses	$	26,478	$	22,145	$	2,689	$	11,139	$	2	$	62,453
Loan Balances:
Individually evaluated for impairment	$	7,877	$	16,670			$	4,020			$	28,567
Collectively evaluated for impairment	1,298,988		2,096,089		$	74,717	1,125,316		$	588	4,595,698
Loans Acquired with Deteriorated Credit Quality	7,309		56,866				5,382				69,557
Loans	$	1,314,174	$	2,169,625	$	74,717	$	1,134,718	$	588	$	4,693,822

Summary of non-accrual loans by loan class

The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated:



	June 30, 2016		December 31, 2015
Commercial and industrial loans	$	3,413	$	4,634
Agriculture production financing and other loans to farmers	1,471		827
Real estate Loans:
Construction	721		736
Commercial and farmland	15,541		11,277
Residential	9,952		11,818
Home Equity	2,345		1,952
Individuals' loans for household and other personal expenditures	122		145
Total	$	33,565	$	31,389

Composition of impaired loans by loan class

The following tables show the composition of the Corporation’s commercial impaired loans by loan class as of the periods indicated:



	June 30, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	19,322	$	10,183
Agriculture production financing and other loans to farmers	709		701
Real estate Loans:
Construction	8,089		4,091
Commercial and farmland	83,028		61,319
Residential	8,650		5,016
Home equity	176		139
Other commercial loans	16
Total	$	119,990	$	81,449
Impaired loans with related allowance:
Commercial and industrial loans	$	2,491	$	2,114	$	1,007
Agriculture production financing and other loans to farmers	1,331		1,301		566
Real estate Loans:
Commercial and farmland	2,145		1,978		456
Residential	877		801		91
Total	$	6,844	$	6,194	$	2,120
Total Impaired Loans	$	126,834	$	87,643	$	2,120



	December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	22,151	$	11,669
Agriculture production financing and other loans to farmers	370		361
Real estate Loans:
Construction	4,551		2,336
Commercial and farmland	95,930		69,024
Residential	11,262		7,338
Home equity	297		247
Other commercial loans	20
Total	$	134,581	$	90,975
Impaired loans with related allowance:
Commercial and industrial loans	$	3,043	$	2,690	$	1,247
Agriculture production financing and other loans to farmers	466		466		30
Real estate Loans:
Commercial and farmland	2,144		1,933		392
Residential	2,300		1,463		173
Total	$	7,953	$	6,552	$	1,842
Total Impaired Loans	$	142,534	$	97,527	$	1,842



	Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	10,372	$	128	$	10,307	$	231
Agriculture production financing and other loans to farmers	834		2		882		2
Real estate Loans:
Construction	4,085		74		4,074		147
Commercial and farmland	62,173		861		63,136		1,706
Residential	5,069		54		5,390		107
Home equity	138				139
Total	$	82,671	$	1,119	$	83,928	$	2,193
Impaired loans with related allowance:
Commercial and industrial loans	$	2,120	$	9	$	2,129	$	19
Agriculture production financing and other loans to farmers	1,321				1,405
Real estate Loans:
Commercial and farmland	1,986				2,008
Residential	840				860
Total	$	6,267	$	9	$	6,402	$	19
Total Impaired Loans	$	88,938	$	1,128	$	90,330	$	2,212



	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	12,154	$	111	$	12,942	$	200
Agriculture production financing and other loans to farmers	1,325				1,343
Real estate Loans:
Construction	7,648		95		7,898		191
Commercial and farmland	66,625		894		66,957		1,765
Residential	7,114		57		7,150		107
Home equity	208				208
Total	$	95,074	$	1,157	$	96,498	$	2,263
Impaired loans with related allowance:
Commercial and industrial loans	$	3,204	$	10	$	3,214	$	19
Real estate Loans:
Commercial and farmland	2,622				2,727
Residential	2,600				2,603
Total	$	8,426	$	10	$	8,544	$	19
Total Impaired Loans	$	103,500	$	1,167	$	105,042	$	2,282

Credit quality of loan portfolio by loan class

The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below.



	June 30, 2016
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful	Commercial Loss	Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	1,022,507	$	29,117	$	33,266							$	1,084,890
Agriculture production financing and other loans to farmers	37,114		32,784		25,233								95,131
Real estate Loans:
Construction	328,366		5,023		1,606				$	17,908	$	77	352,980
Commercial and farmland	1,733,503		51,793		84,407								1,869,703
Residential	157,186		7,953		6,352				579,403		7,976		758,870
Home equity	7,377		97		743				363,618		2,324		374,159
Individuals' loans for household and other personal expenditures									75,084		121		75,205
Lease financing receivables, net of unearned income	300				88								388
Other commercial loans	180,103												180,103
Loans	$	3,466,456	$	126,767	$	151,695			$	1,036,013	$	10,498	$	4,791,429



	December 31, 2015
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss	Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	962,340	$	48,432	$	45,984	$	319						$	1,057,075
Agriculture production financing and other loans to farmers	77,884		6,665		13,162									97,711
Real estate Loans:
Construction	345,449		1,271		1,790					$	18,114	$	80	366,704
Commercial and farmland	1,679,141		46,442		77,338									1,802,921
Residential	171,576		3,107		10,428					593,533		7,461		786,105
Home equity	8,218		48		600					337,718		2,029		348,613
Individuals' loans for household and other personal expenditures										74,491		226		74,717
Lease financing receivables, net of unearned income	495				93									588
Other commercial loans	159,388													159,388
Loans	$	3,404,491	$	105,965	$	149,395	$	319		$	1,023,856	$	9,796	$	4,693,822

Past due aging of loan portfolio by loan class

The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of June 30, 2016, and December 31, 2015.



	June 30, 2016
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans > 90 Days And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	1,080,184	$	998	$	282	$	13	$	3,413	$	4,706	$	1,084,890
Agriculture production financing and other loans to farmers	92,979		250		431				1,471		2,152		95,131
Real estate Loans:
Construction	351,147				1,112				721		1,833		352,980
Commercial and farmland	1,850,882		2,384		896				15,541		18,821		1,869,703
Residential	743,951		3,847		888		232		9,952		14,919		758,870
Home equity	370,602		628		467		117		2,345		3,557		374,159
Individuals' loans for household and other personal expenditures	74,744		297		42				122		461		75,205
Lease financing receivables, net of unearned income	388												388
Other commercial loans	180,103												180,103
Loans	$	4,744,980	$	8,404	$	4,118	$	362	$	33,565	$	46,449	$	4,791,429



	December 31, 2015
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans > 90 Days And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	1,052,275	$	166					$	4,634	$	4,800	$	1,057,075
Agriculture production financing and other loans to farmers	96,884								827		827		97,711
Real estate Loans:
Construction	362,084		3,884						736		4,620		366,704
Commercial and farmland	1,786,092		5,552						11,277		16,829		1,802,921
Residential	765,634		6,090		$	2,061	$	502	11,818		20,471		786,105
Home equity	344,344		1,433		560		324		1,952		4,269		348,613
Individuals' loans for household and other personal expenditures	73,990		445		56		81		145		727		74,717
Lease financing receivables, net of unearned income	588												588
Other commercial loans	159,324				64						64		159,388
Loans	$	4,641,215	$	17,570	$	2,741	$	907	$	31,389	$	52,607	$	4,693,822

Schedules of troubled debt restructurings

The following tables summarize troubled debt restructurings in the Corporation's loan portfolio that occurred during the periods indicated:



	Three Months Ended June 30, 2016					Six Months Ended June 30, 2016
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Commercial and industrial loans						$	260	$	260	3
Agriculture production financing and other loans to farmers	$	1,141	$	1,141	3	1,606		1,472		5
Real estate Loans:
Commercial and farmland	3,539		3,508		5	3,891		3,860		6
Residential						113		133		3
Home Equity	174		146		1	174		146		1
Total	$	4,854	$	4,795	9	$	6,044	$	5,871	18



	Three Months Ended June 30, 2015					Six Months Ended June 30, 2015
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	1,386	$	536	1	$	3,748	$	1,897	5
Real estate Loans:
Construction						79		80		1
Commercial and farmland	537		537		1	537		2,280		2
Residential	20		871		2	44		895		3
Total	$	1,943	$	1,944	4	$	4,408	$	5,152	11

The following tables summarize the recorded investment of troubled debt restructurings as of June 30, 2016 and 2015, by modification type, that occurred during the periods indicated:



	Three Months Ended June 30, 2016
	Term Modification		Rate Modification		Combination		Total Modification
Agriculture production financing and other loans to farmers	$	1,141					$	1,141
Real estate Loans:
Commercial and farmland	418				$	3,086	3,504
Home Equity			$	143			143
Total	$	1,559	$	143	$	3,086	$	4,788



	Six Months Ended June 30, 2016
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans					$	198	$	198
Agriculture production financing and other loans to farmers	$	1,141	$	49			1,190
Real estate Loans:
Commercial and farmland	418				3,433		3,851
Residential			112				112
Home Equity			143				143
Total	$	1,559	$	304	$	3,631	$	5,494



	Three Months Ended June 30, 2015
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	492					$	492
Real estate Loans:
Commercial and farmland					$	240	240
Residential	850		$	21			871
Total	$	1,342	$	21	$	240	$	1,603



	Six Months Ended June 30, 2015
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	1,234			$	1,030	$	2,264
Real estate Loans:
Construction	199						199
Commercial and farmland	1,442				240		1,682
Residential	850		$	47			897
Total	$	3,725	$	47	$	1,270	$	5,042

Troubled debt restructurings that subsequently defaulted

The following tables summarize troubled debt restructures that occurred during the three and six months ended June 30, 2016, that subsequently defaulted during the period indicated and remained in default at period end. There were no troubled debt restructures that occurred during the three and six months ended June 30, 2015 that subsequently defaulted during this period. For purposes of this discussion, a loan is considered in default if it is 30 or more days past due.



	Three Months Ended June 30, 2016			Six Months Ended June 30, 2016
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Commercial and industrial loans	1	$	72	4	$	269
Real estate Loans:
Residential	1	55		1	55
Total	2	$	127	5	$	324