Loans and Allowance (Tables)

9 Months Ended

Sep. 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:



	September 30, 2016			December 31, 2015
Commercial and industrial loans	$	1,146,538		$	1,057,075
Agricultural production financing and other loans to farmers	93,169			97,711
Real estate loans:
Construction	368,241			366,704
Commercial and farmland	1,941,739			1,802,921
Residential	739,855			786,105
Home Equity	398,837			348,613
Individuals' loans for household and other personal expenditures	76,497			74,717
Lease financing receivables, net of unearned income	380			588
Other commercial loans	208,588			159,388
Loans	$	4,973,844		$	4,693,822
Allowance for loan losses	(63,456		)	(62,453		)
Net Loans	$	4,910,388		$	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 nine months ended September 30, 2016, and September 30, 2015:



	Three Months Ended September 30, 2016
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, June 30, 2016	$	26,321		$	22,280		$	2,684		$	10,899		$	2	$	62,186
Provision for losses	727			578			115			480					1,900
Recoveries on loans	175			651			101			324					1,251
Loans charged off	(720		)	(572		)	(114		)	(475		)			(1,881		)
Balances, September 30, 2016	$	26,503		$	22,937		$	2,786		$	11,228		$	2	$	63,456



	Nine Months Ended September 30, 2016
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, December 31, 2015	$	26,478		$	22,145		$	2,689		$	11,139		$	2	$	62,453
Provision for losses	1,266			992			192			790					3,240
Recoveries on loans	1,150			1,879			286			909					4,224
Loans charged off	(2,391		)	(2,079		)	(381		)	(1,610		)			(6,461		)
Balances, September 30, 2016	$	26,503		$	22,937		$	2,786		$	11,228		$	2	$	63,456



	Three Months Ended September 30, 2015
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases			Total
Allowance for loan losses:
Balances, June 30, 2015	$	31,479		$	15,828		$	2,927		$	12,311		$	5		$	62,550
Provision for losses	3,202			(2,966		)	(102		)	(132		)	(2		)
Recoveries on loans	281			1,510			67			513						2,371
Loans charged off	(1,026		)	(386		)	(169		)	(479		)				(2,060		)
Balances, September 30, 2015	$	33,936		$	13,986		$	2,723		$	12,213		$	3		$	62,861



	Nine Months Ended September 30, 2015
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases		Total
Allowance for loan losses:
Balances, December 31, 2014	$	28,824		$	19,327		$	2,658		$	13,152		$	3	$	63,964
Provision for losses	6,226			(6,364		)	225			330					417
Recoveries on loans	1,168			2,069			246			1,392					4,875
Loans charged off	(2,282		)	(1,046		)	(406		)	(2,661		)			(6,395		)
Balances, September 30, 2015	$	33,936		$	13,986		$	2,723		$	12,213		$	3	$	62,861

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:



	September 30, 2016
	Commercial		Commercial Real Estate		Consumer		Residential		Finance Leases		Total
Allowance Balances:
Individually evaluated for impairment	$	555	$	760			$	312			$	1,627
Collectively evaluated for impairment	25,948		22,177		$	2,786	10,916		$	2	61,829
Loans Acquired with Deteriorated Credit Quality
Total Allowance for Loan Losses	$	26,503	$	22,937	$	2,786	$	11,228	$	2	$	63,456
Loan Balances:
Individually evaluated for impairment	$	5,764	$	23,904			$	4,158			$	33,826
Collectively evaluated for impairment	1,436,065		2,242,862		$	76,497	1,132,385		$	380	4,888,189
Loans Acquired with Deteriorated Credit Quality	6,466		43,214				2,149				51,829
Loans	$	1,448,295	$	2,309,980	$	76,497	$	1,138,692	$	380	$	4,973,844



	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:



	September 30, 2016		December 31, 2015
Commercial and industrial loans	$	2,381	$	4,634
Agriculture production financing and other loans to farmers	1,530		827
Real estate Loans:
Construction	271		736
Commercial and farmland	16,983		11,277
Residential	10,608		11,818
Home Equity	2,216		1,952
Individuals' loans for household and other personal expenditures	116		145
Total	$	34,105	$	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:



	September 30, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	18,096	$	9,996
Agriculture production financing and other loans to farmers	649		611
Real estate Loans:
Construction	6,492		3,545
Commercial and farmland	82,551		61,536
Residential	8,252		4,934
Home equity	82		44
Other commercial loans	13
Total	$	116,135	$	80,666
Impaired loans with related allowance:
Commercial and industrial loans	$	779	$	467	$	379
Agriculture production financing and other loans to farmers	1,186		1,156		175
Real estate Loans:
Commercial and farmland	2,070		1,835		760
Residential	65		34		22
Total	$	4,100	$	3,492	$	1,336
Total Impaired Loans	$	120,235	$	84,158	$	1,336



	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 September 30, 2016				Nine Months Ended September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	10,025	$	89	$	10,436	$	261
Agriculture production financing and other loans to farmers	636		3		644		3
Real estate Loans:
Construction	3,526		72		3,572		215
Commercial and farmland	61,903		854		63,722		2,576
Residential	5,081		40		5,453		118
Home equity	44				57
Total	$	81,215	$	1,058	$	83,884	$	3,173
Impaired loans with related allowance:
Commercial and industrial loans	$	469			$	471
Agriculture production financing and other loans to farmers	1,164		6		1,236		6
Real estate Loans:
Commercial and farmland	1,850				1,894
Residential	34				39
Total	$	3,517	$	6	$	3,640	$	6
Total Impaired Loans	$	84,732	$	1,064	$	87,524	$	3,179



	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	11,863	$	137	$	12,676	$	368
Agriculture production financing and other loans to farmers	675				699
Real estate Loans:
Construction	2,855		41		3,407		123
Commercial and farmland	64,186		932		65,310		2,661
Residential	9,028		47		9,272		177
Home equity	194				197
Total	$	88,801	$	1,157	$	91,561	$	3,329
Impaired loans with related allowance:
Commercial and industrial loans	$	2,731	$	10	$	2,774	$	29
Agriculture production financing and other loans to farmers	547				547
Real estate Loans:
Commercial and farmland	2,459				2,613
Residential	625				626
Total	$	6,362	$	10	$	6,560	$	29
Total Impaired Loans	$	95,163	$	1,167	$	98,121	$	3,358

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.



	September 30, 2016
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful	Commercial Loss	Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	1,075,134	$	34,937	$	36,467							$	1,146,538
Agriculture production financing and other loans to farmers	30,491		35,075		27,603								93,169
Real estate Loans:
Construction	344,737		5,381		966				$	17,081	$	76	368,241
Commercial and farmland	1,805,513		52,864		83,362								1,941,739
Residential	148,251		5,532		6,573				570,838		8,661		739,855
Home equity	7,713		69		520				388,069		2,466		398,837
Individuals' loans for household and other personal expenditures									76,351		146		76,497
Lease financing receivables, net of unearned income	295				85								380
Other commercial loans	208,028				560								208,588
Loans	$	3,620,162	$	133,858	$	156,136			$	1,052,339	$	11,349	$	4,973,844



	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 September 30, 2016, and December 31, 2015.



	September 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	$	1,143,456	$	701					$	2,381	$	3,082	$	1,146,538
Agriculture production financing and other loans to farmers	91,639								1,530		1,530		93,169
Real estate Loans:
Construction	367,969						$	1	271		272		368,241
Commercial and farmland	1,919,826		976		$	2,737	1,217		16,983		21,913		1,941,739
Residential	724,200		3,390		1,574		83		10,608		15,655		739,855
Home equity	394,977		841		510		293		2,216		3,860		398,837
Individuals' loans for household and other personal expenditures	75,948		295		107		31		116		549		76,497
Lease financing receivables, net of unearned income	380												380
Other commercial loans	208,588												208,588
Loans	$	4,926,983	$	6,203	$	4,928	$	1,625	$	34,105	$	46,861	$	4,973,844



	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 September 30, 2016					Nine Months Ended September 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						1,606		1,472		5
Real estate Loans:
Commercial and farmland	$	87	$	95	1	3,978		3,955		7
Residential	611		678		11	724		811		14
Home Equity	55		58		2	229		204		3
Total	$	753	$	831	14	$	6,797	$	6,702	32



	Three Months Ended September 30, 2015					Nine Months Ended September 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	$	363	$	218	2	$	4,111	$	2,115	7
Real estate Loans:
Construction						79		80		1
Commercial and farmland	744		744		1	1,281		3,025		3
Residential	11		13		1	55		908		4
Home Equity	239		242		1	239		242		1
Total	$	1,357	$	1,217	5	$	5,765	$	6,370	16

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



	Three Months Ended September 30, 2016
	Term Modification	Rate Modification		Combination		Total Modification
Real estate Loans:
Commercial and farmland				$	95	$	95
Residential		$	663			663
Home Equity		56				56
Total		$	719	$	95	$	814



	Nine Months Ended September 30, 2016
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans					$	197	$	197
Agriculture production financing and other loans to farmers	$	898					898
Real estate Loans:
Commercial and farmland	416				3,487		3,903
Residential			$	773			773
Home Equity			197				197
Total	$	1,314	$	970	$	3,684	$	5,968



	Three Months Ended September 30, 2015
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	138			$	75	$	213
Real estate Loans:
Commercial and farmland					744		744
Residential			$	13			13
Home Equity			242				242
Total	$	138	$	255	$	819	$	1,212



	Nine Months Ended September 30, 2015
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	806			$	1,080	$	1,886
Real estate Loans:
Commercial and farmland	1,337				1,004		2,341
Residential	850		$	59			909
Home Equity			242				242
Total	$	2,993	$	301	$	2,084	$	5,378

Troubled debt restructurings that subsequently defaulted

The following tables summarize troubled debt restructures that occurred during the three and nine months ended September 30, 2016 and September 30, 2015, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this discussion, a loan is considered in default if it is 30 or more days past due.



	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Commercial and industrial loans				3	$	197
Real estate Loans:
Residential	1	$	54	1	54
Total	1	$	54	4	$	251



	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Real estate Loans:
Residential	1	$	21	1	$	21
Total	1	$	21	1	$	21