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Loans
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Loans
Loans
 
Loans were comprised of the following classifications at March 31, 2017 and December 31, 2016: 
 
 
March 31,
2017
 
December 31,
2016
Commercial:
 
 

 
 

Commercial and Industrial Loans and Leases
 
$
450,501

 
$
457,372

Commercial Real Estate Loans
 
865,717

 
856,094

Agricultural Loans
 
292,615

 
303,128

Retail:
 
 

 
 

Home Equity Loans
 
135,352

 
133,575

Consumer Loans
 
58,938

 
59,945

Residential Mortgage Loans
 
183,806

 
183,290

Subtotal
 
1,986,929

 
1,993,404

Less: Unearned Income
 
(3,357
)
 
(3,449
)
Allowance for Loan Losses
 
(15,166
)
 
(14,808
)
Loans, Net
 
$
1,968,406

 
$
1,975,147



The following tables present the activity in the allowance for loan losses by portfolio class for the three months ended March 31, 2017 and 2016:
March 31, 2017
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
3,725

 
$
5,452

 
$
4,094

 
$
283

 
$
235

 
$
329

 
$
690

 
$
14,808

Provision for Loan Losses
 
(115
)
 
278

 
267

 
17

 
118

 
19

 
(84
)
 
500

Recoveries
 
2

 
5

 
—

 
—

 
60

 
27

 
—

 
94

Loans Charged-off
 
—

 
(39
)
 
—

 
(1
)
 
(169
)
 
(27
)
 
—

 
(236
)
Ending Balance
 
$
3,612

 
$
5,696

 
$
4,361

 
$
299

 
$
244

 
$
348

 
$
606

 
$
15,166


March 31, 2016
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712

 
$
14,438

Provision for Loan Losses
 
105

 
120

 
414

 
31

 
27

 
155

 
(2
)
 
850

Recoveries
 
4

 
1

 
—

 
1

 
45

 
5

 
—

 
56

Loans Charged-off
 
(5
)
 
—

 
—

 
(63
)
 
(72
)
 
(43
)
 
—

 
(183
)
Ending Balance
 
$
4,346

 
$
6,463

 
$
2,529

 
$
352

 
$
230

 
$
531

 
$
710

 
$
15,161


In determining the adequacy of the allowance for loan loss, general allocations are made for pools of loans, including non-classified loans, homogeneous portfolios of consumer and residential real estate loans, and loans within certain industry categories believed to present unique risk of loss. General allocations of the allowance are primarily made based on historical averages for loan losses for these portfolios, judgmentally adjusted for current economic factors and portfolio trends.

Loan impairment is reported when full repayment under the terms of the loan is not expected. This methodology is used for all loans, including loans acquired with deteriorated credit quality if such loans perform worse than what was expected at the time of acquisition. For purchased loans, the assessment is made at the time of acquisition as well as over the life of loan. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Commercial and industrial loans, commercial real estate loans, and agricultural loans are evaluated individually for impairment. Smaller balance homogeneous loans are evaluated for impairment in total. Such loans include real estate loans secured by one-to-four family residences and loans to individuals for household, family and other personal expenditures. Individually evaluated loans on non-accrual are generally considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Specific allocations on impaired loans are determined by comparing the loan balance to the present value of expected cash flows or expected collateral proceeds. Allocations are also applied to categories of loans not considered individually impaired but for which the rate of loss is expected to be greater than historical averages, including non-performing consumer or residential real estate loans. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Total
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending Allowance Balance Attributable to Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually Evaluated for Impairment
 
$
533

 
$
23

 
$
510

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
14,517

 
3,586

 
5,126

 
4,313

 
299

 
239

 
348

 
606

Acquired with Deteriorated Credit Quality
 
116

 
3

 
60

 
48

 
—

 
5

 
—

 
—

Total Ending Allowance Balance
 
$
15,166

 
$
3,612

 
$
5,696

 
$
4,361

 
$
299

 
$
244

 
$
348

 
$
606


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
2,924

 
$
85

 
$
2,182

 
$
657

 
$
—

 
$
—

 
$
—

 
n/m(2)

Loans Collectively Evaluated for Impairment
 
1,981,754

 
450,341

 
858,027

 
295,235

 
135,828

 
59,035

 
183,288

 
n/m(2)

Loans Acquired with Deteriorated Credit Quality
 
10,348

 
1,251

 
7,426

 
688

 
—

 
53

 
930

 
n/m(2)

Total Ending Loans Balance(1)
 
$
1,995,026

 
$
451,677

 
$
867,635

 
$
296,580

 
$
135,828

 
$
59,088

 
$
184,218

 
n/m(2)

 
 
(1)Total recorded investment in loans includes $8,097 in accrued interest.
(2)n/m = not meaningful

December 31, 2016
 
Total
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending Allowance Balance Attributable to Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually Evaluated for Impairment
 
$
255

 
$
24

 
$
231

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
14,448

 
3,698

 
5,172

 
4,046

 
283

 
230

 
329

 
690

Acquired with Deteriorated Credit Quality
 
105

 
3

 
49

 
48

 
—

 
5

 
—

 
—

Total Ending Allowance Balance
 
$
14,808

 
$
3,725

 
$
5,452

 
$
4,094

 
$
283

 
$
235

 
$
329

 
$
690


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
1,239

 
$
113

 
$
832

 
$
294

 
$
—

 
$
—

 
$
—

 
n/m(2)

Loans Collectively Evaluated for Impairment
 
1,989,128

 
456,769

 
849,510

 
305,946

 
134,032

 
60,046

 
182,825

 
n/m(2)

Loans Acquired with Deteriorated Credit Quality
 
11,048

 
1,656

 
7,688

 
706

 
—

 
53

 
945

 
n/m(2)

Total Ending Loans Balance(1)
 
$
2,001,415

 
$
458,538

 
$
858,030

 
$
306,946

 
$
134,032

 
$
60,099

 
$
183,770

 
n/m(2)

 
(1)Total recorded investment in loans includes $8,011 in accrued interest.
(2)n/m = not meaningful 

The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
57

 
$
57

 
$
—

Commercial Real Estate Loans
 
921

 
808

 
—

Agricultural Loans
 
700

 
657

 
—

Subtotal
 
1,678

 
1,522

 
—

With An Allowance Recorded:
 
 

 
 

 


Commercial and Industrial Loans and Leases
 
140

 
137

 
26

Commercial Real Estate Loans
 
2,487

 
2,314

 
570

Agricultural Loans
 
587

 
587

 
48

Subtotal
 
3,214

 
3,038

 
644

Total
 
$
4,892

 
$
4,560

 
$
644

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
599

 
$
584

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
1,053

 
$
1,052

 
$
111

   
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.


December 31, 2016
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
85

 
$
29

 
$
—

Commercial Real Estate Loans
 
1,278

 
784

 
—

Agricultural Loans
 
356

 
294

 
—

Subtotal
 
1,719

 
1,107

 
—

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
148

 
107

 
27

Commercial Real Estate Loans
 
839

 
827

 
280

Agricultural Loans
 
588

 
497

 
48

Subtotal
 
1,575

 
1,431

 
355

Total
 
$
3,294

 
$
2,538

 
$
355

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
1,018

 
$
531

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
910

 
$
768

 
$
100

    
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.
 
The following tables present loans individually evaluated for impairment by class of loans for the three month period ended March 31, 2017 and 2016:
March 31, 2017
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
16

 
$
—

 
$
—

Commercial Real Estate Loans
 
522

 
4

 
4

Agricultural Loans
 
719

 
5

 
—

Subtotal
 
1,257

 
9

 
4

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
103

 
1

 
1

Commercial Real Estate Loans
 
2,423

 
6

 
6

Agricultural Loans
 
497

 
—

 
—

Subtotal
 
3,023

 
7

 
7

Total
 
$
4,280

 
$
16

 
$
11

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
209

 
$
—

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
1,007

 
$
7

 
$
7


March 31, 2016
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
827

 
$
23

 
$
11

Commercial Real Estate Loans
 
1,213

 
18

 
3

Agricultural Loans
 
259

 
1

 
1

Subtotal
 
2,299

 
42

 
15

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
129

 
—

 
—

Commercial Real Estate Loans
 
2,235

 
1

 
—

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
2,364

 
1

 
—

Total
 
$
4,663

 
$
43

 
$
15

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
782

 
$
8

 
$
1

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
—

 
$
—

 
$
—


    
All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection.
 
 
 
 
 
 
 
The following tables present the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of March 31, 2017 and December 31, 2016:
 
 
 
 
 
 
 
 
 
Non-Accrual Loans
 
Loans Past Due 90 Days
or More & Still Accruing
 
 
March 31,
 
December 31,
 
March 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Commercial and Industrial Loans and Leases
 
$
84

 
$
86

 
$
—

 
$
2

Commercial Real Estate Loans
 
2,496

 
1,408

 
—

 
—

Agricultural Loans
 
767

 
792

 
1,238

 
—

Home Equity Loans
 
88

 
73

 
—

 
—

Consumer Loans
 
322

 
85

 
—

 
—

Residential Mortgage Loans
 
753

 
1,349

 
—

 
—

Total
 
$
4,510

 
$
3,793

 
$
1,238

 
$
2

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,051

 
$
1,264

 
$
—

 
$
—



The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Total
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total
Past Due
 
Loans Not Past Due
Commercial and Industrial Loans and Leases
 
$
451,677

 
$
1,278

 
$
7

 
$
73

 
$
1,358

 
$
450,319

Commercial Real Estate Loans
 
867,635

 
838

 
55

 
221

 
1,114

 
866,521

Agricultural Loans
 
296,580

 
397

 
—

 
1,842

 
2,239

 
294,341

Home Equity Loans
 
135,828

 
309

 
52

 
88

 
449

 
135,379

Consumer Loans
 
59,088

 
281

 
80

 
322

 
683

 
58,405

Residential Mortgage Loans
 
184,218

 
4,331

 
131

 
369

 
4,831

 
179,387

Total(1)
 
$
1,995,026

 
$
7,434

 
$
325

 
$
2,915

 
$
10,674

 
$
1,984,352

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
10,348

 
$
129

 
$
—

 
$
577

 
$
706

 
$
9,642

(1)Total recorded investment in loans includes $8,097 in accrued interest.
December 31, 2016
 
Total
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total
Past Due
 
Loans Not Past Due
Commercial and Industrial Loans and Leases
 
$
458,538

 
$
20

 
$
4

 
$
77

 
$
101

 
$
458,437

Commercial Real Estate Loans
 
858,030

 
1,509

 
21

 
330

 
1,860

 
856,170

Agricultural Loans
 
306,946

 
84

 
50

 
610

 
744

 
306,202

Home Equity Loans
 
134,032

 
707

 
16

 
73

 
796

 
133,236

Consumer Loans
 
60,099

 
175

 
147

 
85

 
407

 
59,692

Residential Mortgage Loans
 
183,770

 
3,470

 
1,251

 
806

 
5,527

 
178,243

Total(1)
 
$
2,001,415

 
$
5,965

 
$
1,489

 
$
1,981

 
$
9,435

 
$
1,991,980

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
11,048

 
$
130

 
$
—

 
$
627

 
$
757

 
$
10,291

Loans Acquired in Current Year
     (Included in the Total Above)
 
$
262,809

 
$
2,752

 
$
862

 
$
1,126

 
$
4,740

 
$
258,069

(1)Total recorded investment in loans includes $8,011 in accrued interest.
Troubled Debt Restructurings:
 
In certain instances, the Company may choose to restructure the contractual terms of loans. A troubled debt restructuring occurs when the Bank grants a concession to the borrower that it would not otherwise consider due to a borrower’s financial difficulty.   In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification. This evaluation is performed under the Company’s internal underwriting policy. The Company uses the same methodology for loans acquired with deteriorated credit quality as for all other loans when determining whether the loan is a troubled debt restructuring.
 
During the three months ended March 31, 2017 there was one loan modified as troubled debt restructuring. During the three months ended March 31, 2016, there were no loans modified as troubled debt restructurings.

The following tables present the recorded investment of troubled debt restructurings by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
28

 
28

 
—

Total
 
$
28

 
$
28

 
$
—

December 31, 2016
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
28

 
$
28

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
$
28

 
$
28

 
$
—

 
 
(1)The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page.
 
The Company had not committed to lending any additional amounts as of March 31, 2017 and December 31, 2016 to customers with outstanding loans that are classified as troubled debt restructurings.

The following tables present loans by class modified as troubled debt restructurings that occurred during the three months ending March 31, 2017 and 2016:
March 31, 2017
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial and Industrial Loans and Leases
 
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
1

 
28

 
28

Total
 
1

 
$
28

 
$
28


       
The troubled debt restructurings described above increased the allowance for loan losses by $2 and resulted in charge-offs of $0 during the three months ending March 31, 2017.
March 31, 2016
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial and Industrial Loans and Leases
 
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
—

 
$
—

 
$
—


The troubled debt restructurings described above increased the allowance for loan losses by $0 and resulted in charge-offs of $0 during the three months ending March 31, 2016.

Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modificaiton during the three months ending March 31, 2017 and 2016.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $250. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings:
 
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
 
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
 
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
 
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
March 31, 2017
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
432,133

 
$
9,119

 
$
10,425

 
$
—

 
$
451,677

Commercial Real Estate Loans
 
824,473

 
25,355

 
17,807

 
—

 
867,635

Agricultural Loans
 
270,373

 
22,868

 
3,339

 
—

 
296,580

Total
 
$
1,526,979

 
$
57,342

 
$
31,571

 
$
—

 
$
1,615,892

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,489

 
$
3,121

 
$
4,755

 
$
—

 
$
9,365

December 31, 2016
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
437,353

 
$
10,454

 
$
10,731

 
$
—

 
$
458,538

Commercial Real Estate Loans
 
814,033

 
26,549

 
17,448

 
—

 
858,030

Agricultural Loans
 
287,975

 
14,670

 
4,301

 
—

 
306,946

Total
 
$
1,539,361

 
$
51,673

 
$
32,480

 
$
—

 
$
1,623,514

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,897

 
$
3,121

 
$
5,032

 
$
—

 
$
10,050

Loans Acquired in Current Year
     (Included in the Total Above)
 
$
175,915

 
$
11,638

 
$
8,145

 
$
—

 
$
195,698


    
The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For home equity, consumer and residential mortgage loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.  The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
135,740

 
$
58,766

 
$
183,465

Nonperforming
 
88

 
322

 
753

Total
 
$
135,828

 
$
59,088

 
$
184,218

Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
 
$
—

 
$
53

 
$
930

 
December 31, 2016
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
133,959

 
$
60,014

 
$
182,421

Nonperforming
 
73

 
85

 
1,349

Total
 
$
134,032

 
$
60,099

 
$
183,770

Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
 
$
—

 
$
53

 
$
945

 

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows: 
 
 
March 31, 2017
 
December 31, 2016
 
 
 
 
 
Commercial and Industrial Loans
 
$
1,251

 
$
1,656

Commercial Real Estate Loans
 
7,426

 
7,688

Agricultural Loans
 
688

 
706

Consumer Loans
 
53

 
53

Residential Mortgage Loans
 
930

 
945

Total
 
$
10,348

 
$
11,048

 
 
 

 
 

Carrying Amount, Net of Allowance
 
$
10,232

 
$
10,943


 
Accretable yield, or income expected to be collected, is as follows:
 
 
2017
 
2016
 
 
 
 
 
Balance at January 1
 
$
2,521

 
$
1,279

New Loans Purchased
 
—

 
1,395

Accretion of Income
 
(42
)
 
(61
)
Reclassifications from Non-accretable Difference
 
311

 
—

Charge-off of Accretable Yield
 
—

 
—

Balance at March 31
 
$
2,790

 
$
2,613

    
For those purchased loans disclosed above, the Company increased the allowance for loan losses by $11 and $0 during the three months ended March 31, 2017 and 2016. No allowance for loan losses were reversed during the same period.
 
 
 
 
 

The carrying amount of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $168 as of March 31, 2017 and $202 as of December 31, 2016.