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Loans (Tables)
 3 Months Ended
Mar. 31, 2014
Receivables [Abstract]  
Components of Loans
Loans were comprised of the following classifications at March 31, 2014 and December 31, 2013: 
 
 
March 31,
2014
 
December 31,
2013
Commercial:
 
 

 
 

Commercial and Industrial Loans and Leases
 
$
344,045

 
$
350,955

Commercial Real Estate Loans
 
589,193

 
582,066

Agricultural Loans
 
174,651

 
192,880

Retail:
 
 

 
 

Home Equity Loans
 
81,228

 
81,504

Consumer Loans
 
46,796

 
49,124

Residential Mortgage Loans
 
131,271

 
128,683

Subtotal
 
1,367,184

 
1,385,212

Less: Unearned Income
 
(2,679
)
 
(2,830
)
Allowance for Loan Losses
 
(15,484
)
 
(14,584
)
Loans, Net
 
$
1,349,021

 
$
1,367,798
Allowance for Loan Losses by Portfolio Class
The following table presents the activity in the allowance for loan losses by portfolio class for the three months ending March 31, 2014 and 2013:
March 31, 2014
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
3,983

 
$
8,335

 
$
946

 
$
239

 
$
188

 
$
281

 
$
612

 
$
14,584

Provision for Loan Losses
 
1,322

 
(1,057
)
 
(16
)
 
—

 
48

 
7

 
46

 
350

Recoveries
 
69

 
703

 
—

 
—

 
47

 
4

 
—

 
823

Loans Charged-off
 
—

 
(111
)
 
—

 
(30
)
 
(97
)
 
(35
)
 
—

 
(273
)
Ending Balance
 
$
5,374

 
$
7,870

 
$
930

 
$
209

 
$
186

 
$
257

 
$
658

 
$
15,484

March 31, 2013
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
4,555

 
$
8,931

 
$
989

 
$
141

 
$
214

 
$
186

 
$
504

 
$
15,520

Provision for Loan Losses
 
195

 
6

 
(223
)
 
41

 
(7
)
 
113

 
225

 
350

Recoveries
 
3

 
51

 
—

 
—

 
55

 
2

 
—

 
111

Loans Charged-off
 
—

 
(109
)
 
—

 
(64
)
 
(73
)
 
(1
)
 
—

 
(247
)
Ending Balance
 
$
4,753

 
$
8,879

 
$
766

 
$
118

 
$
189

 
$
300

 
$
729

 
$
15,734
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Class
The following table presents 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, 2014 and December 31, 2013:
March 31, 2014
 
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
 
$
3,995

 
$
1,536

 
$
2,459

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
11,482

 
3,838

 
5,404

 
930

 
209

 
186

 
257

 
658

Acquired with Deteriorated Credit Quality
 
7

 
—

 
7

 
—

 
—

 
—

 
—

 
—

Total Ending Allowance Balance
 
$
15,484

 
$
5,374

 
$
7,870

 
$
930

 
$
209

 
$
186

 
$
257

 
$
658


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
11,406

 
$
6,380

 
$
5,026

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans Collectively Evaluated for Impairment
 
1,347,214

 
336,856

 
575,305

 
176,860

 
81,527

 
46,798

 
129,868

 
—

Loans Acquired with Deteriorated Credit Quality
 
13,869

 
1,636

 
10,337

 
—

 
—

 
130

 
1,766

 
—

Total Ending Loans Balance(1)
 
$
1,372,489

 
$
344,872

 
$
590,668

 
$
176,860

 
$
81,527

 
$
46,928

 
$
131,634

 
$
—


(1)Total recorded investment in loans includes $5,305 in accrued interest.
December 31, 2013
 
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
 
$
3,095

 
$
45

 
$
3,050

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
11,481

 
3,938

 
5,277

 
946

 
239

 
188

 
281

 
612

Acquired with Deteriorated Credit Quality
 
8

 
—

 
8

 
—

 
—

 
—

 
—

 
—

Total Ending Allowance Balance
 
$
14,584

 
$
3,983

 
$
8,335

 
$
946

 
$
239

 
$
188

 
$
281

 
$
612


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
8,458

 
$
2,114

 
$
6,344

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Loans Collectively Evaluated for Impairment
 
1,367,591

 
347,808

 
566,389

 
195,171

 
81,812

 
49,131

 
127,280

 
—

Loans Acquired with Deteriorated Credit Quality
 
14,753

 
1,981

 
10,871

 
—

 
—

 
134

 
1,767

 
—

Total Ending Loans Balance(1)
 
$
1,390,802

 
$
351,903

 
$
583,604

 
$
195,171

 
$
81,812

 
$
49,265

 
$
129,047

 
$
—

 
(1)Total recorded investment in loans includes $5,590 in accrued interest.
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2014 and December 31, 2013:
March 31, 2014
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
2,095

 
$
2,025

 
$
—

Commercial Real Estate Loans
 
2,342

 
1,800

 
—

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,437

 
3,825

 
—

With An Allowance Recorded:
 
 

 
 

 


Commercial and Industrial Loans and Leases
 
4,348

 
4,357

 
1,536

Commercial Real Estate Loans
 
3,946

 
3,790

 
2,466

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
8,294

 
8,147

 
4,002

Total
 
$
12,731

 
$
11,972

 
$
4,002

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
982

 
$
559

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
32

 
$
7

 
$
7


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

December 31, 2013
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
2,163

 
$
2,072

 
$
—

Commercial Real Estate Loans
 
4,710

 
2,383

 
—

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
6,873

 
4,455

 
—

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
45

 
45

 
45

Commercial Real Estate Loans
 
4,428

 
4,417

 
3,058

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,473

 
4,462

 
3,103

Total
 
$
11,346

 
$
8,917

 
$
3,103

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
987

 
$
451

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
33

 
$
8

 
$
8


(1) Unpaid Principal Balance is the remaining contractual payments inclusive of partial charge-offs.
 
The following table presents loans individually evaluated for impairment by class of loans for the three month period ended March 31, 2014 and 2013:
March 31, 2014
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
2,135

 
$
30

 
$
33

Commercial Real Estate Loans
 
2,433

 
3

 
2

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,568

 
33

 
35

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
4,371

 
1

 
1

Commercial Real Estate Loans
 
4,243

 
4

 
4

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
8,614

 
5

 
5

Total
 
$
13,182

 
$
38

 
$
40

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
1,244

 
$
2

 
$
2

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
33

 
$
—

 
$
1


 
March 31, 2013
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
110

 
$
—

 
$
1

Commercial Real Estate Loans
 
2,170

 
—

 
—

Agricultural Loans
 
2,422

 
48

 
16

Subtotal
 
4,702

 
48

 
17

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
2,533

 
1

 
1

Commercial Real Estate Loans
 
5,809

 
6

 
5

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
8,342

 
7

 
6

Total
 
$
13,044

 
$
55

 
$
23

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
57

 
$
—

 
$
1

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
112

 
$
1

 
$
1

 
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still On Accrual by Class of Loans
The following table presents 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, 2014 and December 31, 2013:
 
 
Non-Accrual
 
Loans Past Due 90 Days
or More & Still Accruing
 
 
2014
 
2013
 
2014
 
2013
Commercial and Industrial Loans and Leases
 
$
4,331

 
$
31

 
$
16

 
$
—

Commercial Real Estate Loans
 
5,348

 
6,658

 
—

 
8

Agricultural Loans
 
—

 
—

 
—

 
—

Home Equity Loans
 
139

 
114

 
—

 
—

Consumer Loans
 
318

 
236

 
—

 
—

Residential Mortgage Loans
 
1,640

 
1,339

 
—

 
—

Total
 
$
11,776

 
$
8,378

 
$
16

 
$
8

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,562

 
$
1,705

 
$
—

 
$
—
Aging of Recorded Investment in Past Due Loans by Class of Loans
The following table presents the aging of the recorded investment in past due loans by class of loans as of March 31, 2014 and December 31, 2013:
March 31, 2014
 
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
 
$
344,872

 
$
93

 
$
111

 
$
64

 
$
268

 
$
344,604

Commercial Real Estate Loans
 
590,668

 
619

 
347

 
1,331

 
2,297

 
588,371

Agricultural Loans
 
176,860

 
73

 
5

 
—

 
78

 
176,782

Home Equity Loans
 
81,527

 
269

 
132

 
138

 
539

 
80,988

Consumer Loans
 
46,928

 
103

 
36

 
190

 
329

 
46,599

Residential Mortgage Loans
 
131,634

 
1,631

 
37

 
1,423

 
3,091

 
128,543

Total(1)
 
$
1,372,489

 
$
2,788

 
$
668

 
$
3,146

 
$
6,602

 
$
1,365,887

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
13,869

 
$
—

 
$
—

 
$
996

 
$
996

 
$
12,873


(1)Total recorded investment in loans includes $5,305 in accrued interest.
 
December 31, 2013
 
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
 
$
351,903

 
$
256

 
$
78

 
$
—

 
$
334

 
$
351,569

Commercial Real Estate Loans
 
583,604

 
613

 
62

 
2,234

 
2,909

 
580,695

Agricultural Loans
 
195,171

 
62

 
—

 
—

 
62

 
195,109

Home Equity Loans
 
81,812

 
303

 
33

 
114

 
450

 
81,362

Consumer Loans
 
49,265

 
149

 
66

 
102

 
317

 
48,948

Residential Mortgage Loans
 
129,047

 
2,206

 
192

 
1,115

 
3,513

 
125,534

Total(1)
 
$
1,390,802

 
$
3,589

 
$
431

 
$
3,565

 
$
7,585

 
$
1,383,217

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
14,753

 
$
148

 
$
—

 
$
1,103

 
$
1,251

 
$
13,502

 
(1)Total recorded investment in loans includes $5,590 in accrued interest.
Troubled Debt Restructurings on Financing Receivables
The following table presents the recorded investment of troubled debt restructurings by class of loans as of March 31, 2014 and December 31, 2013:
March 31, 2014
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
2,045

 
$
2,040

 
$
5

Commercial Real Estate Loans
 
3,783

 
236

 
3,547

Total
 
$
5,828

 
$
2,276

 
$
3,552

 
December 31, 2013
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
2,092

 
$
2,086

 
$
6

Commercial Real Estate Loans
 
4,325

 
364

 
3,961

Total
 
$
6,417

 
$
2,450

 
$
3,967

 
(1)The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on previous page.
Loans By Class Modified As Troubled Debt Restructurings
The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ending March 31, 2014 and 2013: 
March 31, 2014
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial and Industrial Loans and Leases
 
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
1

 
197

 
197

Total
 
1

 
$
197

 
$
197

 
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, 2014.
 
March 31, 2013
 
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, 2013.

Troubled Debt Restructurings, Subsequently Defaulted
The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ending March 31, 2014 and 2013:
Troubled Debt Restructurings That Subsequently Defaulted:
 
Number of Loans
 
Recorded Investment
March 31, 2014
 
 

 
 

Commercial and Industrial Loans and Leases
 
—

 
$
—

Commercial Real Estate Loans
 
—

 
—

Total
 
—

 
$
—

 
The troubled debt restructurings that subsequently defaulted described above resulted in no change to the allowance for loan losses and no charge-offs during the three months ending March 31, 2014.
 
Troubled Debt Restructurings That Subsequently Defaulted:
 
Number of Loans
 
Recorded Investment
March 31, 2013
 
 

 
 

Commercial and Industrial Loans and Leases
 
—

 
$
—

Commercial Real Estate Loans
 
—

 
—

Total
 
—

 
$
—
Risk Category of Loans
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
March 31, 2014
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
310,939

 
$
18,311

 
$
15,622

 
$
—

 
$
344,872

Commercial Real Estate Loans
 
548,452

 
20,895

 
21,321

 
—

 
590,668

Agricultural Loans
 
172,856

 
3,799

 
205

 
—

 
176,860

Total
 
$
1,032,247

 
$
43,005

 
$
37,148

 
$
—

 
$
1,112,400

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
3,085

 
$
659

 
$
8,229

 
$
—

 
$
11,973

 
December 31, 2013
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
324,685

 
$
15,485

 
$
11,733

 
$
—

 
$
351,903

Commercial Real Estate Loans
 
539,533

 
20,168

 
23,903

 
—

 
583,604

Agricultural Loans
 
192,609

 
2,357

 
205

 
—

 
195,171

Total
 
$
1,056,827

 
$
38,010

 
$
35,841

 
$
—

 
$
1,130,678

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
3,121

 
$
661

 
$
9,070

 
$
—

 
$
12,852
Recorded Investment in Home Equity, Consumer and Residential Mortgage Loans Based on Payment
The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of March 31, 2014 and December 31, 2013:
March 31, 2014
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
81,388

 
$
46,610

 
$
129,994

Nonperforming
 
139

 
318

 
1,640

Total
 
$
81,527

 
$
46,928

 
$
131,634

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

 
$
130

 
$
1,766

 
December 31, 2013
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
81,698

 
$
49,029

 
$
127,708

Nonperforming
 
114

 
236

 
1,339

Total
 
$
81,812

 
$
49,265

 
$
129,047

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

 
$
134

 
$
1,767
Carrying Amount of Loans with Deterioration of Credit Quality
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, 2014
 
 
 
Commercial and Industrial Loans
 
$
1,636

Commercial Real Estate Loans
 
10,337

Home Equity Loans
 
—

Consumer Loans
 
130

Residential Mortgage Loans
 
1,766

Total
 
$
13,869

 
 
 

Carrying Amount, Net of Allowance
 
$
13,862

 
 
 
December 31, 2013
 
 
 
Commercial and Industrial Loans
 
$
1,981

Commercial Real Estate Loans
 
10,871

Home Equity Loans
 
—

Consumer Loans
 
134

Residential Mortgage Loans
 
1,767

Total
 
$
14,753

 
 
 

Carrying Amount, Net of Allowance
 
$
14,745
Accretable Yield, or Income Expected to be Collected
Accretable yield, or income expected to be collected, is as follows:
 
 
2014
 
2013
 
 
 
 
 
Balance at January 1
 
$
2,790

 
$
170

New Loans Purchased
 
—

 
—

Accretion of Income
 
(92
)
 
(212
)
Reclassifications from Non-accretable Difference
 
—

 
250

Charge-off of Accretable Yield
 
—

 
—

Balance at March 31
 
$
2,698

 
$
208