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Loans (Tables)
 9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
Components of Loans
Loans were comprised of the following classifications at September 30, 2016 and December 31, 2015: 
 
 
September 30,
2016
 
December 31,
2015
Commercial:
 
 

 
 

Commercial and Industrial Loans and Leases
 
$
469,255

 
$
418,154

Commercial Real Estate Loans
 
862,998

 
618,788

Agricultural Loans
 
299,080

 
246,886

Retail:
 
 

 
 

Home Equity Loans
 
128,321

 
97,902

Consumer Loans
 
58,533

 
50,029

Residential Mortgage Loans
 
187,903

 
136,316

Subtotal
 
2,006,090

 
1,568,075

Less: Unearned Income
 
(3,710
)
 
(3,728
)
Allowance for Loan Losses
 
(15,154
)
 
(14,438
)
Loans, Net
 
$
1,987,226

 
$
1,549,909
Schedule of Allowance for Loan Losses
The following tables present the activity in the allowance for loan losses by portfolio class for the three months ended September 30, 2016 and 2015:
September 30, 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
 
$
4,190

 
$
6,533

 
$
2,704

 
$
350

 
$
242

 
$
559

 
$
726

 
$
15,304

Provision for Loan Losses
 
(378
)
 
(1,111
)
 
1,408

 
20

 
119

 
(7
)
 
(51
)
 
—

Recoveries
 
1

 
2

 
—

 
1

 
59

 
2

 
—

 
65

Loans Charged-off
 
—

 
—

 
(10
)
 
(15
)
 
(173
)
 
(17
)
 
—

 
(215
)
Ending Balance
 
$
3,813

 
$
5,424

 
$
4,102

 
$
356

 
$
247

 
$
537

 
$
675

 
$
15,154


September 30, 2015
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
4,659

 
$
7,315

 
$
1,223

 
$
350

 
$
382

 
$
619

 
$
710

 
$
15,258

Provision for Loan Losses
 
(337
)
 
(568
)
 
754

 
(41
)
 
(105
)
 
(172
)
 
(31
)
 
(500
)
Recoveries
 
16

 
30

 
—

 
2

 
39

 
3

 
—

 
90

Loans Charged-off
 
(5
)
 
—

 
—

 
(2
)
 
(71
)
 
—

 
—

 
(78
)
Ending Balance
 
$
4,333

 
$
6,777

 
$
1,977

 
$
309

 
$
245

 
$
450

 
$
679

 
$
14,770

The following tables present the activity in the allowance for loan losses by portfolio class for the nine months ended September 30, 2016 and 2015:
September 30, 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
 
(453
)
 
(923
)
 
1,997

 
60

 
212

 
344

 
(37
)
 
1,200

Recoveries
 
29

 
5

 
—

 
2

 
147

 
11

 
—

 
194

Loans Charged-off
 
(5
)
 
—

 
(10
)
 
(89
)
 
(342
)
 
(232
)
 
—

 
(678
)
Ending Balance
 
$
3,813

 
$
5,424

 
$
4,102

 
$
356

 
$
247

 
$
537

 
$
675

 
$
15,154


September 30, 2015
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
4,627

 
$
7,273

 
$
1,123

 
$
246

 
$
354

 
$
622

 
$
684

 
$
14,929

Provision for Loan Losses
 
(350
)
 
(566
)
 
854

 
88

 
(65
)
 
44

 
(5
)
 
—

Recoveries
 
83

 
81

 
—

 
8

 
193

 
14

 
—

 
379

Loans Charged-off
 
(27
)
 
(11
)
 
—

 
(33
)
 
(237
)
 
(230
)
 
—

 
(538
)
Ending Balance
 
$
4,333

 
$
6,777

 
$
1,977

 
$
309

 
$
245

 
$
450

 
$
679

 
$
14,770
Schedule of Allowance for Loan Losses and Recorded Investment in Loans
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 September 30, 2016 and December 31, 2015:
September 30, 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
 
$
411

 
$
86

 
$
325

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
14,687

 
3,727

 
5,099

 
4,054

 
356

 
239

 
537

 
675

Acquired with Deteriorated Credit Quality
 
56

 
—

 
—

 
48

 
—

 
8

 
—

 
—

Total Ending Allowance Balance
 
$
15,154

 
$
3,813

 
$
5,424

 
$
4,102

 
$
356

 
$
247

 
$
537

 
$
675


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
1,897

 
$
215

 
$
1,383

 
$
299

 
$
—

 
$
—

 
$
—

 
n/a(2)

Loans Collectively Evaluated for Impairment
 
2,000,022

 
467,244

 
856,974

 
301,953

 
128,742

 
58,665

 
186,444

 
n/a(2)

Loans Acquired with Deteriorated Credit Quality
 
12,084

 
2,922

 
6,514

 
702

 
—

 
53

 
1,893

 
n/a(2)

Total Ending Loans Balance(1)
 
$
2,014,003

 
$
470,381

 
$
864,871

 
$
302,954

 
$
128,742

 
$
58,718

 
$
188,337

 
n/a(2)

 
 
(1)Total recorded investment in loans includes $7,913 in accrued interest.
(2)n/a = not applicable

December 31, 2015
 
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
 
$
1,202

 
$
106

 
$
1,096

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
13,236

 
4,136

 
5,246

 
2,115

 
383

 
230

 
414

 
712

Acquired with Deteriorated Credit Quality
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total Ending Allowance Balance
 
$
14,438

 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
4,435

 
$
1,578

 
$
2,845

 
$
12

 
$
—

 
$
—

 
$
—

 
n/a(2)

Loans Collectively Evaluated for Impairment
 
1,562,037

 
416,273

 
611,955

 
249,687

 
98,167

 
50,169

 
135,786

 
n/a(2)

Loans Acquired with Deteriorated Credit Quality
 
7,555

 
1,325

 
5,363

 
—

 
—

 
—

 
867

 
n/a(2)

Total Ending Loans Balance(1)
 
$
1,574,027

 
$
419,176

 
$
620,163

 
$
249,699

 
$
98,167

 
$
50,169

 
$
136,653

 
n/a(2)

 
(1)Total recorded investment in loans includes $5,952 in accrued interest.
(2)n/a = not applicable
Schedule for Loans Individually Evaluated for Impairment
The following tables present loans individually evaluated for impairment by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
173

 
$
114

 
$
—

Commercial Real Estate Loans
 
2,495

 
1,068

 
—

Agricultural Loans
 
361

 
299

 
—

Subtotal
 
3,029

 
1,481

 
—

With An Allowance Recorded:
 
 

 
 

 


Commercial and Industrial Loans and Leases
 
105

 
103

 
86

Commercial Real Estate Loans
 
1,100

 
1,093

 
325

Agricultural Loans
 
589

 
498

 
48

Subtotal
 
1,794

 
1,694

 
459

Total
 
$
4,823

 
$
3,175

 
$
459

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
2,201

 
$
780

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
589

 
$
498

 
$
48

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


December 31, 2015
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
161

 
$
161

 
$
—

Commercial Real Estate Loans
 
1,292

 
768

 
—

Agricultural Loans
 
12

 
12

 
—

Subtotal
 
1,465

 
941

 
—

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,403

 
1,417

 
106

Commercial Real Estate Loans
 
2,207

 
2,077

 
1,096

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
3,610

 
3,494

 
1,202

Total
 
$
5,075

 
$
4,435

 
$
1,202

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
528

 
$
—

 
$
—

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

 
$
—

 
$
—

    
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs.
 
The following tables present loans individually evaluated for impairment by class of loans for the three month periods ended September 30, 2016 and 2015:
September 30, 2016
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
194

 
$
1

 
$
1

Commercial Real Estate Loans
 
3,102

 
47

 
47

Agricultural Loans
 
373

 
—

 
—

Subtotal
 
3,669

 
48

 
48

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
108

 
—

 
—

Commercial Real Estate Loans
 
1,105

 
—

 
—

Agricultural Loans
 
589

 
—

 
—

Subtotal
 
1,802

 
—

 
—

Total
 
$
5,471

 
$
48

 
$
48

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
2,399

 
$
1

 
$
1

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
589

 
$
—

 
$
—



September 30, 2015
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
366

 
$
12

 
$
12

Commercial Real Estate Loans
 
1,008

 
11

 
11

Agricultural Loans
 
12

 
1

 
1

Subtotal
 
1,386

 
24

 
24

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,974

 
22

 
22

Commercial Real Estate Loans
 
3,067

 
2

 
1

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
5,041

 
24

 
23

Total
 
$
6,427

 
$
48

 
$
47

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
127

 
$
—

 
$
—

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

 
$
—

 
$
—

The following tables present loans individually evaluated for impairment by class of loans for the nine month periods ended September 30, 2016 and 2015:
September 30, 2016
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
446

 
$
26

 
$
12

Commercial Real Estate Loans
 
3,745

 
71

 
51

Agricultural Loans
 
812

 
2

 
1

Subtotal
 
5,003

 
99

 
64

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
108

 
—

 
—

Commercial Real Estate Loans
 
1,834

 
2

 
—

Agricultural Loans
 
196

 
—

 
—

Subtotal
 
2,138

 
2

 
—

Total
 
$
7,141

 
$
101

 
$
64

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
2,272

 
$
14

 
$
4

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
717

 
$
—

 
$
—



September 30, 2015
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
471

 
$
24

 
$
24

Commercial Real Estate Loans
 
1,228

 
92

 
92

Agricultural Loans
 
8

 
1

 
1

Subtotal
 
1,707

 
117

 
117

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,821

 
68

 
68

Commercial Real Estate Loans
 
3,093

 
3

 
2

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,914

 
71

 
70

Total
 
$
6,621

 
$
188

 
$
187

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
237

 
$
—

 
$
—

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

 
$
—

 
$
—
Schedule of Recorded Investment in Nonaccrual Loans
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 September 30, 2016 and December 31, 2015:
 
 
Non-Accrual
 
Loans Past Due 90 Days
or More & Still Accruing
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
2016
 
2015
 
2016
 
2015
Commercial and Industrial Loans and Leases
 
$
168

 
$
134

 
$
148

 
$
98

Commercial Real Estate Loans
 
2,161

 
2,047

 
—

 
48

Agricultural Loans
 
797

 
—

 
55

 
—

Home Equity Loans
 
204

 
204

 
—

 
—

Consumer Loans
 
104

 
90

 
—

 
—

Residential Mortgage Loans
 
1,472

 
668

 
—

 
—

Total
 
$
4,906

 
$
3,143

 
$
203

 
$
146

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,506

 
$
68

 
$
—

 
$
—
Schedule of Aging of Recorded Investment in Past Due Loans
The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 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
 
$
470,381

 
$
120

 
$
32

 
$
217

 
$
369

 
$
470,012

Commercial Real Estate Loans
 
864,871

 
1,421

 
439

 
912

 
2,772

 
862,099

Agricultural Loans
 
302,954

 
229

 
—

 
671

 
900

 
302,054

Home Equity Loans
 
128,742

 
387

 
46

 
200

 
633

 
128,109

Consumer Loans
 
58,718

 
889

 
30

 
104

 
1,023

 
57,695

Residential Mortgage Loans
 
188,337

 
3,229

 
1,511

 
838

 
5,578

 
182,759

Total(1)
 
$
2,014,003

 
$
6,275

 
$
2,058

 
$
2,942

 
$
11,275

 
$
2,002,728

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
12,084

 
$
—

 
$
—

 
$
710

 
$
710

 
$
11,374

Net Carrying Value of Loans Acquired in Current Year (Included in the Total Above)
 
$
281,252

 
$
2,637

 
$
1,222

 
$
1,389

 
$
5,248

 
$
276,004

 
(1)Total recorded investment in loans includes $7,913 in accrued interest.
December 31, 2015
 
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
 
$
419,176

 
$
82

 
$
117

 
$
124

 
$
323

 
$
418,853

Commercial Real Estate Loans
 
620,163

 
136

 
163

 
104

 
403

 
619,760

Agricultural Loans
 
249,699

 
—

 
—

 
—

 
—

 
249,699

Home Equity Loans
 
98,167

 
225

 
8

 
204

 
437

 
97,730

Consumer Loans
 
50,169

 
101

 
40

 
90

 
231

 
49,938

Residential Mortgage Loans
 
136,653

 
2,615

 
154

 
668

 
3,437

 
133,216

Total(1)
 
$
1,574,027

 
$
3,159

 
$
482

 
$
1,190

 
$
4,831

 
$
1,569,196

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
7,555

 
$
—

 
$
—

 
$
—

 
$
—

 
$
7,555

 
(1)Total recorded investment in loans includes $5,952 in accrued interest.
Schedule of Recorded Investment of Troubled Debt Restructurings
The following tables present the recorded investment of troubled debt restructurings by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
50

 
$
50

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
$
50

 
$
50

 
$
—

December 31, 2015
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
1,446

 
$
1,445

 
$
1

Commercial Real Estate Loans
 
2,455

 
795

 
1,660

Total
 
$
3,901

 
$
2,240

 
$
1,661

 
 
(1)The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page.
Schedule of Risk Category of Loans
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
September 30, 2016
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
448,350

 
$
12,789

 
$
9,242

 
$
—

 
$
470,381

Commercial Real Estate Loans
 
817,596

 
31,247

 
16,028

 
—

 
864,871

Agricultural Loans
 
282,472

 
15,519

 
4,963

 
—

 
302,954

Total
 
$
1,548,418

 
$
59,555

 
$
30,233

 
$
—

 
$
1,638,206

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,653

 
$
3,162

 
$
5,323

 
$
—

 
$
10,138

Net Carrying Value of Loans Acquired in Current Year (Included in the Total Above)
 
$
188,987

 
$
11,669

 
$
8,941

 
$
—

 
$
209,597


December 31, 2015
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
393,270

 
$
13,675

 
$
12,231

 
$
—

 
$
419,176

Commercial Real Estate Loans
 
586,247

 
25,341

 
8,575

 
—

 
620,163

Agricultural Loans
 
242,728

 
5,177

 
1,794

 
—

 
249,699

Total
 
$
1,222,245

 
$
44,193

 
$
22,600

 
$
—

 
$
1,289,038

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,572

 
$
3,319

 
$
1,797

 
$
—

 
$
6,688
Schedule of Recorded Investment in Home Equity, Consumer and Residential Mortgage Loans
The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of September 30, 2016 and December 31, 2015:
September 30, 2016
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
128,538

 
$
58,614

 
$
186,865

Nonperforming
 
204

 
104

 
1,472

Total
 
$
128,742

 
$
58,718

 
$
188,337

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

 
$
53

 
$
1,893

 
December 31, 2015
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
97,963

 
$
50,079

 
$
135,985

Nonperforming
 
204

 
90

 
668

Total
 
$
98,167

 
$
50,169

 
$
136,653

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

 
$
—

 
$
867
Schedule of 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: 
 
 
September 30, 2016
 
December 31, 2015
 
 
 
 
 
Commercial and Industrial Loans
 
$
2,922

 
$
1,325

Commercial Real Estate Loans
 
6,514

 
5,363

Agricultural Loans
 
702

 
—

Home Equity Loans
 
—

 
—

Consumer Loans
 
53

 
—

Residential Mortgage Loans
 
1,893

 
867

Total
 
$
12,084

 
$
7,555

 
 
 

 
 

Carrying Amount, Net of Allowance
 
$
12,028

 
$
7,555

 
Schedule of Accretable Yield, or Income Expected to be Collected
Accretable yield, or income expected to be collected, is as follows:
 
 
2016
 
2015
 
 
 
 
 
Balance at July 1
 
$
2,198

 
$
1,680

New Loans Purchased
 
—

 
—

Accretion of Income
 
(100
)
 
(251
)
Reclassifications from Non-accretable Difference
 
570

 
—

Charge-off of Accretable Yield
 
—

 
—

Balance at September 30
 
$
2,668

 
$
1,429

    
For those purchased loans disclosed above, the Company increased the allowance for loan losses by $56 during the three months ended September 30, 2016. The Company did not increase the allowance for loan losses during the three months ended September 30, 2015. No allowance for loan losses were reversed during the three months ended September 30, 2016 and 2015.

 
 
2016
 
2015
 
 
 
 
 
Balance at January 1
 
$
1,279

 
$
1,685

New Loans Purchased
 
1,395

 
—

Accretion of Income
 
(576
)
 
(333
)
Reclassifications from Non-accretable Difference
 
570

 
104

Charge-off of Accretable Yield
 
—

 
(27
)
Balance at September 30
 
$
2,668

 
$
1,429
Schedule of Contractually Required Payments Receivable of Purchased Loans with Deterioration of Credit Quality
Contractually required payments receivable of loans purchased with evidence of credit deterioration during the nine months ended September 30, 2016 are included in the table below. The value of the purchased loans included in the table are as of acquisition date. There were no such loans purchased during the year ended December 31, 2015.
Commercial and Industrial Loans
$
220

Commercial Real Estate Loans
10,612

Agricultural Loans
896

Home Equity Loans
—

Consumer Loans
87

Residential Mortgage Loans
2,279

Total
$
14,094

 
 
Cash Flows Expected to be Collected at Acquisition
$
11,051

Fair Value of Acquired Loans at Acquisition
$
8,807