Allowance for Loan Losses and Credit Quality of Loans (Tables)

12 Months Ended

Dec. 31, 2014

Allowance for Loan Losses and Credit Quality of Loans [Abstract]

Allowance for loan losses by portfolio

The following table illustrates the changes in the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012:

Allowance for Loan Losses

(in thousands)

	Commercial Loans			Consumer Loans			Residential Real Estate Mortgages			Unallocated			Total
Balance as of December 31, 2013	$	35,090		$	27,694		$	6,520		$	130		$	69,434
Charge-offs		(9,414	)		(16,642	)		(1,417	)		-			(27,473	)
Recoveries		1,774			2,800			285			-			4,859
Provision		4,983			12,868			1,742			(54	)		19,539
Ending Balance as of December 31, 2014	$	32,433		$	26,720		$	7,130		$	76		$	66,359
Balance as of December 31, 2012	$	35,624		$	27,162		$	6,252		$	296		$	69,334
Charge-offs		(10,459	)		(15,459	)		(1,771	)		-			(27,689	)
Recoveries		1,957			3,136			272			-			5,365
Provision		7,968			12,855			1,767			(166	)		22,424
Ending Balance as of December 31, 2013	$	35,090		$	27,694		$	6,520		$	130		$	69,434
Balance as of December 31, 2011	$	38,831		$	26,049		$	6,249		$	205		$	71,334
Charge-offs		(8,750	)		(15,848	)		(1,906	)		-			(26,504	)
Recoveries		1,641			2,556			38			-			4,235
Provision		3,902			14,405			1,871			91			20,269
Ending Balance as of December 31, 2012	$	35,624		$	27,162		$	6,252		$	296		$	69,334

The following table illustrates the allowance for loan losses and the recorded investment by portfolio segment as of December 31, 2014 and 2013:

Allowance for Loan Losses and Recorded Investment in Loans

(in thousands)

	Commercial Loans		Consumer Loans		Residential Real Estate Mortgages		Unallocated		Total
As of December 31, 2014
Allowance for loan losses	$	32,433	$	26,720	$	7,130	$	76	$	66,359
Allowance for loans individually evaluated for impairment		1,100		-		-				1,100
Allowance for loans collectively evaluated for impairment	$	31,333	$	26,720	$	7,130	$	76	$	65,259
Ending balance of loans	$	2,473,702	$	2,005,980	$	1,115,589			$	5,595,271
Ending balance of originated loans individually evaluated for impairment		11,079		5,498		3,544				20,121
Ending balance of acquired loans individually evaluated for impairment		5,675		-		-				5,675
Ending balance of acquired loans collectively evaluated for impairment		327,656		147,256		266,747				741,659
Ending balance of originated loans collectively evaluated for impairment	$	2,129,292	$	1,853,226	$	845,298			$	4,827,816
As of December 31, 2013
Allowance for loan losses	$	35,090	$	27,694	$	6,520	$	130	$	69,434
Allowance for loans individually evaluated for impairment		715		-		-				715
Allowance for loans collectively evaluated for impairment	$	34,375	$	27,694	$	6,520	$	130	$	68,719
Ending balance of loans	$	2,392,621	$	1,972,537	$	1,041,637			$	5,406,795
Ending balance of originated loans individually evaluated for impairment		16,120		3,248		2,012				21,380
Ending balance of acquired loans individually evaluated for impairment		10,060		-		-				10,060
Ending balance of acquired loans collectively evaluated for impairment		392,329		219,587		308,416				920,332
Ending balance of originated loans collectively evaluated for impairment	$	1,974,112	$	1,749,702	$	731,209			$	4,455,023

Past due and nonperforming loans by loan class

The following table illustrates the Company’s nonaccrual loans by loan class as of December 31, 2014 and 2013:

(In thousands)	December 31, 2014		December 31, 2013
ORIGINATED
Commercial Loans
Commercial	$	1,012	$	3,669
Commercial Real Estate		4,127		7,834
Agricultural		817		1,135
Agricultural Real Estate		565		961
Business Banking		6,910		5,701
		13,431		19,300
Consumer Loans
Indirect		1,964		1,461
Home Equity		6,596		5,931
Direct		84		86
		8,644		7,478
Residential Real Estate Mortgages		8,770		7,105
	$	30,845	$	33,883
ACQUIRED
Commercial Loans
Commercial	$	3,009	$	6,599
Commercial Real Estate		2,666		3,559
Business Banking		665		1,340
		6,340		11,498
Consumer Loans
Indirect		106		93
Home Equity		557		570
Direct		33		49
		696		712
Residential Real Estate Mortgages		3,193		3,872
	$	10,229	$	16,082
TOTAL NONACCRUAL LOANS	$	41,074	$	49,965

The following table sets forth information with regard to past due and nonperforming loans by loan class:

Age Analysis of Past Due Financing Receivables

As of December 31, 2014

(in thousands)

	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Non-Accrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	-	$	735	$	-	$	735	$	1,012	$	613,400	$	615,147
Commercial Real Estate		192		-		-		192		4,127		1,064,549		1,068,868
Agricultural		-		-		-		-		817		32,130		32,947
Agricultural Real Estate		19		-		-		19		565		24,390		24,974
Business Banking		799		235		84		1,118		6,910		390,407		398,435
		1,010		970		84		2,064		13,431		2,124,876		2,140,371
Consumer Loans
Indirect		16,434		3,154		1,991		21,579		1,964		1,286,507		1,310,050
Home Equity		4,591		1,428		821		6,840		6,596		479,444		492,880
Direct		560		157		52		769		84		54,941		55,794
		21,585		4,739		2,864		29,188		8,644		1,820,892		1,858,724
Residential Real Estate Mortgages		2,901		96		1,256		4,253		8,770		835,819		848,842
	$	25,496	$	5,805	$	4,204	$	35,505	$	30,845	$	4,781,587	$	4,847,937
ACQUIRED
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	3,009	$	72,255	$	75,264
Commercial Real Estate		-		-		-		-		2,666		197,222		199,888
Business Banking		5		15		-		20		665		57,494		58,179
		5		15		-		20		6,340		326,971		333,331
Consumer Loans
Indirect		518		5		54		577		106		64,540		65,223
Home Equity		190		60		5		255		557		75,904		76,716
Direct		31		-		7		38		33		5,246		5,317
		739		65		66		870		696		145,690		147,256
Residential Real Estate Mortgages		1,162		265		671		2,098		3,193		261,456		266,747
	$	1,906	$	345	$	737	$	2,988	$	10,229	$	734,117	$	747,334
Total Loans	$	27,402	$	6,150	$	4,941	$	38,493	$	41,074	$	5,515,704	$	5,595,271

Age Analysis of Past Due Financing Receivables

As of December 31, 2013

(in thousands)

	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Non-Accrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	105	$	247	$	-	$	352	$	3,669	$	612,402	$	616,423
Commercial Real Estate		1,366		-		-		1,366		7,834		925,116		934,316
Agricultural		150		21		-		171		1,135		63,856		65,162
Agricultural Real Estate		519		-		-		519		961		35,172		36,652
Business Banking		1,228		122		105		1,455		5,701		330,523		337,679
		3,368		390		105		3,863		19,300		1,967,069		1,990,232
Consumer Loans
Indirect		14,093		2,878		1,583		18,554		1,461		1,141,829		1,161,844
Home Equity		6,033		1,888		1,115		9,036		5,931		517,856		532,823
Direct		679		125		46		850		86		57,347		58,283
		20,805		4,891		2,744		28,440		7,478		1,717,032		1,752,950
Residential Real Estate Mortgages		3,951		379		808		5,138		7,105		720,978		733,221
	$	28,124	$	5,660	$	3,657	$	37,441	$	33,883	$	4,405,079	$	4,476,403
ACQUIRED
Commercial Loans
Commercial	$	24	$	-	$	-	$	24	$	6,599	$	96,603	$	103,226
Commercial Real Estate		-		-		-		-		3,559		225,455		229,014
Business Banking		320		2		-		322		1,340		68,487		70,149
		344		2		-		346		11,498		390,545		402,389
Consumer Loans
Indirect		939		113		71		1,123		93		123,870		125,086
Home Equity		753		63		-		816		570		85,690		87,076
Direct		76		56		9		141		49		7,235		7,425
		1,768		232		80		2,080		712		216,795		219,587
Residential Real Estate Mortgages		1,725		-		-		1,725		3,872		302,819		308,416
	$	3,837	$	234	$	80	$	4,151	$	16,082	$	910,159	$	930,392
Total Loans	$	31,961	$	5,894	$	3,737	$	41,592	$	49,965	$	5,315,238	$	5,406,795

Impaired loans and specific reserve allocations

The following provides additional information on loans specifically evaluated for impairment for the years ended December 31, 2014 and 2013

Impaired Loans

	December 31, 2014							December 31, 2013
(in thousands)	Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance			Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance
ORIGINATED
With no related allowance recorded:
Commercial Loans
Commercial	$	1,748	$	1,901				$	4,721	$	4,777
Commercial Real Estate		4,505		4,520					4,613		5,164
Agricultural		20		26					125		195
Agricultural Real Estate		1,147		1,441					1,431		1,708
Business Banking		896		1,301					210		602
Total Commercial Loans		8,316		9,189					11,100		12,446
Consumer Loans
Home Equity		5,498		6,033					3,248		3,472
Residential Real Estate Mortgages		3,544		3,959					2,012		2,255
Total		17,358		19,181					16,360		18,173
With an allowance recorded:
Commercial Loans
Commercial Real Estate		2,763		4,611			600		5,020		6,877			715
ACQUIRED
With no related allowance recorded:
Commercial Loans
Commercial		-		-					6,501		6,538
Commercial Real Estate		2,666		3,830					3,559		3,842
Total Commercial Loans		2,666		3,830					10,060		10,380
With an  allowance recorded:
Commercial Loans
Commercial		3,009		4,668			500		-		-			-
Total	$	25,796	$	32,290		$	1,100	$	31,440	$	35,430		$	715

The following table summarizes the average recorded investments on loans specifically evaluated for impairment and the interest income recognized for the years ended December 31, 2014, 2013 and 2012:

	December 31, 2014				December 31, 2013				December 31, 2012
(in thousands)	Average Recorded Investment		Interest Income Recognized Accrual		Average Recorded Investment		Interest Income Recognized Accrual		Average Recorded Investment		Interest Income Recognized Accrual
ORIGINATED
Commercial Loans
Commercial	$	1,954	$	115	$	3,488	$	-	$	6,682	$	56
Commercial Real Estate		9,679		169		11,085		95		4,944		230
Agricultural		91		1		1,035		1		1,767		43
Agricultural Real Estate		1,346		46		1,067		47		922		72
Business Banking		610		55		127		61		68		65
Consumer Loans
Home Equity		5,198		267		3,120		145		1,877		123
Residential Real Estate Mortgages		3,039		119		2,085		69		1,143		54
ACQUIRED
Commercial Loans
Commercial		5,756		-		-		-		-		-
Commercial Real Estate		3,386		-		1,310		-		-		-
Total	$	31,059	$	772	$	23,317	$	418	$	17,403	$	643

Financing receivable credit quality by loan class

The following tables illustrate the Company’s credit quality by loan class for the years ended December 31, 2014 and 2013:

Credit Quality Indicators

December 31, 2014

(In thousands)
ORIGINATED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	$570,884	$	1,023,856	$	30,481	$	23,443	$	1,648,664
Special Mention		6,022		17,341		275		42		23,680
Substandard		38,241		27,671		2,183		1,489		69,584
Doubtful		-		-		8		-		8
Total	$	615,147	$	1,068,868	$	32,947	$	24,974	$	1,741,936

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	379,445					$	379,445
Classified		18,990						18,990
Total	$	398,435					$	398,435
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,306,095	$	485,463	$	55,658	$	1,847,216
Nonperforming		3,955		7,417		136		11,508
Total	$	1,310,050	$	492,880	$	55,794	$	1,858,724

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	838,816	$	838,816
Nonperforming		10,026		10,026
Total	$	848,842	$	848,842

Credit Quality Indicators

December 31, 2014

(In thousands) 

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Total
Pass	$	63,630	$	186,036	$	-	$	249,666
Special Mention		2,840		2,646		-		5,486
Substandard		8,794		11,206		-		20,000
Doubtful		-		-		-		-
Total	$	75,264	$	199,888	$	-	$	275,152

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	53,264	$	53,264
Classified		4,915		4,915
Total	$	58,179	$	58,179

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	65,063	$	76,154	$	5,277	$	146,494
Nonperforming		160		562		40		762
Total	$	65,223	$	76,716	$	5,317	$	147,256

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	262,883	$	262,883
Nonperforming		3,864		3,864
Total	$	266,747	$	266,747

Credit Quality Indicators

December 31, 2013

 (In thousands)

Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	576,079	$	878,411	$	60,043	$	33,136	$	1,547,669
Special Mention		16,836		22,777		381		43		40,037
Substandard		23,508		33,128		4,726		3,473		64,835
Doubtful		-		-		12		-		12
Total	$	616,423	$	934,316	$	65,162	$	36,652	$	1,652,553

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	319,578					$	319,578
Classified		18,101						18,101
Total	$	337,679					$	337,679
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,158,800	$	525,777	$	58,151	$	1,742,728
Nonperforming		3,044		7,046		132		10,222
Total	$	1,161,844	$	532,823	$	58,283	$	1,752,950

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	725,308	$	725,308
Nonperforming		7,913		7,913
Total	$	733,221	$	733,221

Credit Quality Indicators

December 31, 2013

(In thousands) 

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Total
Pass	$	85,692	$	205,010	$	-	$	290,702
Special Mention		2,230		6,183		-		8,413
Substandard		15,304		17,821		-		33,125
Doubtful		-		-		-		-
Total	$	103,226	$	229,014	$	-	$	332,240

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	65,437	$	65,437
Classified		4,712		4,712
Total	$	70,149	$	70,149

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	124,922	$	86,506	$	7,367	$	218,795
Nonperforming		164		570		58		792
Total	$	125,086	$	87,076	$	7,425	$	219,587

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	304,544	$	304,544
Nonperforming		3,872		3,872
Total	$	308,416	$	308,416