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

12 Months Ended

Dec. 31, 2016

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

The following table illustrates the changes in the allowance for loan losses by portfolio segment for the years ended December 31, 2016, 2015 and 2014:

(In thousands)	Commercial Loans			Consumer Loans			Residential Real Estate Mortgages			Unallocated			Total
Balance as of December 31, 2015	$	25,545		$	29,253		$	7,960		$	260		$	63,018
Charge-offs		(4,592	)		(23,364	)		(1,343	)		-			(29,299	)
Recoveries		1,887			3,870			293			-			6,050
Provision		2,604			23,616			(529	)		(260	)		25,431
Ending Balance as of December 31, 2016	$	25,444		$	33,375		$	6,381		$	-		$	65,200

Balance as of December 31, 2014	$	32,433		$	26,720		$	7,130		$	76		$	66,359
Charge-offs		(5,718	)		(18,140	)		(2,229	)		-			(26,087	)
Recoveries		1,014			3,127			320			-			4,461
Provision		(2,184	)		17,546			2,739			184			18,285
Ending Balance as of December 31, 2015	$	25,545		$	29,253		$	7,960		$	260		$	63,018

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

The following table illustrates the allowance for loan losses and the recorded investment by portfolio segment as of December 31, 2016 and 2015:

(In thousands)	Commercial Loans		Consumer Loans		Residential Real Estate Mortgages		Unallocated		Total
As of December 31, 2016
Allowance for loan losses	$	25,444	$	33,375	$	6,381	$	-	$	65,200
Allowance for loans individually evaluated for impairment		1,517		-		-		-		1,517
Allowance for loans collectively evaluated for impairment	$	23,927	$	33,375	$	6,381	$	-	$	63,683
Ending balance of loans	$	2,786,002	$	2,149,441	$	1,262,614			$	6,198,057
Ending balance of originated loans individually evaluated for impairment		13,070		8,488		6,111				27,669
Ending balance of acquired loans individually evaluated for impairment		1,205		-		-				1,205
Ending balance of acquired loans collectively evaluated for impairment		236,413		63,005		199,471				498,889
Ending balance of originated loans collectively evaluated for impairment	$	2,535,314	$	2,077,948	$	1,057,032			$	5,670,294

As of December 31, 2015
Allowance for loan losses	$	25,545	$	29,253	$	7,960	$	260	$	63,018
Allowance for loans individually evaluated for impairment		2,005		-		-		-		2,005
Allowance for loans collectively evaluated for impairment	$	23,540	$	29,253	$	7,960	$	260	$	61,013
Ending balance of loans	$	2,589,707	$	2,096,646	$	1,196,780			$	5,883,133
Ending balance of originated loans individually evaluated for impairment		12,253		7,693		6,017				25,963
Ending balance of acquired loans individually evaluated for impairment		1,205		-		-				1,205
Ending balance of acquired loans collectively evaluated for impairment		284,524		95,427		230,358				610,309
Ending balance of originated loans collectively evaluated for impairment	$	2,291,725	$	1,993,526	$	960,405			$	5,245,656

Past due and nonperforming loans by loan class

The following table sets forth information with regard to past due and nonperforming loans by loan class as of December 31, 2016 and 2015:

As of December 31, 2016

(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		Nonaccrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	33	$	5	$	-	$	38	$	2,964	$	650,568	$	653,570
Commercial Real Estate		-		-		-		-		7,935		1,343,854		1,351,789
Agricultural		-		-		-		-		730		37,186		37,916
Agricultural Real Estate		-		-		-		-		1,803		30,619		32,422
Business Banking		1,609		318		-		1,927		4,860		465,900		472,687
Total Commercial Loans		1,642		323		-		1,965		18,292		2,528,127		2,548,384

Consumer Loans
Indirect		19,253		4,185		2,499		25,937		2,145		1,538,593		1,566,675
Home Equity		3,416		1,065		528		5,009		2,851		448,797		456,657
Direct		452		125		20		597		107		62,400		63,104
Total Consumer Loans		23,121		5,375		3,047		31,543		5,103		2,049,790		2,086,436

Residential Real Estate Mortgages		2,725		172		1,406		4,303		6,682		1,052,158		1,063,143

Total Originated Loans	$	27,488	$	5,870	$	4,453	$	37,811	$	30,077	$	5,630,075	$	5,697,963

ACQUIRED
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	-	$	49,447	$	49,447
Commercial Real Estate		-		-		-		-		1,891		135,398		137,289
Business Banking		236		-		-		236		804		49,842		50,882
Total Commercial Loans		236		-		-		236		2,695		234,687		237,618

Consumer Loans
Indirect		100		5		-		105		47		8,541		8,693
Home Equity		254		53		30		337		237		50,553		51,127
Direct		30		2		-		32		20		3,133		3,185
Total Consumer Loans		384		60		30		474		304		62,227		63,005

Residential Real Estate Mortgages		609		28		327		964		2,636		195,871		199,471

Total Acquired Loans		1,229		88		357		1,674		5,635		492,785		500,094

Total Loans	$	28,717	$	5,958	$	4,810	$	39,485	$	35,712	$	6,122,860	$	6,198,057

December 31, 2015

(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		Nonaccrual		Current		Recorded Total Loans
ORIGINATED
Commercial Loans
Commercial	$	782	$	23	$	-	$	805	$	2,817	$	640,696	$	644,318
Commercial Real Estate		39		32		-		71		5,546		1,189,280		1,194,897
Agricultural		94		-		-		94		897		33,633		34,624
Agricultural Real Estate		-		-		-		-		1,046		28,172		29,218
Business Banking		912		394		-		1,306		4,247		395,368		400,921
Total Commercial Loans		1,827		449		-		2,276		14,553		2,287,149		2,303,978

Consumer Loans
Indirect		15,731		2,963		2,271		20,965		1,786		1,454,499		1,477,250
Home Equity		3,396		1,671		340		5,407		4,835		454,473		464,715
Direct		425		201		28		654		49		58,551		59,254
Total Consumer Loans		19,552		4,835		2,639		27,026		6,670		1,967,523		2,001,219

Residential Real Estate Mortgages		3,301		365		696		4,362		7,713		954,347		966,422

Total Originated Loans	$	24,680	$	5,649	$	3,335	$	33,664	$	28,936	$	5,209,019	$	5,271,619

ACQUIRED
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	-	$	68,991	$	68,991
Commercial Real Estate		-		-		-		-		1,313		165,630		166,943
Business Banking		288		-		-		288		307		49,200		49,795
Total Commercial Loans		288		-		-		288		1,620		283,821		285,729

Consumer Loans
Indirect		143		11		1		155		104		27,516		27,775
Home Equity		327		132		-		459		457		62,811		63,727
Direct		76		20		-		96		43		3,786		3,925
Total Consumer Loans		546		163		1		710		604		94,113		95,427

Residential Real Estate Mortgages		1,443		293		326		2,062		2,584		225,712		230,358

Total Acquired Loans		2,277		456		327		3,060		4,808		603,646		611,514

Total Loans	$	26,957	$	6,105	$	3,662	$	36,724	$	33,744	$	5,812,665	$	5,883,133

Impaired loans and specific reserve allocations

The following provides additional information on loans specifically evaluated for impairment for the years ended December 31, 2016 and 2015:

	December 31, 2016							December 31, 2015
(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	$	1,278	$	1,697				$	2,244	$	2,490
Commercial Real Estate		3,816		3,841					3,165		3,175
Agricultural		130		137					576		1,164
Agricultural Real Estate		1,434		1,567					618		744
Business Banking		655		728					983		1,033
Total Commercial Loans		7,313		7,970					7,586		8,606

Consumer Loans
Indirect		5		16					12		21
Home Equity		8,483		9,429					7,681		8,574
Total Consumer Loans		8,488		9,445					7,693		8,595

Residential Real Estate Mortgages		6,111		6,906					6,017		6,627
Total		21,912		24,321					21,296		23,828

With an allowance recorded:
Commercial Loans
Commercial		-		-			-		457		457			300
Commercial Real Estate		5,553		5,736			735		4,210		6,059			970
Agricultural		49		49			37		-		-			-
Agricultural Real Estate		155		155			54		-		-			-
Total Commercial Loans		5,757		5,940			826		4,667		6,516			1,270

ACQUIRED
With an allowance recorded:
Commercial Loans
Commercial Real Estate		1,205		1,321			691		1,205		1,321			735
Total Commercial Loans		1,205		1,321			691		1,205		1,321			735

Total	$	28,874	$	31,582		$	1,517	$	27,168	$	31,665		$	2,005

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, 2016, 2015 and 2014:

	December 31, 2016				December 31, 2015				December 31, 2014
(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	$	6,217	$	-	$	2,219	$	71	$	1,954	$	115
Commercial Real Estate		5,828		167		8,538		164		9,679		169
Agricultural		715		1		148		1		91		1
Agricultural Real Estate		908		44		628		45		1,346		46
Business Banking		830		9		960		21		610		55
Consumer Loans
Indirect		8		-		-		-		-		-
Home Equity		8,278		480		7,070		374		5,198		267
Residential Real Estate Mortgages		6,143		269		5,128		219		3,039		119

ACQUIRED
Commercial Loans
Commercial		-		-		2,045		-		5,756		-
Commercial Real Estate		1,205		-		5,734		-		3,386		-
Total	$	30,132	$	970	$	32,470	$	895	$	31,059	$	772

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, 2016 and 2015:

Credit Quality Indicators

December 31, 2016

(In thousands)
ORIGINATED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	616,829	$	1,288,409	$	36,762	$	28,912	$	1,970,912
Special Mention		7,750		31,053		25		1,896		40,724
Substandard		28,991		32,327		1,124		1,614		64,056
Doubtful		-		-		5		-		5
Total	$	653,570	$	1,351,789	$	37,916	$	32,422	$	2,075,697

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	458,864		$	458,864
Classified		13,823			13,823
Total	$	472,687		$	472,687

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,562,031	$	453,278	$	62,977	$	2,078,286
Nonperforming		4,644		3,379		127		8,150
Total	$	1,566,675	$	456,657	$	63,104	$	2,086,436

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	1,055,055	$	1,055,055
Nonperforming		8,088		8,088
Total	$	1,063,143	$	1,063,143

Credit Quality Indicators

December 31, 2016

(In thousands)

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Total
Pass	$	48,194	$	127,660	$	175,854
Special Mention		76		1,231		1,307
Substandard		1,177		7,193		8,370
Doubtful		-		1,205		1,205
Total	$	49,447	$	137,289	$	186,736

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	47,347	$	47,347
Classified		3,535		3,535
Total	$	50,882	$	50,882

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	8,646	$	50,860	$	3,165	$	62,671
Nonperforming		47		267		20		334
Total	$	8,693	$	51,127	$	3,185	$	63,005

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	196,508	$	196,508
Nonperforming		2,963		2,963
Total	$	199,471	$	199,471

Credit Quality Indicators

December 31, 2015

(In thousands)

ORIGINATED Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	604,405	$	1,144,832	$	33,565	$	27,320	$	1,810,122
Special Mention		9,726		21,587		311		429		32,053
Substandard		30,187		28,478		740		1,469		60,874
Doubtful		-		-		8		-		8
Total	$	644,318	$	1,194,897	$	34,624	$	29,218	$	1,903,057

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	386,397	$	386,397
Classified		14,524		14,524
Total	$	400,921	$	400,921

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,473,193	$	459,540	$	59,177	$	1,991,910
Nonperforming		4,057		5,175		77		9,309
Total	$	1,477,250	$	464,715	$	59,254	$	2,001,219

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	958,013	$	958,013
Nonperforming		8,409		8,409
Total	$	966,422	$	966,422

Credit Quality Indicators

December 31, 2015

(In thousands)

ACQUIRED
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Total
Pass	$	67,241	$	154,871	$	222,112
Special Mention		802		2,174		2,976
Substandard		948		9,898		10,846
Doubtful		-		-		-
Total	$	68,991	$	166,943	$	235,934

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	46,032	$	46,032
Classified		3,763		3,763
Total	$	49,795	$	49,795

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	27,670	$	63,270	$	3,882	$	94,822
Nonperforming		105		457		43		605
Total	$	27,775	$	63,727	$	3,925	$	95,427

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	227,448	$	227,448
Nonperforming		2,910		2,910
Total	$	230,358	$	230,358

Troubled debt restructurings on financing receivables

Troubled Debt Restructuring

Substantially all modifications include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; temporary reduction in the interest rate; or change in scheduled payment amount. Residential and home equity TDRs occurring during 2016 and 2015 were due to the reduction in the interest rate or extension of the term. In 2015, commercial and business banking TDRs were both a reduction of the interest rate and change in terms.

The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring that occurred during the years ended December 31, 2016 and 2015:

	Year ended December 31, 2016
	Number of contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Consumer
Home Equity		28	$	1,886	$	1,743
Total Consumer		28		1,886		1,743

Residential Real Estate		13		1,084		843

Total Troubled Debt Restructurings		41	$	2,970	$	2,586

	Year ended December 31, 2015
	Number of contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial
Commercial		1	$	186	$	186
Business Banking		1		220		171
Total Commercial		2		406		357

Consumer
Home Equity		50		3,664		3,261
Total Consumer		50		3,664		3,261

Residential Real Estate		37		3,085		3,085

Total Troubled Debt Restructurings		89	$	7,155	$	6,703

The following table illustrates the recorded investment and number of modifications for TDRs within the years ended December 31, 2016 and 2015 where a concession has been made and subsequently defaulted during the period:

	Year ended December 31, 2016				Year ended December 31, 2015
	Number of contracts		Recorded Investment		Number of contracts		Recorded Investment
Consumer
Home Equity		2	$	121		4	$	344
Total Consumer		2		121		4		344

Residential Real Estate		2		296		3		208

Total Troubled Debt Restructurings		4	$	417		7	$	552