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

12 Months Ended

Dec. 31, 2017

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

(In thousands)	Commercial Loans			Consumer Loans			Residential Real Estate Mortgages			Unallocated			Total
Balance as of December 31, 2016	$	25,444		$	33,375		$	6,381		$	-		$	65,200
Charge-offs		(4,169	)		(27,072	)		(1,846	)		-			(33,087	)
Recoveries		1,077			5,142			180			-			6,399
Provision		5,254			25,385			349			-			30,988
Ending Balance as of December 31, 2017	$	27,606		$	36,830		$	5,064		$	-		$	69,500

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

The following table illustrates the allowance for loan losses and the recorded investment by portfolio segment:

(In thousands)	Commercial Loans		Consumer Loans		Residential Real Estate Mortgages		Total
As of December 31, 2017
Allowance for loan losses	$	27,606	$	36,830	$	5,064	$	69,500
Allowance for loans individually evaluated for impairment		57		-		-		57
Allowance for loans collectively evaluated for impairment		27,549		36,830		5,064		69,443
Ending balance of loans		3,028,269		2,234,809		1,321,695		6,584,773
Ending balance of originated loans individually evaluated for impairment		5,876		8,432		6,830		21,138
Ending balance of acquired loans collectively evaluated for impairment		187,313		43,906		170,472		401,691
Ending balance of originated loans collectively evaluated for impairment	$	2,835,080	$	2,182,471	$	1,144,393	$	6,161,944

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

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:

(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
As of December 31, 2017
Originated
Commercial Loans:
Commercial	$	-	$	-	$	-	$	-	$	202	$	753,577	$	753,779
Commercial Real Estate		161		138		-		299		3,178		1,533,065		1,536,542
Agricultural		117		-		-		117		1,043		34,386		35,546
Agricultural Real Estate		493		-		-		493		2,736		30,905		34,134
Business Banking		1,907		597		-		2,504		5,304		473,147		480,955
Total Commercial Loans	$	2,678	$	735	$	-	$	3,413	$	12,463	$	2,825,080	$	2,840,956
Consumer Loans:
Indirect	$	18,747	$	4,033	$	3,492	$	26,272	$	2,115	$	1,642,664	$	1,671,051
Home Equity		2,887		854		341		4,082		2,736		448,081		454,899
Direct		341		108		70		519		35		64,399		64,953
Total Consumer Loans	$	21,975	$	4,995	$	3,903	$	30,873	$	4,886	$	2,155,144	$	2,190,903
Residential Real Estate Mortgages	$	3,730	$	667	$	1,262	$	5,659	$	5,987	$	1,139,577	$	1,151,223
Total Originated Loans	$	28,383	$	6,397	$	5,165	$	39,945	$	23,336	$	6,119,801	$	6,183,082

Acquired
Commercial Loans:
Commercial	$	-	$	-	$	-	$	-	$	-	$	39,575	$	39,575
Commercial Real Estate		-		-		-		-		2		106,632		106,634
Business Banking		354		-		-		354		669		40,081		41,104
Total Commercial Loans	$	354	$	-	$	-	$	354	$	671	$	186,288	$	187,313
Consumer Loans:
Indirect	$	38	$	-	$	1	$	39	$	22	$	1,157	$	1,218
Home Equity		254		34		103		391		225		39,256		39,872
Direct		6		1		1		8		23		2,785		2,816
Total Consumer Loans	$	298	$	35	$	105	$	438	$	270	$	43,198	$	43,906
Residential Real Estate Mortgages	$	627	$	226	$	140	$	993	$	1,431	$	168,048	$	170,472
Total Acquired Loans	$	1,279	$	261	$	245	$	1,785	$	2,372	$	397,534	$	401,691
Total Loans	$	29,662	$	6,658	$	5,410	$	41,730	$	25,708	$	6,517,335	$	6,584,773

(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
As of December 31, 2016
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

Impaired loans and specific reserve allocations

The following provides additional information on impaired loans specifically evaluated for impairment:

	December 31, 2017						December 31, 2016
(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	$	-	$	251			$	1,278	$	1,697
Commercial Real Estate		2,211		3,979				3,816		3,841
Agricultural		452		465				130		137
Agricultural Real Estate		2,250		2,423				1,434		1,567
Business Banking		860		1,730				655		728
Total Commercial Loans	$	5,773	$	8,848			$	7,313	$	7,970
Consumer Loans:
Indirect	$	131	$	143			$	5	$	16
Home Equity		8,027		9,966				8,483		9,429
Direct		274		274				-		-
Total Consumer Loans	$	8,432	$	10,383			$	8,488	$	9,445
Residential Real Estate Mortgages	$	6,830	$	8,780			$	6,111	$	6,906
Total	$	21,035	$	28,011			$	21,912	$	24,321

With an allowance recorded:
Commercial Loans:
Commercial Real Estate	$	76	$	82	$	30	$	5,553	$	5,736	$	735
Agricultural		27		27		27		49		49		37
Agricultural Real Estate		-		-		-		155		155		54
Total Commercial Loans	$	103	$	109	$	57	$	5,757	$	5,940	$	826

Acquired
With an allowance recorded:
Commercial Loans:
Commercial Real Estate	$	-	$	-	$	-	$	1,205	$	1,321	$	691
Total Commercial Loans	$	-	$	-	$	-	$	1,205	$	1,321	$	691
Total	$	21,138	$	28,120	$	57	$	28,874	$	31,582	$	1,517

The following table summarizes the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:

	December 31, 2017				December 31, 2016				December 31, 2015
(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	$	1,841	$	-	$	6,217	$	-	$	2,219	$	71
Commercial Real Estate		3,534		115		5,828		167		8,538		164
Agricultural		224		1		715		1		148		1
Agricultural Real Estate		1,709		43		908		44		628		45
Business Banking		875		12		830		9		960		21
Total Commerical Loans	$	8,183	$	171	$	14,498	$	221	$	12,493	$	302
Consumer Loans:
Indirect	$	35	$	3	$	8	$	-	$	-	$	-
Home Equity		8,226		446		8,278		480		7,070		374
Direct		178		8		-		-		-		-
Total Consumer Loans	$	8,439	$	457	$	8,286	$	480	$	7,070	$	374
Residential Real Estate Mortgages	$	6,523		296		6,143		269		5,128		219
Total Originated	$	23,145	$	924	$	28,927	$	970	$	24,691	$	895

Acquired
Commercial Loans
Commercial	$	-	$	-	$	-	$	-	$	2,045	$	-
Commercial Real Estate		93		-		1,205		-		5,734		-
Total Commerical Loans	$	93	$	-	$	1,205	$	-	$	7,779	$	-
Total Acquired	$	93	$	-	$	1,205	$	-	$	7,779	$	-
Total	$	23,238	$	924	$	30,132	$	970	$	32,470	$	895

Financing receivable credit quality by loan class

The following tables illustrate the Company’s credit quality by loan class:

(In thousands)	December 31, 2017
Originated
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Agricultural		Agricultural Real Estate		Total
Pass	$	708,567	$	1,481,926	$	31,142	$	23,381	$	2,245,016
Special Mention		30,337		28,264		2,294		2,441		63,336
Substandard		14,875		26,352		2,110		8,312		51,649
Total	$	753,779	$	1,536,542	$	35,546	$	34,134	$	2,360,001

Business Banking Credit Exposure
By Internally Assigned Grade:		Business Banking		Total
Non-classified	$	468,898	$	468,898
Classified		12,057		12,057
Total	$	480,955	$	480,955

Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,665,444	$	451,822	$	64,848	$	2,182,114
Nonperforming		5,607		3,077		105		8,789
Total	$	1,671,051	$	454,899	$	64,953	$	2,190,903

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	1,143,974	$	1,143,974
Nonperforming		7,249		7,249
Total	$	1,151,223	$	1,151,223

Acquired
Commercial Credit Exposure
By Internally Assigned Grade:	Commercial		Commercial Real Estate		Total
Pass	$	37,825	$	103,248	$	141,073
Special Mention		425		498		923
Substandard		1,325		2,888		4,213
Total	$	39,575	$	106,634	$	146,209

Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	38,236	$	38,236
Classified		2,868		2,868
Total	$	41,104	$	41,104

Consumer Credit Exposure
By Payment Activity:	Indirect		Home E quity		Direct		Total
Performing	$	1,195	$	39,544	$	2,792	$	43,531
Nonperforming		23		328		24		375
Total	$	1,218	$	39,872	$	2,816	$	43,906

Residential Mortgage Credit Exposure
By Payment Activity:	Residential Mortgage		Total
Performing	$	168,901	$	168,901
Nonperforming		1,571		1,571
Total	$	170,472	$	170,472

(In thousands)	December 31, 2016
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

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

Troubled debt restructurings on financing receivables

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:

	Year ended December 31, 2017
(In thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Loans:
Commercial		1	$	3,300	$	3,239
Business Banking		3		385		381
Total Commercial Loans		4	$	3,685	$	3,620
Consumer Loans:
Indirect		8	$	145	$	143
Home Equity		13		552		600
Direct		2		279		279
Total Consumer Loans		23	$	976	$	1,022
Residential Real Estate Mortgages		15	$	1,454	$	1,474
Total Troubled Debt Restructurings		42	$	6,115	$	6,116

	Year ended December 31, 2016
(In thousands)	Number of contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Consumer Loans:
Home Equity		28	$	1,886	$	1,743
Total Consumer Loans		28	$	1,886	$	1,743
Residential Real Estate Mortgages		13	$	1,084	$	843
Total Troubled Debt Restructurings		41	$	2,970	$	2,586

The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:

	Year ended December 31, 2017				Year ended December 31, 2016
(In thousands)	Number of contracts		Recorded Investment		Number of contracts		Recorded Investment
Commercial Loans:
Commercial		1	$	145		1	$	169
Commercial Real Estate		-		-		1		1,573
Business Banking		1		329		1		67
Total Commercial Loans		2	$	474		3	$	1,809
Consumer Loans:
Indirect		2	$	19		-	$	-
Home Equity		34		1,720		34		1,770
Total Consumer Loans		36	$	1,739		34	$	1,770
Residential Real Estate Mortgages		19	$	1,302		16	$	1,109
Total Troubled Debt Restructurings		57	$	3,515		53	$	4,688