Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Schedule of originated and acquired loan and lease losses by portfolio segment

The following tables detail activity in the allowance for loan and lease losses segregated by originated and acquired loan and lease portfolios and by portfolio segment for the three months ended March 31, 2017 and 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three months ended March 31, 2017
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases		Total
Allowance for originated loans and leases
Beginning balance	$	9,389		$	19,836		$	5,149		$	1,224		$	0	$	35,598
Charge-offs	(75		)	(21		)	(374		)	(280		)	0		(750		)
Recoveries	76			235			27			127			0		465
Provision (credit)	883			(936		)	584			71					602
Ending Balance	$	10,273		$	19,114		$	5,386		$	1,142		$	0	$	35,915

Three months ended March 31, 2017
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for acquired loans
Beginning balance	$	0		$	97		$	54	$	6	$	0	$	157
Charge-offs	(9		)	(74		)	0		0		0		(83		)
Recoveries	0			10			0		0		0		10
Provision (credit)	9			43			115		0		0		167
Ending Balance	$	0		$	76		$	169	$	6	$	0	$	251

Three months ended March 31, 2016
(in thousands)	Commercial and Industrial			Commercial Real Estate		Residential Real Estate			Consumer and Other			Finance Leases		Total
Allowance for originated loans and leases
Beginning balance	$	10,495		$	15,479	$	4,070		$	1,268		$	0	$	31,312
Charge-offs	(115		)	0		(200		)	(246		)	0		(561		)
Recoveries	18			211		17			112			0		358
Provision (credit)	(1,107		)	1,418		388			173			0		872
Ending Balance	$	9,291		$	17,108	$	4,275		$	1,307		$	0	$	31,981

Three months ended March 31, 2016
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Covered Loans		Total
Allowance for acquired loans
Beginning balance	$	433		$	61		$	198		$	0		$	0	$	692
Charge-offs	(63		)	0			(16		)	(93		)	0		(172		)
Recoveries	0			46			0			0			0		46
Provision (credit)	63			(74		)	(123		)	117			0		(17		)
Ending Balance	$	433		$	33		$	59		$	24		$	0	$	549

Schedule of the allowance for loan and lease losses based on impairment methodology

At March 31, 2017 and December 31, 2016, the allocation of the allowance for loan and lease losses summarized on the basis of the Company’s impairment methodology was as follows:

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for originated loans and leases
March 31, 2017
Individually evaluated for impairment	$	45	$	224	$	0	$	0	$	0	$	269
Collectively evaluated for impairment	10,228		18,890		5,386		1,142		0		35,646
Ending balance	$	10,273	$	19,114	$	5,386	$	1,142	$	0	$	35,915

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Allowance for acquired loans
March 31, 2017
Individually evaluated for impairment	$	0	$	76	$	120	$	0	$	0	$	196
Collectively evaluated for impairment	0		0		49		6		0		55
Ending balance	$	0	$	76	$	169	$	6	$	0	$	251

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for originated loans and leases
December 31, 2016
Individually evaluated for impairment	$	95	$	322	$	0	$	0	$	0	$	417
Collectively evaluated for impairment	9,294		19,514		5,149		1,224		0		35,181
Ending balance	$	9,389	$	19,836	$	5,149	$	1,224	$	0	$	35,598

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Allowance for acquired loans
December 31, 2016
Individually evaluated for impairment	$	0	$	76	$	0	$	0	$	0	$	76
Collectively evaluated for impairment	0		21		54		6		0		81
Ending balance	$	0	$	97	$	54	$	6	$	0	$	157

Schedule of recorded investment in loans and leases impairment methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of March 31, 2017 and December 31, 2016 was as follows:

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Originated loans and leases
March 31, 2017
Individually evaluated for impairment	$	241	$	8,706	$	3,492	$	0	$	0	$	12,439
Collectively evaluated for impairment	975,128		1,691,351		1,175,401		56,617		15,615		3,914,112
Total	$	975,369	$	1,700,057	$	1,178,893	$	56,617	$	15,615	$	3,926,551

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer  and Other		Covered Loans		Total
Acquired loans
March 31, 2017
Individually evaluated for impairment	$	170	$	1,672	$	1,451	$	0	$	0	$	3,293
Loans acquired with deteriorated credit quality	372		12,497		7,158		0		0		20,027
Collectively evaluated for impairment	78,814		220,939		51,506		801		0		352,060
Total	$	79,356	$	235,108	$	60,115	$	801	$	0	$	375,380

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer  and Other		Finance Leases		Total
Originated loans and leases
December 31, 2016
Individually evaluated for impairment	$	635	$	8,812	$	3,507	$	0	$	0	$	12,954
Collectively evaluated for impairment	964,667		1,661,221		1,153,148		59,228		16,650		3,854,914
Total	$	965,302	$	1,670,033	$	1,156,655	$	59,228	$	16,650	$	3,867,868

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer  and Other		Covered Loans		Total
Acquired loans
December 31, 2016
Individually evaluated for impairment	$	172	$	4,081	$	1,372	$	0	$	0	$	5,625
Loans acquired with deteriorated credit quality	448		14,368		7,701		0		0		22,517
Collectively evaluated for impairment	78,697		232,359		54,087		826		0		365,969
Total	$	79,317	$	250,808	$	63,160	$	826	$	0	$	394,111

Schedule of recorded investments in impaired loans

The following tables present information on loans modified in troubled debt restructuring during the periods indicated.

March 31, 2017	Three Months Ended
						Defaulted TDRs2
(in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Post-Modification Outstanding Recorded Investment
Residential real estate
Home equity1	1	73		73		1	55
Total	1	$	73	$	73	1	$	55

1 Represents the following concessions:  extension of term and reduction of rate.

2 TDRs that defaulted during the three months ended March 31, 2017 that were restructured in the prior twelve months.

March 31, 2016	Three Months Ended
						Defaulted TDRs3
(in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Post-Modification Outstanding Recorded Investment
Commercial and industrial
Commercial and industrial other1	2	$	1,115	$	1,115	0	$	0
Residential real estate
Home equity2	3	169		169		0	0
Total	5	$	1,284	$	1,284	0	$	0

1 Represents the following concessions:  extension of term and reduction of rate.

2 Represents the following concessions:  extension of term and reduction of rate.

3 TDRs that defaulted during the three months ended March 31, 2016 that had been restructured in the prior twelve months.

Schedule of credit quality indicators on loans by class of commercial and industrial loans and commercial real estate loans

The following tables present credit quality indicators (internal risk grade) by class of commercial and industrial loans and commercial real estate loans as of March 31, 2017 and December 31, 2016.

March 31, 2017
	Commercial and Industrial		Commercial and Industrial		CommercialReal Estate		CommercialReal Estate		CommercialReal Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction		Total
Originated Loans and Leases
Internal risk grade:
Pass	$	875,097	$	87,119	$	1,417,648	$	113,108	$	142,685	$	2,635,657
Special Mention	6,780		1,813		7,083		3,185		0		18,861
Substandard	4,493		67		15,959		389		0		20,908
Total	$	886,370	$	88,999	$	1,440,690	$	116,682	$	142,685	$	2,675,426

March 31, 2017
	Commercial and Industrial		Commercial and Industrial		Commercial Real Estate		Commercial Real Estate		Commercial Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction		Total
Acquired Loans and Leases
Internal risk grade:
Pass	$	78,030	$	0	$	224,477	$	262	$	1,548	$	304,317
Special Mention	0		0		519		0		0		519
Substandard	1,326		0		8,302		0		0		9,628
Total	$	79,356	$	0	$	233,298	$	262	$	1,548	$	314,464

December 31, 2016
	Commercial and Industrial		Commercial and Industrial		Commercial Real Estate		Commercial Real Estate		Commercial Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction		Total
Originated Loans and Leases
Internal risk grade:
Pass	$	836,788	$	117,135	$	1,403,370	$	101,407	$	135,834	$	2,594,534
Special Mention	7,218		755		11,939		573		0		20,485
Substandard	3,049		357		16,381		529		0		20,316
Total	$	847,055	$	118,247	$	1,431,690	$	102,509	$	135,834	$	2,635,335

December 31, 2016
	Commercial and Industrial		Commercial and Industrial		Commercial Real Estate		Commercial Real Estate		Commercial Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction		Total
Acquired Loans and Leases
Internal risk grade:
Pass	$	77,921	$	0	$	229,334	$	267	$	8,936	$	316,458
Special Mention	0		0		526		0		0		526
Substandard	1,396		0		11,745		0		0		13,141
Total	$	79,317	$	0	$	241,605	$	267	$	8,936	$	330,125

The following tables present credit quality indicators by class of residential real estate loans and by class of consumer loans. Nonperforming loans include nonaccrual, impaired, and loans 90 days past due and accruing interest. All other loans are considered performing as of March 31, 2017 and December 31, 2016. For purposes of this footnote, acquired loans that were recorded at fair value at the acquisition date and are 90 days or greater past due are considered performing.

March 31, 2017
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	208,473	$	963,494	$	13,683	$	42,755	$	1,228,405
Nonperforming	1,267		5,659		170		9		7,105
Total	$	209,740	$	969,153	$	13,853	$	42,764	$	1,235,510

March 31, 2017
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans and Leases
Performing	$	34,292	$	22,952	$	0	$	801	$	58,045
Nonperforming	999		1,872		0		0		2,871
Total	$	35,291	$	24,824	$	0	$	801	$	60,916

December 31, 2016
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	207,261	$	941,936	$	14,669	$	44,393	$	1,208,259
Nonperforming	2,016		5,442		166		0		7,624
Total	$	209,277	$	947,378	$	14,835	$	44,393	$	1,215,883

Schedule of credit quality indicators by class of residential real estate and consumer loans

The following tables present credit quality indicators by class of residential real estate loans and by class of consumer loans. Nonperforming loans include nonaccrual, impaired, and loans 90 days past due and accruing interest. All other loans are considered performing as of March 31, 2017 and December 31, 2016. For purposes of this footnote, acquired loans that were recorded at fair value at the acquisition date and are 90 days or greater past due are considered performing.

March 31, 2017
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	208,473	$	963,494	$	13,683	$	42,755	$	1,228,405
Nonperforming	1,267		5,659		170		9		7,105
Total	$	209,740	$	969,153	$	13,853	$	42,764	$	1,235,510

March 31, 2017
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans and Leases
Performing	$	34,292	$	22,952	$	0	$	801	$	58,045
Nonperforming	999		1,872		0		0		2,871
Total	$	35,291	$	24,824	$	0	$	801	$	60,916

December 31, 2016
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	207,261	$	941,936	$	14,669	$	44,393	$	1,208,259
Nonperforming	2,016		5,442		166		0		7,624
Total	$	209,277	$	947,378	$	14,835	$	44,393	$	1,215,883

December 31, 2016
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans and Leases
Performing	$	37,074	$	24,483	$	0	$	826	$	62,383
Nonperforming	663		940		0		0		1,603
Total	$	37,737	$	25,423	$	0	$	826	$	63,986