Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2013

Loans and Leases Receivable Disclosure [Abstract]

Schedule of activity in the allowance for loan and lease losses

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 and six months ended June 30, 2013 and 2012.  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 June 30, 2013
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases		Total
Originated
Allowance for credit losses:
Beginning balance	$	7,037		$	10,644		$	5,036		$	1,879		$	2	$	24,598
Charge-offs		(42	)		(144	)		(147	)		(198	)		0		(531	)
Recoveries		1,282			358			27			113			0		1,780
Provision		(1,322	)		(449	)		357			401			19		(994	)
Ending Balance	$	6,955		$	10,409		$	5,273		$	2,195		$	21	$	24,853

Three months ended June 30, 2013
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other		Covered Loans		Total
Acquired
Allowance for credit losses:
Beginning balance	$	0		$	63		$	0		$	0	$	0	$	63
Charge-offs		(2,906	)		(32	)		(3	)		0		0		(2,941	)
Recoveries		0			0			0			0		0		0
Provision		2,970			350			129			34		0		3,483
Ending Balance	$	64		$	381		$	126		$	34	$	0	$	605

Three months ended June 30, 2012
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases		Total
Originated
Allowance for credit losses:
Beginning balance	$	8,270		$	12,314		$	4,491		$	1,868		$	5	$	26,948
Charge-offs		(329	)		(200	)		(614	)		(152	)		0		(1,295	)
Recoveries		46			0			66			89			0		201
Provision		(180	)		853			407			(85	)		16		1,011
Ending Balance	$	7,807		$	12,967		$	4,350		$	1,720		$	21	$	26,865

There was no allowance for acquired loans and leases as of June 30, 2012.

Six months ended June 30, 2013
(in thousands)	Commercial and Industrial				Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases		Total
Originated
Allowance for credit losses:
Beginning balance		$	7,533		$	10,184		$	4,981		$	1,940		$	5	$	24,643
Charge-offs			(432	)		(490	)		(339	)		(462	)		0		(1,723	)
Recoveries			1,442			436			29			200			0		2,107
Provision			(1,588	)		279			602			517			16		(174	)
Ending Balance		$	6,955		$	10,409		$	5,273		$	2,195		$	21	$	24,853

Six months ended June 30, 2013
(in thousands)	Commercial and Industrial				Commercial Real Estate			Residential Real Estate			Consumer and Other			Covered Loans		Total
Acquired
Allowance for credit losses:
Beginning balance		$	0		$	0		$	0		$	0		$	0	$	0
Charge-offs			(2,929	)		(32	)		(110	)		(25	)		0		(3,096	)
Recoveries			0			0			0			0			0		0
Provision			2,993			413			236			59			0		3,701
Ending Balance		$	64		$	381		$	126		$	34		$	0	$	605

Six months ended June 30, 2012
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases			Total
Originated
Allowance for credit losses:
Beginning balance	$	8,936		$	12,662		$	4,247		$	1,709		$	39		$	27,593
Charge-offs		(581	)		(1,169	)		(1,023	)		(411	)		0			(3,184	)
Recoveries		65			0			66			189			0			320
Provision		(613	)		1,474			1,060			233			(18	)		2,136
Ending Balance	$	7,807		$	12,967		$	4,350		$	1,720		$	21		$	26,865

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

At June 30, 2013 and December 31, 2012, 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
Originated
June 30, 2013
Individually evaluated for impairment	$	234	$	0	$	0	$	0	$	0	$	234
Collectively evaluated for impairment		6,721		10,409		5,273		2,195		21		24,619
Ending balance	$	6,955	$	10,409	$	5,273	$	2,195	$	21	$	24,853

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Acquired
June 30, 2013
Individually evaluated for impairment	$	0	$	63	$	0	$	0	$	0	$	63
Collectively evaluated for impairment		64		318		126		34		0		542
Ending balance	$	64	$	381	$	126	$	34	$	0	$	605

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Originated
December 31, 2012
Individually evaluated for impairment	$	0	$	0	$	0	$	0	$	0	$	0
Collectively evaluated for impairment		7,533		10,184		4,981		1,940		5		24,643
Ending balance	$	7,533	$	10,184	$	4,981	$	1,940	$	5	$	24,643

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 June 30, 2013 and December 31, 2012 was as follows:
(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate			Consumer and Other		Finance Leases	Total
Originated
June 30, 2013
Individually evaluated for impairment	$	4,615	$	17,742	$	447	$	0	$	0	$	22,804
Collectively evaluated for impairment		552,298		880,946		793,740		55,523		5,048		2,287,555
Total	$	556,913	$	898,688	$	794,187	$	55,523	$	5,048	$	2,310,359

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Acquired
June 30, 2013
Individually evaluated for impairment	$	1,045	$	2,677	$	0	$	0	$	0	$	3,722
Loans acquired with deteriorated credit quality		4,386		17,626		14,130		0		31,548		67,690
Collectively evaluated for impairment		131,992		442,858		98,303		1,386		0		674,539
Total	$	137,423	$	463,161	$	112,433	$	1,386	$	31,548	$	745,951

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Originated
December 31, 2012
Individually evaluated for impairment	$	2,771		21,478	$	483	$	0	$	0	$	24,732
Collectively evaluated for impairment		521,882		790,709		733,098		58,930		4,618		2,109,237
Total	$	524,653	$	812,187	$	733,581	$	58,930	$	4,618	$	2,133,969

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Acquired
December 31, 2012
Individually evaluated for impairment	$	519		1,816	$	0	$	0	$	0	$	2,335
Loans acquired with deteriorated credit quality		7,144		24,032		17,650		0		36,251		85,077
Collectively evaluated for impairment		159,764		465,832		105,625		1,522		1,349		734,092
Total	$	167,427	$	491,680	$	123,275	$	1,522	$	37,600	$	821,504

Schedule of impaired loans

Impaired loans are set forth in the tables below as of June 30, 2013 and December 31, 2012.

	June 30, 2013							December 31, 2012
(in thousands)	Recorded Investment			Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Originated loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		$	4,381	$	6,287	$	0	$	2,771	$	2,891	$	0
Commercial real estate
Construction			6,258		11,868		0		6,763		12,373		0
Commercial real estate other			11,484		15,150		0		14,715		16,940		0
Residential real estate
Residential real estate other			447		447		0		483		483		0
Subtotal		$	22,570	$	33,752	$	0	$	24,732	$	32,687	$	0
Originated loans and leases with related allowance
Commercial and industrial
Commercial and industrial other			234		415		234		0		0		0
Subtotal		$	234	$	415	$	234	$	0	$	0	$	0
Total		$	22,804	$	34,167	$	234	$	24,732	$	32,687	$	0

	June 30, 2013							December 31, 2012
(in thousands)	Recorded Investment			Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Acquired loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		$	1,045	$	3,896	$	0	$	519	$	519	$	0
Commercial real estate
Commercial real estate other			2,468		2,468		0		1,816		1,861		0
Subtotal		$	3,513	$	6,364	$	0	$	2,335	$	2,380	$	0
Acquired loans and leases with related allowance
Commercial real estate
Commercial real estate other			209		209		63		0		0		0
Subtotal		$	209	$	209	$	63	$	0	$	0	$	0
Total		$	3,722	$	6,573	$	63	$	2,335	$	2,380	$	0

Schedule of average recorded investment and interest income recognized on impaired loans

The average recorded investment and interest income recognized on impaired originated loans for the three months ended June 30, 2013 and 2012 was as follows:
	Three Months Ended				Three Months Ended
	June 30, 2013				June 30, 2012
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		4,397		0		2,966		4
Commercial real estate
Construction		6,311		0		11,247		0
Commercial real estate other		15,012		0		10,380		0
Residential real estate
Residential real estate other		447		0		488		0
Subtotal	$	26,167	$	0	$	25,081	$	4
Originated loans and leases with related allowance
Commercial and industrial
Commercial and industrial other		416		0		4,067		0
Commercial real estate
Commercial real estate other		0		0		1,026		6
Subtotal	$	416	$	0	$	5,093	$	6
Total	$	26,583	$	0	$	30,174	$	10

The average recorded investment and interest income recognized on impaired acquired loans for the three months ended June 30, 2013 was as follows:
	Three Months Ended
	June 30, 2013
(in thousands)	Average Recorded Investment		Interest Income Recognized
Acquired loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		2,517		0
Commercial real estate
Commercial real estate other		2,481		5
Subtotal	$	4,998	$	5
Acquired loans and leases with related allowance
Commercial real estate
Commercial real estate other		212		0
Subtotal	$	212	$	0
Total	$	5,210	$	5
There were no acquired loans and leases at June 30, 2012.

	Six Months Ended				Six Months Ended
	June 30, 2013				June 30, 2012
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		5,085		0		3,108		4
Commercial real estate
Construction		6,529		0		13,196		0
Commercial real estate other		13,867		0		10,516		0
Residential real estate
Residential real estate other		447		0		488		0
Subtotal	$	25,928	$	0	$	27,308	$	4
Originated loans and leases with related allowance
Commercial and industrial
Commercial and industrial other		417		0		4,110		0
Commercial real estate
Commercial real estate other		0		0		1,049		24
Subtotal	$	417	$	0	$	5,159	$	24
Total	$	26,345	$	0	$	32,467	$	28

	Six Months Ended
	June 30, 2013
(in thousands)	Average Recorded Investment		Interest Income Recognized
Acquired loans and leases with no related allowance
Commercial and industrial
Commercial and industrial other		3,017		5
Commercial real estate
Commercial real estate other		2,492		31
Residential real estate
Subtotal	$	5,509	$	36
Acquired loans and leases with related allowance
Commercial and industrial
Commercial real estate
Residential real estate other		214		4
Subtotal	$	214	$	4
Total	$	5,723	$	40

Schedule of troubled debt restructurings

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

June 30, 2013	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
Commercial and Industrial
Commercial and industrial other1		1	$	47	$	47		0	$	0
Total		1	$	47	$	47		0	$	0
1 Represents the following concessions: extension of term and reduction of rate
2 TDRs that defaulted during the last three months that were restructured in the prior twelve months.

June 30, 2012	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
Mortgages1		1		62		62		0		0
Total		1	$	62	$	62		0	$	0
1 Represents the following concessions: extension of term and reduction in rate
2 TDRs that defaulted during the last three months that were restructured in the prior twelve months.

June 30, 2013	Six 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	$	139	$	139		0	$	0
Commercial Real Estate
Commercial real estate other2		3	$	371	$	371		0	$	0
Total		5	$	510	$	510		0	$	0
1 Represents the following concessions: extension of term and reduction in rate
2 Represents the following concessions: extension of term (1 loan: $129,000) and extended term and lowered rate (2 loans: $242,000)
3 TDRs that defaulted during the last six months that were restructured in the prior twelve months.

June 30, 2012	Six 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
Mortgages1		1	$	62	$	62		0	$	0
Total		1	$	62	$	62		0	$	0
1 Represents the following concessions: extension of term and reduction in rate
2 TDRs that defaulted during the last six months that were 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 June 30, 2013 and December 31, 2012.
June 30, 2013
	Commercial and		Commercial and		Commercial		Commercial		Commercial		Total
	Industrial		Industrial		Real Estate		Real Estate		Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction
Originated Loans and Leases
Internal risk grade:
Pass	$	467,831	$	57,479	$	776,632	$	46,021	$	22,570	$	1,370,533
Special Mention		19,358		299		16,054		798		6,590		43,099
Substandard		10,002		1,944		22,637		1,128		6,258		41,969
Total	$	497,191	$	59,722	$	815,323	$	47,947	$	35,418	$	1,455,601

June 30, 2013
	Commercial and		Commercial and		Commercial		Commercial		Commercial		Total
	Industrial		Industrial		Real Estate		Real Estate		Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction
Acquired Loans and Leases
Internal risk grade:
Pass	$	109,404	$	0	$	386,008	$	1,117	$	19,676	$	516,205
Special Mention		12,509		0		13,306		2,061		1,424		29,300
Substandard		15,510		0		31,412		0		8,157		55,079
Total	$	137,423	$	0	$	430,726	$	3,178	$	29,257	$	600,584

December 31, 2012
	Commercial and		Commercial and		Commercial		Commercial		Commercial		Total
	Industrial		Industrial		Real Estate		Real Estate		Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction
Originated Loans and Leases
Internal risk grade:
Pass	$	410,255	$	75,456	$	677,261	$	46,317	$	26,126	$	1,235,415
Special Mention		25,308		2,055		19,782		692		8,505		56,342
Substandard		11,313		266		25,230		1,300		6,974		45,083
Total	$	446,876	$	77,777	$	722,273	$	48,309	$	41,605	$	1,336,840

December 31, 2012
	Commercial and		Commercial and		Commercial		Commercial		Commercial		Total
	Industrial		Industrial		Real Estate		Real Estate		Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction
Acquired Loans and Leases
Internal risk grade:
Pass	$	139,719	$	0	$	415,397	$	813	$	27,590	$	583,519
Special Mention		7,717		0		10,112		2,136		5,416		25,381
Substandard		14,991		0		19,850		298		10,068		45,207
Total	$	162,427	$	0	$	445,359	$	3,247	$	43,074	$	654,107

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 June 30, 2013 and December 31, 2012. 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.
June 30, 2013
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	159,295	$	626,274	$	23,595	$	31,516	$	840,680
Nonperforming		1,896		6,722		188		224		9,030
Total	$	161,191	$	632,996	$	23,783	$	31,740	$	849,710

June 30, 2013
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans and Leases
Performing	$	72,866	$	36,016	$	12	$	1,374	$	110,268
Nonperforming		1,530		2,021		0		0		3,551
Total	$	74,396	$	38,037	$	12	$	1,374	$	113,819
December 31, 2012
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	157,959	$	566,542	$	26,402	$	32,235	$	783,138
Nonperforming		1,761		7,319		277		16		9,373
Total	$	159,720	$	573,861	$	26,679	$	32,251	$	792,511

December 31, 2012
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans and Leases
Performing	$	80,204	$	40,810	$	24	$	1,498	$	122,536
Nonperforming		1,453		808		0		0		2,261
Total	$	81,657	$	41,618	$	24	$	1,498	$	124,797