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Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2014
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of activity in the allowance for orginated 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 months ended March 31, 2014 and 2013.  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, 2014
(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   $ 8,406     $ 10,459     $ 5,771     $ 2,059     $ 5     $ 26,700  
                                                 
Charge-offs     (121 )     (180 )     (193 )     (252 )     0       (746 )
Recoveries     65       2       12       117       0       196  
Provision     419       134       (222 )     185       (5 )     511  
Ending Balance   $ 8,769     $ 10,415     $ 5,368     $ 2,109     $ 0     $ 26,661  
                                                 
Allowance for acquired loans                                                
                                                 
Beginning balance   $ 168     $ 770     $ 274     $ 58     $ 0     $ 1,270  
                                                 
Charge-offs     (19 )     (25 )     (99 )     (6 )             (149 )
Recoveries     0       0       0       0       0       0  
Provision     149       74       (105 )     114       0       232  
Ending Balance   $ 298     $ 819     $ 70     $ 166     $ 0     $ 1,353  

 

Three months ended March 31, 2013
(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   $ 7,533     $ 10,184     $ 4,981     $ 1,940     $ 5     $ 24,643  
                                                 
Charge-offs     (390 )     (346 )     (192 )     (264 )     0       (1,192 )
Recoveries     160       78       2       87       0       327  
Provision     (266 )     728       245       116       (3 )     820  
Ending Balance   $ 7,037     $ 10,644     $ 5,036     $ 1,879     $ 2     $ 24,598  

 

Three months ended March 31, 2013
(in thousands)  

Commercial

and Industrial

    

Commercial

Real Estate

    

Residential

Real Estate

    

Consumer

and Other

     Finance Leases     Total  
                                                 
Allowance for acquired loans and leases                                                
                                                 
Beginning balance   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                 
Charge-offs     (23 )     0       (107 )     (25 )     0       (155 )
Provision     23       63       107       25       0       218  
Ending Balance   $ 0     $ 63     $ 0     $ 0     $ 0     $ 63  

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

At March 31, 2014 and December 31, 2013, 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, 2014                                                
Individually evaluated for impairment   $ 79     $ 0     $ 0     $ 0     $ 0     $ 79  
Collectively evaluated for impairment     8,690       10,415       5,368       2,109       0       26,582  
Ending balance   $ 8,769     $ 10,415     $ 5,368     $ 2,109     $ 0     $ 26,661  
                                                 
Allowance for acquired loans                                                
March 31, 2014                                                
Individually evaluated for impairment   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
Collectively evaluated for impairment     298       819       70       166       0       1,353  
Ending balance   $ 298     $ 819     $ 70     $ 166     $ 0     $ 1,353  

 

(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, 2013                                                
Individually evaluated for impairment   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
Collectively evaluated for impairment     8,406       10,459       5,771       2,059       5       26,700  
Ending balance   $ 8,406     $ 10,459     $ 5,771     $ 2,059     $ 5     $ 26,700  
                                                 
Allowance for acquired loans                                                
December 31, 2013                                                
Individually evaluated for impairment   $ 0     $ 250     $ 0     $ 0     $ 0     $ 250  
Collectively evaluated for impairment     168       520       274       58       0       1,020  
Ending balance   $ 168     $ 770     $ 274     $ 58     $ 0     $ 1,270  
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, 2014 and December 31, 2013 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, 2014                              
Individually evaluated for impairment  $3,581   $15,650   $1,058   $0   $0   $20,289 
Collectively evaluated for impairment   627,464    1,016,979    835,446    52,056    5,529    2,537,474 
Total  $631,045   $1,032,629   $836,504   $52,056   $5,529   $2,557,763 

 

(in thousands) 

Commercial

and Industrial

   Commercial Real Estate  

Residential

Real Estate

  

Consumer

and Other

   Covered Loans   Total 
                               
Acquired loans                              
March 31, 2014                              
Individually evaluated for impairment  $2,777   $6,356   $87   $0   $0   $9,220 
Loans acquired with deteriorated credit quality  1,428  8,638   9,022   0   24,106   43,194 
Collectively evaluated for impairment   125,673    379,811    89,634    1,158    0    596,276 
Total  $129,878   $394,805   $98,743   $1,158   $24,106   $648,690 

 

(in thousands) 

Commercial

and Industrial

   Commercial Real Estate  

Residential

Real Estate

  

Consumer

and Other

   Finance Leases   Total 
                               
Originated loans and leases                              
December 31, 2013                              
Individually evaluated for impairment  $4,664    16,269   $1,223   $0   $0   $22,156 
Collectively evaluated for impairment   632,563    986,119    829,552    53,514    5,563    2,507,311 
Total  $637,227   $1,002,388   $830,775   $53,514   $5,563   $2,529,467 

 

(in thousands) 

Commercial

and Industrial

   Commercial Real Estate  

Residential

Real Estate

  

Consumer

and Other

   Covered Loans   Total 
                               
Acquired loans                              
December 31, 2013                              
Individually evaluated for                              
impairment  $2,231    2,429   $73   $0   $0   $4,733 
Loans acquired with                              
deteriorated credit quality   2,558    10,263    9,355    0    24,633    46,809 
Collectively evaluated for                              
impairment   123,714    396,234    93,091    1,224    1,235    615,498 
Total  $128,503   $408,926   $102,519   $1,224   $25,868   $667,040 
Schedule of recorded investments in impaired loans

Impaired loans are set forth in the tables below as of March 31, 2014 and December 31, 2013.

 

   03/31/2014       12/31/2013 
(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  $3,146   $5,126   $0   $4,664   $5,069   $0 
Commercial real estate                              
Construction   5,860    11,469    0    6,073    11,683    0 
Commercial real estate other   9,790    10,410    0    10,196    13,518    0 
Residential real estate                              
Residential real estate other   1,058    1,134    0    1,223    1,299    0 
Subtotal  $19,854   $28,139   $0   $22,156   $31,569   $0 
                               
Originated loans and leases with related allowance                              
                               
Commercial and industrial                              
Commercial and industrial other   435    435    79    0    0    0 
Subtotal  $435   $435   $79   $0   $0   $0 
Total  $20,289   $28,574   $79   $22,156   $31,569   $0 

 

   03/31/2014       12/31/2013 
(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  $2,777   $3,880   $0   $2,231   $5,081   $0 
Commercial real estate                              
Construction   2,035    2,724    0    0    0    0 
Commercial real estate other   4,321    6,269    0    1,960    1,960    0 
Residential real estate                              
Residential real estate other   87    87    0    73    73    0 
Subtotal  $9,220   $12,960   $0   $4,264   $7,114   $0 
                               
Acquired loans and leases with related allowance                              
                               
Commercial real estate                              
Commercial real estate other   0    0    0    469    719    250 
Subtotal  $0   $0   $0   $469   $719   $250 
Total  $9,220   $12,960   $0   $4,733   $7,833   $250 

 

The average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2014 and 2013 was as follows:

 

   Three Months Ended   Three Months Ended 
   03/31/2014   03/31/2013 
(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   3,047    0    5,307    0 
Commercial real estate                    
Construction   5,966    0    6,547    0 
Commercial real estate other   9,840    0    11,024    0 
Residential real estate                    
Residential real estate other   1,057    0    480    0 
Subtotal  $19,910   $0   $23,358   $0 
                     
Originated loans and leases with related allowance                    
Commercial and industrial                     
Commercial and industrial other    453    0    0    0 
Subtotal  $453   $0   $0   $0 
Total  $20,363   $0   $23,358   $0 

 

   Three Months Ended   Three Months Ended 
   03/31/2014   03/31/2013 
(in thousands)  Average Recorded Investment   Interest Income Recognized   Average Recorded Investment   Interest Income Recognized 
Acquired loans and leases with no related allowance                    
                     
Commercial and industrial                    
Commercial and industrial other   1,084    0    419    5 
Commercial real estate                    
Construction   2,028    0    0    0 
Commercial real estate other   6,081    0    1,797    26 
Residential real estate                    
Residential real estate other   88    0    0    0 
Total  $9,281   $0   $2,216   $31 
Schedule of troubled debt restructurings

 

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

 

March 31, 2014   Three months ended  
                      Defaulted TDRs1  
(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 real estate                                        
Commercial real estate other     0       0       0       1       63  
Residential real estate                                        
Residential real estate other     0       0       0       1       195  
Total     0     $ 0     $ 0       2     $ 258  

 

 

1TDRs that defaulted during the last three months that were restructured in the prior twelve months.

 

March 31, 2013   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  
                                         
Originated loans and leases                                        
Commercial and industrial                                        
Commercial and industrial other1     1     $ 92     $ 92       0     $ 0  
Commercial real estate                                        
Commercial real estate other2      3       371       371       0       0  
Mortgages1     0       0       0       0       0  
                                         
Total     4     $ 463     $ 463       0     $ 0  

 

1Represents the following concessions:  extension of term

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 in the current quarter 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 March 31, 2014 and December 31, 2013.

 

March 31, 2014                                      
    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   $ 546,980     $ 51,566     $ 887,183     $ 56,655     $ 43,648     $ 1,586,032  
Special Mention     21,328       100       19,303       122       3,872       44,725  
Substandard     9,476       1,595       15,538       448       5,860       32,917  
Total   $ 577,784     $ 53,261     $ 922,024     $ 57,225     $ 53,380     $ 1,663,674  

 

March 31, 2014                                    
    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   $ 113,741     $ 0     $ 320,106     $ 1,108     $ 40,655     $ 475,610  
Special Mention     7,862       0       5,127       1,947       0       14,936  
Substandard     8,275       0       25,862       0       0       34,137  
Total   $ 129,878     $ 0     $ 351,095     $ 3,055     $ 40,655     $ 524,683  

 

December 31, 2013                                    
    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   $ 531,293     $ 72,997     $ 869,488     $ 52,054     $ 36,396     $ 1,562,228  
Special Mention     20,688       100       17,536       123       3,918       42,365  
Substandard     10,458       1,691       16,296       450       6,127       35,022  
Total   $ 562,439     $ 74,788     $ 903,320     $ 52,627     $ 46,441     $ 1,639,615  

 

December 31, 2013                                    
    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   $ 116,160     $ 0     $ 5,809     $ 1,150     $ 363,427     $ 486,546  
Special Mention     3,821       0       11,516       1,985       0       17,322  
Substandard     8,522       0       22,028       0       3,011       33,561  
Total   $ 128,503     $ 0     $ 39,353     $ 3,135     $ 366,438     $ 537,429  

 
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, 2014 and December 31, 2013. 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, 2014                              
(in thousands)   Residential Home Equity     Residential Mortgages     Consumer Indirect     Consumer Other     Total  
Originated Loans and Leases                                        
Performing   $ 171,175     $ 656,790     $ 19,668     $ 32,151     $ 879,784  
Nonperforming     1,994       6,545       234       3       8,776  
Total   $ 173,169     $ 663,335     $ 19,902     $ 32,154     $ 888,560  

 

March 31, 2014                              
(in thousands)   Residential Home Equity     Residential Mortgages     Consumer Indirect     Consumer Other     Total  
Acquired Loans and Leases                                        
Performing   $ 63,266     $ 33,070     $ 2     $ 1,156     $ 97,494  
Nonperforming     773       1,634       0       0       2,407  
Total   $ 64,039     $ 34,704     $ 2     $ 1,156     $ 99,901  

 

December 31, 2013
(in thousands)   Residential Home Equity     Residential Mortgages     Consumer Indirect     Consumer Other     Total  
Originated Loans and Leases                                        
Performing   $ 170,270     $ 651,139     $ 20,986     $ 32,274     $ 874,669  
Nonperforming     1,539       7,827       216       38       9,620  
Total   $ 171,809     $ 658,966     $ 21,202     $ 32,312     $ 884,289  

 

December 31, 2013
(in thousands)   Residential Home Equity     Residential Mortgages     Consumer Indirect     Consumer Other     Total  
Acquired Loans and Leases                                        
Performing   $ 65,339     $ 33,014     $ 5     $ 1,219     $ 99,577  
Nonperforming     1,844       2,322       0       0       4,166  
Total   $ 67,183     $ 35,336     $ 5     $ 1,219     $ 103,743