Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2016

Allowance For Loan And Lease Losses Tables

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, 2016 and 2015. 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, 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				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			Finance Leases		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

Three months ended March 31, 2015
(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	$	9,157		$	12,069		$	5,030		$	1,900		$	0	$	28,156
Charge-offs		(2	)		(14	)		(93	)		(267	)		0		(376	)
Recoveries		147			208			47			168			0		570
Provision (credit)		528			75			(319	)		56			0		340
Ending Balance	$	9,830		$	12,338		$	4,665		$	1,857		$	0	$	28,690

Three months ended March 31, 2015
(in thousands)	Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other		Covered Loans		Total
Allowance for acquired loans
Beginning balance	$	431		$	337		$	51		$	22	$	0	$	841
Charge-offs		(1	)		0			(30	)		0		0		(31	)
Recoveries		7			107			2			0		0		116
Provision (credit)		126			(278	)		20			1		0		(131	)
Ending Balance	$	563		$	166		$	43		$	23	$	0	$	795

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

At March 31, 2016 and December 31, 2015, 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, 2016
Individually evaluated for impairment	$	4	$	345	$	0	$	0	$	0	$	349
Collectively evaluated for impairment		9,287		16,763		4,275		1,307		0		31,632
Ending balance	$	9,291	$	17,108	$	4,275	$	1,307	$	0	$	31,981

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Allowance for acquired loans
March 31, 2016
Individually evaluated for impairment	$	433	$	31	$	0	$	0	$	0	$	464
Collectively evaluated for impairment		0		2		59		24		0		85
Ending balance	$	433	$	33	$	59	$	24	$	0	$	549

(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, 2015
Individually evaluated for impairment	$	0	$	288	$	0	$	0	$	0	$	288
Collectively evaluated for impairment		10,495		15,191		4,070		1,268		0		31,024
Ending balance	$	10,495	$	15,479	$	4,070	$	1,268	$	0	$	31,312

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Allowance for acquired loans
December 31, 2015
Individually evaluated for impairment	$	433	$	0	$	128	$	0	$	0	$	561
Collectively evaluated for impairment		0		61		70		0		0		131
Ending balance	$	433	$	61	$	198	$	0	$	0	$	692

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, 2016 and December 31, 2015 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, 2016
Individually evaluated for impairment	$	629	$	6,286	$	2,311	$	0	$	0	$	9,226
Collectively evaluated for impairment		843,308		1,417,788		1,031,232		57,716		14,426		3,364,470
Total	$	843,937	$	1,424,074	$	1,033,543	$	57,716	$	14,426	$	3,373,696

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Acquired loans
March 31, 2016
Individually evaluated for impairment	$	566	$	5,078	$	1,253	$	0	$	0	$	6,897
Loans acquired with deteriorated credit quality		515		9,086		3,762		0		12,097		25,460
Collectively evaluated for impairment		85,461		267,981		62,698		985		640		417,765
Total	$	86,542	$	282,145	$	67,713	$	985	$	12,737	$	450,122

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Originated loans and leases
December 31, 2015
Individually evaluated for impairment	$	1,206	$	5,655	$	2,270	$	0	$	0	$	9,131
Collectively evaluated for impairment		855,117		1,351,567		1,024,149		58,733		14,861		3,304,427
Total	$	856,323	$	1,357,222	$	1,026,419	$	58,733	$	14,861	$	3,313,558

(in thousands)	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Covered Loans		Total
Acquired loans
December 31, 2015
Individually evaluated for impairment	$	647	$	5,226	$	1,177	$	0	$	0	$	7,050
Loans acquired with deteriorated credit quality		567		9,335		3,801		0		12,804		26,507
Collectively evaluated for impairment		83,596		277,378		64,605		911		1,227		427,717
Total	$	84,810	$	291,939	$	69,583	$	911	$	14,031	$	461,274

Schedule of recorded investments in impaired loans

Impaired loans are as follows:

			03/31/2016						12/31/2015
(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	$	625	$	635	$	0	$	1,206	$	1,211	$	0
Commercial real estate
Commercial real estate other		5,406		5,816		0		5,049		5,249		0
Residential real estate
Home equity		2,311		2,311		0		2,270		2,270		0
Subtotal	$	8,342	$	8,762	$	0	$	8,525	$	8,730	$	0
Originated loans and leases with related allowance
Commercial and industrial
Commercial and industrial other		4		4		4		0		0		0
Commercial real estate
Commercial real estate other		880		880		345		606		606		288
Subtotal	$	884	$	884	$	349	$	606	$	606	$	288
Total	$	9,226	$	9,646	$	349	$	9,131	$	9,336	$	288

			03/31/2016						12/31/2015
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Acquired loans with no related allowance
Commercial and industrial
Commercial and industrial other	$	49	$	49	$	0	$	128	$	128	$	0
Commercial real estate
Construction		354		510		0		359		359		0
Commercial real estate other		4,693		4,875		0		4,739		5,077		0
Residential real estate
Home equity		1,253		1,253		0		1,177		1,177		0
Subtotal	$	6,349	$	6,687	$	0	$	6,403	$	6,741	$	0
Acquired loans with related allowance
Commercial and industrial
Commercial and industrial other		517		517		433		519		519		433
Commercial real estate
Commercial real estate other		31		31		31		128		128		128
Subtotal	$	548	$	548	$	464	$	647	$	647	$	561
Total	$	6,897	$	7,235	$	464	$	7,050	$	7,388	$	561

The average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2016 and 2015 was as follows:

	Three Months Ended				Three Months Ended
	03/31/2016				03/31/2015
(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	$	624	$	0	$	786	$	0
Commercial real estate
Commercial real estate other		5,699		0		8,471		0
Residential real estate
Home equity		2,290		0		924		0
Subtotal	$	8,613	$	0	$	10,181	$	0
Originated loans and leases with related allowance
Commercial and industrial
Commercial and industrial other	$	4	$	0	$	0	$	0
Commercial real estate
Commercial real estate other		587		0		1,678		0
Subtotal	$	591	$	0	$	1,678	$	0
Total	$	9,204	$	0	$	11,859	$	0

	Three Months Ended				Three Months Ended
	03/31/2016				03/31/2015
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Acquired loans with no related allowance
Commercial and industrial
Commercial and industrial other	$	594	$	0	$	581	$	0
Commercial real estate
Construction		359		0		373		0
Commercial real estate other		5,176		0		2,480		0
Residential real estate
Home equity		893		0		947		0
Subtotal	$	7,022	$	0	$	4,381	$	0
Acquired loans with related allowance
Commercial and industrial
Commercial and industrial other	$	518	$	0	$	815	$	0
Commercial real estate
Commercial real estate other		32		0		245		0
Subtotal	$	550	$	0	$	1,060	$	0
Total	$	7,572	$	0	$	5,441	$	0

Schedule of troubled debt restructurings

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

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 real estate
Commercial real estate 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 were restructured in the prior twelve months.

March 31, 2015	Three months ended
							Defaulted TDRs4
(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	$	319	$	319		0	$	0
Commercial real estate
Commercial real estate other2		2		614		614		0		0
Residential real estate
Home equity3		9		1,108		1,108		0		0
Total		13	$	2,041	$	2,041		0	$	0

¹ Represents the following concessions: extension of term

² Represents the following concessions: extension of term and reduction of rate (1 loan: $28,000) and extension of term (1 loan: $585,000)

³ Represents the following concessions: extension of term and reduction of rate (6 loans: $732,000) and reduction of rate (3 loans: $376,000)

⁴ TDRs that defaulted in the quarter ended March 31, 2015 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, 2016 and December 31, 2015.

March 31, 2016
	Commercial		Commercial		Commercial		Commercial		Commercial
	and Industrial		and Industrial		Real Estate		Real Estate		Real Estate
(in thousands)	Other		Agriculture		Other		Agriculture		Construction		Total
Originated Loans and Leases
Internal risk grade:
Pass	$	761,441	$	74,054	$	1,184,727	$	93,791	$	115,584	$	2,229,597
Special Mention		3,839		145		16,269		135		0		20,388
Substandard		3,767		691		13,194		374		0		18,026
Total	$	769,047	$	74,890	$	1,214,190	$	94,300	$	115,584	$	2,268,011

March 31, 2016
(in thousands)	Commercial and Industrial Other		Commercial and Industrial Agriculture		Commercial Real Estate Other		Commercial Real Estate Agriculture		Commercial Real Estate Construction		Total
Acquired Loans
Internal risk grade:
Pass	$	84,175	$	0	$	262,847	$	1,904	$	1,782	$	350,708
Special Mention		0		0		534		0		0		534
Substandard		2,367		0		14,642		109		327		17,445
Total	$	86,542	$	0	$	278,023	$	2,013	$	2,109	$	368,687

December 31, 2015
(in thousands)	Commercial and Industrial Other		Commercial and Industrial Agriculture		Commercial Real Estate Other		Commercial Real Estate Agriculture		Commercial Real Estate Construction			Total
Originated Loans and Leases
Internal risk grade:
Pass	$	759,023	$	87,488	$	1,143,238	$	86,445	$	99,508	$	2,175,702
Special Mention		3,531		78		12,378		141		3,529		19,657
Substandard		5,470		733		11,634		349		0		18,186
Total	$	768,024	$	88,299	$	1,167,250	$	86,935	$	103,037	$	2,213,545

December 31, 2015
(in thousands)	Commercial and Industrial Other		Commercial and Industrial Agriculture		Commercial Real Estate Other		Commercial Real Estate Agriculture		Commercial Real Estate Construction			Total
Acquired Loans
Internal risk grade:
Pass	$	82,662	$	0	$	271,584	$	423	$	4,533	$	359,202
Special Mention		0		0		540		0		0		540
Substandard		2,148		0		12,828		1,672		359		17,007
Total	$	84,810	$	0	$	284,952	$	2,095	$	4,892	$	376,749

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, 2016 and December 31, 2015. 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, 2016
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	197,765	$	828,901	$	17,644	$	39,908	$	1,084,218
Nonperforming		1,480		5,397		70		94		7,041
Total	$	199,245	$	834,298	$	17,714	$	40,002	$	1,091,259

March 31, 2016
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans
Performing	$	40,245	$	24,610	$	0	$	985	$	65,840
Nonperforming		597		2,261		0		0		2,858
Total	$	40,842	$	26,871	$	0	$	985	$	68,698

December 31, 2015
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Originated Loans and Leases
Performing	$	200,647	$	817,952	$	17,722	$	40,829	$	1,077,150
Nonperforming		1,931		5,889		107		75		8,002
Total	$	202,578	$	823,841	$	17,829	$	40,904	$	1,085,152

December 31, 2015
(in thousands)	Residential Home Equity		Residential Mortgages		Consumer Indirect		Consumer Other		Total
Acquired Loans
Performing	$	41,380	$	26,102	$	0	$	911	$	68,393
Nonperforming		712		1,389		0		0		2,101
Total	$	42,092	$	27,491	$	0	$	911	$	70,494