Loans:

Loan balances were as follows:

(In Thousands of Dollars)	September 30, 2016			December 31, 2015
Originated loans:
Commercial real estate
Owner occupied	$	137,086		$	113,160
Non-owner occupied		151,208			139,502
Other		62,609			50,855
Commercial		193,447			157,447
Residential real estate
1-4 family residential		213,620			179,657
Home equity lines of credit		56,053			41,171
Consumer
Indirect		150,436			127,335
Direct		23,976			17,325
Other		7,021			4,508
Subtotal	$	995,456		$	830,960
Net deferred loan costs		3,301			2,731
Total originated loans	$	998,757		$	833,691
Acquired loans:
Commercial real estate
Owner occupied	$	122,989		$	131,673
Non-owner occupied		26,773			28,045
Other		14,887			23,536
Commercial		54,395			73,621
Residential real estate
1-4 family residential		118,018			133,701
Home equity lines of credit		35,768			40,929
Consumer
Direct		23,802			31,465
Other		231			204
Total acquired loans	$	396,863		$	463,174
Allowance for loan losses		(10,518	)		(8,978	)
Net loans	$	1,385,102		$	1,287,887

Purchased credit impaired loans

As part of the NBOH acquisition the Company acquired various loans that displayed evidence of deterioration of credit quality since origination and which was probable that all contractually required payments would not be collected. The carrying amounts and contractually required payments of these loans which are included in the loan balances above are summarized in the following tables:

(In Thousands of Dollars)	September 30, 2016		December 31, 2015
Commercial real estate
Owner occupied	$	899	$	986
Non-owner occupied		444		501
Commercial		1,233		1,576
Total outstanding balance	$	2,576	$	3,063
Carrying amount, net of allowance of $0 in 2016 and $31 in 2015	$	2,083	$	2,184

Accretable yield, or income expected to be collected, is shown in the table below:

The key assumptions considered include probability of default and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income and principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. There were no adjustments to forecasted cash flows that impacted the allowance for loan losses for the nine months ended September 30, 2016.

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and nine month periods ended September 30, 2016 and 2015:

Three Months Ended September 30, 2016

(In Thousands of Dollars)	Commercial Real Estate			Commercial		Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	3,210		$	1,634	$	2,081		$	2,444		$	351	$	9,720
Provision for loan losses		138			188		105			423			256		1,110
Loans charged off		(8	)		0		(87	)		(467	)		0		(562	)
Recoveries		1			0		48			201			0		250
Total ending allowance balance	$	3,341		$	1,822	$	2,147		$	2,601		$	607	$	10,518

Nine Months Ended September 30, 2016

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	3,127		$	1,373		$	1,845		$	2,160		$	473	$	8,978
Provision for loan losses		516			464			376			1,390			134		2,880
Loans charged off		(315	)		(37	)		(165	)		(1,442	)		0		(1,959	)
Recoveries		13			22			91			493			0		619
Total ending allowance balance	$	3,341		$	1,822		$	2,147		$	2,601		$	607	$	10,518

Three Months Ended September 30, 2015

(In Thousands of Dollars)	Commercial Real Estate		Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	2,633	$	1,280		$	1,548		$	1,825		$	0	$	7,286
Provision for loan losses		365		84			83			530			158		1,220
Loans charged off		0		(36	)		(46	)		(549	)		0		(631	)
Recoveries		103		8			60			248			0		419
Total ending allowance balance	$	3,101	$	1,336		$	1,645		$	2,054		$	158	$	8,294

Nine Months Ended September 30, 2015

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	2,676		$	1,420		$	1,689		$	1,663		$	184		$	7,632
Provision for loan losses		820			197			142			1,387			(26	)		2,520
Loans charged off		(520	)		(291	)		(287	)		(1,648	)		0			(2,746	)
Recoveries		125			10			101			652			0			888
Total ending allowance balance	$	3,101		$	1,336		$	1,645		$	2,054		$	158		$	8,294

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable, which is not considered to be material:

September 30, 2016

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	61	$	5	$	74	$	4	$	0	$	144
Collectively evaluated for impairment		3,251		1,722		2,073		2,597		607		10,250
Acquired loans		29		95		0		0		0		124
Acquired with deteriorated credit quality		0		0		0		0		0		0
Total ending allowance balance	$	3,341	$	1,822	$	2,147	$	2,601	$	607	$	10,518

Loans:
Loans individually evaluated for impairment	$	3,795	$	613	$	3,415	$	103	$	0	$	7,926
Loans collectively evaluated for impairment		346,730		192,710		265,825		186,398		0		991,663
Acquired loans		162,923		53,268		153,730		24,027		0		393,948
Acquired with deteriorated credit quality		1,174		909		0		0		0		2,083
Total ending loans balance	$	514,622	$	247,500	$	422,970	$	210,528	$	0	$	1,395,620

December 31, 2015

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	429	$	5	$	63	$	0	$	0	$	497
Collectively evaluated for impairment		2,698		1,337		1,782		2,160		473		8,450
Acquired loans		0		0		0		0		0		0
Acquired with deteriorated credit quality		0		31		0		0		0		31
Total ending allowance balance	$	3,127	$	1,373	$	1,845	$	2,160	$	473	$	8,978

Loans:
Loans individually evaluated for impairment	$	5,853	$	712	$	3,414	$	103	$	0	$	10,082
Loans collectively evaluated for impairment		296,866		156,415		217,023		153,305		0		823,609
Acquired loans		181,987		72,673		174,630		31,669		0		460,959
Acquired with deteriorated credit quality		1,267		948		0		0		0		2,215
Total ending loans balance	$	485,973	$	230,748	$	395,067	$	185,077	$	0	$	1,296,865

The following tables present information related to impaired loans by class of loans as of September 30, 2016 and December 31, 2015:

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
September 30, 2016
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,901	$	1,383	$	0
Non-owner occupied		334		333		0
Commercial		341		319		0
Residential real estate
1-4 family residential		2,517		2,271		0
Home equity lines of credit		190		174		0
Consumer		197		96		0
Subtotal		5,480		4,576		0

With an allowance recorded:
Commercial real estate
Owner occupied		948		946		57
Non-owner occupied		1,133		1,133		33
Commercial		296		294		100
Residential real estate
1-4 family residential		890		885		73
Home equity lines of credit		85		85		1
Consumer		7		7		4
Subtotal		3,359		3,350		268
Total	$	8,839	$	7,926	$	268

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2015
With no related allowance recorded:
Commercial real estate
Owner occupied	$	2,956	$	2,436	$	0
Non-owner occupied		343		342		0
Commercial		834		631		0
Residential real estate
1-4 family residential		2,575		2,310		0
Home equity lines of credit		283		268		0
Consumer		214		103		0
Subtotal		7,205		6,090		0

With an allowance recorded:
Commercial real estate
Owner occupied		1,597		1,595		379
Non-owner occupied		1,480		1,480		50
Commercial		81		81		5
Residential real estate
1-4 family residential		769		749		61
Home equity lines of credit		87		87		2
Subtotal		4,014		3,992		497
Total	$	11,219	$	10,082	$	497

The following tables present the average recorded investment in impaired loans by class and interest income recognized by loan class for the three and nine month periods ended September 30, 2016 and 2015:

	Average Recorded Investment				Interest Income Recognized
	For Three Months Ended September 30,				For Three Months Ended September 30,
(In Thousands of Dollars)	2016		2015		2016		2015
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,426	$	1,809	$	22	$	42
Non-owner occupied		333		374		0		10
Commercial		322		395		3		6
Residential real estate
1-4 family residential		2,250		2,267		37		41
Home equity lines of credit		238		270		2		4
Consumer		78		63		4		4
Subtotal		4,647		5,178		68		107

With an allowance recorded:
Commercial real estate
Owner occupied		694		2,324		9		12
Non-owner occupied		1,138		1,503		15		20
Commercial		149		336		1		1
Residential real estate
1-4 family residential		889		860		10		9
Home equity lines of credit		85		88		1		1
Consumer		5		0		0		0
Subtotal		2,960		5,111		36		43
Total	$	7,607	$	10,289	$	104	$	150

	Average Recorded Investment				Interest Income Recognized
	For Nine Months Ended September 30,				For Nine Months Ended September 30,
(In Thousands of Dollars)	2016		2015		2016		2015
With no related allowance recorded:
Commercial real estate
Owner occupied	$	1,666	$	2,115	$	60	$	87
Non-owner occupied		334		380		4		23
Commercial		422		422		13		17
Residential real estate
1-4 family residential		2,264		2,167		108		110
Home equity lines of credit		235		265		8		11
Consumer		93		78		10		11
Subtotal		5,014		5,427		203		259

With an allowance recorded:
Commercial real estate
Owner occupied		1,064		1,987		27		60
Non-owner occupied		1,336		1,520		53		60
Commercial		103		636		3		3
Residential real estate
1-4 family residential		828		917		30		29
Home equity lines of credit		86		89		3		3
Consumer		2		0		0		0
Subtotal		3,419		5,149		116		155
Total	$	8,433	$	10,576	$	319	$	414

Cash basis interest recognized during the three and nine month periods ended September 30, 2016 and 2015 was materially equal to interest income recognized.

Nonaccrual loans and loans past due 90 days or more still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of September 30, 2016 and December 31, 2015:

	September 30, 2016				December 31, 2015
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Originated loans:
Commercial real estate
Owner occupied	$	1,050	$	0	$	3,313	$	0
Non-owner occupied		332		0		345		0
Commercial		525		0		541		73
Residential real estate
1-4 family residential		1,964		305		2,406		336
Home equity lines of credit		168		24		127		112
Consumer
Indirect		264		222		266		297
Direct		19		2		30		3
Other		0		20		0		24
Total originated loans	$	4,322	$	573	$	7,028	$	845
Acquired loans:
Commercial real estate
Owner occupied	$	490	$	0	$	126	$	18
Other		41		0		92		0
Commercial		1,193		0		1,068		0
Residential real estate
1-4 family residential		400		706		458		467
Home equity lines of credit		137		32		125		7
Consumer
Direct		80		29		161		50
Total acquired loans	$	2,341	$	767	$	2,030	$	542
Total loans	$	6,663	$	1,340	$	9,058	$	1,387

The following tables present the aging of the recorded investment in past due loans as of September 30, 2016 and December 31, 2015 by class of loans:

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
September 30, 2016
Originated loans:
Commercial real estate
Owner occupied	$	0	$	0	$	1,050	$	1,050	$	135,704	$	136,754
Non-owner occupied		16		0		332		348		150,497		150,845
Other		0		0		0		0		62,373		62,373
Commercial		28		40		525		593		192,513		193,106
Residential real estate
1-4 family residential		3,201		772		2,269		6,242		206,846		213,088
Home equity lines of credit		257		52		192		501		55,595		56,096
Consumer
Indirect		2,097		577		486		3,160		152,186		155,346
Direct		295		104		21		420		23,707		24,127
Other		29		79		20		128		6,894		7,022
Total originated loans:	$	5,923	$	1,624	$	4,895	$	12,442	$	986,315	$	998,757
Acquired loans:
Commercial real estate
Owner occupied	$	483	$	121	$	490	$	1,094	$	121,895	$	122,989
Non-owner occupied		0		0		0		0		26,773		26,773
Other		0		0		41		41		14,846		14,887
Commercial		178		37		1,193		1,408		52,987		54,395
Residential real estate
1-4 family residential		1,466		262		1,106		2,834		115,184		118,018
Home equity lines of credit		64		37		169		270		35,498		35,768
Consumer
Direct		660		132		109		901		22,901		23,802
Other		0		0		0		0		231		231
Total acquired loans	$	2,851	$	589	$	3,108	$	6,548	$	390,315	$	396,863
Total loans	$	8,774	$	2,213	$	8,003	$	18,990	$	1,376,630	$	1,395,620

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2015
Originated loans:
Commercial real estate
Owner occupied	$	34	$	0	$	3,313	$	3,347	$	109,532	$	112,879
Non-owner occupied		0		0		345		345		138,824		139,169
Other		112		0		0		112		50,559		50,671
Commercial		0		0		614		614		156,513		157,127
Residential real estate
1-4 family residential		1,694		402		2,742		4,838		174,376		179,214
Home equity lines of credit		62		5		239		306		40,917		41,223
Consumer
Indirect		2,059		525		563		3,147		128,280		131,427
Direct		311		5		33		349		17,124		17,473
Other		13		10		24		47		4,461		4,508
Total originated loans	$	4,285	$	947	$	7,873	$	13,105	$	820,586	$	833,691
Acquired loans:
Commercial real estate
Owner occupied	$	669	$	0	$	144	$	813	$	130,860	$	131,673
Non-owner occupied		0		0		0		0		28,045		28,045
Other		0		0		92		92		23,444		23,536
Commercial		276		2		1,068		1,346		72,275		73,621
Residential real estate
1-4 family residential		1,994		244		925		3,163		130,538		133,701
Home equity lines of credit		78		11		132		221		40,708		40,929
Consumer
Direct		567		56		211		834		30,631		31,465
Other		0		0		0		0		204		204
Total acquired loans	$	3,584	$	313	$	2,572	$	6,469	$	456,705	$	463,174
Total loans	$	7,869	$	1,260	$	10,445	$	19,574	$	1,277,291	$	1,296,865

Nine Months Ended September 30, 2016

(In Thousands of Dollars)

Beginning balance

New loans purchased

Accretion of income

Ending balance