Loans and Allowance (Tables)

6 Months Ended

Jun. 30, 2014

Composition of Loan Portfolio by Loan Class

The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated:



	June 30, 2014			December 31, 2013
Commercial and industrial loans	$	857,844		$	761,705
Agricultural production financing and other loans to farmers	102,270			114,348
Real estate loans:
Construction	165,388			177,082
Commercial and farmland	1,621,436			1,611,809
Residential	629,162			616,385
Home Equity	261,811			255,223
Individuals' loans for household and other personal expenditures	61,533			69,783
Lease financing receivables, net of unearned income	1,231			1,545
Other loans	22,058			24,529
Loans	$	3,722,733		$	3,632,409
Allowance for loan losses	(68,367		)	(67,870		)
Net Loans	$	3,654,366		$	3,564,539

Changes in Allowance for Loan Losses

The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2014, and June 30, 2013:



	Three Months Ended June 30, 2014
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases			Total
Allowance for loan losses:
Balances, April 1	$	30,907		$	22,358		$	2,410		$	13,908					$	69,583
Provision for losses	(2,036		)	552			(140		)	1,622			$	2
Recoveries on loans	448			351			81			325						1,205
Loans charged off	(705		)	(679		)	(108		)	(927		)	(2		)	(2,421		)
Balances, June 30, 2014	$	28,614		$	22,582		$	2,243		$	14,928					$	68,367



	Six Months Ended June 30, 2014
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases			Total
Allowance for loan losses:
Balances, January 1	$	27,176		$	23,102		$	2,515		$	15,077					$	67,870
Provision for losses	351			(705		)	(152		)	524			$	(18	)
Recoveries on loans	2,498			1,141			217			929			20			4,805
Loans charged off	(1,411		)	(956		)	(337		)	(1,602		)	(2		)	(4,308		)
Balances, June 30, 2014	$	28,614		$	22,582		$	2,243		$	14,928					$	68,367



	Three Months Ended June 30, 2013
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases			Total
Allowance for loan losses:
Balances, April 1	$	25,371		$	24,978		$	2,689		$	15,479		$	20		$	68,537
Provision for losses	1,917			(673		)	225			497			31			1,997
Recoveries on loans	683			1,389			107			347						2,526
Loans charged off	(1,408		)	(2,089		)	(136		)	(1,210		)	(15		)	(4,858		)
Balances, June 30, 2013	$	26,563		$	23,605		$	2,885		$	15,113		$	36		$	68,202



	Six Months Ended June 30, 2013
	Commercial			Commercial Real Estate			Consumer			Residential			Finance Leases			Total
Allowance for loan losses:
Balances, January 1	$	25,913		$	26,703		$	2,593		$	14,157					$	69,366
Provision for losses	2,275			(1,428		)	298			2,903			$	51		4,099
Recoveries on loans	2,556			2,765			316			635						6,272
Loans charged off	(4,181		)	(4,435		)	(322		)	(2,582		)	(15		)	(11,535		)
Balances, June 30, 2013	$	26,563		$	23,605		$	2,885		$	15,113		$	36		$	68,202

Allowance for Credit Losses and Loan Portfolio by Loan Segment

The following tables show the Corporation’s allowance for credit losses and loan portfolio by loan segment as of the periods indicated:



	June 30, 2014
	Commercial		Commercial Real Estate		Consumer		Residential		Finance Leases		Total
Allowance Balances:
Individually evaluated for impairment	$	886	$	440							$	1,326
Collectively evaluated for impairment	27,671		21,817		$	2,243	$	14,928			66,659
Loans Acquired with Deteriorated Credit Quality	57		325								382
Total Allowance for Loan Losses	$	28,614	$	22,582	$	2,243	$	14,928			$	68,367
Loan Balances:
Individually evaluated for impairment	$	7,895	$	31,543			$	2,873			$	42,311
Collectively evaluated for impairment	966,594		1,693,600		$	61,533	886,546		$	1,231	3,609,504
Loans Acquired with Deteriorated Credit Quality	7,683		61,681				1,554				70,918
Loans	$	982,172	$	1,786,824	$	61,533	$	890,973	$	1,231	$	3,722,733



	December 31, 2013
	Commercial		Commercial Real Estate		Consumer		Residential		Finance Leases		Total
Allowance Balances:
Individually evaluated for impairment	$	585	$	763			$	6			$	1,354
Collectively evaluated for impairment	26,493		22,208		$	2,515	15,071				66,287
Loans Acquired with Deteriorated Credit Quality	98		131								229
Total Allowance for Loan Losses	$	27,176	$	23,102	$	2,515	$	15,077			$	67,870
Loan Balances:
Individually evaluated for impairment	$	10,240	$	29,007			$	2,820			$	42,067
Collectively evaluated for impairment	882,794		1,690,285		$	69,783	867,094		$	1,545	3,511,501
Loans Acquired with Deteriorated Credit Quality	7,548		69,599				1,694				78,841
Loans	$	900,582	$	1,788,891	$	69,783	$	871,608	$	1,545	$	3,632,409

Summary of Non-Accrual Loans by Loan class

The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated:



	June 30, 2014		December 31, 2013
Commercial and industrial loans	$	7,400	$	9,283
Agriculture production financing and other loans to farmers	26		30
Real estate Loans:
Construction	2,914		4,978
Commercial and farmland	25,003		28,095
Residential	13,343		12,068
Home Equity	2,433		1,667
Individuals' loans for household and other personal expenditures	170		117
Other Loans			164
Total	$	51,289	$	56,402

Composition of Impaired Loans by Loan Class

The following tables show the composition of the Corporation’s commercial impaired loans by loan class as of the periods indicated:



	June 30, 2014
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	29,755	$	11,978
Agriculture production financing and other loans to farmers	29		26
Real estate Loans:
Construction	15,119		10,235
Commercial and farmland	109,955		77,211
Residential	6,317		3,915
Home equity	3,389		196
Other loans	35
Total	$	164,599	$	103,561
Impaired loans with related allowance:
Commercial and industrial loans	$	5,107	$	3,573	$	942
Real estate Loans:
Commercial and farmland	6,741		5,077		766
Total	$	11,848	$	8,650	$	1,708
Total Impaired Loans	$	176,447	$	112,211	$	1,708



	December 31, 2013
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	35,066	$	16,371
Agricultural production finance & other loans to farmers	32		30
Real estate Loans:
Construction	16,109		10,625
Commercial and farmland	128,073		83,033
Residential	6,746		3,910
Home equity	3,299		112
Other loans	454		172
Total	$	189,779	$	114,253
Impaired loans with related allowance:
Commercial and industrial loans	$	1,390	$	1,216	$	683
Real estate Loans:
Commercial and farmland	4,657		4,215		894
Residential	74		71		6
Total	$	6,121	$	5,502	$	1,583
Total Impaired Loans	$	195,900	$	119,755	$	1,583



	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	12,060	$	84	$	12,872	$	185
Agriculture production financing and other loans to farmers	27				28
Real estate Loans:
Construction	10,331		114		10,412		227
Commercial and farmland	77,716		970		78,288		1,956
Residential	4,017		31		4,212		57
Home equity	198				199
Total	$	104,349	$	1,199	$	106,011	$	2,425
Impaired loans with related allowance:
Commercial and industrial loans	$	3,575	$	10	$	3,590	$	20
Real estate Loans:
Commercial and farmland	5,137		5		5,204		10
Total	$	8,712	$	15	$	8,794	$	30
Total Impaired Loans	$	113,061	$	1,214	$	114,805	$	2,455



	Three Months Ended June 30, 2013				Six Months Ended June 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	5,864	$	35	$	6,138	$	69
Agriculture production financing and other loans to farmers	33				33
Real estate Loans:
Construction	3,060		19		3,070		38
Commercial and farmland	32,932		382		33,192		760
Residential	6,067		18		6,372		37
Home equity	226				245
Other loans	31				32
Total	$	48,213	$	454	$	49,082	$	904
Impaired loans with related allowance:
Commercial and industrial loans	$	5,669	$	3	$	6,138	$	5
Real estate Loans:
Construction	599				599
Commercial and farmland	9,227				9,323
Residential	238				240
Other loans	$	152			$	156
Total	$	15,885	$	3	$	16,456	$	5
Total Impaired Loans	$	64,098	$	457	$	65,538	$	909

Credit Quality of Loan Portfolio by Loan Class

The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below.



	June 30, 2014
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss	Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	794,840	$	14,787	$	47,917	$	300						$	857,844
Agriculture production financing and other loans to farmers	85,965		1,780		14,525									102,270
Real estate Loans:
Construction	141,902		1,060		10,893					$	11,368	$	165	165,388
Commercial and farmland	1,488,792		45,513		86,896							235		1,621,436
Residential	144,005		2,377		8,153					462,455		12,172		629,162
Home equity	6,240		292		794					252,130		2,355		261,811
Individuals' loans for household and other personal expenditures										61,358		175		61,533
Lease financing receivables, net of unearned income	1,115				116									1,231
Other loans	22,047				11									22,058
Loans	$	2,684,906	$	65,809	$	169,305	$	300		$	787,311	$	15,102	$	3,722,733



	December 31, 2013
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss	Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	708,835	$	11,332	$	41,013	$	525						$	761,705
Agriculture production financing and other loans to farmers	114,318				30									114,348
Real estate Loans:
Construction	162,976		1,132		12,029							$	945	177,082
Commercial and farmland	1,473,714		57,676		80,184							235		1,611,809
Residential	143,657		2,232		11,494		136			$	448,494	10,372		616,385
Home equity	6,194		35		1,184					246,101		1,709		255,223
Individuals' loans for household and other personal expenditures										69,666		117		69,783
Lease financing receivables, net of unearned income	1,420				125									1,545
Other loans	24,334				195									24,529
Loans	$	2,635,448	$	72,407	$	146,254	$	661		$	764,261	$	13,378	$	3,632,409

Past Due Aging of Loan Portfolio by Loan Class

The following table shows a past due aging of the Corporation’s loan portfolio, by loan class as of June 30, 2014, and December 31, 2013:



	June 30, 2014
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans > 90 Days And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	842,996	$	5,403	$	2,045			$	7,400	$	14,848	$	857,844
Agriculture production financing and other loans to farmers	101,864		380						26		406		102,270
Real estate Loans:
Construction	161,867		473				$	134	2,914		3,521		165,388
Commercial and farmland	1,589,583		3,968		2,792		90		25,003		31,853		1,621,436
Residential	610,191		3,392		1,449		787		13,343		18,971		629,162
Home equity	257,791		733		736		118		2,433		4,020		261,811
Individuals' loans for household and other personal expenditures	60,880		423		54		6		170		653		61,533
Lease financing receivables, net of unearned income	1,231												1,231
Other loans	22,058												22,058
Loans	$	3,648,461	$	14,772	$	7,076	$	1,135	$	51,289	$	74,272	$	3,722,733



	December 31, 2013
	Current		30-59 Days Past Due		60-89 Days Past Due		Loans > 90 Days And Accruing		Non-Accrual		Total Past Due & Non-Accrual		Total
Commercial and industrial loans	$	749,020	$	2,628	$	774			$	9,283	$	12,685	$	761,705
Agriculture production financing and other loans to farmers	114,305		13						30		43		114,348
Real estate Loans:
Construction	171,046		1,058						4,978		6,036		177,082
Commercial and farmland	1,573,403		3,807		5,801		$	703	28,095		38,406		1,611,809
Residential	595,192		7,156		1,475		494		12,068		21,193		616,385
Home equity	251,188		1,652		563		153		1,667		4,035		255,223
Individuals' loans for household and other personal expenditures	69,061		550		55				117		722		69,783
Lease financing receivables, net of unearned income	1,545												1,545
Other loans	24,365								164		164		24,529
Loans	$	3,549,125	$	16,864	$	8,668	$	1,350	$	56,402	$	83,284	$	3,632,409

Summary of Troubled Debt Restructurings

The following tables summarize troubled debt restructurings that occurred during the periods indicated:



	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Real estate Loans:
Commercial and farmland	$	259	$	259	1	$	259	$	259	1
Residential	242		242		3	372		376		6
Individuals' loans for household and other personal expenditures	11		11		1	26		26		2
Total	$	512	$	512	5	$	657	$	661	9



	Three Months Ended June 30, 2013					Six Months Ended June 30, 2013
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	36	$	36	1	$	133	$	133	4
Real estate Loans:
Commercial and farmland	4,474		3,550		2	4,985		3,981		4
Residential	432		420		5	467		457		6
Individuals' loans for household and other personal expenditures	44		45		2	44		45		2
Total	$	4,986	$	4,051	10	$	5,629	$	4,616	16

The following tables show the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated:



	Three Months Ended June 30, 2014
	Term Modification		Rate Modification		Combination		Total Modification
Real estate Loans:
Commercial and farmland	$	272					$	272
Residential	95				$	122	217
Home Equity			$	23			23
Individuals' loans for household and other personal expenditures					11		11
Total	$	367	$	23	$	133	$	523



	Six Months Ended June 30, 2014
	Term Modification		Rate Modification		Combination		Total Modification
Real estate Loans:
Commercial and farmland	$	272					$	272
Residential	95		$	60	$	122	277
Home Equity			94				94
Individuals' loans for household and other personal expenditures					25		25
Total	$	367	$	154	$	147	$	668



	Three Months Ended June 30, 2013
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	36					$	36
Real estate Loans:
Commercial and farmland					$	3,549	3,549
Residential			$	100	319		419
Individuals loans for household and other personal expenditures					45		45
Total	$	36	$	100	$	3,913	$	4,049



	Six Months Ended June 30, 2013
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	60			$	66	$	126
Real estate Loans:
Commercial and farmland					3,935		3,935
Residential			$	100	355		455
Individuals' loans for household and other personal expenditures					45		45
Total	$	60	$	100	$	4,401	$	4,561

Summary of Troubled Debt Restructurings and Subsequent Defaults

The following table summarizes the troubled debt restructures that occurred during the twelve months ended June 30, 2013, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due.



	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
	Number of Loans	Recorded Balance		Number of Loans	Recorded Balance
Commercial and industrial loans	1	$	3	1	$	3
Real estate Loans:
Commercial and farmland				1	223
Total	1	$	3	2	$	226