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Loans and Allowance (Tables)
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Composition of Loan Portfolio by Loan Class
The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated:

December 31, 2016

December 31, 2015

 

 
Commercial and industrial loans
$
1,194,646


$
1,057,075

Agricultural production financing and other loans to farmers
79,689


97,711

Real estate loans:



Construction
418,703


366,704

Commercial and farmland
1,953,062


1,802,921

Residential
739,169


786,105

Home equity
418,525


348,613

Individuals' loans for household and other personal expenditures
77,479


74,717

Lease financing receivables, net of unearned income
311


588

Other commercial loans
258,061


159,388

Loans
5,139,645


4,693,822

Allowance for loan losses
(66,037
)

(62,453
)
Net Loans
$
5,073,608


$
4,631,369
Changes in Allowance for Loan Losses
The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2016, 2015 and 2014:
 
Twelve Months Ended December 31, 2016
 
Commercial

Commercial Real Estate

Consumer

Residential

Finance
Leases

Total
Allowance for loan losses:
 

 

 

 

 

 
Balances, December 31, 2015
$
26,478


$
22,145


$
2,689


$
11,139


$
2


$
62,453

Provision for losses
1,876


1,834


432


1,515





5,657

Recoveries on loans
1,806


2,090


369


1,091





5,356

Loans charged off
(2,464
)

(2,408
)

(567
)

(1,990
)




(7,429
)
Balances, December 31, 2016
$
27,696


$
23,661


$
2,923


$
11,755


$
2


$
66,037

 
 
Twelve Months Ended December 31, 2015
 
Commercial

Commercial Real Estate

Consumer

Residential

Finance
Leases

Total
Allowance for loan losses:
 

 

 

 

 

 
Balances, December 31, 2014
$
28,824


$
19,327


$
2,658


$
13,152


$
3


$
63,964

Provision for losses
(1,901
)

1,710


299


310


(1
)

417

Recoveries on loans
1,911


2,545


352


1,536





6,344

Loans charged off
(2,356
)

(1,437
)

(620
)

(3,859
)




(8,272
)
Balances, December 31, 2015
$
26,478


$
22,145


$
2,689


$
11,139


$
2


$
62,453

 
 
Twelve Months Ended December 31, 2014
 
Commercial

Commercial Real Estate

Consumer

Residential

Finance
Leases

Total
Allowance for loan losses:
 

 

 

 

 

 
Balances, December 31, 2013
$
27,176


$
23,102


$
2,515


$
15,077





$
67,870

Provision for losses
3,459


(464
)

423


(839
)

$
(19
)

2,560

Recoveries on loans
5,435


3,297


377


1,783


24


10,916

Loans charged off
(7,246
)

(6,608
)

(657
)

(2,869
)

(2
)

(17,382
)
Balances, December 31, 2014
$
28,824


$
19,327


$
2,658


$
13,152


$
3


$
63,964
Allowance for Credit Losses and Loan Portfolio by Loan Segment
The following tables show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated:

December 31, 2016
 
Commercial

Commercial
Real Estate

Consumer

Residential

Finance
Leases

Total
Allowance balances:
 

 

 

 

 

 
Individually evaluated for impairment
$
37


$
553





$
298




$
888

Collectively evaluated for impairment
27,659


23,108


$
2,923


11,457


$
2


65,149

Loans acquired with deteriorated credit quality

















Total Allowance for Loan Losses
$
27,696


$
23,661


$
2,923


$
11,755


$
2


$
66,037

Loan balances:
 

 

 

 

 

 
Individually evaluated for impairment
$
4,762


$
21,358


9


$
4,450




$
30,579

Collectively evaluated for impairment
1,520,981


2,315,686


$
77,470


1,151,396


$
311


5,065,844

Loans acquired with deteriorated credit quality
6,653


34,721





1,848





43,222

Loans
$
1,532,396


$
2,371,765


$
77,479


$
1,157,694


$
311


$
5,139,645



December 31, 2015

Commercial

Commercial
Real Estate

Consumer

Residential

Finance
Leases

Total
Allowance balances:
 

 

 

 

 

 
Individually evaluated for impairment
$
1,277


$
243





$
169




$
1,689

Collectively evaluated for impairment
25,201


21,753


$
2,689


10,966


$
2


60,611

Loans acquired with deteriorated credit quality



149





4





153

Total Allowance for Loan Losses
$
26,478


$
22,145


$
2,689


$
11,139


$
2


$
62,453

Loan balances:
 

 

 

 

 

 
Individually evaluated for impairment
$
7,877


$
16,670





$
4,020




$
28,567

Collectively evaluated for impairment
1,298,988


2,096,089


$
74,717


1,125,316


$
588


4,595,698

Loans acquired with deteriorated credit quality
7,309


56,866





5,382





69,557

Loans
$
1,314,174


$
2,169,625


$
74,717


$
1,134,718


$
588


$
4,693,822
Summary of Non-Accrual Loans by Loan class
The following table summarizes the Corporation’s non-accrual loans by loan class for the years indicated:

December 31, 2016

December 31, 2015
Commercial and industrial loans
$
1,839


$
4,634

Agriculture production financing and other loans to farmers
1,329

 
827

Real estate loans:



 
Construction
73


736

Commercial and farmland
15,754


11,277

Residential
9,523


11,818

Home equity
1,457


1,952

Individuals' loans for household and other personal expenditures
23


145

Total
$
29,998


$
31,389
Composition of Impaired Loans by Loan Class
The following tables show the composition of the Corporation’s commercial impaired loans by loan class for the years indicated:
 
December 31, 2016
 
Unpaid Principal
Balance

Recorded
Investment

Related
Allowance

Average Recorded Investment

Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
17,645


$
10,074


 

$
13,393


$
499

Agriculture production financing and other loans to farmers
757


680


 

750


3

Real estate loans:
 

 

 

 

 
Construction
5,946


3,178


 

3,255


258

Commercial and farmland
67,936


49,731


 

51,740


2,978

Residential
8,039


4,664


 

5,410


167

Home equity
82


44


 

44




Other commercial loans
11





 






Total
$
100,416


$
68,371


 

$
74,592


$
3,905

Impaired loans with related allowance:
 

 

 

 

 
Agriculture production financing and other loans to farmers
$
660


$
660


$
36


$
691




Real estate loans:
 

 

 

 

 
Commercial and farmland
4,238


2,985


553


2,989




Residential
65


34


23


38




Total
$
4,963


$
3,679


$
612


$
3,718




Total Impaired Loans
$
105,379


$
72,050


$
612


$
78,310


$
3,905


 
December 31, 2015
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Average Recorded Investment
 
Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
22,151


$
11,669


 


$
12,578


$
488

Agriculture production financing and other loans to farmers
370


361


 


439


 

Real estate loans:
 
 
 
 
 
 
 
 
 
Construction
4,551


2,336


 

3,662


157

Commercial and farmland
95,930


69,024


 

71,569


3,328

Residential
11,262


7,338


 

7,926


244

Home equity
297


247


 

249




Other commercial loans
20





 





Total
$
134,581


$
90,975




$
96,423


$
4,217

Impaired loans with related allowance:
 

 

 

 

 
Commercial and industrial loans
$
3,043


$
2,690


$
1,247


$
2,752


$
38

Agriculture production financing and other loans to farmers
466

 
466

 
30

 
538

 


Real estate loans:
 

 

 

 

 
Commercial and farmland
2,144


1,933


392


1,868




Residential
2,300


1,463


173


1,787




Total
$
7,953


$
6,552


$
1,842


$
6,945


$
38

Total Impaired Loans
$
142,534


$
97,527


$
1,842


$
103,368


$
4,255


 
 
December 31, 2014
 
Unpaid Principal
Balance

Recorded
Investment

Related
Allowance

Average Recorded Investment

Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
35,514


$
18,029


 

$
18,711


$
362

Agriculture production financing and other loans to farmers
26


22


 

26


 
Real estate loans:









Construction
12,956


9,318


 

9,837


427

Commercial and farmland
95,856


68,187


 

70,844


3,389

Residential
10,591


6,839


 

6,987


119

Home equity
3,590


398


 

402




Other commercial loans
30





 





Total
$
158,563


$
102,793


 

$
106,807


$
4,297

Impaired loans with related allowance:
 

 

 

 

 
Commercial and industrial loans
$
1,766


$
1,684


$
1,055


$
1,721


$
40

Agriculture production financing and other loans to farmers
6,777

5,777

400

8,044

1
Real estate loans:
 

 

 

 

 
Commercial and farmland
7,159


4,971


1,120


4,999


24

Residential
1,001


998


194


1,000




Total
$
16,703


$
13,430


$
2,769


$
15,764


$
65

Total Impaired Loans
$
175,266


$
116,223


$
2,769


$
122,571


$
4,362
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 years 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.
 
December 31, 2016
 
Commercial Pass

Commercial Special Mention

Commercial Substandard

Commercial Doubtful

Commercial Loss

Consumer Performing

Consumer
Non Performing

Total
Commercial and industrial loans
$
1,117,545


$
30,919


$
46,182




 

 

 

$
1,194,646

Agriculture production financing and other loans to farmers
30,712


25,273


23,704




 

 

 

79,689

Real estate loans:


 



 

 

 

 


Construction
398,646


3,490


1,858




 

$
14,636


$
73


418,703

Commercial and farmland
1,811,367


60,028


80,626




 

1,034


7


1,953,062

Residential
146,251


5,106


6,046




 

574,054


7,712


739,169

Home equity
7,310


47


516




 

409,237


1,415


418,525

Individuals' loans for household and other personal expenditures
 

 

 

 

 

77,456


23


77,479

Lease financing receivables, net of unearned income
228




83




 






311

Other commercial loans
257,861





200




 





258,061

Loans
$
3,769,920


$
124,863


$
159,215




                        

$
1,076,417


$
9,230


$
5,139,645



 
December 31, 2015
 
Commercial Pass

Commercial Special Mention

Commercial Substandard

Commercial Doubtful

Commercial Loss

Consumer Performing

Consumer
Non Performing

Total
Commercial and industrial loans
$
962,340


$
48,432


$
45,984


$
319


 

 

 

$
1,057,075

Agriculture production financing and other loans to farmers
77,884


6,665


13,162




 

 

 

97,711

Real estate loans:


 

 

 

 

 

 


Construction
345,449


1,271


1,790




 

$
18,114


$
80


366,704

Commercial and farmland
1,679,141


46,442


77,338





 







1,802,921

Residential
171,576


3,107


10,428





 

593,533


7,461


786,105

Home equity
8,218


48


600




 

337,718


2,029


348,613

Individuals' loans for household and other personal expenditures
 

 

 

 

 

74,491


226


74,717

Lease financing receivables, net of unearned income
495




93




 







588

Other commercial loans
159,388











 





159,388

Loans
$
3,404,491


$
105,965


$
149,395


$
319


                        

$
1,023,856


$
9,796


$
4,693,822
Past Due Aging of Loan Portfolio by Loan Class



The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated:

December 31, 2016
 
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
$
1,192,079


$
466


$
162


$
100


$
1,839


$
2,567


$
1,194,646

Agriculture production financing and other loans to farmers
78,360











1,329


1,329


79,689

Real estate loans:
 

 

 

 

 



 
Construction
415,975


2,655






73


2,728


418,703

Commercial and farmland
1,932,896


1,385


3,027





15,754


20,166


1,953,062

Residential
725,338


3,664


635


9


9,523


13,831


739,169

Home equity
415,969


850


246


3


1,457


2,556


418,525

Individuals' loans for household and other personal expenditures
76,929


470


57




23


550


77,479

Lease financing receivables, net of unearned income
311






 







311

Other commercial loans
258,061














258,061

Loans
$
5,095,918


$
9,490


$
4,127


$
112


$
29,998


$
43,727


$
5,139,645

 
 

December 31, 2015
 
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
$
1,052,275


$
166








$
4,634


$
4,800


$
1,057,075

Agriculture production financing and other loans to farmers
96,884











827


827


97,711

Real estate loans:
 

 

 

 

 

 

 
Construction
362,084


3,884






736


4,620


366,704

Commercial and farmland
1,786,092


5,552








11,277


16,829


1,802,921

Residential
765,634


6,090


$
2,061


$
502


11,818


20,471


786,105

Home equity
344,344


1,433


560


324


1,952


4,269


348,613

Individuals' loans for household and other personal expenditures
73,990


445


56


81


145


727


74,717

Lease financing receivables, net of unearned income
588


 

 

 







588

Other commercial loans
159,324




64







64


159,388

Loans
$
4,641,215


$
17,570


$
2,741


$
907


$
31,389


$
52,607


$
4,693,822

 
Schedules of Troubled Debt Restructuring
The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2016 and 2015, 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.

Twelve Months Ended December 31, 2016
 
Number of Loans

Recorded Balance
Commercial and industrial loans
3

 
$
197

Agriculture production financing and other loans to farmers
1

 
661

Real estate loans:
 
 
 
Commercial and farmland
1

 
343

Residential
1

 
64

Total
6


$
1,265




Twelve Months Ended December 31, 2015
 
Number of Loans

Recorded Balance
Real estate loans:



Residential
1


$
21

Total
1


$
21

The following tables summarize the recorded investment of troubled debt restructurings as of December 31, 2016 and 2015, by modification type, that occurred during the periods indicated:
 
December 31, 2016

Term
Modification

Rate
Modification

Combination

Total
Modification
Commercial and industrial loans
 
 
 
 
$
397

 
$
397

Agriculture production financing and other farm loans
$
660

 
$
12

 
 
 
672

Real estate loans:
 

 
 

 
 

 
 

Commercial and farmland
297

 
 
 
3,456

 
3,753

Residential
238

 
928

 
 
 
1,166

Home equity
 
 
266

 
 
 
266

Individuals' loans for household and other personal expenditures
 
 
9

 
 
 
9

Total
$
1,195

 
$
1,215

 
$
3,853

 
$
6,263



 
December 31, 2015

Term
Modification

Rate
Modification

Combination

Total
Modification
Commercial and industrial loans
$
761




$
1,053


$
1,814

Real estate loans:
 

 

 

 
Commercial and farmland
1,231





1,026


2,257

Residential
823


$
170


45


1,038

Home equity



242





242

Individuals' loans for household and other personal expenditures



27




27

Total
$
2,815


$
439


$
2,124


$
5,378



The following tables summarize troubled debt restructurings in the Corporation's loan portfolio that occurred during the periods ended December 31, 2016 and 2015:
 
December 31, 2016

Pre-Modification
Recorded Balance

Post-Modification
Recorded Balance

Number
of Loans
Commercial and industrial loans
$
410

 
$
410

 
4

Agriculture production financing and other loans to farmers
1,368

 
1,234

 
4

Real estate loans:
 
 
 
 
 
Commercial and farmland
3,978

 
3,954

 
7

Residential
1,126

 
1,183

 
17

Home Equity
266

 
244

 
4

Individuals' loans for household and other personal expenditures
17

 
10

 
1

Total
$
7,165

 
$
7,035

 
37

 
 
 
December 31, 2015

Pre-Modification
Recorded Balance

Post-Modification
Recorded Balance

Number
of Loans
Commercial and industrial loans
$
4,111


$
2,115


7

Real estate loans:


 

 
Construction
79


80


1

Commercial and farmland
1,281


3,024


3

Residential
200


1,113


10

Home equity
263

 
242

 
1

Individuals' loans for household and other personal expenditures
26


27


1

Total
$
5,960


$
6,601


23