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Loans
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Loans
Loans
 
Loans were comprised of the following classifications at December 31: 
 
 
2016
 
2015
Commercial:
 
 

 
 

Commercial and Industrial Loans and Leases
 
$
457,372

 
$
418,154

Commercial Real Estate Loans
 
856,094

 
618,788

Agricultural Loans
 
303,128

 
246,886

Retail:
 
 

 
 

Home Equity Loans
 
133,575

 
97,902

Consumer Loans
 
59,945

 
50,029

Residential Mortgage Loans
 
183,290

 
136,316

Subtotal
 
1,993,404

 
1,568,075

Less: Unearned Income
 
(3,449
)
 
(3,728
)
Allowance for Loan Losses
 
(14,808
)
 
(14,438
)
Loans, net
 
$
1,975,147

 
$
1,549,909



As further described in Note 17, during 2016 the company acquired loans with a fair value of $317,760 as a part of a business combination. This was made up of loans with an acquired balance of $328,431, net of $10,671 of fair value discounts at date of acquisition. At December 31, 2016, the remaining carrying amount of such loans total $261,450, which is included in the December 31, 2016 table above. This amount is made up of loans with a remaining unpaid principal balance of $269,014 net of remaining fair value discounts of $7,564.

The following tables present the activity in the allowance for loan losses by portfolio class for the years ended December 31, 2016, 2015, and 2014: 
 
 
Commercial
and
Industrial
Loans and
Leases
 
Commercial
Real Estate
Loans
 
Agricultural
Loans
 
Home
Equity
Loans
 
Consumer
Loans
 
Residential
Mortgage
Loans
 
Unallocated
 
Total
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning Balance
 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712

 
$
14,438

Provision for Loan Losses
 
(483
)
 
(846
)
 
2,000

 
33

 
273

 
245

 
(22
)
 
1,200

Recoveries
 
32

 
10

 
1

 
3

 
208

 
16

 
—

 
270

Loans Charged-off
 
(66
)
 
(54
)
 
(22
)
 
(136
)
 
(476
)
 
(346
)
 
—

 
(1,100
)
Ending Balance
 
$
3,725

 
$
5,452

 
$
4,094

 
$
283

 
$
235

 
$
329

 
$
690

 
$
14,808

 
 
Commercial
and
Industrial
Loans and
Leases
 
Commercial
Real Estate
Loans
 
Agricultural
Loans
 
Home
Equity
Loans
 
Consumer
Loans
 
Residential
Mortgage
Loans
 
Unallocated
 
Total
December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning Balance
 
$
4,627

 
$
7,273

 
$
1,123

 
$
246

 
$
354

 
$
622

 
$
684

 
$
14,929

Provision for Loan Losses
 
(451
)
 
(688
)
 
992

 
160

 
(48
)
 
7

 
28

 
—

Recoveries
 
102

 
107

 
—

 
10

 
236

 
18

 
—

 
473

Loans Charged-off
 
(36
)
 
(350
)
 
—

 
(33
)
 
(312
)
 
(233
)
 
—

 
(964
)
Ending Balance
 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712

 
$
14,438


 
 
Commercial
and
Industrial
Loans and
Leases
 
Commercial
Real Estate
Loans
 
Agricultural
Loans
 
Home
Equity
Loans
 
Consumer
Loans
 
Residential
Mortgage
Loans
 
Unallocated
 
Total
December 31, 2014
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning Balance
 
$
3,983

 
$
8,335

 
$
946

 
$
239

 
$
188

 
$
281

 
$
612

 
$
14,584

Provision for Loan Losses
 
732

 
(1,596
)
 
177

 
37

 
291

 
437

 
72

 
150

Recoveries
 
111

 
863

 
—

 
42

 
173

 
21

 
—

 
1,210

Loans Charged-off
 
(199
)
 
(329
)
 
—

 
(72
)
 
(298
)
 
(117
)
 
—

 
(1,015
)
Ending Balance
 
$
4,627

 
$
7,273

 
$
1,123

 
$
246

 
$
354

 
$
622

 
$
684

 
$
14,929


 
In determining the adequacy of the allowance for loan loss, general allocations are made for pools of loans, including non-classified loans, homogeneous portfolios of consumer and residential real estate loans, and loans within certain industry categories believed to present unique risk of loss. General allocations of the allowance are primarily made based on historical averages for loan losses for these portfolios, judgmentally adjusted for current economic factors and portfolio trends.  During 2016, the overall allowance for loan and lease losses was increased in the agricultural sector as a result of qualitative considerations for current economic conditions and trends which included a decline in the aggregate debt service coverage ratios for agricultural borrowers and a decline in per acre values of crop production real estate.

Loan impairment is reported when full repayment under the terms of the loan is not expected. This methodology is used for all loans, including loans acquired with deteriorated credit quality if such loans perform worse than what was expected at the time of acquisition. For purchased loans, the assessment is made at the time of acquisition as well as over the life of loan. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Commercial and industrial loans, commercial real estate loans, and agricultural loans are evaluated individually for impairment. Smaller balance homogeneous loans are evaluated for impairment in total. Such loans include real estate loans secured by one-to-four family residences and loans to individuals for household, family and other personal expenditures. Individually evaluated loans on non-accrual are generally considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Specific allocations on impaired loans are determined by comparing the loan balance to the present value of expected cash flows or expected collateral proceeds. Allocations are also applied to categories of loans not considered individually impaired but for which the rate of loss is expected to be greater than historical averages, including non-performing consumer or residential real estate loans. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. The allowance for commercial real estate loans declined during 2016 primarily as a result of the repayment of a single non-accrual commercial real estate credit during the third quarter of 2016. This credit relationship was considered impaired and therefore had a specific allocation assigned prior to repayment.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2016 and 2015:
December 31, 2016
 
Total
 
Commercial
and
Industrial
Loans and Leases
 
Commercial
Real Estate Loans
 
Agricultural Loans
 
Home
Equity Loans
 
Consumer Loans
 
Residential
Mortgage Loans
 
Unallocated
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending Allowance Balance Attributable to Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually Evaluated for Impairment
 
$
255

 
$
24

 
$
231

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
14,448

 
3,698

 
5,172

 
4,046

 
283

 
230

 
329

 
690

Acquired with Deteriorated Credit Quality
 
105

 
3

 
49

 
48

 
—

 
5

 
—

 
—

Total Ending Allowance Balance
 
$
14,808

 
$
3,725

 
$
5,452

 
$
4,094

 
$
283

 
$
235

 
$
329

 
$
690

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
1,239

 
$
113

 
$
832

 
$
294

 
$
—

 
$
—

 
$
—

 
n/m(2)

Loans Collectively Evaluated for Impairment
 
1,989,128

 
456,769

 
849,510

 
305,946

 
134,032

 
60,046

 
182,825

 
n/m(2)

Loans Acquired with Deteriorated Credit Quality
 
11,048

 
1,656

 
7,688

 
706

 
—

 
53

 
945

 
n/m(2)

Total Ending Loans Balance (1)
 
$
2,001,415

 
$
458,538

 
$
858,030

 
$
306,946

 
$
134,032

 
$
60,099

 
$
183,770

 
n/m(2)

 
(1) Total recorded investment in loans includes $8,011 in accrued interest.
 (2)n/m = not meaningful

December 31, 2015
 
Total
 
Commercial
and
Industrial
Loans and Leases
 
Commercial
Real Estate Loans
 
Agricultural Loans
 
Home
Equity Loans
 
Consumer Loans
 
Residential
Mortgage Loans
 
Unallocated
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending Allowance Balance Attributable to Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually Evaluated  for Impairment
 
$
1,202

 
$
106

 
$
1,096

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
13,236

 
4,136

 
5,246

 
2,115

 
383

 
230

 
414

 
712

Acquired with Deteriorated Credit Quality
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total Ending Allowance Balance
 
$
14,438

 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
4,435

 
$
1,578

 
$
2,845

 
$
12

 
$
—

 
$
—

 
$
—

 
n/m(2)

Loans Collectively Evaluated for Impairment
 
1,562,037

 
416,273

 
611,955

 
249,687

 
98,167

 
50,169

 
135,786

 
n/m(2)

Loans Acquired with Deteriorated Credit Quality
 
7,555

 
1,325

 
5,363

 
—

 
—

 
—

 
867

 
n/m(2)

Total Ending Loans Balance (1)
 
$
1,574,027

 
$
419,176

 
$
620,163

 
$
249,699

 
$
98,167

 
$
50,169

 
$
136,653

 
n/m(2)

 
(1) Total recorded investment in loans includes $5,952 in accrued interest.
 (2)n/m = not meaningful

The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2016 and 2015:
 
 
Unpaid
Principal
Balance(1)
 
Recorded
Investment
 
Allowance for
Loan Losses
Allocated
December 31, 2016
 
 

 
 

 
 

With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
85

 
$
29

 
$
—

Commercial Real Estate Loans
 
1,278

 
784

 
—

Agricultural Loans
 
356

 
294

 
—

Subtotal
 
1,719

 
1,107

 
—

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
148

 
107

 
27

Commercial Real Estate Loans
 
839

 
827

 
280

Agricultural Loans
 
588

 
497

 
48

Subtotal
 
1,575

 
1,431

 
355

Total
 
$
3,294

 
$
2,538

 
$
355

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
1,018

 
$
531

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
910

 
$
768

 
$
100

 
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.
 
 
 
Unpaid
Principal
Balance(1)
 
Recorded
Investment
 
Allowance for
Loan Losses
Allocated
December 31, 2015
 
 

 
 

 
 

With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
161

 
$
161

 
$
—

Commercial Real Estate Loans
 
1,292

 
768

 
—

Agricultural Loans
 
12

 
12

 
—

Subtotal
 
1,465

 
941

 
—

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,403

 
1,417

 
106

Commercial Real Estate Loans
 
2,207

 
2,077

 
1,096

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
3,610

 
3,494

 
1,202

Total
 
$
5,075

 
$
4,435

 
$
1,202

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
528

 
$
—

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
—

 
$
—

 
$
—

 
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.
 
The following tables present loans individually evaluated for impairment by class of loans for the years ended December 31, 2016, 2015 and 2014:
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash
Basis
Recognized
December 31, 2016
 
 

 
 

 
 

With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
295

 
$
29

 
$
15

Commercial Real Estate Loans
 
1,688

 
92

 
73

Agricultural Loans
 
461

 
2

 
1

Subtotal
 
2,444

 
123

 
89

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
102

 
1

 
1

Commercial Real Estate Loans
 
1,587

 
6

 
2

Agricultural Loans
 
249

 
—

 
—

Subtotal
 
1,938

 
7

 
3

Total
 
$
4,382

 
$
130

 
$
92

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
489

 
$
21

 
$
10

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
711

 
$
—

 
$
—

 
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash
Basis
Recognized
December 31, 2015
 
 

 
 

 
 

With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
447

 
$
29

 
$
29

Commercial Real Estate Loans
 
1,282

 
104

 
103

Agricultural Loans
 
9

 
1

 
1

Subtotal
 
1,738

 
134

 
133

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,726

 
89

 
89

Commercial Real Estate Loans
 
2,840

 
5

 
3

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,566

 
94

 
92

Total
 
$
6,304

 
$
228

 
$
225

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
196

 
$
—

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
—

 
$
—

 
$
—

 
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash
Basis
Recognized
December 31, 2014
 
 

 
 

 
 

With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
2,082

 
$
132

 
$
135

Commercial Real Estate Loans
 
2,489

 
84

 
81

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,571

 
216

 
216

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
1,222

 
2

 
2

Commercial Real Estate Loans
 
3,074

 
20

 
16

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
4,296

 
22

 
18

Total
 
$
8,867

 
$
238

 
$
234

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
421

 
$
5

 
$
5

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
328

 
$
—

 
$
—


 
All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection.
 
The following tables present the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of December 31, 2016 and 2015:
 
 
 
 
 
 
Loans Past Due
90 Days or More
 
 
Non-Accrual
 
& Still Accruing
 
 
2016
 
2015
 
2016
 
2015
Commercial and Industrial Loans and Leases
 
$
86

 
$
134

 
$
2

 
$
98

Commercial Real Estate Loans
 
1,408

 
2,047

 
—

 
48

Agricultural Loans
 
792

 
—

 
—

 
—

Home Equity Loans
 
73

 
204

 
—

 
—

Consumer Loans
 
85

 
90

 
—

 
—

Residential Mortgage Loans
 
1,349

 
668

 
—

 
—

Total
 
$
3,793

 
$
3,143

 
$
2

 
$
146

Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
 
$
1,264

 
$
68

 
$
—

 
$
—


 
The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2016 and 2015:
 
 
Total
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days
or More
Past Due
 
Total
Past Due
 
Loans Not
Past Due
December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
458,538

 
$
20

 
$
4

 
$
77

 
$
101

 
$
458,437

Commercial Real Estate Loans
 
858,030

 
1,509

 
21

 
330

 
1,860

 
856,170

Agricultural Loans
 
306,946

 
84

 
50

 
610

 
744

 
306,202

Home Equity Loans
 
134,032

 
707

 
16

 
73

 
796

 
133,236

Consumer Loans
 
60,099

 
175

 
147

 
85

 
407

 
59,692

Residential Mortgage Loans
 
183,770

 
3,470

 
1,251

 
806

 
5,527

 
178,243

Total (1)
 
$
2,001,415

 
$
5,965

 
$
1,489

 
$
1,981

 
$
9,435

 
$
1,991,980

Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
 
$
11,048

 
$
130

 
$
—

 
$
627

 
$
757

 
$
10,291

Loans Acquired in Current Year
(Included in the Total Above)
 
$
262,809

 
$
2,752

 
$
862

 
$
1,126

 
$
4,740

 
$
258,069

 
(1) Total recorded investment in loans includes $8,011 in accrued interest.
 
 
 
Total
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days
or More
Past Due
 
Total
Past Due
 
Loans Not
Past Due
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial Loans and Leases
 
$
419,176

 
$
82

 
$
117

 
$
124

 
$
323

 
$
418,853

Commercial Real Estate Loans
 
620,163

 
136

 
163

 
104

 
403

 
619,760

Agricultural Loans
 
249,699

 
—

 
—

 
—

 
—

 
249,699

Home Equity Loans
 
98,167

 
225

 
8

 
204

 
437

 
97,730

Consumer Loans
 
50,169

 
101

 
40

 
90

 
231

 
49,938

Residential Mortgage Loans
 
136,653

 
2,615

 
154

 
668

 
3,437

 
133,216

Total (1)
 
$
1,574,027

 
$
3,159

 
$
482

 
$
1,190

 
$
4,831

 
$
1,569,196

Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
 
$
7,555

 
$
—

 
$
—

 
$
—

 
$
—

 
$
7,555

 
(1) Total recorded investment in loans includes $5,952 in accrued interest.
 
Troubled Debt Restructurings:
 
In certain instances, the Company may choose to restructure the contractual terms of loans. A troubled debt restructuring occurs when the Bank grants a concession to the borrower that it would not otherwise consider due to a borrower’s financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification. This evaluation is performed under the Company’s internal underwriting policy. The Company uses the same methodology for loans acquired with deteriorated credit quality as for all other loans when determining whether the loan is a troubled debt restructuring.
 
During the years ended December 31, 2016 and 2015, there were no loans modified as troubled debt restructurings.
 
The following tables present the recorded investment of troubled debt restructurings by class of loans as of December 31, 2016 and 2015: 
 
 
Total
 
Performing
 
Non-Accrual(1)
December 31, 2016
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
28

 
$
28

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
$
28

 
$
28

 
$
—

 
 
Total
 
Performing
 
Non-Accrual(1)
December 31, 2015
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
1,446

 
$
1,445

 
$
1

Commercial Real Estate Loans
 
2,455

 
795

 
1,660

Total
 
$
3,901

 
$
2,240

 
$
1,661

 
(1) The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page.
 
The Company has not committed to lending any additional amounts as of December 31, 2016 and 2015 to customers with outstanding loans that are classified as troubled debt restructurings.

Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the years ended December 31, 2016 and 2015. For the year ended December 31, 2014, there was one troubled debt restructuring with a recorded investment of $95 for which there was a payment default within twelve months following the modification. The troubled debt restructuring that subsequently defaulted resulted in a decrease to the allowance for loan losses by $90 and a charge-off of $91 during the year ended December 31, 2014.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.
 
Credit Quality Indicators:
 
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $100. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings:
 
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
 
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
 
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
 
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: 
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2016
 
 

 
 

 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
437,353

 
$
10,454

 
$
10,731

 
$
—

 
$
458,538

Commercial Real Estate Loans
 
814,033

 
26,549

 
17,448

 
—

 
858,030

Agricultural Loans
 
287,975

 
14,670

 
4,301

 
—

 
306,946

Total
 
$
1,539,361

 
$
51,673

 
$
32,480

 
$
—

 
$
1,623,514

Loans Acquired with Deteriorated Credit Quality
(Included in the Total Above)
 
$
1,897

 
$
3,121

 
$
5,032

 
$
—

 
$
10,050

Loans Acquired in Current Year
(Included in the Total Above)
 
$
175,915

 
$
11,638

 
$
8,145

 
$
—

 
$
195,698

 
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2015
 
 

 
 

 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
393,270

 
$
13,675

 
$
12,231

 
$
—

 
$
419,176

Commercial Real Estate Loans
 
586,247

 
25,341

 
8,575

 
—

 
620,163

Agricultural Loans
 
242,728

 
5,177

 
1,794

 
—

 
249,699

Total
 
$
1,222,245

 
$
44,193

 
$
22,600

 
$
—

 
$
1,289,038

Loans Acquired with Deteriorated Credit Quality
(Included in the Total Above)
 
$
1,572

 
$
3,319

 
$
1,797

 
$
—

 
$
6,688


 
The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For home equity, consumer and residential mortgage loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2016 and 2015: 
 
 
Home Equity
Loans
 
Consumer
Loans
 
Residential
Mortgage Loans
December 31, 2016
 
 

 
 

 
 

Performing
 
$
133,959

 
$
60,014

 
$
182,421

Nonperforming
 
73

 
85

 
1,349

Total
 
$
134,032

 
$
60,099

 
$
183,770

Loans Acquired with Deteriorated Credit Quality
(Included in the Total Above)
 
$
—

 
$
53

 
$
945

 
 
 
Home Equity
Loans
 
Consumer
Loans
 
Residential
Mortgage Loans
December 31, 2015
 
 

 
 

 
 

Performing
 
$
97,963

 
$
50,079

 
$
135,985

Nonperforming
 
204

 
90

 
668

Total
 
$
98,167

 
$
50,169

 
$
136,653

Loans Acquired with Deteriorated Credit Quality
(Included in the Total Above)
 
$
—

 
$
—

 
$
867



The following table presents financing receivables purchased and/or sold during the year by portfolio segment:
 
 
Commercial and Industrial Loans and Leases
 
Commercial Real Estate Loans
 
Total
December 31, 2016
 
 
 
 
 
 
Purchases
 
$
—

 
$
5,383

 
$
5,383

Sales
 
—

 
2,029

 
2,029

 
 
Commercial and Industrial Loans and Leases
 
Commercial Real Estate Loans
 
Total
December 31, 2015
 
 
 
 
 
 
Purchases
 
$
4,747

 
$
5,148

 
$
9,895

Sales
 
—

 
—

 
—



Contractually required payments receivable of loans purchased with evidence of credit deterioration during the year ended December 31, 2016 are included in the table below. The value of the purchased loans included in the table are as of acquisition date. There were no such loans purchased during the year ended December 31, 2015.
 
 
2016
 
2015
 
 
 
 
 
Commercial and Industrial Loans
 
$
220

 
$
—

Commercial Real Estate Loans
 
10,612

 
—

Agricultural Loans
 
896

 
—

Home Equity Loans
 
—

 
—

Consumer Loans
 
87

 
—

Residential Mortgage Loans
 
2,279

 
—

Total
 
$
14,094

 
$
—

 
 
 
 
 
Cash Flows Expected to be Collected at Acquisition
 
$
11,051

 
$
—

Fair Value of Acquired Loans at Acquisition
 
8,807

 
—



The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans at December 31 follows:
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
Commercial and Industrial Loans
 
$
1,656

 
$
1,325

 
$
354

Commercial Real Estate Loans
 
7,688

 
5,363

 
6,385

Agricultural Loans
 
706

 
—

 
—

Consumer Loans
 
53

 
—

 
118

Residential Mortgage Loans
 
945

 
867

 
1,504

Total
 
$
11,048

 
$
7,555

 
$
8,361

 
 
 
 
 
 
 
Carrying Amount, Net of Allowance
 
$
10,943

 
$
7,555

 
$
8,307


Accretable yield, or income expected to be collected, is as follows:
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
Balance at January 1
 
$
1,279

 
$
1,685

 
$
1,279

New Loans Purchased
 
1,395

 
—

 
—

Accretion of Income
 
(943
)
 
(483
)
 
(328
)
Reclassifications from Non-accretable Difference
 
985

 
104

 
847

Charge-off of Accretable Yield
 
(195
)
 
(27
)
 
(113
)
Balance at December 31
 
$
2,521

 
$
1,279

 
$
1,685

 

For those purchased loans disclosed above, the Company increased the allowances for loan losses by $107, $0, and $54 during the years ended December 31, 2016, 2015, and 2014. The Company reversed allowances for loan losses of $2 and $54 during the years ended December 31, 2016 and 2015. No allowance for loan losses were reversed during 2014. 

The carrying amount of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $202 and $169 as of December 31, 2016 and 2015.

Certain directors, executive officers, and principal shareholders of the Company, including their immediate families and companies in which they are principal owners, were loan customers of the Company during 2016. A summary of the activity of these loans follows:
Balance
January 1,
2016
 
Additions
 
Changes in Persons Included
 
Deductions
 
Balance
December 31,
2016
 
 
 
Collected
 
Charged-off
 
 
 
 
 
 
 
 
 
 
 
 
$
14,794

 
$
14,615

 
$
191

 
$
(15,324
)
 
$
—

 
$
14,276