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Loans (Tables)
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Components of Loans
Loans were comprised of the following classifications at March 31, 2017 and December 31, 2016: 
 
 
March 31,
2017
 
December 31,
2016
Commercial:
 
 

 
 

Commercial and Industrial Loans and Leases
 
$
450,501

 
$
457,372

Commercial Real Estate Loans
 
865,717

 
856,094

Agricultural Loans
 
292,615

 
303,128

Retail:
 
 

 
 

Home Equity Loans
 
135,352

 
133,575

Consumer Loans
 
58,938

 
59,945

Residential Mortgage Loans
 
183,806

 
183,290

Subtotal
 
1,986,929

 
1,993,404

Less: Unearned Income
 
(3,357
)
 
(3,449
)
Allowance for Loan Losses
 
(15,166
)
 
(14,808
)
Loans, Net
 
$
1,968,406

 
$
1,975,147
Schedule of Allowance for Loan Losses
The following tables present the activity in the allowance for loan losses by portfolio class for the three months ended March 31, 2017 and 2016:
March 31, 2017
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
3,725

 
$
5,452

 
$
4,094

 
$
283

 
$
235

 
$
329

 
$
690

 
$
14,808

Provision for Loan Losses
 
(115
)
 
278

 
267

 
17

 
118

 
19

 
(84
)
 
500

Recoveries
 
2

 
5

 
—

 
—

 
60

 
27

 
—

 
94

Loans Charged-off
 
—

 
(39
)
 
—

 
(1
)
 
(169
)
 
(27
)
 
—

 
(236
)
Ending Balance
 
$
3,612

 
$
5,696

 
$
4,361

 
$
299

 
$
244

 
$
348

 
$
606

 
$
15,166


March 31, 2016
 
Commercial and Industrial
Loans and Leases
 
Commercial Real Estate Loans
 
Agricultural
Loans
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
 
Unallocated
 
Total
Beginning Balance
 
$
4,242

 
$
6,342

 
$
2,115

 
$
383

 
$
230

 
$
414

 
$
712

 
$
14,438

Provision for Loan Losses
 
105

 
120

 
414

 
31

 
27

 
155

 
(2
)
 
850

Recoveries
 
4

 
1

 
—

 
1

 
45

 
5

 
—

 
56

Loans Charged-off
 
(5
)
 
—

 
—

 
(63
)
 
(72
)
 
(43
)
 
—

 
(183
)
Ending Balance
 
$
4,346

 
$
6,463

 
$
2,529

 
$
352

 
$
230

 
$
531

 
$
710

 
$
15,161
Schedule of Allowance for Loan Losses and Recorded Investment in Loans
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 March 31, 2017 and December 31, 2016:
March 31, 2017
 
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
 
$
533

 
$
23

 
$
510

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively Evaluated for Impairment
 
14,517

 
3,586

 
5,126

 
4,313

 
299

 
239

 
348

 
606

Acquired with Deteriorated Credit Quality
 
116

 
3

 
60

 
48

 
—

 
5

 
—

 
—

Total Ending Allowance Balance
 
$
15,166

 
$
3,612

 
$
5,696

 
$
4,361

 
$
299

 
$
244

 
$
348

 
$
606


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans Individually Evaluated for Impairment
 
$
2,924

 
$
85

 
$
2,182

 
$
657

 
$
—

 
$
—

 
$
—

 
n/m(2)

Loans Collectively Evaluated for Impairment
 
1,981,754

 
450,341

 
858,027

 
295,235

 
135,828

 
59,035

 
183,288

 
n/m(2)

Loans Acquired with Deteriorated Credit Quality
 
10,348

 
1,251

 
7,426

 
688

 
—

 
53

 
930

 
n/m(2)

Total Ending Loans Balance(1)
 
$
1,995,026

 
$
451,677

 
$
867,635

 
$
296,580

 
$
135,828

 
$
59,088

 
$
184,218

 
n/m(2)

 
 
(1)Total recorded investment in loans includes $8,097 in accrued interest.
(2)n/m = not meaningful

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 
Schedule for Loans Individually Evaluated for Impairment
The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
57

 
$
57

 
$
—

Commercial Real Estate Loans
 
921

 
808

 
—

Agricultural Loans
 
700

 
657

 
—

Subtotal
 
1,678

 
1,522

 
—

With An Allowance Recorded:
 
 

 
 

 


Commercial and Industrial Loans and Leases
 
140

 
137

 
26

Commercial Real Estate Loans
 
2,487

 
2,314

 
570

Agricultural Loans
 
587

 
587

 
48

Subtotal
 
3,214

 
3,038

 
644

Total
 
$
4,892

 
$
4,560

 
$
644

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
599

 
$
584

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
1,053

 
$
1,052

 
$
111

   
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.


December 31, 2016
 
Unpaid Principal Balance(1)
 
 Recorded Investment
 
Allowance for Loan Losses Allocated
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.
 
The following tables present loans individually evaluated for impairment by class of loans for the three month period ended March 31, 2017 and 2016:
March 31, 2017
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
16

 
$
—

 
$
—

Commercial Real Estate Loans
 
522

 
4

 
4

Agricultural Loans
 
719

 
5

 
—

Subtotal
 
1,257

 
9

 
4

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
103

 
1

 
1

Commercial Real Estate Loans
 
2,423

 
6

 
6

Agricultural Loans
 
497

 
—

 
—

Subtotal
 
3,023

 
7

 
7

Total
 
$
4,280

 
$
16

 
$
11

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
209

 
$
—

 
$
—

Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
 
$
1,007

 
$
7

 
$
7


March 31, 2016
 
Average Recorded
Investment
 
Interest Income Recognized
 
Cash Basis
Recognized
With No Related Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
$
827

 
$
23

 
$
11

Commercial Real Estate Loans
 
1,213

 
18

 
3

Agricultural Loans
 
259

 
1

 
1

Subtotal
 
2,299

 
42

 
15

With An Allowance Recorded:
 
 

 
 

 
 

Commercial and Industrial Loans and Leases
 
129

 
—

 
—

Commercial Real Estate Loans
 
2,235

 
1

 
—

Agricultural Loans
 
—

 
—

 
—

Subtotal
 
2,364

 
1

 
—

Total
 
$
4,663

 
$
43

 
$
15

 
 
 
 
 
 
 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
 
$
782

 
$
8

 
$
1

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

 
$
—

 
$
—
Schedule of Recorded Investment in Nonaccrual Loans
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 March 31, 2017 and December 31, 2016:
 
 
 
 
 
 
 
 
 
Non-Accrual Loans
 
Loans Past Due 90 Days
or More & Still Accruing
 
 
March 31,
 
December 31,
 
March 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Commercial and Industrial Loans and Leases
 
$
84

 
$
86

 
$
—

 
$
2

Commercial Real Estate Loans
 
2,496

 
1,408

 
—

 
—

Agricultural Loans
 
767

 
792

 
1,238

 
—

Home Equity Loans
 
88

 
73

 
—

 
—

Consumer Loans
 
322

 
85

 
—

 
—

Residential Mortgage Loans
 
753

 
1,349

 
—

 
—

Total
 
$
4,510

 
$
3,793

 
$
1,238

 
$
2

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,051

 
$
1,264

 
$
—

 
$
—
Schedule of Aging of Recorded Investment in Past Due Loans
The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Total
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total
Past Due
 
Loans Not Past Due
Commercial and Industrial Loans and Leases
 
$
451,677

 
$
1,278

 
$
7

 
$
73

 
$
1,358

 
$
450,319

Commercial Real Estate Loans
 
867,635

 
838

 
55

 
221

 
1,114

 
866,521

Agricultural Loans
 
296,580

 
397

 
—

 
1,842

 
2,239

 
294,341

Home Equity Loans
 
135,828

 
309

 
52

 
88

 
449

 
135,379

Consumer Loans
 
59,088

 
281

 
80

 
322

 
683

 
58,405

Residential Mortgage Loans
 
184,218

 
4,331

 
131

 
369

 
4,831

 
179,387

Total(1)
 
$
1,995,026

 
$
7,434

 
$
325

 
$
2,915

 
$
10,674

 
$
1,984,352

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
10,348

 
$
129

 
$
—

 
$
577

 
$
706

 
$
9,642

(1)Total recorded investment in loans includes $8,097 in accrued interest.
December 31, 2016
 
Total
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total
Past Due
 
Loans Not Past Due
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.
Schedule of Recorded Investment of Troubled Debt Restructurings
The following tables present the recorded investment of troubled debt restructurings by class of loans as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
28

 
28

 
—

Total
 
$
28

 
$
28

 
$
—

December 31, 2016
 
Total
 
Performing
 
Non-Accrual(1)
Commercial and Industrial Loans and Leases
 
$
28

 
$
28

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
$
28

 
$
28

 
$
—

 
 
(1)The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page.
Schedule of Modified Troubled Debt Restructuring
The following tables present loans by class modified as troubled debt restructurings that occurred during the three months ending March 31, 2017 and 2016:
March 31, 2017
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial and Industrial Loans and Leases
 
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
1

 
28

 
28

Total
 
1

 
$
28

 
$
28

March 31, 2016
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial and Industrial Loans and Leases
 
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
—

Total
 
—

 
$
—

 
$
—
Schedule of Risk Category of Loans
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
March 31, 2017
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
Commercial and Industrial Loans and Leases
 
$
432,133

 
$
9,119

 
$
10,425

 
$
—

 
$
451,677

Commercial Real Estate Loans
 
824,473

 
25,355

 
17,807

 
—

 
867,635

Agricultural Loans
 
270,373

 
22,868

 
3,339

 
—

 
296,580

Total
 
$
1,526,979

 
$
57,342

 
$
31,571

 
$
—

 
$
1,615,892

Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
 
$
1,489

 
$
3,121

 
$
4,755

 
$
—

 
$
9,365

December 31, 2016
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
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
Schedule of Recorded Investment in Home Equity, Consumer and Residential Mortgage Loans
The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of March 31, 2017 and December 31, 2016:
March 31, 2017
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
Performing
 
$
135,740

 
$
58,766

 
$
183,465

Nonperforming
 
88

 
322

 
753

Total
 
$
135,828

 
$
59,088

 
$
184,218

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

 
$
53

 
$
930

 
December 31, 2016
 
Home Equity Loans
 
Consumer Loans
 
Residential Mortgage Loans
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
Schedule of Carrying Amount of Loans with Deterioration of Credit Quality
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 is as follows: 
 
 
March 31, 2017
 
December 31, 2016
 
 
 
 
 
Commercial and Industrial Loans
 
$
1,251

 
$
1,656

Commercial Real Estate Loans
 
7,426

 
7,688

Agricultural Loans
 
688

 
706

Consumer Loans
 
53

 
53

Residential Mortgage Loans
 
930

 
945

Total
 
$
10,348

 
$
11,048

 
 
 

 
 

Carrying Amount, Net of Allowance
 
$
10,232

 
$
10,943
Schedule of Accretable Yield, or Income Expected to be Collected
Accretable yield, or income expected to be collected, is as follows:
 
 
2017
 
2016
 
 
 
 
 
Balance at January 1
 
$
2,521

 
$
1,279

New Loans Purchased
 
—

 
1,395

Accretion of Income
 
(42
)
 
(61
)
Reclassifications from Non-accretable Difference
 
311

 
—

Charge-off of Accretable Yield
 
—

 
—

Balance at March 31
 
$
2,790

 
$
2,613