Allowance for Loan Losses and Credit Quality of Loans (Tables)

3 Months Ended

Mar. 31, 2014

Allowance for Loan Losses and Credit Quality of Loans [Abstract]

Allowance for loan losses by portfolio

The following tables illustrate the changes in the allowance for loan losses by our portfolio segments for the three months ended March 31, 2014 and 2013:

							Residential
Three months ended March 31	Commercial			Consumer			Real Estate
	Loans			Loans			Mortgages			Unallocated		Total
Balance as of December 31, 2013	$	35,090		$	27,694		$	6,520		$	130	$	69,434
Charge-offs		(479	)		(4,032	)		(319	)		-		(4,830	)
Recoveries		399			741			94			-		1,234
Provision		(573	)		4,033			(70	)		206		3,596
Ending Balance as of March 31, 2014	$	34,437		$	28,436		$	6,225		$	336	$	69,434
Balance as of December 31, 2012	$	35,624		$	27,162		$	6,252		$	296	$	69,334
Charge-offs		(3,322	)		(3,723	)		(671	)		-		(7,716	)
Recoveries		467			977			14			-		1,458
Provision		2,589			1,869			1,113			87		5,658
Ending Balance as of March 31, 2013	$	35,358		$	26,285		$	6,708		$	383	$	68,734

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments as of March 31, 2014 and December 31, 2013:

Allowance for Loan Losses and Recorded Investment in Loans

(in thousands)

					Residential
	Commercial		Consumer		Real Estate
	Loans		Loans		Mortgages		Unallocated		Total
As of March 31, 2014
Allowance for loan losses	$	34,437	$	28,436	$	6,225	$	336	$	69,434
Allowance for loans individually evaluated for impairment		925		-		-				925
Allowance for loans collectively evaluated for impairment	$	33,512	$	28,436	$	6,225	$	336	$	68,509
Ending balance of loans	$	2,436,202	$	1,989,030	$	1,056,793			$	5,482,025
Ending balance of originated loans individually evaluated for impairment		15,025		4,248		2,722				21,995
Ending balance of acquired loans individually evaluated for impairment		9,873		-		-				9,873
Ending balance of acquired loans collectively evaluated for impairment		385,669		199,196		300,360				885,225
Ending balance of originated loans collectively evaluated for impairment	$	2,025,635	$	1,785,586	$	753,711			$	4,564,932
As of December 31, 2013
Allowance for loan losses	$	35,090	$	27,694	$	6,520	$	130	$	69,434
Allowance for loans individually evaluated for impairment		715		-		-				715
Allowance for loans collectively evaluated for impairment	$	34,375	$	27,694	$	6,520	$	130	$	68,719
Ending balance of loans	$	2,392,621	$	1,972,537	$	1,041,637			$	5,406,795
Ending balance of originated loans individually evaluated for impairment		16,120		3,248		2,012				21,380
Ending balance of acquired loans individually evaluated for impairment		10,060		-		-				10,060
Ending balance of acquired loans collectively evaluated for impairment		392,329		219,587		308,416				920,332
Ending balance of originated loans collectively evaluated for impairment	$	1,974,112	$	1,749,702	$	731,209			$	4,455,023

Past due and nonperforming loans by loan class

The following table illustrates the Company’s nonaccrual loans by loan class:

Loans on Nonaccrual Status as of:

(In thousands)	March 31, 2014		December 31, 2013
ORIGINATED
Commercial Loans
Commercial	$	3,644	$	3,669
Commercial Real Estate		7,282		7,834
Agricultural		1,366		1,135
Agricultural Real Estate		1,758		961
Business Banking		5,708		5,701
		19,758		19,300
Consumer Loans
Indirect		1,549		1,461
Home Equity		7,074		5,931
Direct		76		86
		8,699		7,478
Residential Real Estate Mortgages		6,905		7,105
	$	35,362	$	33,883
ACQUIRED
Commercial Loans
Commercial	$	6,477	$	6,599
Commercial Real Estate		3,493		3,559
Business Banking		1,037		1,340
		11,007		11,498
Consumer Loans
Indirect		129		93
Home Equity		808		570
Direct		38		49
		975		712
Residential Real Estate Mortgages		4,120		3,872
	$	16,102	$	16,082
TOTAL NONACCRUAL LOANS	$	51,464	$	49,965

The following tables set forth information with regard to past due and nonperforming loans by loan class as of March 31, 2014 and December 31, 2013:

Age Analysis of Past Due Financing Receivables

As of March 31, 2014

(in thousands)

					Greater Than
	31-60 Days		61-90 Days		90 Days		Total						Recorded
	Past Due		Past Due		Past Due		Past Due						Total
	Accruing		Accruing		Accruing		Accruing		Non-Accrual		Current		Loans
ORIGINATED
Commercial Loans
Commercial	$	-	$	409	$	-	$	409	$	3,644	$	631,041	$	635,094
Commercial Real Estate		367		69		-		436		7,282		959,156		966,874
Agricultural		-		-		-		-		1,366		60,979		62,345
Agricultural Real Estate		136		-		-		136		1,758		36,719		38,613
Business Banking		1,151		159		158		1,468		5,708		330,558		337,734
		1,654		637		158		2,449		19,758		2,018,453		2,040,660
Consumer Loans
Indirect		9,189		2,061		1,286		12,536		1,549		1,203,341		1,217,426
Home Equity		5,403		2,032		583		8,018		7,074		502,372		517,464
Direct		413		90		52		555		76		54,313		54,944
		15,005		4,183		1,921		21,109		8,699		1,760,026		1,789,834
Residential Real Estate Mortgages		3,307		1,076		444		4,827		6,905		744,701		756,433
	$	19,966	$	5,896	$	2,523	$	28,385	$	35,362	$	4,523,180	$	4,586,927
ACQUIRED
Commercial Loans
Commercial	$	150	$	-	$	-	$	150	$	6,477	$	97,406	$	104,033
Commercial Real Estate		-		-		-		-		3,493		219,524		223,017
Business Banking		45		-		-		45		1,037		67,410		68,492
		195		-		-		195		11,007		384,340		395,542
Consumer Loans
Indirect		575		84		50		709		129		107,501		108,339
Home Equity		288		93		112		493		808		83,044		84,345
Direct		99		8		15		122		38		6,352		6,512
		962		185		177		1,324		975		196,897		199,196
Residential Real Estate Mortgages		1,329		39		-		1,368		4,120		294,872		300,360
	$	2,486	$	224	$	177	$	2,887	$	16,102	$	876,109	$	895,098
Total Loans	$	22,452	$	6,120	$	2,700	$	31,272	$	51,464	$	5,399,289	$	5,482,025

Age Analysis of Past Due Financing Receivables

As of December 31, 2013

(in thousands)

					Greater Than
	31-60 Days		61-90 Days		90 Days		Total						Recorded
	Past Due		Past Due		Past Due		Past Due						Total
	Accruing		Accruing		Accruing		Accruing		Non-Accrual		Current		Loans
ORIGINATED
Commercial Loans
Commercial	$	105	$	247	$	-	$	352	$	3,669	$	612,402	$	616,423
Commercial Real Estate		1,366		-		-		1,366		7,834		925,116		934,316
Agricultural		150		21		-		171		1,135		63,856		65,162
Agricultural Real Estate		519		-		-		519		961		35,172		36,652
Business Banking		1,228		122		105		1,455		5,701		330,523		337,679
		3,368		390		105		3,863		19,300		1,967,069		1,990,232
Consumer Loans
Indirect		14,093		2,878		1,583		18,554		1,461		1,141,829		1,161,844
Home Equity		6,033		1,888		1,115		9,036		5,931		517,856		532,823
Direct		679		125		46		850		86		57,347		58,283
		20,805		4,891		2,744		28,440		7,478		1,717,032		1,752,950
Residential Real Estate Mortgages		3,951		379		808		5,138		7,105		720,978		733,221
	$	28,124	$	5,660	$	3,657	$	37,441	$	33,883	$	4,405,079	$	4,476,403
ACQUIRED
Commercial Loans
Commercial	$	24	$	-	$	-	$	24	$	6,599	$	96,603	$	103,226
Commercial Real Estate		-		-		-		-		3,559		225,455		229,014
Business Banking		320		2		-		322		1,340		68,487		70,149
		344		2		-		346		11,498		390,545		402,389
Consumer Loans
Indirect		939		113		71		1,123		93		123,870		125,086
Home Equity		753		63		-		816		570		85,690		87,076
Direct		76		56		9		141		49		7,235		7,425
		1,768		232		80		2,080		712		216,795		219,587
Residential Real Estate Mortgages		1,725		-		-		1,725		3,872		302,819		308,416
	$	3,837	$	234	$	80	$	4,151	$	16,082	$	910,159	$	930,392
Total Loans	$	31,961	$	5,894	$	3,737	$	41,592	$	49,965	$	5,315,238	$	5,406,795

Impaired loans and specific reserve allocations

The following table provides information on loans specifically evaluated for impairment as of March 31, 2014 and December 31, 2013:

	March 31, 2014						December 31, 2013
	Recorded		Unpaid				Recorded		Unpaid
	Investment		Principal				Investment		Principal
	Balance		Balance		Related		Balance		Balance		Related
(in thousands)	(Book)		(Legal)		Allowance		(Book)		(Legal)		Allowance
ORIGINATED
With no related allowance recorded:
Commercial Loans
Commercial	$	2,026	$	2,096			$	4,721	$	4,777
Commercial Real Estate		7,252		7,823				4,613		5,164
Agricultural		124		195				125		195
Agricultural Real Estate		1,418		1,697				1,431		1,708
Business Banking		172		564				210		602
Total Commercial Loans		10,992		12,375				11,100		12,446
Consumer Loans
Home Equity		4,248		4,534				3,248		3,472
Residential Real Estate Mortgages		2,722		3,036				2,012		2,255
Total		17,962		19,945				16,360		18,173
With an allowance recorded:
Commercial Loans
Commercial Real Estate		4,033		5,890		925		5,020		6,877		715
ACQUIRED
With no related allowance recorded:
Commercial Loans
Commercial		6,380		6,538				6,501		6,538
Commercial Real Estate		3,493		3,842				3,559		3,842
Total Commercial Loans		9,873		10,380				10,060		10,380
Total:	$	31,868	$	36,215	$	925	$	31,440	$	35,430	$	715

The following tables summarize the average recorded investments on impaired loans specifically evaluated for impairment and the interest income recognized for the three ended March 31, 2014 and 2013:

	For the three months ended
	March 31, 2014				March 31, 2013
	Average				Average
	Recorded		Interest Income		Recorded		Interest Income
(in thousands)	Investment		Recognized		Investment		Recognized
ORIGINATED
Commercial Loans
Commercial	$	2,038	$	-	$	5,069	$	29
Commercial Real Estate		11,553		42		12,339		72
Agricultural		125		-		378		3
Agricultural Real Estate		1,424		12		900		12
Business Banking		185		12		80		-
Consumer Loans
Home Equity		4,282		43		2,901		29
Residential Real Estate Mortgage		2,727		23		2,065		11
Total Originated	$	22,334	$	132	$	23,732	$	156
ACQUIRED
Commercial Loans
Commercial		6,436		-		-		-
Commercial Real Estate		3,524		-		-		-
TotalAcquired	$	9,960	$	-	$	-	$	-
Total Loans	$	32,294	$	132	$	23,732	$	156

Financing receivable credit quality by loan class

The following tables illustrate the Company’s credit quality by loan class as of March 31, 2014 and December 31, 2013:

Credit Quality Indicators

As of March 31, 2014

ORIGINATED
Commercial Credit Exposure			Commercial				Agricultural
By Internally Assigned Grade:	Commercial		Real Estate		Agricultural		Real Estate		Total
Pass	$	585,553	$	910,431	$	57,573	$	34,754	$	1,588,311
Special Mention		12,755		20,924		366		7		34,052
Substandard		36,786		35,519		4,394		3,852		80,551
Doubtful		-		-		12		-		12
Total	$	635,094	$	966,874	$	62,345	$	38,613	$	1,702,926
Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking								Total
Non-classified	$	319,727							$	319,727
Classified		18,007								18,007
Total	$	337,734							$	337,734
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct				Total
Performing	$	1,214,591	$	509,807	$	54,816			$	1,779,214
Nonperforming		2,835		7,657		128				10,620
Total	$	1,217,426	$	517,464	$	54,944			$	1,789,834
Residential Mortgage Credit Exposure	Residential
By Payment Activity:	Mortgage								Total
Performing	$	749,084							$	749,084
Nonperforming		7,349								7,349
Total	$	756,433							$	756,433

Credit Quality Indicators

As of March 31, 2014

ACQUIRED
Commercial Credit Exposure			Commercial
By Internally Assigned Grade:	Commercial		Real Estate		Agricultural		Total
Pass	$	88,439	$	204,582	$	-	$	293,021
Special Mention		2,010		2,699		-		4,709
Substandard		13,584		15,736		-		29,320
Doubtful		-		-		-		-
Total	$	104,033	$	223,017	$	-	$	327,050
Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	63,332					$	63,332
Classified		5,160						5,160
Total	$	68,492					$	68,492
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	108,160	$	83,425	$	6,459	$	198,044
Nonperforming		179		920		53		1,152
Total	$	108,339	$	84,345	$	6,512	$	199,196
Residential Mortgage Credit Exposure	Residential
By Payment Activity:	Mortgage						Total
Performing	$	296,240					$	296,240
Nonperforming		4,120						4,120
Total	$	300,360					$	300,360

Credit Quality Indicators

As of December 31, 2013

ORIGINATED
Commercial Credit Exposure			Commercial				Agricultural
By Internally Assigned Grade:	Commercial		Real Estate		Agricultural		Real Estate		Total
Pass	$	576,079	$	878,411	$	60,043	$	33,136	$	1,547,669
Special Mention		16,836		22,777		381		43		40,037
Substandard		23,508		33,128		4,726		3,473		64,835
Doubtful		-		-		12		-		12
Total	$	616,423	$	934,316	$	65,162	$	36,652	$	1,652,553
Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking								Total
Non-classified	$	319,578							$	319,578
Classified		18,101								18,101
Total	$	337,679							$	337,679
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct				Total
Performing	$	1,158,800	$	525,777	$	58,151			$	1,742,728
Nonperforming		3,044		7,046		132				10,222
Total	$	1,161,844	$	532,823	$	58,283			$	1,752,950
Residential Mortgage Credit Exposure	Residential
By Payment Activity:	Mortgage								Total
Performing	$	725,308							$	725,308
Nonperforming		7,913								7,913
Total	$	733,221							$	733,221

Credit Quality Indicators

As of December 31, 2013

ACQUIRED
Commercial Credit Exposure			Commercial
By Internally Assigned Grade:	Commercial		Real Estate		Agricultural		Total
Pass	$	85,692	$	205,010	$	-	$	290,702
Special Mention		2,230		6,183		-		8,413
Substandard		15,304		17,821		-		33,125
Doubtful		-		-		-		-
Total	$	103,226	$	229,014	$	-	$	332,240
Business Banking Credit Exposure
By Internally Assigned Grade:	Business Banking						Total
Non-classified	$	65,437					$	65,437
Classified		4,712						4,712
Total	$	70,149					$	70,149
Consumer Credit Exposure
By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	124,922	$	86,506	$	7,367	$	218,795
Nonperforming		164		570		58		792
Total	$	125,086	$	87,076	$	7,425	$	219,587
Residential Mortgage Credit Exposure	Residential
By Payment Activity:	Mortgage						Total
Performing	$	304,544					$	304,544
Nonperforming		3,872						3,872
Total	$	308,416					$	308,416