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

6 Months Ended

Jun. 30, 2018

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

Portfolio	Class - 2018	Class - 2017
Commercial Loans	Commercial and Industrial	Commercial
	Commercial Real Estate	Commercial Real Estate
	Business Banking	Agricultural
		Agricultural Real Estate
		Business Banking
Consumer Loans	Dealer Finance	Indirect
	Specialty Lending	Home Equity
	Direct	Direct
Residential Real Estate

Allowance for Loan Losses by Portfolio

The following tables illustrate the changes in the allowance for loan losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential Real Estate			Total
Balance as of March 31, 2018	$	28,190		$	36,973		$	5,037		$	70,200
Charge-offs		(907	)		(7,442	)		(208	)		(8,557	)
Recoveries		183			1,700			146			2,029
Provision		3,593			5,248			(63	)		8,778
Ending Balance as of June 30, 2018	$	31,059		$	36,479		$	4,912		$	72,450

Balance as of March 31, 2017	$	24,727		$	34,769		$	6,204		$	65,700
Charge-offs		(1,123	)		(6,261	)		(698	)		(8,082	)
Recoveries		206			1,199			10			1,415
Provision		618			5,816			1,133			7,567
Ending Balance as of June 30, 2017	$	24,428		$	35,523		$	6,649		$	66,600

(In thousands)	Commercial Loans			Consumer Loans			Residential Real Estate			Total
Balance as of December 31, 2017	$	27,606		$	36,830		$	5,064		$	69,500
Charge-offs		(1,712	)		(15,129	)		(390	)		(17,231	)
Recoveries		370			3,344			193			3,907
Provision		4,795			11,434			45			16,274
Ending Balance as of June 30, 2018	$	31,059		$	36,479		$	4,912		$	72,450

Balance as of December 31, 2016	$	25,444		$	33,375		$	6,381		$	65,200
Charge-offs		(2,417	)		(12,763	)		(1,296	)		(16,476	)
Recoveries		653			2,234			43			2,930
Provision		748			12,677			1,521			14,946
Ending Balance as of June 30, 2017	$	24,428		$	35,523		$	6,649		$	66,600

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments:

(In thousands)	Commercial Loans		Consumer Loans		Residential Real Estate		Total
As of June 30, 2018
Allowance for loan losses	$	31,059	$	36,479	$	4,912	$	72,450
Allowance for loans individually evaluated for impairment		25		-		-		25
Allowance for loans collectively evaluated for impairment	$	31,034	$	36,479	$	4,912	$	72,425
Ending balance of loans	$	3,190,556	$	2,317,746	$	1,350,761	$	6,859,063
Ending balance of originated loans individually evaluated for impairment		5,132		8,006		6,591		19,729
Ending balance of acquired loans collectively evaluated for impairment		162,216		36,865		158,908		357,989
Ending balance of originated loans collectively evaluated for impairment	$	3,023,208	$	2,272,875	$	1,185,262	$	6,481,345

As of December 31, 2017
Allowance for loan losses	$	27,606	$	36,830	$	5,064	$	69,500
Allowance for loans individually evaluated for impairment		57		-		-		57
Allowance for loans collectively evaluated for impairment	$	27,549	$	36,830	$	5,064	$	69,443
Ending balance of loans	$	3,028,269	$	2,234,809	$	1,321,695	$	6,584,773
Ending balance of originated loans individually evaluated for impairment		5,876		8,432		6,830		21,138
Ending balance of acquired loans collectively evaluated for impairment		187,313		43,906		170,472		401,691
Ending balance of originated loans collectively evaluated for impairment	$	2,835,080	$	2,182,471	$	1,144,393	$	6,161,944

Past Due and Nonperforming Loans by Loan Class

The following tables set forth information with regard to past due and nonperforming loans by loan class:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of June 30, 2018
Originated
Commercial Loans:
C&I	$	1,395	$	394	$	-	$	1,789	$	1,041	$	833,557	$	836,387
CRE		1,846		-		-		1,846		4,085		1,704,773		1,710,704
Business Banking		1,089		540		-		1,629		6,047		473,573		481,249
Total Commercial Loans	$	4,330	$	934	$	-	$	5,264	$	11,173	$	3,011,903	$	3,028,340
Consumer Loans:
Dealer Finance	$	11,909	$	1,956	$	745	$	14,610	$	1,972	$	1,235,983	$	1,252,565
Specialty Lending		2,960		1,921		1,106		5,987		-		501,631		507,618
Direct		2,488		653		322		3,463		2,716		514,519		520,698
Total Consumer Loans	$	17,357	$	4,530	$	2,173	$	24,060	$	4,688	$	2,252,133	$	2,280,881
Residential Real Estate	$	2,477	$	746	$	36	$	3,259	$	5,600	$	1,182,994	$	1,191,853
Total Originated Loans	$	24,164	$	6,210	$	2,209	$	32,583	$	21,461	$	6,447,030	$	6,501,074

Acquired
Commercial Loans:
C&I	$	-	$	-	$	-	$	-	$	-	$	34,054	$	34,054
CRE		-		-		-		-		2		90,049		90,051
Business Banking		442		80		-		522		603		36,986		38,111
Total Commercial Loans	$	442	$	80	$	-	$	522	$	605	$	161,089	$	162,216
Consumer Loans:
Dealer Finance	$	5	$	-	$	-	$	5	$	14	$	259	$	278
Direct		227		44		-		271		314		36,002		36,587
Total Consumer Loans	$	232	$	44	$	-	$	276	$	328	$	36,261	$	36,865
Residential Real Estate	$	972	$	-	$	-	$	972	$	1,612	$	156,324	$	158,908
Total Acquired Loans	$	1,646	$	124	$	-	$	1,770	$	2,545	$	353,674	$	357,989

Total Loans	$	25,810	$	6,334	$	2,209	$	34,353	$	24,006	$	6,800,704	$	6,859,063

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2017
Originated
Commercial Loans:
Commercial	$	-	$	-	$	-	$	-	$	202	$	753,577	$	753,779
Commercial Real Estate		161		138		-		299		3,178		1,533,065		1,536,542
Agricultural		117		-		-		117		1,043		34,386		35,546
Agricultural Real Estate		493		-		-		493		2,736		30,905		34,134
Business Banking		1,907		597		-		2,504		5,304		473,147		480,955
Total Commercial Loans	$	2,678	$	735	$	-	$	3,413	$	12,463	$	2,825,080	$	2,840,956
Consumer Loans:
Indirect	$	18,747	$	4,033	$	3,492	$	26,272	$	2,115	$	1,642,664	$	1,671,051
Home Equity		2,887		854		341		4,082		2,736		448,081		454,899
Direct		341		108		70		519		35		64,399		64,953
Total Consumer Loans	$	21,975	$	4,995	$	3,903	$	30,873	$	4,886	$	2,155,144	$	2,190,903
Residential Real Estate	$	3,730	$	667	$	1,262	$	5,659	$	5,987	$	1,139,577	$	1,151,223
Total Originated Loans	$	28,383	$	6,397	$	5,165	$	39,945	$	23,336	$	6,119,801	$	6,183,082

Acquired
Commercial Loans:
Commercial	$	-	$	-	$	-	$	-	$	-	$	39,575	$	39,575
Commercial Real Estate		-		-		-		-		2		106,632		106,634
Business Banking		354		-		-		354		669		40,081		41,104
Total Commercial Loans	$	354	$	-	$	-	$	354	$	671	$	186,288	$	187,313
Consumer Loans:
Indirect	$	38	$	-	$	1	$	39	$	22	$	1,157	$	1,218
Home Equity		254		34		103		391		225		39,256		39,872
Direct		6		1		1		8		23		2,785		2,816
Total Consumer Loans	$	298	$	35	$	105	$	438	$	270	$	43,198	$	43,906
Residential Real Estate	$	627	$	226	$	140	$	993	$	1,431	$	168,048	$	170,472
Total Acquired Loans	$	1,279	$	261	$	245	$	1,785	$	2,372	$	397,534	$	401,691

Total Loans	$	29,662	$	6,658	$	5,410	$	41,730	$	25,708	$	6,517,335	$	6,584,773

Impaired Loans and Specific Reserve Allocations

The following table provides information on loans specifically evaluated for impairment:

	June 30, 2018							December 31, 2017
(In thousands)	Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance			Recorded Investment Balance (Book)		Unpaid Principal Balance (Legal)		Related Allowance
Originated
With no related allowance recorded:
Commercial Loans:
C&I	$	412	$	681				$	-	$	-
CRE		3,665		5,585					-		-
Commercial		-		-					-		251
Commercial Real Estate		-		-					2,211		3,979
Agricultural		-		-					452		465
Agricultural Real Estate		-		-					2,250		2,423
Business Banking		1,030		2,104					860		1,730
Total Commercial Loans	$	5,107	$	8,370				$	5,773	$	8,848
Consumer Loans:
Dealer Finance	$	149	$	189				$	-	$	-
Direct		7,857		9,836					-		-
Indirect		-		-					131		143
Home Equity		-		-					8,027		9,966
Direct		-		-					274		274
Total Consumer Loans	$	8,006	$	10,025				$	8,432	$	10,383
Residential Real Estate	$	6,591	$	8,836				$	6,830	$	8,780
Total	$	19,704	$	27,231				$	21,035	$	28,011

With an allowance recorded:
Commercial Loans:
C&I	$	25	$	25		$	25	$	-	$	-		$	-
Commercial Real Estate		-		-			-		76		82			30
Agricultural		-		-			-		27		27			27
Total Commercial Loans	$	25	$	25		$	25	$	103	$	109		$	57

Total Loans	$	19,729	$	27,256		$	25	$	21,138	$	28,120		$	57

The following tables summarize the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:

	For the three months ended
	June 30, 2018				June 30, 2017
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated
Commercial Loans:
C&I	$	447	$	1	$	-	$	-
CRE		3,882		32		-		-
Commercial		-		-		3,931		-
Commercial Real Estate		-		-		3,243		1
Agricultural		-		-		157		1
Agricultural Real Estate		-		-		1,549		10
Business Banking		1,044		3		890		3
Total Commercial Loans	$	5,373	$	36	$	9,770	$	15
Consumer Loans:
Dealer Finance	$	194	$	1	$	-	$	-
Direct		7,952		106		-		-
Indirect		-		-		25		1
Home Equity		-		-		8,205		110
Direct		-		-		120		-
Total Consumer Loans	$	8,146	$	107	$	8,350	$	111
Residential Real Estate	$	6,738	$	71	$	6,388	$	68
Total Originated Loans	$	20,257	$	214	$	24,508	$	194

Total Loans	$	20,257	$	214	$	24,508	$	194

	For the six months ended
	June 30, 2018				June 30, 2017
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated
Commercial Loans:
C&I	$	457	$	1	$	-	$	-
CRE		4,154		64		-		-
Commercial		-		-		3,419		-
Commercial Real Estate		-		-		4,584		45
Agricultural		-		-		165		1
Agricultural Real Estate		-		-		1,564		21
Business Banking		988		8		788		5
Total Commercial Loans	$	5,599	$	73	$	10,520	$	72
Consumer Loans:
Dealer Finance	$	188	$	4	$	-	$	-
Direct		8,066		215		-		-
Indirect		-		-		16		1
Home Equity		-		-		8,310		220
Direct		-		-		120		-
Total Consumer Loans	$	8,254	$	219	$	8,446	$	221
Residential Real Estate	$	6,815	$	144	$	6,308	$	129
Total Originated Loans	$	20,668	$	436	$	25,274	$	422

Acquired
Commercial Loans:
Commercial Real Estate	$	-	$	-	$	172	$	-
Total Commercial Loans	$	-	$	-	$	172	$	-
Total Acquired Loans	$	-	$	-	$	172	$	-

Total Loans	$	20,668	$	436	$	25,446	$	422

Financing Receivable Credit Quality by Loan Class

The following tables illustrate the Company’s credit quality by loan class:

(In thousands)	As of June 30, 2018
Originated
Commercial Credit Exposure By Internally Assigned Grade:		C&I	CRE		Total
Pass	$	773,097	$	1,658,780	$	2,431,877
Special Mention		46,153		14,720		60,873
Substandard		16,737		37,204		53,941
Doubtful		400		-		400
Total	$	836,387	$	1,710,704	$	2,547,091

Business Banking Credit Exposure By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	469,660	$	469,660
Classified		11,589		11,589
Total	$	481,249	$	481,249

Consumer Credit Exposure By Payment Activity:	Dealer Finance		Specialty Lending		Direct		Total
Performing	$	1,249,848	$	506,512	$	517,660	$	2,274,020
Nonperforming		2,717		1,106		3,038		6,861
Total	$	1,252,565	$	507,618	$	520,698	$	2,280,881

Residential Real Estate Credit Exposure By Payment Activity:	Residential Real Estate		Total
Performing	$	1,186,217	$	1,186,217
Nonperforming		5,636		5,636
Total	$	1,191,853	$	1,191,853

Acquired

Commercial Credit Exposure By Internally Assigned Grade:		C&I	CRE		Total
Pass	$	28,989	$	88,818	$	117,807
Special Mention		5,019		564		5,583
Substandard		46		669		715
Total	$	34,054	$	90,051	$	124,105

Business Banking Credit Exposure By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	35,691	$	35,691
Classified		2,420		2,420
Total	$	38,111	$	38,111

Consumer Credit Exposure By Payment Activity:	Dealer Finance		Direct		Total
Performing	$	264	$	36,273	$	36,537
Nonperforming		14		314		328
Total	$	278	$	36,587	$	36,865

Residential Real Estate Credit Exposure By Payment Activity:	Residential Real Estate		Total
Performing	$	157,296	$	157,296
Nonperforming		1,612		1,612
Total	$	158,908	$	158,908

(In thousands)	As of December 31, 2017
Originated
Commercial Credit Exposure By Internally Assigned Grade:	Commercial			Commercial Real Estate			Agricultural		Agricultural Real Estate			Total
Pass		$	708,567		$	1,481,926	$	31,142		$	23,381		$	2,245,016
Special Mention			30,337			28,264		2,294			2,441			63,336
Substandard			14,875			26,352		2,110			8,312			51,649
Total		$	753,779		$	1,536,542	$	35,546		$	34,134		$	2,360,001

Business Banking Credit Exposure By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	468,898	$	468,898
Classified		12,057		12,057
Total	$	480,955	$	480,955

Consumer Credit Exposure By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,665,444	$	451,822	$	64,848	$	2,182,114
Nonperforming		5,607		3,077		105		8,789
Total	$	1,671,051	$	454,899	$	64,953	$	2,190,903

Residential Real Estate Credit Exposure By Payment Activity:	Residential Real Estate		Total
Performing	$	1,143,974	$	1,143,974
Nonperforming		7,249		7,249
Total	$	1,151,223	$	1,151,223

Acquired
Commercial Credit Exposure By Internally Assigned Grade:	Commercial		Commercial Real Estate		Total
Pass	$	37,825	$	103,248	$	141,073
Special Mention		425		498		923
Substandard		1,325		2,888		4,213
Total	$	39,575	$	106,634	$	146,209

Business Banking Credit Exposure By Internally Assigned Grade:	Business Banking		Total
Non-classified	$	38,236	$	38,236
Classified		2,868		2,868
Total	$	41,104	$	41,104

Consumer Credit Exposure By Payment Activity:	Indirect		Home Equity		Direct		Total
Performing	$	1,195	$	39,544	$	2,792	$	43,531
Nonperforming		23		328		24		375
Total	$	1,218	$	39,872	$	2,816	$	43,906

Residential Real Estate Credit Exposure By Payment Activity:	Residential Real Estate		Total
Performing	$	168,901	$	168,901
Nonperforming		1,571		1,571
Total	$	170,472	$	170,472

Troubled Debt Restructurings on Financing Receivables

The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:

	Three months ended June 30, 2018
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Loans:
Business Banking		1	$	6	$	5
Total Commercial Loans		1	$	6	$	5
Consumer Loans:
Dealer Finance		1	$	13	$	13
Total Consumer Loans		1	$	13	$	13
Total Troubled Debt Restructurings		2	$	19	$	18

	Three months ended June 30, 2017
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Loans:
Commercial		1	$	3,300	$	3,239
Business Banking		1		337		333
Total Commercial Loans		2	$	3,637	$	3,572
Consumer Loans:
Indirect		3	$	32	$	31
Home Equity		1		78		78
Direct		1		120		120
Total Consumer Loans		5	$	230	$	229
Residential Real Estate		4	$	346	$	346
Total Troubled Debt Restructurings		11	$	4,213	$	4,147

	Six months ended June 30, 2018
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Loans:
Business Banking		3	$	369	$	371
Total Commercial Loans		3	$	369	$	371
Consumer Loans:
Dealer Finance		7	$	95	$	94
Direct		2		41		41
Total Consumer Loans		9	$	136	$	135
Residential Real Estate		5	$	323	$	323
Total Troubled Debt Restructurings		17	$	828	$	829

	Six months ended June 30, 2017
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Loans:
Commercial		1	$	3,300	$	3,239
Business Banking		1		337		333
Total Commercial Loans		2	$	3,637	$	3,572
Consumer Loans:
Indirect		3	$	32	$	31
Home Equity		4		185		192
Direct		1		120		120
Total Consumer Loans		8	$	337	$	343
Residential Real Estate		6	$	548	$	554
Total Troubled Debt Restructurings		16	$	4,522	$	4,469

The following tables illustrate the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:

	Three months ended June 30, 2018				Three months ended June 30, 2017
(Dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial Loans:
Business Banking		1	$	58		1	$	329
Total Commercial Loans		1	$	58		1	$	329
Consumer Loans:
Indirect		-	$	-		1	$	14
Home Equity		-		-		13		589
Direct		13		495		-		-
Total Consumer Loans		13	$	495		14	$	603
Residential Real Estate		7	$	599		4	$	251
Total Troubled Debt Restructurings		21	$	1,152		19	$	1,183

	Six months ended June 30, 2018				Six months ended June 30, 2017
(Dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial Loans:
Commercial		-	$	-		1	$	145
Business Banking		2		258		1		329
Total Commercial Loans		2	$	258		2	$	474
Consumer Loans:
Indirect		-	$	-		2	$	19
Home Equity		-		-		22		1,101
Direct		25		1,260		-		-
Total Consumer Loans		25	$	1,260		24	$	1,120
Residential Real Estate		13	$	907		8	$	419
Total Troubled Debt Restructurings		40	$	2,425		34	$	2,013