Allowance for Loan and Lease Losses (Tables)
12 Months Ended
Dec. 31, 2014
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of activity in the allowance for orginated loan and lease losses

Changes in the allowance for loan and lease losses at December 31, are summarized as follows:

(in thousands)  2014  2013  2012
Total allowance at beginning of year  $27,970   $24,643   $27,593 
Provisions charged to operations   2,306    6,161    8,837 
Recoveries on loans and leases   3,109    5,347    734 
Charge-offs on loans and leases   (4,388)   (8,181)   (12,521)
Total allowance at end of year  $28,997   $27,970   $24,643 

 

The following tables detail activity in the allowance for originated and acquired loan and lease losses by portfolio segment for the twelve months ended December 31, 2014 and 2013.  

 

December 31, 2014                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for originated loans and leases:                              
Beginning balance  $8,406   $10,459   $5,771   $2,059   $5   $26,700 
Charge-offs   (470)   (639)   (512)   (1,308)   0    (2,929)
Recoveries   636    1,832    88    536    0    3,092 
Provision   585    417    (317)   613    (5)   1,293 
Ending Balance  $9,157   $12,069   $5,030   $1,900   $0   $28,156 

 

  

December 31, 2014                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for acquired loans:                  
Beginning balance  $168   $770   $274   $58   $0   $1,270 
Charge-offs   (293)   (631)   (484)   (51)   0    (1,459)
Recoveries   0    0    0    17    0    17 
Provision   556    198    261    (2)   0    1,013 
Ending Balance  $431   $337   $51   $22   $0   $841 

 

December 31, 2013                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for originated loans and leases:                  
Beginning balance  $7,533   $10,184   $4,981   $1,940   $5   $24,643 
Charge-offs   (1,605)   (651)   (752)   (1,282)   0    (4,290)
Recoveries   4,162    718    48    419    0    5,347 
Provision   (1,684)   208    1,494    982    0    1,000 
Ending Balance  $8,406   $10,459   $5,771   $2,059   $5   $26,700 

 

December 31, 2013                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for acquired loans:                  
Beginning balance  $0   $0   $0   $0   $0   $0 
Charge-offs   (2,991)   (179)   (696)   (25)   0    (3,891)
Recoveries   0    0    0    0    0    0 
Provision   3,159    949    970    83    0    5,161 
Ending Balance  $168   $770   $274   $58   $0   $1,270 

 

Schedule of activity in the allowance for loan and lease losses based on impairment methodology

At December 31, 2014 and 2013, the allocation of the allowance for loan and lease losses summarized on the basis of the Company’s impairment methodology was as follows:

 

December 31, 2014                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for originated loans and leases:                  
Individually evaluated for                              
 impairment  $0   $652   $0   $0   $0   $652 
Collectively evaluated for                              
 impairment   9,157    11,417    5,030    1,900    0    27,504 
Ending balance  $9,157   $12,069   $5,030   $1,900   $0   $28,156 
Allowance for acquired loans:                              
Individually evaluated for                              
 impairment  $414   $100   $0   $0   $0   $514 
Collectively evaluated for                              
 impairment   17   237    51    22    0    327 
Ending balance  $431   $337   $51   $22   $0   $841 

 

December 31, 2013                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Allowance for originated loans and leases:                  
Individually evaluated for                  
 impairment  $0   $0   $0   $0   $0   $0 
Collectively evaluated for   8,406    10,459    5,771    2,059    5    26,700 
 impairment                              
Ending balance  $8,406   $10,459   $5,771   $2,059   $5   $26,700 
Allowance for acquired loans:                              
Individually evaluated for                              
 impairment  $0   $250   $0   $0   $0   $250 
Collectively evaluated for                              
 impairment   168    520    274    58    0    1,020 
Ending balance  $168   $770   $274   $58   $0   $1,270 

 

Schedule of recorded investment in loans and leases impairment methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of December 31, 2014 and December 31, 2013 was as follows: 

 

December 31, 2014                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Originated loans and leases:                  
Individually evaluated for                  
impairment  $1,283   $7,675   $1,408   $0   $0   $10,366 
Collectively evaluated for                              
impairment   765,753    1,103,367    896,453    54,172    12,251    2,831,996 
Total  $767,036   $1,111,042   $897,861   $54,172   $12,251   $2,842,362 

 

December 31, 2014                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Covered Loans  Total
Acquired loans:                  
Individually evaluated for                  
impairment  $628   $1,195   $440   $0   $0   $2,263 
Loans acquired with                              
deteriorated credit quality   995    11,640    3,669    0    18,106    34,410 
Collectively evaluated for                              
impairment   95,411    334,741    84,181    1,095    1,213    516,640 
Total  $97,034   $347,576   $88,290   $1,095   $19,319   $553,314 

  

December 31, 2013                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Finance Leases  Total
Originated loans and leases:                  
Individually evaluated for                  
impairment  $4,664    16,269   $1,223   $0   $0   $22,156 
Collectively evaluated for                              
impairment   632,563    986,119    829,552    53,514    5,563    2,507,311 
Total  $637,227   $1,002,388   $830,775   $53,514   $5,563   $2,529,467 

 

December 31, 2013                  
(in thousands)  Commercial and Industrial  Commercial Real Estate  Residential Real Estate  Consumer and Other  Covered Loans  Total
Acquired loans:                  
Individually evaluated for                  
impairment  $2,231    2,429   $73   $0   $0   $4,733 
Loans acquired with                              
deteriorated credit quality   2,558    10,263    9,355    0    24,633    46,809 
Collectively evaluated for                              
impairment   123,714    396,234    93,091    1,224    1,235    615,498 
Total  $128,503   $408,926   $102,519   $1,224   $25,868   $667,040 

 

Schedule of recorded investments in impaired loans

 

        12/31/2014           12/31/2013    
(in thousands)   Recorded Investment   Unpaid Principal Balance   Related Allowance   Recorded Investment   Unpaid Principal Balance   Related Allowance
Originated loans and leases with no related allowance
                         
Commercial and industrial                        
Commercial and industrial other $ 1,283  $ 1,307  $ $ 4,664  $ 5,069  $
Commercial real estate                        
Construction         6,073    11,683   
Commercial real estate other   6,021    6,628      10,196    13,518   
Residential real estate                        
Home equity   1,408    1,499      1,223    1,299   
Subtotal $ 8,712  $ 9,434  $ $ 22,156  $ 31,569  $
                         
Originated loans and leases with related allowance
                         
Commercial real estate                        
Commercial real estate other   1,654    1,654    652       
Subtotal $ 1,654  $ 1,654  $ 652  $ $ $
Total $ 10,366  $ 11,088  $ 652  $ 22,156  $ 31,569  $

  

  12/31/2014 12/31/2013
(in thousands) Recorded Investment Unpaid Principal Balance Related Allowance   Recorded Investment Unpaid Principal Balance Related Allowance
Acquired loans with no related allowance
                           
Commercial and industrial                        
  Commercial and industrial other $ 64  $ 64  $ $ 2,231  $ 5,081  $
Commercial real estate                        
  Commercial real estate other   941    1,204      1,960    1,960   
Residential real estate                        
  Home equity   440    440      73    73   
Subtotal $ 1,445  $ 1,708  $ $ 4,264  $ 7,114  $
                           
Acquired loans with related allowance                    
                           
Commercial and industrial                        
  Commercial and industrial other   564    564    414       
Commercial real estate                        
  Commercial real estate other   254    254    100    469    719    250 
Subtotal $ 818  $ 818  $ 514  $ 469  $ 719  $ 250 
Total $ 2,263  $ 2,526  $ 514  $ 4,733  $ 7,833  $ 250 
                           

 

The average recorded investment and interest income recognized on impaired originated loans for the twelve months ended December 31, 2014, 2013 and 2012 was as follows:

 

  As of December 31,
   2014  2013  2012
(in thousands)  Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized
Originated loans and leases with no related allowance
Commercial and industrial                  
Commercial and industrial other   2,366    0    4,918    0    3,016    0 
Commercial real estate                              
Construction   0    0    6,201    0    7,430    0 
Commercial real estate other   8,078    0    10,775    0    15,120    0 
Residential real estate                              
Home equity   1,408    0    1,223    0    484    0 
Subtotal  $11,852   $0   $23,117   $0   $26,050   $0 
Originated loans and leases with related allowance 
Commercial and industrial                              
Commercial and industrial other   0    0    0    0    3,140    0 
Commercial real estate                              
Commercial real estate other   892    0    0    0    261    0 
Subtotal  $892   $0   $0   $0   $3,401   $0 
Total  $12,744   $0   $23,117   $0   $29,451   $0 

 

The average recorded investment and interest income recognized on impaired acquired loans for the twelve months ended December 31, 2014, 2013 and 2012 was as follows:

 

  As of December 31,
   2014  2013 2012
(in thousands)  Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized
Acquired loans with no related allowance                  
Commercial and industrial                  
Commercial and industrial other   252    0    1,042    0    0    0 
Commercial real estate                              
Commercial real estate other   1,147    0    3,999    102    0    0 
Residential real estate                              
Home equity   440    0    73    0    0    0 
Subtotal  $1,839   $0   $5,114   $102   $0   $0 
Acquired loans with related allowance                              
Commercial and industrial                              
Commercial and industrial other   831    0    0    0    0    0 
Commercial real estate                              
Commercial real estate other   266    0    724    0    0    0 
Subtotal  $1,097   $0   $724   $0   $0   $0 
Total  $2,936   $0   $5,838   $102   $0   $0 

 

Schedule of troubled debt restructurings

The following tables present loans by class modified in 2014 as troubled debt restructurings.

 

 

Troubled Debt Restructuring                    
                     
December 31, 2014   Twelve months ended
                Defaulted TDRs
(in thousands)   Number of Loans   Pre-Modification Outstanding Recorded Investment   Post-Modification Outstanding Recorded Investment   Number of Loans   Post-Modification Outstanding Recorded Investment
Commercial and industrial                    
Commercial and industrial other     1     $ 86     $ 86       0     $ 0  
Commercial real estate                                        
Commercial real estate other     4     $ 917     $ 917       1     $ 63  
Total     5     $ 1,003     $ 1,003     $ 1     $ 63  

Represents the following concessions:  extension of term and reduction of rate
Represents the following concessions:  extension of term and reduction of rate
TDRs that defaulted during the 12 months ended December 31, 2014, that had been restructured in the prior twelve months.   

 

December 31, 2013   Twelve months ended
                Defaulted TDRs4
(in thousands)   Number of Loans   Pre-Modification Outstanding Recorded Investment   Post-Modification Outstanding Recorded Investment   Number of Loans   Post-Modification Outstanding Recorded Investment
Commercial and industrial                                        
Commercial and industrial other     4     $ 878     $ 878       1     $ 645  
Commercial real estate                                        
Commercial real estate other     13     $ 1,837     $ 1,837       1     $ 140  
Residential real estate                                        
Mortgages     1     $ 195     $ 195       1     $ 195  
Total     18     $ 2,910     $ 2,910     $ 3     $ 980  

Represents the following concessions: extension of term and reduction in rate (3 loans: $808,000) extension of term (1 loan: $70,000)
Represents the following concessions: extension of term and reduction of rate (12 loans: $1.9 million) extension of term (1 loan: $129,000)
Represents the following concessions: extension of term and reduction of rate
TDRs that defaulted during the 12 months ended December 31, 2013 that had been restructured in the prior twelve months.
Schedule of credit quality indicators on loans by class of commercial and industrial loans and commercial real estate loans

The following table presents credit quality indicators (internal risk grade) by class of commercial loans, commercial real estate loans and agricultural loans as of December 31, 2014 and 2013.

 

December 31, 2014                        
(in thousands)   Commercial and Industrial Other   Commercial and Industrial Agriculture   Commercial Real Estate Other   Commercial Real Estate Agriculture   Commercial Real Estate Construction   Total
                         
Originated loans and leases                        
Internal risk grade:                        
Pass   $ 670,478     $ 78,250     $ 945,898     $ 58,455     $ 68,696     $ 1,821,777  
Special Mention     12,602       151       19,692       155       3,731       36,331  
Substandard     5,449       106       14,031       384       0       19,970  
Total   $ 688,529     $ 78,507     $ 979,621     $ 58,994     $ 72,427     $ 1,878,078  

 

December 31, 2014
  Commercial and Industrial Other Commercial and Industrial Agriculture Commercial Real Estate Other Commercial Real Estate Agriculture Commercial Real Estate Construction Total
 
(in thousands)
Acquired loans            
Internal risk grade:                        
Pass $ 94,054  $ $ 15,611  $ 1,352  $ 306,268  $ 417,285 
Special Mention   83      5,675        5,758 
Substandard   2,897      14,620    1,830    2,220    21,567 
Total $ 97,034  $ $ 35,906  $ 3,182  $ 308,488  $ 444,610 

 

December 31, 2013

(in thousands)   Commercial and Industrial Other   Commercial and Industrial Agriculture   Commercial Real Estate Other   Commercial Real Estate Agriculture   Commercial Real Estate Construction   Total
Originated loans and leases                        
Internal risk grade:                        
Pass   $ 531,293     $ 72,997     $ 869,488     $ 52,054     $ 36,396     $ 1,562,228  
Special Mention     20,688       100       17,536       123       3,918       42,365  
Substandard     10,458       1,691       16,296       450       6,127       35,022  
Total   $ 562,439     $ 74,788     $ 903,320     $ 52,627     $ 46,441     $ 1,639,615  

 

December 31, 2013

(in thousands)   Commercial and Industrial Other   Commercial and Industrial Agriculture   Commercial Real Estate Other   Commercial Real Estate Agriculture   Commercial Real Estate Construction   Total
Acquired loans                        
Internal risk grade:                        
Pass   $ 116,160     $ 0     $ 5,809     $ 1,150     $ 363,427     $ 486,546  
Special Mention     3,821       0       11,516       1,985       0       17,322  
Substandard     8,522       0       22,028       0       3,011       33,561  
Total   $ 128,503     $ 0     $ 39,353     $ 3,135     $ 366,438     $ 537,429  
Schedule of credit quality indicators by class of residential real estate and consumer loans

The following table presents credit quality indicators by class of residential real estate loans and by class of consumer loans as of December 31, 2014 and 2013. Nonperforming loans include nonaccrual, impaired and loans 90 days past due and accruing interest, all other loans are considered performing.

 

 

December 31, 2014                    
(in thousands)   Residential Home Equity   Residential Mortgages   Consumer Indirect   Consumer Other   Total
Originated loans and leases                    
Performing   $ 185,619     $ 704,663     $ 18,197     $ 35,626     $ 944,105  
Nonperforming     1,338       6,241       101       248       7,928  
Total   $ 186,957     $ 710,904     $ 18,298     $ 35,874     $ 952,033  

 

December 31, 2014                    
(in thousands)   Residential Home Equity   Residential Mortgages   Consumer Indirect   Consumer Other   Total
Acquired Loans and Leases                    
Performing   $ 55,416     $ 31,304     $ 0     $ 1,095     $ 87,815  
Nonperforming     592       978       0       0       1,570  
Total   $ 56,008     $ 32,282     $ 0     $ 1,095     $ 89,385  

 

December 31, 2013                    
(in thousands)   Residential Home Equity   Residential Mortgages   Consumer Indirect   Consumer Other   Total
Originated loans and leases                    
Performing   $ 170,270     $ 651,139     $ 20,986     $ 32,274     $ 874,669  
Nonperforming     1,539       7,827       216       38       9,620  
Total   $ 171,809     $ 658,966     $ 21,202     $ 32,312     $ 884,289  

  

December 31, 2013                    
(in thousands)   Residential Home Equity   Residential Mortgages   Consumer Indirect   Consumer Other   Total
Acquired loans                    
Performing   $ 65,339     $ 33,014     $ 5     $ 1,219     $ 99,577  
Nonperforming     1,844       2,322       0       0       4,166  
Total   $ 67,183     $ 35,336     $ 5     $ 1,219     $ 103,743