Loans | Loans Loans were comprised of the following classifications at June 30, 2017 and December 31, 2016: June 30, December 31, Commercial: Commercial and Industrial Loans and Leases $ 467,754 $ 457,372 Commercial Real Estate Loans 870,100 856,094 Agricultural Loans 313,254 303,128 Retail: Home Equity Loans 141,377 133,575 Consumer Loans 61,185 59,945 Residential Mortgage Loans 181,477 183,290 Subtotal 2,035,147 1,993,404 Less: Unearned Income (3,404 ) (3,449 ) Allowance for Loan Losses (15,320 ) (14,808 ) Loans, Net $ 2,016,423 $ 1,975,147 The following tables present the activity in the allowance for loan losses by portfolio class for the three months ended June 30, 2017 and 2016: June 30, 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 $ 3,612 $ 5,696 $ 4,361 $ 299 $ 244 $ 348 $ 606 $ 15,166 Provision for Loan Losses 62 (259 ) 468 16 54 19 (10 ) 350 Recoveries 7 34 — 2 67 8 — 118 Loans Charged-off (9 ) (155 ) — (17 ) (111 ) (22 ) — (314 ) Ending Balance $ 3,672 $ 5,316 $ 4,829 $ 300 $ 254 $ 353 $ 596 $ 15,320 June 30, 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 $ 4,346 $ 6,463 $ 2,529 $ 352 $ 230 $ 531 $ 710 $ 15,161 Provision for Loan Losses (180 ) 68 175 9 66 196 16 350 Recoveries 24 2 — — 43 4 — 73 Loans Charged-off — — — (11 ) (97 ) (172 ) — (280 ) Ending Balance $ 4,190 $ 6,533 $ 2,704 $ 350 $ 242 $ 559 $ 726 $ 15,304 The following tables present the activity in the allowance for loan losses by portfolio class for the six months ended June 30, 2017 and 2016: June 30, 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 (53 ) 19 735 33 172 38 (94 ) 850 Recoveries 9 39 — 2 127 35 — 212 Loans Charged-off (9 ) (194 ) — (18 ) (280 ) (49 ) — (550 ) Ending Balance $ 3,672 $ 5,316 $ 4,829 $ 300 $ 254 $ 353 $ 596 $ 15,320 June 30, 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 (75 ) 188 589 40 93 351 14 1,200 Recoveries 28 3 — 1 88 9 — 129 Loans Charged-off (5 ) — — (74 ) (169 ) (215 ) — (463 ) Ending Balance $ 4,190 $ 6,533 $ 2,704 $ 350 $ 242 $ 559 $ 726 $ 15,304 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. 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 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 June 30, 2017 and December 31, 2016: June 30, 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 $ 260 $ 10 $ 180 $ 70 $ — $ — $ — $ — Collectively Evaluated for Impairment 15,000 3,659 5,132 4,711 300 249 353 596 Acquired with Deteriorated Credit Quality 60 3 4 48 — 5 — — Total Ending Allowance Balance $ 15,320 $ 3,672 $ 5,316 $ 4,829 $ 300 $ 254 $ 353 $ 596 Loans: Loans Individually Evaluated for Impairment $ 1,413 $ 187 $ 836 $ 390 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 2,031,844 467,531 864,532 315,691 141,851 61,281 180,958 n/m (2) Loans Acquired with Deteriorated Credit Quality 9,513 1,247 6,602 683 — 53 928 n/m (2) Total Ending Loans Balance (1) $ 2,042,770 $ 468,965 $ 871,970 $ 316,764 $ 141,851 $ 61,334 $ 181,886 n/m (2) (1) Total recorded investment in loans includes $7,623 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 The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2017 and December 31, 2016: June 30, 2017 Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 196 $ 139 $ — Commercial Real Estate Loans 838 450 — Agricultural Loans 199 162 — Subtotal 1,233 751 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 105 64 13 Commercial Real Estate Loans 800 791 184 Agricultural Loans 806 715 118 Subtotal 1,711 1,570 315 Total $ 2,944 $ 2,321 $ 315 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 581 $ 203 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 844 $ 705 $ 55 (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 June 30, 2017 and 2016: June 30, 2017 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 150 $ 2 $ 1 Commercial Real Estate Loans 1,124 26 26 Agricultural Loans 496 19 16 Subtotal 1,770 47 43 With An Allowance Recorded: Commercial and Industrial Loans and Leases 65 1 — Commercial Real Estate Loans 795 4 — Agricultural Loans 727 — — Subtotal 1,587 5 — Total $ 3,357 $ 52 $ 43 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 245 $ 25 $ 25 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 712 $ 4 $ — June 30, 2016 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 185 $ 3 $ 1 Commercial Real Estate Loans 3,397 6 1 Agricultural Loans 845 — — Subtotal 4,427 9 2 With An Allowance Recorded: Commercial and Industrial Loans and Leases 86 — — Commercial Real Estate Loans 2,198 1 — Agricultural Loans — — — Subtotal 2,284 1 — Total $ 6,711 $ 10 $ 2 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 2,324 $ 4 $ 1 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — The following tables present loans individually evaluated for impairment by class of loans for the six month period ended June 30, 2017 and 2016: June 30, 2017 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 83 $ 2 $ 2 Commercial Real Estate Loans 823 30 29 Agricultural Loans 607 24 16 Subtotal 1,513 56 47 With An Allowance Recorded: Commercial and Industrial Loans and Leases 84 2 1 Commercial Real Estate Loans 1,609 10 6 Agricultural Loans 612 — — Subtotal 2,305 12 7 Total $ 3,818 $ 68 $ 54 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 311 $ 25 $ 25 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 721 $ 11 $ 7 June 30, 2016 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 133 $ 25 $ 12 Commercial Real Estate Loans 1,988 24 4 Agricultural Loans 428 2 1 Subtotal 2,549 51 17 With An Allowance Recorded: Commercial and Industrial Loans and Leases 108 — — Commercial Real Estate Loans 2,216 2 — Agricultural Loans — — — Subtotal 2,324 2 — Total $ 4,873 $ 53 $ 17 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 1,697 $ 12 $ 2 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — 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 June 30, 2017 and December 31, 2016: Non-Accrual Loans Loans Past Due 90 Days or More & Still Accruing June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Commercial and Industrial Loans and Leases $ 60 $ 86 $ — $ 2 Commercial Real Estate Loans 982 1,408 32 — Agricultural Loans 878 792 31 — Home Equity Loans 72 73 — — Consumer Loans 433 85 — — Residential Mortgage Loans 672 1,349 — — Total $ 3,097 $ 3,793 $ 63 $ 2 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 820 $ 1,264 $ — $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of June 30, 2017 and December 31, 2016: June 30, 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 $ 468,965 $ 51 $ 3 $ 53 $ 107 $ 468,858 Commercial Real Estate Loans 871,970 1,060 52 393 1,505 870,465 Agricultural Loans 316,764 110 — 746 856 315,908 Home Equity Loans 141,851 234 19 72 325 141,526 Consumer Loans 61,334 164 40 433 637 60,697 Residential Mortgage Loans 181,886 2,791 982 382 4,155 177,731 Total (1) $ 2,042,770 $ 4,410 $ 1,096 $ 2,079 $ 7,585 $ 2,035,185 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 9,513 $ — $ — $ 568 $ 568 $ 8,945 (1) Total recorded investment in loans includes $7,623 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. 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 three months ended June 30, 2017 there was one loan modified as a troubled debt restructuring. During the six months ended June 30, 2017, there were two loans modified as troubled debt restructurings. During the three and six months ended June 30, 2016, 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 June 30, 2017 and December 31, 2016: June 30, 2017 Total Performing Non-Accrual (1) Commercial and Industrial Loans and Leases $ 127 $ 127 $ — Commercial Real Estate Loans 27 27 — Total $ 154 $ 154 $ — 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. The Company had not committed to lending any additional amounts as of June 30, 2017 and December 31, 2016 to customers with outstanding loans that are classified as troubled debt restructurings. The total allowance associated with the loans modified as troubled debt restructurings as of June 30, 2017 and December 31, 2016 was $16 and $3 , respectively. The following tables present loans by class modified as troubled debt restructurings that occurred during the three months ending June 30, 2017 and 2016: June 30, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial and Industrial Loans and Leases 1 $ 127 $ 127 Commercial Real Estate Loans — — — Total 1 $ 127 $ 127 The troubled debt restructurings described above increased the allowance for loan losses by $8 and resulted in charge-offs of $0 during the three months ending June 30, 2017. June 30, 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 — $ — $ — The troubled debt restructurings described above increased the allowance for loan losses by $0 and resulted in charge-offs of $0 during the three months ending June 30, 2016. The following tables present loans by class modified as troubled debt restructurings that occurred during the six months ending June 30, 2017 and 2016: June 30, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial and Industrial Loans and Leases 1 $ 127 $ 127 Commercial Real Estate Loans 1 28 28 Total 2 $ 155 $ 155 The troubled debt restructurings described above increased the allowance for loan losses by $10 and resulted in charge-offs of $0 during the six months ending June 30, 2017. June 30, 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 — $ — $ — The troubled debt restructurings described above increased the allowance for loan losses by $0 and resulted in charge-offs of $0 during the six months ending June 30, 2016. 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 three and six months ending June 30, 2017 and 2016. 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 $250. 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: June 30, 2017 Pass Special Mention Substandard Doubtful Total Commercial and Industrial Loans and Leases $ 449,772 $ 8,792 $ 10,401 $ — $ 468,965 Commercial Real Estate Loans 833,572 23,865 14,533 — 871,970 Agricultural Loans 287,410 26,230 3,124 — 316,764 Total $ 1,570,754 $ 58,887 $ 28,058 $ — $ 1,657,699 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 1,479 $ 3,120 $ 3,933 $ — $ 8,532 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 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 June 30, 2017 and December 31, 2016: June 30, 2017 Home Equity Loans Consumer Loans Residential Mortgage Loans Performing $ 141,779 $ 60,901 $ 181,214 Nonperforming 72 433 672 Total $ 141,851 $ 61,334 $ 181,886 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ — $ 53 $ 928 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 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: June 30, 2017 December 31, 2016 Commercial and Industrial Loans $ 1,247 $ 1,656 Commercial Real Estate Loans 6,602 7,688 Agricultural Loans 683 706 Consumer Loans 53 53 Residential Mortgage Loans 928 945 Total $ 9,513 $ 11,048 Carrying Amount, Net of Allowance $ 9,453 $ 10,943 Accretable yield, or income expected to be collected, is as follows: 2017 2016 Balance at April 1 $ 2,790 $ 2,613 New Loans Purchased — — Accretion of Income (240 ) (415 ) Reclassifications from Non-accretable Difference 155 — Charge-off of Accretable Yield — — Balance at June 30 $ 2,705 $ 2,198 For those purchased loans disclosed above, the Company did no t increase the allowance for loan losses during the three months ended June 30, 2017 and 2016. The Company reversed allowances for loan losses of $ 56 during the three months ended June 30, 2017. No allowance for loan losses were reversed during the three months ended June 30, 2016. 2017 2016 Balance at January 1 $ 2,521 $ 1,279 New Loans Purchased — 1,395 Accretion of Income (282 ) (476 ) Reclassifications from Non-accretable Difference 466 — Charge-off of Accretable Yield — — Balance at June 30 $ 2,705 $ 2,198 For those purchased loans disclosed above, the Company increased the allowance for loan losses by $11 and $0 during the six months ended June 30, 2017 and 2016. The Company reversed allowances for loan losses of $56 during the six months ended June 30, 2017. No allowance for loan losses was reversed during the six months ended June 30, 2016. 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 $137 as of June 30, 2017 and $202 as of December 31, 2016. |