Loans | Loans Loans were comprised of the following classifications at September 30, 2015 and December 31, 2014: September 30, December 31, Commercial: Commercial and Industrial Loans and Leases $ 404,946 $ 380,079 Commercial Real Estate Loans 600,688 583,086 Agricultural Loans 236,619 216,774 Retail: Home Equity Loans 90,907 86,234 Consumer Loans 47,480 48,613 Residential Mortgage Loans 136,645 137,204 Subtotal 1,517,285 1,451,990 Less: Unearned Income (3,705 ) (4,008 ) Allowance for Loan Losses (14,770 ) (14,929 ) Loans, Net $ 1,498,810 $ 1,433,053 The following table presents the activity in the allowance for loan losses by portfolio class for the three months ending September 30, 2015 and 2014: September 30, 2015 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total Beginning Balance $ 4,659 $ 7,315 $ 1,223 $ 350 $ 382 $ 619 $ 710 $ 15,258 Provision for Loan Losses (337 ) (568 ) 754 (41 ) (105 ) (172 ) (31 ) (500 ) Recoveries 16 30 — 2 39 3 — 90 Loans Charged-off (5 ) — — (2 ) (71 ) — — (78 ) Ending Balance $ 4,333 $ 6,777 $ 1,977 $ 309 $ 245 $ 450 $ 679 $ 14,770 September 30, 2014 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total Beginning Balance $ 5,661 $ 7,199 $ 1,016 $ 418 $ 326 $ 435 $ 495 $ 15,550 Provision for Loan Losses (563 ) 206 156 (33 ) 77 (33 ) 190 — Recoveries 19 55 — — 41 6 — 121 Loans Charged-off — (6 ) — (7 ) (65 ) (1 ) — (79 ) Ending Balance $ 5,117 $ 7,454 $ 1,172 $ 378 $ 379 $ 407 $ 685 $ 15,592 The following table presents the activity in the allowance for loan losses by portfolio class for the nine months ending September 30, 2015 and 2014: September 30, 2015 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total Beginning Balance $ 4,627 $ 7,273 $ 1,123 $ 246 $ 354 $ 622 $ 684 $ 14,929 Provision for Loan Losses (350 ) (566 ) 854 88 (65 ) 44 (5 ) — Recoveries 83 81 — 8 193 14 — 379 Loans Charged-off (27 ) (11 ) — (33 ) (237 ) (230 ) — (538 ) Ending Balance $ 4,333 $ 6,777 $ 1,977 $ 309 $ 245 $ 450 $ 679 $ 14,770 September 30, 2014 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total Beginning Balance $ 3,983 $ 8,335 $ 946 $ 239 $ 188 $ 281 $ 612 $ 14,584 Provision for Loan Losses 1,124 (1,546 ) 226 148 296 229 73 550 Recoveries 97 785 — 42 127 14 — 1,065 Loans Charged-off (87 ) (120 ) — (51 ) (232 ) (117 ) — (607 ) Ending Balance $ 5,117 $ 7,454 $ 1,172 $ 378 $ 379 $ 407 $ 685 $ 15,592 In determining the adequacy of the allowance for loan loss, general allocations are made for other 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. Overall the allowance for loan and lease losses was increased in the agricultural sector as a result of qualitative considerations for current economic conditions and 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. 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. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of September 30, 2015 and December 31, 2014: September 30, 2015 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 $ 1,688 $ 171 $ 1,517 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 13,082 4,162 5,260 1,977 309 245 450 679 Acquired with Deteriorated Credit Quality — — — — — — — — Total Ending Allowance Balance $ 14,770 $ 4,333 $ 6,777 $ 1,977 $ 309 $ 245 $ 450 $ 679 Loans: Loans Individually Evaluated for Impairment $ 6,116 $ 2,219 $ 3,885 $ 12 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 1,510,330 403,027 592,735 239,660 91,178 47,602 136,128 n/m (2) Loans Acquired with Deteriorated Credit Quality 6,924 674 5,376 — — — 874 n/m (2) Total Ending Loans Balance (1) $ 1,523,370 $ 405,920 $ 601,996 $ 239,672 $ 91,178 $ 47,602 $ 137,002 n/m (2) (1) Total recorded investment in loans includes $6,085 in accrued interest. (2) n/m = not meaningful December 31, 2014 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 $ 1,532 $ 87 $ 1,445 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 13,343 4,540 5,818 1,123 246 354 578 684 Acquired with Deteriorated Credit Quality 54 — 10 — — — 44 — Total Ending Allowance Balance $ 14,929 $ 4,627 $ 7,273 $ 1,123 $ 246 $ 354 $ 622 $ 684 Loans: Loans Individually Evaluated for Impairment $ 6,044 $ 1,964 $ 4,080 $ — $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 1,443,363 378,533 573,961 219,640 86,570 48,614 136,045 n/m (2) Loans Acquired with Deteriorated Credit Quality 8,361 354 6,385 — — 118 1,504 n/m (2) Total Ending Loans Balance (1) $ 1,457,768 $ 380,851 $ 584,426 $ 219,640 $ 86,570 $ 48,732 $ 137,549 n/m (2) (1) Total recorded investment in loans includes $5,778 in accrued interest. (2) n/m = not meaningful The following tables present loans individually evaluated for impairment by class of loans as of September 30, 2015 and December 31, 2014: September 30, 2015 Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 262 $ 259 $ — Commercial Real Estate Loans 1,081 962 — Agricultural Loans 12 12 — Subtotal 1,355 1,233 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,945 1,960 171 Commercial Real Estate Loans 3,584 2,923 1,517 Agricultural Loans — — — Subtotal 5,529 4,883 1,688 Total $ 6,884 $ 6,116 $ 1,688 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 530 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — (1) Unpaid Principal Balance is the remaining contractual payments inclusive of partial charge-offs. December 31, 2014 Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 1,887 $ 1,877 $ — Commercial Real Estate Loans 1,944 1,447 — Agricultural Loans — — — Subtotal 3,831 3,324 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 84 87 87 Commercial Real Estate Loans 3,653 2,975 1,455 Agricultural Loans — — — Subtotal 3,737 3,062 1,542 Total $ 7,568 $ 6,386 $ 1,542 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 289 $ 133 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 759 $ 209 $ 10 (1) Unpaid Principal Balance is the remaining contractual payments inclusive of partial charge-offs. The following tables present loans individually evaluated for impairment by class of loans for the three month period ended September 30, 2015 and 2014: September 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 366 $ 12 $ 12 Commercial Real Estate Loans 1,008 11 11 Agricultural Loans 12 1 1 Subtotal 1,386 24 24 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,974 22 22 Commercial Real Estate Loans 3,067 2 1 Agricultural Loans — — — Subtotal 5,041 24 23 Total $ 6,427 $ 48 $ 47 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 127 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — September 30, 2014 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 2,005 $ 29 $ 30 Commercial Real Estate Loans 2,384 18 21 Agricultural Loans — — — Subtotal 4,389 47 51 With An Allowance Recorded: Commercial and Industrial Loans and Leases 211 1 1 Commercial Real Estate Loans 2,643 4 3 Agricultural Loans — — — Subtotal 2,854 5 4 Total $ 7,243 $ 52 $ 55 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 773 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 31 $ 1 $ 1 The following tables present loans individually evaluated for impairment by class of loans for the nine month period ended September 30, 2015 and 2014: September 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 471 $ 24 $ 24 Commercial Real Estate Loans 1,228 92 92 Agricultural Loans 8 1 1 Subtotal 1,707 117 117 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,821 68 68 Commercial Real Estate Loans 3,093 3 2 Agricultural Loans — — — Subtotal 4,914 71 70 Total $ 6,621 $ 188 $ 187 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 237 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — September 30, 2014 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 2,106 $ 105 $ 107 Commercial Real Estate Loans 2,714 73 70 Agricultural Loans — — — Subtotal 4,820 178 177 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,600 1 1 Commercial Real Estate Loans 3,158 16 13 Agricultural Loans — — — Subtotal 4,758 17 14 Total $ 9,578 $ 195 $ 191 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 873 $ 3 $ 3 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 32 $ 1 $ 1 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 September 30, 2015 and December 31, 2014: Non-Accrual Loans Past Due 90 Days or More & Still Accruing 2015 2014 2015 2014 Commercial and Industrial Loans and Leases $ 680 $ 161 $ 10 $ 68 Commercial Real Estate Loans 3,077 3,460 — — Agricultural Loans — — — 75 Home Equity Loans 226 268 — — Consumer Loans 94 196 — — Residential Mortgage Loans 1,249 1,885 — — Total $ 5,326 $ 5,970 $ 10 $ 143 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 71 $ 1,154 $ — $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2015 and December 31, 2014: September 30, 2015 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 $ 405,920 $ 444 $ 44 $ 68 $ 556 $ 405,364 Commercial Real Estate Loans 601,996 — 39 1,210 1,249 600,747 Agricultural Loans 239,672 — — — — 239,672 Home Equity Loans 91,178 364 45 226 635 90,543 Consumer Loans 47,602 409 60 94 563 47,039 Residential Mortgage Loans 137,002 2,138 210 1,104 3,452 133,550 Total (1) $ 1,523,370 $ 3,355 $ 398 $ 2,702 $ 6,455 $ 1,516,915 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 6,924 $ 36 $ — $ — $ 36 $ 6,888 (1) Total recorded investment in loans includes $6,085 in accrued interest. December 31, 2014 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 $ 380,851 $ 628 $ — $ 148 $ 776 $ 380,075 Commercial Real Estate Loans 584,426 504 10 753 1,267 583,159 Agricultural Loans 219,640 25 — 75 100 219,540 Home Equity Loans 86,570 197 4 268 469 86,101 Consumer Loans 48,732 132 28 75 235 48,497 Residential Mortgage Loans 137,549 2,046 329 1,720 4,095 133,454 Total (1) $ 1,457,768 $ 3,532 $ 371 $ 3,039 $ 6,942 $ 1,450,826 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 8,361 $ — $ — $ 648 $ 648 $ 7,713 (1) Total recorded investment in loans includes $5,778 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 September 30, 2015 and 2014, there were no new troubled debt restructurings. During the nine months ended September 30, 2015, there were no new troubled debt restructurings. During the nine months ended September 30, 2014, there was one loan modified as a troubled debt restructurings. The modification of the terms of this loan included a permanent reduction of the recorded investment in the loan. The following tables present the recorded investment of troubled debt restructurings by class of loans as of September 30, 2015 and December 31, 2014: September 30, 2015 Total Performing Non-Accrual (1) Commercial and Industrial Loans and Leases $ 1,541 $ 1,539 $ 2 Commercial Real Estate Loans 2,494 807 1,687 Total $ 4,035 $ 2,346 $ 1,689 December 31, 2014 Total Performing Non-Accrual (1) Commercial and Industrial Loans and Leases $ 1,809 $ 1,803 $ 6 Commercial Real Estate Loans 2,841 960 1,881 Total $ 4,650 $ 2,763 $ 1,887 (1) The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on previous page. The Company had not committed to lending any additional amounts as of September 30, 2015 and December 31, 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The following tables present loans by class modified as troubled debt restructurings that occurred during the three months ending September 30, 2015 and 2014: September 30, 2015 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 September 30, 2015. September 30, 2014 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 September 30, 2014. The following tables present loans by class modified as troubled debt restructurings that occurred during the nine months ending September 30, 2015 and 2014: September 30, 2015 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 nine months ending September 30, 2015. September 30, 2014 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial and Industrial Loans and Leases — $ — $ — Commercial Real Estate Loans 1 201 197 Total 1 $ 201 $ 197 The troubled debt restructurings described above increased the allowance for loan losses by $0 and resulted in charge-offs of $0 during the nine months ending September 30, 2014. The following tables present loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ending September 30, 2015 and 2014: Troubled Debt Restructurings That Subsequently Defaulted: Number of Loans Recorded Investment September 30, 2015 Commercial and Industrial Loans and Leases — $ — Commercial Real Estate Loans — — Total — $ — The troubled debt restructurings that subsequently defaulted described above resulted in no change to the allowance for loan losses and no charge-offs during the three months ending September 30, 2015. Troubled Debt Restructurings That Subsequently Defaulted: Number of Loans Recorded Investment September 30, 2014 Commercial and Industrial Loans and Leases — $ — Commercial Real Estate Loans 1 186 Total 1 $ 186 The troubled debt restructurings that subsequently defaulted described above resulted in no change to the allowance for loan losses and no charge-offs during the three months ending September 30, 2014. The following tables present loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the nine months ending September 30, 2015 and 2014: Troubled Debt Restructurings That Subsequently Defaulted: Number of Loans Recorded Investment September 30, 2015 Commercial and Industrial Loans and Leases — $ — Commercial Real Estate Loans 1 95 Total 1 $ 95 The troubled debt restructurings that subsequently defaulted described above resulted in no change to the allowance for loan losses and charge-offs of $ 95 during the nine months ending September 30, 2015. Troubled Debt Restructurings That Subsequently Defaulted: Number of Loans Recorded Investment September 30, 2014 Commercial and Industrial Loans and Leases — $ — Commercial Real Estate Loans 1 186 Total 1 $ 186 The troubled debt restructurings that subsequently defaulted described above resulted in no change to the allowance for loan losses and no charge-offs during the nine months ending September 30, 2014. 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 $100. 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: September 30, 2015 Pass Special Mention Substandard Doubtful Total Commercial and Industrial Loans and Leases $ 377,189 $ 16,682 $ 12,049 $ — $ 405,920 Commercial Real Estate Loans 565,396 23,879 12,721 — 601,996 Agricultural Loans 232,762 6,809 101 — 239,672 Total $ 1,175,347 $ 47,370 $ 24,871 $ — $ 1,247,588 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 926 $ 1,723 $ 3,401 $ — $ 6,050 December 31, 2014 Pass Special Mention Substandard Doubtful Total Commercial and Industrial Loans and Leases $ 351,250 $ 18,387 $ 11,214 $ — $ 380,851 Commercial Real Estate Loans 545,804 23,421 15,201 — 584,426 Agricultural Loans 214,974 4,211 455 — 219,640 Total $ 1,112,028 $ 46,019 $ 26,870 $ — $ 1,184,917 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 651 $ 1,697 $ 4,391 $ — $ 6,739 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 September 30, 2015 and December 31, 2014: September 30, 2015 Home Equity Loans Consumer Loans Residential Mortgage Loans Performing $ 90,952 $ 47,508 $ 135,753 Nonperforming 226 94 1,249 Total $ 91,178 $ 47,602 $ 137,002 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ — $ — $ 874 December 31, 2014 Home Equity Loans Consumer Loans Residential Mortgage Loans Performing $ 86,302 $ 48,536 $ 135,664 Nonperforming 268 196 1,885 Total $ 86,570 $ 48,732 $ 137,549 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ — $ 118 $ 1,504 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: September 30, 2015 December 31, 2014 Commercial and Industrial Loans $ 674 $ 354 Commercial Real Estate Loans 5,376 6,385 Home Equity Loans — — Consumer Loans — 118 Residential Mortgage Loans 874 1,504 Total $ 6,924 $ 8,361 Carrying Amount, Net of Allowance $ 6,924 $ 8,307 Accretable yield, or income expected to be collected, is as follows: 2015 2014 Balance at July 1 $ 1,680 $ 1,126 New Loans Purchased — — Accretion of Income (251 ) (89 ) Reclassifications from Non-accretable Difference — — Charge-off of Accretable Yield — (113 ) Balance at September 30 $ 1,429 $ 924 2015 2014 Balance at January 1 $ 1,685 $ 1,279 New Loans Purchased — — Accretion of Income (333 ) (242 ) Reclassifications from Non-accretable Difference 104 — Charge-off of Accretable Yield (27 ) (113 ) Balance at September 30 $ 1,429 $ 924 For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during the three and nine months ended September 30, 2015 and 2014. No allowances for loan losses were reversed during the same period. 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 $123 as of September 30, 2015 and $288 as of December 31, 2014. |