Loans | Loans Loans were comprised of the following classifications at September 30, 2016 and December 31, 2015: September 30, December 31, Commercial: Commercial and Industrial Loans and Leases $ 469,255 $ 418,154 Commercial Real Estate Loans 862,998 618,788 Agricultural Loans 299,080 246,886 Retail: Home Equity Loans 128,321 97,902 Consumer Loans 58,533 50,029 Residential Mortgage Loans 187,903 136,316 Subtotal 2,006,090 1,568,075 Less: Unearned Income (3,710 ) (3,728 ) Allowance for Loan Losses (15,154 ) (14,438 ) Loans, Net $ 1,987,226 $ 1,549,909 As further described in Note 12, during 2016 the Company acquired loans with a fair value of $317,760 as a part of a business combination. This was made up of loans with an acquired balance of $328,431 , net of $10,671 of fair value discounts at date of acquisition. At September 30, 2016, the remaining carrying amount of such loans total $280,027 , which is included in the September 30, 2016 table above. This amount is made up of loans with a remaining balance of $288,559 net of remaining fair value discounts of $8,532 . The following tables present the activity in the allowance for loan losses by portfolio class for the three months ended September 30, 2016 and 2015: September 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 $ 4,190 $ 6,533 $ 2,704 $ 350 $ 242 $ 559 $ 726 $ 15,304 Provision for Loan Losses (378 ) (1,111 ) 1,408 20 119 (7 ) (51 ) — Recoveries 1 2 — 1 59 2 — 65 Loans Charged-off — — (10 ) (15 ) (173 ) (17 ) — (215 ) Ending Balance $ 3,813 $ 5,424 $ 4,102 $ 356 $ 247 $ 537 $ 675 $ 15,154 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 The following tables present the activity in the allowance for loan losses by portfolio class for the nine months ended September 30, 2016 and 2015: September 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 (453 ) (923 ) 1,997 60 212 344 (37 ) 1,200 Recoveries 29 5 — 2 147 11 — 194 Loans Charged-off (5 ) — (10 ) (89 ) (342 ) (232 ) — (678 ) Ending Balance $ 3,813 $ 5,424 $ 4,102 $ 356 $ 247 $ 537 $ 675 $ 15,154 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 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. During 2016, the overall allowance for loan and lease losses was increased in the agricultural sector as a result of qualitative considerations for current economic conditions and trends which included a decline in the aggregate debt service coverage ratios for agricultural borrowers and a decline in per acre values of crop production real estate. 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 allowance for commercial real estate loans declined during 2016 primarily as a result of the repayment of a single non-accrual commercial real estate credit during the third quarter of 2016. This credit relationship was considered impaired and therefore had a specific allocation assigned prior to repayment. 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 September 30, 2016 and December 31, 2015: September 30, 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 $ 411 $ 86 $ 325 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 14,687 3,727 5,099 4,054 356 239 537 675 Acquired with Deteriorated Credit Quality 56 — — 48 — 8 — — Total Ending Allowance Balance $ 15,154 $ 3,813 $ 5,424 $ 4,102 $ 356 $ 247 $ 537 $ 675 Loans: Loans Individually Evaluated for Impairment $ 1,897 $ 215 $ 1,383 $ 299 $ — $ — $ — n/a (2) Loans Collectively Evaluated for Impairment 2,000,022 467,244 856,974 301,953 128,742 58,665 186,444 n/a (2) Loans Acquired with Deteriorated Credit Quality 12,084 2,922 6,514 702 — 53 1,893 n/a (2) Total Ending Loans Balance (1) $ 2,014,003 $ 470,381 $ 864,871 $ 302,954 $ 128,742 $ 58,718 $ 188,337 n/a (2) (1) Total recorded investment in loans includes $7,913 in accrued interest. (2) n/a = not applicable December 31, 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 $ 1,202 $ 106 $ 1,096 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 13,236 4,136 5,246 2,115 383 230 414 712 Acquired with Deteriorated Credit Quality — — — — — — — — Total Ending Allowance Balance $ 14,438 $ 4,242 $ 6,342 $ 2,115 $ 383 $ 230 $ 414 $ 712 Loans: Loans Individually Evaluated for Impairment $ 4,435 $ 1,578 $ 2,845 $ 12 $ — $ — $ — n/a (2) Loans Collectively Evaluated for Impairment 1,562,037 416,273 611,955 249,687 98,167 50,169 135,786 n/a (2) Loans Acquired with Deteriorated Credit Quality 7,555 1,325 5,363 — — — 867 n/a (2) Total Ending Loans Balance (1) $ 1,574,027 $ 419,176 $ 620,163 $ 249,699 $ 98,167 $ 50,169 $ 136,653 n/a (2) (1) Total recorded investment in loans includes $5,952 in accrued interest. (2) n/a = not applicable The following tables present loans individually evaluated for impairment by class of loans as of September 30, 2016 and December 31, 2015: September 30, 2016 Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 173 $ 114 $ — Commercial Real Estate Loans 2,495 1,068 — Agricultural Loans 361 299 — Subtotal 3,029 1,481 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 105 103 86 Commercial Real Estate Loans 1,100 1,093 325 Agricultural Loans 589 498 48 Subtotal 1,794 1,694 459 Total $ 4,823 $ 3,175 $ 459 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 2,201 $ 780 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 589 $ 498 $ 48 (1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs. December 31, 2015 Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 161 $ 161 $ — Commercial Real Estate Loans 1,292 768 — Agricultural Loans 12 12 — Subtotal 1,465 941 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,403 1,417 106 Commercial Real Estate Loans 2,207 2,077 1,096 Agricultural Loans — — — Subtotal 3,610 3,494 1,202 Total $ 5,075 $ 4,435 $ 1,202 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 528 $ — $ — 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 gross of partial charge-offs. The following tables present loans individually evaluated for impairment by class of loans for the three month periods ended September 30, 2016 and 2015: September 30, 2016 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 194 $ 1 $ 1 Commercial Real Estate Loans 3,102 47 47 Agricultural Loans 373 — — Subtotal 3,669 48 48 With An Allowance Recorded: Commercial and Industrial Loans and Leases 108 — — Commercial Real Estate Loans 1,105 — — Agricultural Loans 589 — — Subtotal 1,802 — — Total $ 5,471 $ 48 $ 48 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 2,399 $ 1 $ 1 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 589 $ — $ — 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) $ — $ — $ — The following tables present loans individually evaluated for impairment by class of loans for the nine month periods ended September 30, 2016 and 2015: September 30, 2016 Average Recorded Investment Interest Income Recognized Cash Basis Recognized With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 446 $ 26 $ 12 Commercial Real Estate Loans 3,745 71 51 Agricultural Loans 812 2 1 Subtotal 5,003 99 64 With An Allowance Recorded: Commercial and Industrial Loans and Leases 108 — — Commercial Real Estate Loans 1,834 2 — Agricultural Loans 196 — — Subtotal 2,138 2 — Total $ 7,141 $ 101 $ 64 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 2,272 $ 14 $ 4 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 717 $ — $ — 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) $ — $ — $ — 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, 2016 and December 31, 2015: Non-Accrual Loans Past Due 90 Days or More & Still Accruing September 30, December 31, September 30, December 31, 2016 2015 2016 2015 Commercial and Industrial Loans and Leases $ 168 $ 134 $ 148 $ 98 Commercial Real Estate Loans 2,161 2,047 — 48 Agricultural Loans 797 — 55 — Home Equity Loans 204 204 — — Consumer Loans 104 90 — — Residential Mortgage Loans 1,472 668 — — Total $ 4,906 $ 3,143 $ 203 $ 146 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 1,506 $ 68 $ — $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2016 and December 31, 2015: September 30, 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 $ 470,381 $ 120 $ 32 $ 217 $ 369 $ 470,012 Commercial Real Estate Loans 864,871 1,421 439 912 2,772 862,099 Agricultural Loans 302,954 229 — 671 900 302,054 Home Equity Loans 128,742 387 46 200 633 128,109 Consumer Loans 58,718 889 30 104 1,023 57,695 Residential Mortgage Loans 188,337 3,229 1,511 838 5,578 182,759 Total (1) $ 2,014,003 $ 6,275 $ 2,058 $ 2,942 $ 11,275 $ 2,002,728 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 12,084 $ — $ — $ 710 $ 710 $ 11,374 Net Carrying Value of Loans Acquired in Current Year (Included in the Total Above) $ 281,252 $ 2,637 $ 1,222 $ 1,389 $ 5,248 $ 276,004 (1) Total recorded investment in loans includes $7,913 in accrued interest. December 31, 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 $ 419,176 $ 82 $ 117 $ 124 $ 323 $ 418,853 Commercial Real Estate Loans 620,163 136 163 104 403 619,760 Agricultural Loans 249,699 — — — — 249,699 Home Equity Loans 98,167 225 8 204 437 97,730 Consumer Loans 50,169 101 40 90 231 49,938 Residential Mortgage Loans 136,653 2,615 154 668 3,437 133,216 Total (1) $ 1,574,027 $ 3,159 $ 482 $ 1,190 $ 4,831 $ 1,569,196 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 7,555 $ — $ — $ — $ — $ 7,555 (1) Total recorded investment in loans includes $5,952 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 and nine months ended September 30, 2016 and 2015, 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 September 30, 2016 and December 31, 2015: September 30, 2016 Total Performing Non-Accrual (1) Commercial and Industrial Loans and Leases $ 50 $ 50 $ — Commercial Real Estate Loans — — — Total $ 50 $ 50 $ — December 31, 2015 Total Performing Non-Accrual (1) Commercial and Industrial Loans and Leases $ 1,446 $ 1,445 $ 1 Commercial Real Estate Loans 2,455 795 1,660 Total $ 3,901 $ 2,240 $ 1,661 (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 September 30, 2016 and December 31, 2015 to customers with outstanding loans that are classified as troubled debt restructurings. For the three months ended September 30, 2016 and 2015, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification. For the nine months ended September 30, 2016, there were no loans modified as troubled debt restructurings for which there was a payment default within the twelve months following the modification. For the nine months ended September 30, 2015, there was one troubled debt restructuring with a recorded investment of $95 for which there was a payment default within twelve months following the modification. The troubled debt restructuring that subsequently defaulted resulted in no change to the allowance for loan losses and a charge-off of $95 during the nine months ending September 30, 2015. 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, 2016 Pass Special Mention Substandard Doubtful Total Commercial and Industrial Loans and Leases $ 448,350 $ 12,789 $ 9,242 $ — $ 470,381 Commercial Real Estate Loans 817,596 31,247 16,028 — 864,871 Agricultural Loans 282,472 15,519 4,963 — 302,954 Total $ 1,548,418 $ 59,555 $ 30,233 $ — $ 1,638,206 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 1,653 $ 3,162 $ 5,323 $ — $ 10,138 Net Carrying Value of Loans Acquired in Current Year (Included in the Total Above) $ 188,987 $ 11,669 $ 8,941 $ — $ 209,597 December 31, 2015 Pass Special Mention Substandard Doubtful Total Commercial and Industrial Loans and Leases $ 393,270 $ 13,675 $ 12,231 $ — $ 419,176 Commercial Real Estate Loans 586,247 25,341 8,575 — 620,163 Agricultural Loans 242,728 5,177 1,794 — 249,699 Total $ 1,222,245 $ 44,193 $ 22,600 $ — $ 1,289,038 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 1,572 $ 3,319 $ 1,797 $ — $ 6,688 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, 2016 and December 31, 2015: September 30, 2016 Home Equity Loans Consumer Loans Residential Mortgage Loans Performing $ 128,538 $ 58,614 $ 186,865 Nonperforming 204 104 1,472 Total $ 128,742 $ 58,718 $ 188,337 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ — $ 53 $ 1,893 December 31, 2015 Home Equity Loans Consumer Loans Residential Mortgage Loans Performing $ 97,963 $ 50,079 $ 135,985 Nonperforming 204 90 668 Total $ 98,167 $ 50,169 $ 136,653 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ — $ — $ 867 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, 2016 December 31, 2015 Commercial and Industrial Loans $ 2,922 $ 1,325 Commercial Real Estate Loans 6,514 5,363 Agricultural Loans 702 — Home Equity Loans — — Consumer Loans 53 — Residential Mortgage Loans 1,893 867 Total $ 12,084 $ 7,555 Carrying Amount, Net of Allowance $ 12,028 $ 7,555 Accretable yield, or income expected to be collected, is as follows: 2016 2015 Balance at July 1 $ 2,198 $ 1,680 New Loans Purchased — — Accretion of Income (100 ) (251 ) Reclassifications from Non-accretable Difference 570 — Charge-off of Accretable Yield — — Balance at September 30 $ 2,668 $ 1,429 For those purchased loans disclosed above, the Company increased the allowance for loan losses by $56 during the three months ended September 30, 2016. The Company did not increase the allowance for loan losses during the three months ended September 30, 2015. No allowance for loan losses were reversed during the three months ended September 30, 2016 and 2015. 2016 2015 Balance at January 1 $ 1,279 $ 1,685 New Loans Purchased 1,395 — Accretion of Income (576 ) (333 ) Reclassifications from Non-accretable Difference 570 104 Charge-off of Accretable Yield — (27 ) Balance at September 30 $ 2,668 $ 1,429 For those purchased loans disclosed above, the Company increased the allowance for loan losses by $56 during the nine months ended September 30, 2016. The Company did not increase the allowance for loan losses during the nine months ended September 30, 2015. No allowances for loan losses were reversed during the nine months ended September 30, 2016. Allowances for losses were reversed by $44 during the nine months ended September 30, 2015. Contractually required payments receivable of loans purchased with evidence of credit deterioration during the nine months ended September 30, 2016 are included in the table below. The value of the purchased loans included in the table are as of acquisition date. There were no such loans purchased during the year ended December 31, 2015. Commercial and Industrial Loans $ 220 Commercial Real Estate Loans 10,612 Agricultural Loans 896 Home Equity Loans — Consumer Loans 87 Residential Mortgage Loans 2,279 Total $ 14,094 Cash Flows Expected to be Collected at Acquisition $ 11,051 Fair Value of Acquired Loans at Acquisition $ 8,807 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 $315 as of September 30, 2016 and $169 as of December 31, 2015. |