Loans (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of Net Loans

Total net loans at March 31, 2019 and December 31, 2018 are summarized as follows:

	3/31/2019			12/31/2018
Commercial, industrial, and agricultural	$	950,865		$	916,297
Commercial mortgages	709,726			697,776
Residential real estate	775,599			771,309
Consumer	86,780			86,035
Credit cards	7,341			7,623
Overdrafts	450			308
Less: unearned discount	(4,671		)	(4,791		)
allowance for loan losses	(20,346		)	(19,704		)
Loans, net	$	2,505,744		$	2,454,853

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended March 31, 2019 were as follows:

	Commercial, Industrial, and Agricultural		Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2019	$	7,341	$	7,490		$	2,156		$	2,377		$	103		$	237		$	19,704
Charge-offs	0		(17		)	(98		)	(549		)	(26		)	(128		)	(818		)
Recoveries	4		—			65			46			5			34			154
Provision (benefit) for loan losses	442		1,373			(740		)	166			23			42			1,306
Allowance for loan losses, March 31, 2019	$	7,787	$	8,846		$	1,383		$	2,040		$	105		$	185		$	20,346

Transactions in the allowance for loan losses for the three months ended March 31, 2018 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages		Residential Real Estate		Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2018	$	6,160		$	9,007	$	2,033	$	2,179		$	120		$	194		$	19,693
Charge-offs	(31		)	0		0		(590		)	(19		)	(86		)	(726		)
Recoveries	68			0		3		49			7			31			158
Provision (benefit) for loan losses	85			1,013		16		427			15			75			1,631
Allowance for loan losses, March 31, 2018	$	6,282		$	10,020	$	2,052	$	2,065		$	123		$	214		$	20,756

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of March 31, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

March 31, 2019

	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	330	$	312	$	0	$	0	$	0	$	0	$	642
Collectively evaluated for impairment	7,350		3,775		1,383		2,040		105		185		14,838
Acquired with deteriorated credit quality	0		0		0		0		0		0		0
Modified in a troubled debt restructuring	107		4,759		0		0		0		0		4,866
Total ending allowance balance	$	7,787	$	8,846	$	1,383	$	2,040	$	105	$	185	$	20,346
Loans:
Individually evaluated for impairment	$	1,754	$	1,468	$	498	$	0	$	0	$	0	$	3,720
Collectively evaluated for impairment	945,710		698,004		775,101		86,780		7,341		450		2,513,386
Acquired with deteriorated credit quality	0		556		0		0		0		0		556
Modified in a troubled debt restructuring	3,401		9,698		0		0		0		0		13,099
Total ending loans balance	$	950,865	$	709,726	$	775,599	$	86,780	$	7,341	$	450	$	2,530,761

December 31, 2018

	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	54	$	4	$	100	$	0	$	0	$	10	$	168
Collectively evaluated for impairment	7,183		3,036		2,056		2,377		103		227		14,982
Acquired with deteriorated credit quality	0		0		0		0		0		0		0
Modified in a troubled debt restructuring	104		4,450		0		0		0		0		4,554
Total ending allowance balance	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704
Loans:
Individually evaluated for impairment	$	1,334	1,446		502		0		0		10		$	3,292
Collectively evaluated for impairment	910,386		685,714		770,807		86,035		7,623		298		2,460,863
Acquired with deteriorated credit quality	0		567		0		0		0		0		567
Modified in a troubled debt restructuring	4,577		10,049		0		0		0		0		14,626
Total ending loans balance	$	916,297	697,776		771,309		86,035		7,623		308		$	2,479,348

Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment

The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018:

March 31, 2019

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,840	$	1,278	$	437
Commercial mortgage	8,205		7,824		5,071
Residential real estate	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,556		3,877		0
Commercial mortgage	4,225		3,342		0
Residential real estate	498		498		0
Total	$	20,324	$	16,819	$	5,508

December 31, 2018

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,053	$	3,037	$	158
Commercial mortgage	10,799		6,709		4,454
Residential real estate	502		502		100
Overdrafts	10		10		10
With no related allowance recorded:
Commercial, industrial, and agricultural	3,684		2,874		0
Commercial mortgage	5,659		4,786		0
Residential real estate	0		0		0
Overdrafts	0		0		0
Total	$	23,707	$	17,918	$	4,722

Impaired Financing Receivables with Related and not Related Allowances

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off.

	Three Months Ended March 31, 2019
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,158	$	38	$	38
Commercial mortgage	7,267		40		40
Residential real estate	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	3,376		54		54
Commercial mortgage	4,065		18		18
Residential real estate	500		7		7
Total	$	17,366	$	157	$	157

	Three Months Ended March 31, 2018
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,884	$	22	$	22
Commercial mortgage	9,234		18		18
Residential real estate	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,600		46		46
Commercial mortgage	3,753		13		13
Residential real estate	0		0		0
Total	$	19,491	$	99	$	99

Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing interest by class of loans as of March 31, 2019 and December 31, 2018:

	March 31, 2019				December 31, 2018
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	3,414	$	529	$	2,839	$	489
Commercial mortgages	7,724		0		7,694		53
Residential real estate	5,821		285		6,023		299
Consumer	491		24		683		44
Credit cards	0		28		0		5
Total	$	17,450	$	866	$	17,239	$	890

Aging of Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of March 31, 2019 and December 31, 2018 by class of loans.

March 31, 2019

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	1,917	$	310	$	2,834	$	5,061	$	945,804	$	950,865
Commercial mortgages	387		3,532		1,702		5,621		704,105		709,726
Residential real estate	1,453		1,039		3,546		6,038		769,561		775,599
Consumer	286		182		353		821		85,959		86,780
Credit cards	16		33		28		77		7,264		7,341
Overdrafts	0		0		0		0		450		450
Total	$	4,059	$	5,096	$	8,463	$	17,618	$	2,513,143	$	2,530,761

December 31, 2018

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	2,379	$	16	$	2,341	$	4,736	$	911,561	$	916,297
Commercial mortgages	858		3,058		297		4,213		693,563		697,776
Residential real estate	4,064		1,319		4,494		9,877		761,432		771,309
Consumer	474		283		367		1,124		84,911		86,035
Credit cards	59		15		5		79		7,544		7,623
Overdrafts	0		0		0		0		308		308
Total	$	7,834	$	4,691	$	7,504	$	20,029	$	2,459,319	$	2,479,348

Restructured in Troubled Debt

The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of March 31, 2019 and December 31, 2018.

	March 31, 2019					December 31, 2018
	Number of Loans	Loan Balance		Specific Reserve		Number of Loans	Loan Balance		Specific Reserve
Commercial, industrial, and agricultural	10	$	3,401	$	107	10	$	4,577	$	104
Commercial mortgages	15	9,698		4,759		15	10,049		4,450
Residential real estate	0	0		0		0	0		0
Consumer	0	0		0		0	0		0
Credit cards	0	0		0		0	0		0
Total	25	$	13,099	$	4,866	25	$	14,626	$	4,554

Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date

March 31, 2019

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	922,618	$	10,149	$	18,098	$	0	$	950,865
Commercial mortgages	689,587		9,037		11,102		0		709,726
Total	$	1,612,205	$	19,186	$	29,200	$	0	$	1,660,591

December 31, 2018

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	889,547	$	10,519	$	16,231	$	0	$	916,297
Commercial mortgages	683,413		3,241		11,122		0		697,776
Total	$	1,572,960	$	13,760	$	27,353	$	0	$	1,614,073

Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity

The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of March 31, 2019 and December 31, 2018:

	March 31, 2019						December 31, 2018
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	769,493	$	86,265	$	7,313	$	764,987	$	85,308	$	7,618
Nonperforming	6,106		515		28		6,322		727		5
Total	$	775,599	$	86,780	$	7,341	$	771,309	$	86,035	$	7,623

Summary of Holiday's Loan Portfolio

Holiday’s loan portfolio is summarized as follows at March 31, 2019 and December 31, 2018:

	3/31/2019			12/31/2018
Consumer	$	25,897		$	26,568
Less: unearned discount	(4,671		)	(4,791		)
Total	$	21,226		$	21,777