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Loans (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of Net Loans
Total net loans at September 30, 2019 and December 31, 2018 are summarized as follows:
 
September 30, 2019
 
December 31, 2018
Commercial, industrial, and agricultural
$
1,033,631

 
$
916,297

Commercial mortgages
788,974

 
697,776

Residential real estate
802,331

 
771,309

Consumer
121,598

 
86,035

Credit cards
7,393

 
7,623

Overdrafts
642

 
308

Less: unearned discount
(5,067
)
 
(4,791
)
allowance for loan losses
(20,207
)
 
(19,704
)
Loans, net
$
2,729,295

 
$
2,454,853
Allowance for Loan Losses
Transactions in the allowance for loan losses for the three months ended September 30, 2019 were as follows:
 
Commercial,Industrial, 
and Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, July 1, 2019
$
8,108

 
$
9,538

 
$
1,403

 
$
2,141

 
$
87

 
$
160

 
$
21,437

Charge-offs
(160
)
 
(2,650
)
 
(38
)
 
(547
)
 
(3
)
 
(113
)
 
(3,511
)
Recoveries
5

 
65

 
5

 
58

 
6

 
24

 
163

Provision (benefit) for loan losses
997

 
30

 
116

 
693

 
15

 
267

 
2,118

Allowance for loan losses, September 30, 2019
$
8,950

 
$
6,983

 
$
1,486

 
$
2,345

 
$
105

 
$
338

 
$
20,207

Transactions in the allowance for loan losses for the nine months ended September 30, 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
(160
)
 
(2,652
)
 
(282
)
 
(1,609
)
 
(55
)
 
(329
)
 
(5,087
)
Recoveries
13

 
66

 
72

 
132

 
12

 
83

 
378

Provision (benefit) for loan losses
1,756

 
2,079

 
(460
)
 
1,445

 
45

 
347

 
5,212

Allowance for loan losses, September 30, 2019
$
8,950

 
$
6,983

 
$
1,486

 
$
2,345

 
$
105

 
$
338

 
$
20,207

Transactions in the allowance for loan losses for the three months ended September 30, 2018 were as follows:
 
Commercial, Industrial, 
and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, July 1, 2018
$
7,143

 
$
10,615

 
$
1,900

 
$
2,156

 
$
101

 
$
207

 
$
22,122

Charge-offs
(30
)
 
0

 
(212
)
 
(469
)
 
(8
)
 
(94
)
 
(813
)
Recoveries
3

 
0

 
55

 
28

 
3

 
17

 
106

Provision (benefit) for loan losses
(536
)
 
682

 
235

 
608

 
11

 
95

 
1,095

Allowance for loan losses, September 30, 2018
$
6,580

 
$
11,297

 
$
1,978

 
$
2,323

 
$
107

 
$
225

 
$
22,510


Transactions in the allowance for loan losses for the nine months ended September 30, 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
(61
)
 
0

 
(289
)
 
(1,610
)
 
(53
)
 
(236
)
 
(2,249
)
Recoveries
165

 
0

 
67

 
112

 
27

 
64

 
435

Provision (benefit) for loan losses
316

 
2,290

 
167

 
1,642

 
13

 
203

 
4,631

Allowance for loan losses, September 30, 2018
$
6,580

 
$
11,297

 
$
1,978

 
$
2,323

 
$
107

 
$
225

 
$
22,510
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 September 30, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

September 30, 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
$
766

 
$
2,054

 
$
29

 
$
0

 
$
0

 
$
0

 
$
2,849

Collectively evaluated for impairment
8,148

 
4,405

 
1,457

 
2,345

 
105

 
338

 
16,798

Acquired with deteriorated credit quality
0

 
0

 
0

 
0

 
0

 
0

 
0

Modified in a troubled debt restructuring
36

 
524

 
0

 
0

 
0

 
0

 
560

Total ending allowance balance
$
8,950

 
$
6,983

 
$
1,486

 
$
2,345

 
$
105

 
$
338

 
$
20,207

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,898

 
$
3,110

 
$
489

 
$
0

 
$
0

 
$
0

 
$
6,497

Collectively evaluated for impairment
1,027,732

 
780,484

 
801,842

 
121,598

 
7,393

 
642

 
2,739,691

Acquired with deteriorated credit quality
0

 
534

 
0

 
0

 
0

 
0

 
534

Modified in a troubled debt restructuring
3,001

 
4,846

 
0

 
0

 
0

 
0

 
7,847

Total ending loans balance
$
1,033,631

 
$
788,974

 
$
802,331

 
$
121,598

 
$
7,393

 
$
642

 
$
2,754,569


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 September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018:
September 30, 2019
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Allowance for Loan
Losses Allocated
With an allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
$
3,021

 
$
1,691

 
$
802

Commercial mortgage
8,055

 
6,258

 
2,578

Residential real estate
489

 
489

 
29

With no related allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
5,258

 
4,208

 
0

Commercial mortgage
1,423

 
1,698

 
0

Residential real estate
0

 
0

 
0

Total
$
18,246

 
$
14,344

 
$
3,409

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 September 30, 2019
 
Three months ended September 30, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash Basis
Interest
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash Basis
Interest
Recognized
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
$
1,480

 
$
32

 
$
32

 
$
3,460

 
$
11

 
$
11

Commercial mortgage
7,024

 
12

 
12

 
9,042

 
37

 
37

Residential real estate
245

 
8

 
8

 
0

 
0

 
0

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
3,977

 
42

 
42

 
5,569

 
69

 
69

Commercial mortgage
2,435

 
29

 
29

 
5,153

 
20

 
20

Residential real estate
236

 
0

 
0

 
0

 
0

 
0

Total
$
15,397

 
$
123

 
$
123

 
$
23,224

 
$
137

 
$
137

 
Nine months ended September 30, 2019
 
Nine months ended September 30, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash Basis
Interest
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Cash Basis
Interest
Recognized
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
$
1,819

 
$
74

 
$
74

 
$
2,672

 
$
54

 
$
54

Commercial mortgage
7,145

 
100

 
100

 
9,147

 
111

 
111

Residential real estate
122

 
8

 
8

 
0

 
0

 
0

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
3,676

 
128

 
128

 
5,084

 
160

 
160

Commercial mortgage
3,250

 
62

 
62

 
4,511

 
66

 
66

Residential real estate
368

 
11

 
11

 
0

 
0

 
0

Total
$
16,380

 
$
383

 
$
383

 
$
21,414

 
$
391

 
$
391
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 September 30, 2019 and December 31, 2018:
 
September 30, 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
$
3,994

 
$
443

 
$
2,076

 
$
487

Commercial mortgages
5,299

 
0

 
6,329

 
53

Residential real estate
4,779

 
62

 
5,187

 
299

Consumer
737

 
0

 
670

 
43

Credit cards
0

 
45

 
0

 
5

Total
$
14,809

 
$
550

 
$
14,262

 
$
887
Aging of Recorded Investment in Past Due Loans
The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans.
September 30, 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
$
1,508

 
$
2,041

 
$
4,080

 
$
7,629

 
$
1,026,002

 
$
1,033,631

Commercial mortgages
230

 
0

 
1,868

 
2,098

 
786,876

 
788,974

Residential real estate
2,759

 
759

 
2,415

 
5,933

 
796,398

 
802,331

Consumer
472

 
230

 
317

 
1,019

 
120,579

 
121,598

Credit cards
53

 
48

 
45

 
146

 
7,247

 
7,393

Overdrafts
0

 
0

 
0

 
0

 
642

 
642

Total
$
5,022

 
$
3,078

 
$
8,725

 
$
16,825

 
$
2,737,744

 
$
2,754,569


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
$
2,339

 
$
9

 
$
2,264

 
$
4,612

 
$
911,685

 
$
916,297

Commercial mortgages
758

 
3,055

 
283

 
4,096

 
693,680

 
697,776

Residential real estate
3,982

 
1,257

 
3,988

 
9,227

 
762,082

 
771,309

Consumer
470

 
282

 
363

 
1,115

 
84,920

 
86,035

Credit cards
59

 
15

 
5

 
79

 
7,544

 
7,623

Overdrafts
0

 
0

 
0

 
0

 
308

 
308

Total
$
7,608

 
$
4,618

 
$
6,903

 
$
19,129

 
$
2,460,219

 
$
2,479,348
Restructured in Troubled Debt
 
Three and nine months ended
September 30, 2019
 
Nine months ended
September 30, 2018
 
Number of
Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number of
Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural
0

 
$
0

 
$
0

 
0

 
$
0

 
$
0

Commercial mortgages
1

 
383

 
383

 
4

 
1,091

 
1,091

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
1

 
$
383

 
$
383

 
4

 
$
1,091

 
$
1,091


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 September 30, 2019 and December 31, 2018.
 
September 30, 2019
 
December 31, 2018
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
Commercial, industrial, and agricultural
10

 
$
3,197

 
$
38

 
10

 
$
4,577

 
$
104

Commercial mortgages
13

 
7,002

 
536

 
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
23

 
$
10,199

 
$
574

 
25

 
$
14,626

 
$
4,554
Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date
September 30, 2019
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
997,103

 
$
19,197

 
$
17,331

 
$
0

 
$
1,033,631

Commercial mortgages
770,873

 
9,753

 
8,348

 
0

 
788,974

Total
$
1,767,976

 
$
28,950

 
$
25,679

 
$
0

 
$
1,822,605

December 31, 2018
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
890,360

 
$
10,484

 
$
15,453

 
$
0

 
$
916,297

Commercial mortgages
684,806

 
3,236

 
9,734

 
0

 
697,776

Total
$
1,575,166

 
$
13,720

 
$
25,187

 
$
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 September 30, 2019 and December 31, 2018:
 
September 30, 2019
 
December 31, 2018
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
Performing
$
797,490

 
$
120,861

 
$
7,348

 
$
765,823

 
$
85,322

 
$
7,618

Nonperforming
4,841

 
737

 
45

 
5,486

 
713

 
5

Total
$
802,331

 
$
121,598

 
$
7,393

 
$
771,309

 
$
86,035

 
$
7,623
Summary of Holiday's Loan Portfolio
Holiday’s loan portfolio is summarized as follows at September 30, 2019 and December 31, 2018:
 
9/30/2019
 
12/31/2018
Consumer
$
27,664

 
$
26,568

Less: unearned discount
(5,067
)
 
(4,791
)
Total
$
22,597

 
$
21,777