| Loans |
LOANS
Total net loans at June 30, 2011 and December 31, 2010 are summarized as follows:
| |
|
|
|
|
|
|
|
|
| |
|
June 30,
2011 |
|
|
December 31,
2010 |
|
|
Commercial, industrial, and agricultural |
|
$ |
251,530 |
|
|
$ |
257,491 |
|
|
Commercial mortgages |
|
|
235,409 |
|
|
|
212,878 |
|
|
Residential real estate |
|
|
280,029 |
|
|
|
266,604 |
|
|
Consumer |
|
|
53,894 |
|
|
|
53,202 |
|
|
Credit cards |
|
|
2,976 |
|
|
|
2,870 |
|
|
Overdrafts |
|
|
617 |
|
|
|
3,964 |
|
|
Less: unearned discount |
|
|
(2,668 |
) |
|
|
(2,447 |
) |
|
allowance for loan losses |
|
|
(11,715 |
) |
|
|
(10,820 |
) |
| |
|
|
|
|
|
|
|
|
|
Loans, net |
|
$ |
810,072 |
|
|
$ |
783,742 |
|
| |
|
|
|
|
|
|
|
|
At June 30, 2011 and December 31, 2010, net unamortized loan costs and fees of ($89) and ($167), respectively, have been included in the carrying value of loans.
The Corporation's outstanding loans and related unfunded commitments are primarily concentrated within Central and Western Pennsylvania. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management's assessment of the customer.
Transactions in the allowance for loan losses for the three months ended June 30, 2011 were as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial, |
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial, and |
|
|
Commercial |
|
|
Real |
|
|
|
|
|
Credit |
|
|
|
|
|
|
|
| |
|
Agricultural |
|
|
Mortgages |
|
|
Estate |
|
|
Consumer |
|
|
Cards |
|
|
Overdrafts |
|
|
Total |
|
|
Allowance for loan losses, April 1, 2011 |
|
$ |
3,732 |
|
|
$ |
3,879 |
|
|
$ |
1,879 |
|
|
$ |
1,507 |
|
|
$ |
96 |
|
|
$ |
131 |
|
|
$ |
11,224 |
|
|
Charge-offs |
|
|
(173 |
) |
|
|
(41 |
) |
|
|
(63 |
) |
|
|
(202 |
) |
|
|
(7 |
) |
|
|
(62 |
) |
|
|
(548 |
) |
|
Recoveries |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
3 |
|
|
|
20 |
|
|
|
47 |
|
|
Provision (benefit) for loan losses |
|
|
208 |
|
|
|
561 |
|
|
|
84 |
|
|
|
74 |
|
|
|
12 |
|
|
|
53 |
|
|
|
992 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses, June 30, 2011 |
|
$ |
3,770 |
|
|
$ |
4,399 |
|
|
$ |
1,900 |
|
|
$ |
1,400 |
|
|
$ |
104 |
|
|
$ |
142 |
|
|
$ |
11,715 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions in the allowance for loan losses for the six months ended June 30, 2011 were as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial, |
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial, and |
|
|
Commercial |
|
|
Real |
|
|
|
|
|
Credit |
|
|
|
|
|
|
|
| |
|
Agricultural |
|
|
Mortgages |
|
|
Estate |
|
|
Consumer |
|
|
Cards |
|
|
Overdrafts |
|
|
Total |
|
|
Allowance for loan losses, January 1, 2011 |
|
$ |
3,517 |
|
|
$ |
3,511 |
|
|
$ |
1,916 |
|
|
$ |
1,561 |
|
|
$ |
96 |
|
|
$ |
219 |
|
|
$ |
10,820 |
|
|
Charge-offs |
|
|
(215 |
) |
|
|
(88 |
) |
|
|
(77 |
) |
|
|
(462 |
) |
|
|
(25 |
) |
|
|
(115 |
) |
|
|
(982 |
) |
|
Recoveries |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
|
|
5 |
|
|
|
54 |
|
|
|
108 |
|
|
Provision (benefit) for loan losses |
|
|
464 |
|
|
|
976 |
|
|
|
61 |
|
|
|
256 |
|
|
|
28 |
|
|
|
(16 |
) |
|
|
1,769 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses, June 30, 2011 |
|
$ |
3,770 |
|
|
$ |
4,399 |
|
|
$ |
1,900 |
|
|
$ |
1,400 |
|
|
$ |
104 |
|
|
$ |
142 |
|
|
$ |
11,715 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions in the allowance for loan losses for the three months ended June 30, 2010 were as follows:
| |
|
|
|
|
|
Allowance for loan losses, April 1, 2010 |
|
$ |
9,914 |
|
|
Charge-off |
|
|
(715 |
) |
|
Recoveries |
|
|
55 |
|
|
Provision for loan losses |
|
|
1,161 |
|
| |
|
|
|
|
|
Allowance for loan losses, June 30, 2010 |
|
$ |
10,415 |
|
| |
|
|
|
|
Transactions in the allowance for loan losses for the six months ended June 30, 2010 were as follows:
| |
|
|
|
|
|
Allowance for loan losses, January 1, 2010 |
|
$ |
9,795 |
|
|
Charge-off |
|
|
(1,256 |
) |
|
Recoveries |
|
|
130 |
|
|
Provision for loan losses |
|
|
1,746 |
|
| |
|
|
|
|
|
Allowance for loan losses, June 30, 2010 |
|
$ |
10,415 |
|
| |
|
|
|
|
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 June 30, 2011:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial, |
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial, and |
|
|
Commercial |
|
|
Real |
|
|
|
|
|
Credit |
|
|
|
|
|
|
|
| |
|
Agricultural |
|
|
Mortgages |
|
|
Estate |
|
|
Consumer |
|
|
Cards |
|
|
Overdrafts |
|
|
Total |
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
130 |
|
|
$ |
698 |
|
|
$ |
59 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
887 |
|
|
Collectively evaluated for impairment |
|
|
3,640 |
|
|
|
3,467 |
|
|
|
1,841 |
|
|
|
1,400 |
|
|
|
104 |
|
|
|
142 |
|
|
|
10,594 |
|
|
Modified in a troubled debt restructuring |
|
|
— |
|
|
|
234 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
234 |
|
|
Acquired with deteriorated credit quality |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance balance |
|
$ |
3,770 |
|
|
$ |
4,399 |
|
|
$ |
1,900 |
|
|
$ |
1,400 |
|
|
$ |
104 |
|
|
$ |
142 |
|
|
$ |
11,715 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
1,429 |
|
|
$ |
15,066 |
|
|
$ |
184 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
16,679 |
|
|
Loans collectively evaluated for impairment |
|
|
250,101 |
|
|
|
215,592 |
|
|
|
279,845 |
|
|
|
53,894 |
|
|
|
2,976 |
|
|
|
617 |
|
|
|
803,025 |
|
|
Loans modified in a troubled debt restructuring |
|
|
— |
|
|
|
4,751 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,751 |
|
|
Loans acquired with deteriorated credit quality |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending loans balance |
|
$ |
251,530 |
|
|
$ |
235,409 |
|
|
$ |
280,029 |
|
|
$ |
53,894 |
|
|
$ |
2,976 |
|
|
$ |
617 |
|
|
$ |
824,455 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2010:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial, |
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial, and |
|
|
Commercial |
|
|
Real |
|
|
|
|
|
Credit |
|
|
|
|
|
|
|
| |
|
Agricultural |
|
|
Mortgages |
|
|
Estate |
|
|
Consumer |
|
|
Cards |
|
|
Overdrafts |
|
|
Total |
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
142 |
|
|
$ |
509 |
|
|
$ |
69 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
720 |
|
|
Collectively evaluated for impairment |
|
|
3,375 |
|
|
|
2,759 |
|
|
|
1,847 |
|
|
|
1,561 |
|
|
|
96 |
|
|
|
219 |
|
|
|
9,857 |
|
|
Modified in a troubled debt restructuring |
|
|
— |
|
|
|
243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
243 |
|
|
Acquired with deteriorated credit quality |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending allowance balance |
|
$ |
3,517 |
|
|
$ |
3,511 |
|
|
$ |
1,916 |
|
|
$ |
1,561 |
|
|
$ |
96 |
|
|
$ |
219 |
|
|
$ |
10,820 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
2,616 |
|
|
$ |
8,759 |
|
|
$ |
235 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,610 |
|
|
Loans collectively evaluated for impairment |
|
|
254,875 |
|
|
|
202,405 |
|
|
|
266,369 |
|
|
|
53,202 |
|
|
|
2,870 |
|
|
|
3,964 |
|
|
|
783,685 |
|
|
Loans modified in a troubled debt restructuring |
|
|
— |
|
|
|
1,714 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,714 |
|
|
Loans acquired with deteriorated credit quality |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ending loans balance |
|
$ |
257,491 |
|
|
$ |
212,878 |
|
|
$ |
266,604 |
|
|
$ |
53,202 |
|
|
$ |
2,870 |
|
|
$ |
3,964 |
|
|
$ |
797,009 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present information related to loans individually evaluated for impairment by portfolio segment as of and for the three and six months ended June 30, 2011:
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unpaid |
|
|
|
|
|
Allowance for |
|
| |
|
Principal |
|
|
Recorded |
|
|
Loan Losses |
|
| |
|
Balance |
|
|
Investment |
|
|
Allocated |
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
$ |
600 |
|
|
$ |
509 |
|
|
$ |
130 |
|
|
Commercial mortgage |
|
|
8,185 |
|
|
|
7,336 |
|
|
|
932 |
|
|
Residential real estate |
|
|
267 |
|
|
|
184 |
|
|
|
59 |
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
|
1,390 |
|
|
|
920 |
|
|
|
— |
|
|
Commercial mortgage |
|
|
9,490 |
|
|
|
7,730 |
|
|
|
— |
|
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
19,932 |
|
|
$ |
16,679 |
|
|
$ |
1,121 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, 2011 |
|
|
Six Months Ended June 30, 2011 |
|
| |
|
Average |
|
|
Interest |
|
|
Cash Basis |
|
|
Average |
|
|
Interest |
|
|
Cash Basis |
|
| |
|
Recorded |
|
|
Income |
|
|
Interest |
|
|
Recorded |
|
|
Income |
|
|
Interest |
|
| |
|
Investment |
|
|
Recognized |
|
|
Recognized |
|
|
Investment |
|
|
Recognized |
|
|
Recognized |
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
$ |
1,183 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,660 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Commercial mortgage |
|
|
8,835 |
|
|
|
14 |
|
|
|
14 |
|
|
|
8,810 |
|
|
|
16 |
|
|
|
16 |
|
|
Residential real estate |
|
|
185 |
|
|
|
— |
|
|
|
— |
|
|
|
202 |
|
|
|
— |
|
|
|
— |
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
|
2,411 |
|
|
|
— |
|
|
|
— |
|
|
|
1,607 |
|
|
|
— |
|
|
|
— |
|
|
Commercial mortgage |
|
|
4,584 |
|
|
|
— |
|
|
|
— |
|
|
|
3,506 |
|
|
|
— |
|
|
|
— |
|
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
17,198 |
|
|
$ |
14 |
|
|
$ |
14 |
|
|
$ |
15,785 |
|
|
$ |
16 |
|
|
$ |
16 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents information related to loans individually evaluated for impairment by portfolio segment as of December 31, 2010:
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment |
|
|
Allowance for
Loan Losses
Allocated |
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
$ |
3,041 |
|
|
$ |
2,616 |
|
|
$ |
142 |
|
|
Commercial mortgage |
|
|
13,070 |
|
|
|
10,473 |
|
|
|
752 |
|
|
Residential real estate |
|
|
339 |
|
|
|
235 |
|
|
|
69 |
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial, and agricultural |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial mortgage |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
16,450 |
|
|
$ |
13,324 |
|
|
$ |
963 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
The unpaid principal balance of impaired loans includes the Corporation's recorded investment in the loan and amounts that have been charged off.
The following table presents information for loans individually evaluated for impairment during the three months ended June 30, 2010:
| |
|
|
|
|
|
Average of individually impaired loans during period |
|
$ |
14,718 |
|
|
Interest income recognized during impairment |
|
|
241 |
|
|
Cash basis interest income recognized during impairment |
|
|
241 |
|
The following table presents information for loans individually evaluated for impairment during the six months ended June 30, 2010:
| |
|
|
|
|
|
Average of individually impaired loans during period |
|
$ |
15,046 |
|
|
Interest income recognized during impairment |
|
|
340 |
|
|
Cash basis interest income recognized during impairment |
|
|
340 |
|
The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by portfolio segment as of June 30, 2011 and December 31, 2010:
| |
|
|
|
|
|
|
|
|
| |
|
Nonaccrual |
|
|
Past Due Over 90 Days
Still on Accrual |
|
|
June 30, 2011 |
|
|
|
|
|
|
|
|
| |
|
|
|
Commercial, industrial, and agricultural |
|
$ |
7,195 |
|
|
$ |
1,499 |
|
|
Commercial mortgages |
|
|
7,539 |
|
|
|
125 |
|
|
Residential real estate |
|
|
1,339 |
|
|
|
135 |
|
|
Consumer |
|
|
25 |
|
|
|
116 |
|
|
Credit cards |
|
|
— |
|
|
|
34 |
|
| |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
16,098 |
|
|
$ |
1,909 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Nonaccrual |
|
|
Past Due Over 90 Days
Still on Accrual |
|
|
December 31, 2010 |
|
|
|
|
|
|
|
|
| |
|
|
|
Commercial, industrial, and agricultural |
|
$ |
2,344 |
|
|
$ |
23 |
|
|
Commercial mortgages |
|
|
8,276 |
|
|
|
321 |
|
|
Residential real estate |
|
|
1,306 |
|
|
|
386 |
|
|
Consumer |
|
|
— |
|
|
|
154 |
|
|
Credit cards |
|
|
— |
|
|
|
5 |
|
| |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
11,926 |
|
|
$ |
889 |
|
| |
|
|
|
|
|
|
|
|
Nonaccrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.
The following tables present the aging of the recorded investment in past due loans as of June 30, 2011 and December 31, 2010 by class of loans:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Greater Than |
|
|
|
|
|
|
|
|
|
|
| June 30, 2011 |
|
30-59 Days
Past Due |
|
|
60-89 Days
Past Due |
|
|
90 Days
Past Due |
|
|
Total Past
Due |
|
|
Loans Not
Past Due |
|
|
Total |
|
|
Commercial, industrial, and agricultural |
|
$ |
111 |
|
|
$ |
344 |
|
|
$ |
8,694 |
|
|
$ |
9,149 |
|
|
$ |
242,381 |
|
|
$ |
251,530 |
|
|
Commercial mortgages |
|
|
2,527 |
|
|
|
1,927 |
|
|
|
7,664 |
|
|
|
12,118 |
|
|
|
223,291 |
|
|
|
235,409 |
|
|
Residential real estate |
|
|
1,249 |
|
|
|
342 |
|
|
|
1,474 |
|
|
|
3,065 |
|
|
|
276,964 |
|
|
|
280,029 |
|
|
Consumer |
|
|
420 |
|
|
|
212 |
|
|
|
141 |
|
|
|
773 |
|
|
|
53,121 |
|
|
|
53,894 |
|
|
Credit cards |
|
|
13 |
|
|
|
15 |
|
|
|
34 |
|
|
|
62 |
|
|
|
2,914 |
|
|
|
2,976 |
|
|
Overdrafts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
617 |
|
|
|
617 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
4,320 |
|
|
$ |
2,840 |
|
|
$ |
18,007 |
|
|
$ |
25,167 |
|
|
$ |
799,288 |
|
|
$ |
824,455 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Greater Than |
|
|
|
|
|
|
|
|
|
|
| December 31, 2010 |
|
30-59 Days
Past Due |
|
|
60-89 Days
Past Due |
|
|
90 Days
Past Due |
|
|
Total Past
Due |
|
|
Loans Not
Past Due |
|
|
Total |
|
|
Commercial, industrial, and agricultural |
|
$ |
225 |
|
|
$ |
2,512 |
|
|
$ |
2,367 |
|
|
$ |
5,104 |
|
|
$ |
252,387 |
|
|
$ |
257,491 |
|
|
Commercial mortgages |
|
|
129 |
|
|
|
1,184 |
|
|
|
8,597 |
|
|
|
9,910 |
|
|
|
202,968 |
|
|
|
212,878 |
|
|
Residential real estate |
|
|
1,629 |
|
|
|
262 |
|
|
|
1,692 |
|
|
|
3,583 |
|
|
|
263,021 |
|
|
|
266,604 |
|
|
Consumer |
|
|
455 |
|
|
|
145 |
|
|
|
154 |
|
|
|
754 |
|
|
|
52,448 |
|
|
|
53,202 |
|
|
Credit cards |
|
|
20 |
|
|
|
10 |
|
|
|
5 |
|
|
|
35 |
|
|
|
2,835 |
|
|
|
2,870 |
|
|
Overdrafts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,964 |
|
|
|
3,964 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,458 |
|
|
$ |
4,113 |
|
|
$ |
12,815 |
|
|
$ |
19,386 |
|
|
$ |
777,623 |
|
|
$ |
797,009 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings
The Corporation has allocated $234 and $243 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2011 and December 31, 2010, respectively. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring.
Credit Quality Indicators
The Corporation classifies commercial, industrial, and agricultural loans and commercial mortgage 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 Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $1 million bi-annually and loans with an outstanding balance of less than $1 million at least annually.
The Corporation 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 Corporation'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 Corporation 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 rated as special mention, substandard, or doubtful are considered to be pass rated loans. All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30, 2011 |
|
Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Total |
|
|
Commercial, industrial, and agricultural |
|
$ |
217,377 |
|
|
$ |
15,147 |
|
|
$ |
19,006 |
|
|
$ |
— |
|
|
$ |
251,530 |
|
|
Commercial mortgages |
|
|
213,103 |
|
|
|
4,635 |
|
|
|
17,550 |
|
|
|
121 |
|
|
|
235,409 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
430,480 |
|
|
$ |
19,782 |
|
|
$ |
36,556 |
|
|
$ |
121 |
|
|
$ |
486,939 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2010 |
|
Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Total |
|
|
Commercial, industrial, and agricultural |
|
$ |
223,196 |
|
|
$ |
4,830 |
|
|
$ |
29,450 |
|
|
$ |
15 |
|
|
$ |
257,491 |
|
|
Commercial mortgages |
|
|
188,846 |
|
|
|
7,673 |
|
|
|
16,249 |
|
|
|
110 |
|
|
|
212,878 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
412,042 |
|
|
$ |
12,503 |
|
|
$ |
45,699 |
|
|
$ |
125 |
|
|
$ |
470,369 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporation's portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation ("Holiday"), our subsidiary that offers small balance unsecured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics, are considered to be subprime loans. Holiday originates small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher credit risk characteristics than are typical in the consumer loan portfolio held by the Bank. Holiday's loan portfolio is summarized as follows at June 30, 2011 and December 31, 2010:
| |
|
|
|
|
|
|
|
|
| |
|
June 30,
2011 |
|
|
December 31,
2010 |
|
|
Consumer |
|
$ |
17,040 |
|
|
$ |
16,532 |
|
|
Residential real estate |
|
|
1,059 |
|
|
|
1,149 |
|
|
Less: unearned discount |
|
|
(2,668 |
) |
|
|
(2,447 |
) |
| |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
15,431 |
|
|
$ |
15,234 |
|
| |
|
|
|
|
|
|
|
|
The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and consumer loan classes, the Corporation 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 residential and consumer loans based on payment activity as of June 30, 2011 and December 31, 2010:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2011 |
|
|
December 31, 2010 |
|
| |
|
Residential
Real Estate |
|
|
Consumer |
|
|
Residential
Real Estate |
|
|
Consumer |
|
|
Performing |
|
$ |
278,555 |
|
|
$ |
53,753 |
|
|
$ |
264,912 |
|
|
$ |
53,048 |
|
|
Non-performing |
|
|
1,474 |
|
|
|
141 |
|
|
|
1,692 |
|
|
|
154 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
280,029 |
|
|
$ |
53,894 |
|
|
$ |
266,604 |
|
|
$ |
53,202 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |