Loans (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Schedule of Net Loans

Total net loans at September 30, 2014 and December 31, 2013 are summarized as follows:

	September 30, 2014			December 31, 2013
Commercial, industrial, and agricultural	$	424,059		$	427,715
Commercial mortgages		338,445			343,465
Residential real estate		494,799			459,114
Consumer		67,753			63,491
Credit cards		5,079			5,065
Overdrafts		445			409
Less: unearned discount		(4,205	)		(3,896	)
allowance for loan losses		(17,843	)		(16,234	)
Loans, net	$	1,308,532		$	1,279,129

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended September 30, 2014 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, July 1, 2014	$	8,096		$	4,581		$	2,467		$	1,996		$	88		$	187		$	17,415
Charge-offs		(60	)		(92	)		(17	)		(415	)		(16	)		(75	)		(675	)
Recoveries		0			0			18			25			4			18			65
Provision for loan losses		690			(291	)		93			467			3			76			1,038
Allowance for loan losses, September 30, 2014	$	8,726		$	4,198		$	2,561		$	2,073		$	79		$	206		$	17,843

Transactions in the allowance for loan losses for the nine months ended September 30, 2014 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2014	$	8,212		$	3,536		$	2,450		$	1,763		$	66		$	207		$	16,234
Charge-offs		(379	)		(142	)		(215	)		(1,183	)		(39	)		(197	)		(2,155	)
Recoveries		1			10			37			78			7			73			206
Provision for loan losses		892			794			289			1,415			45			123			3,558
Allowance for loan losses, September 30, 2014	$	8,726		$	4,198		$	2,561		$	2,073		$	79		$	206		$	17,843

Transactions in the allowance for loan losses for the three months ended September 30, 2013 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, July 1, 2013	$	5,338		$	5,896		$	2,508		$	1,555		$	55		$	148		$	15,500
Charge-offs		(169	)		(4	)		(57	)		(269	)		(19	)		(72	)		(590	)
Recoveries		0			1,424			1			21			3			16			1,465
Provision (benefit) for loan losses		384			(275	)		189			454			18			76			846
Allowance for loan losses, September 30, 2013	$	5,553		$	7,041		$	2,641		$	1,761		$	57		$	168		$	17,221

Transactions in the allowance for loan losses for the nine months ended September 30, 2013 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2013	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060
Charge-offs		(253	)		(1,534	)		(398	)		(946	)		(48	)		(163	)		(3,342	)
Recoveries		7			1,427			5			95			13			65			1,612
Provision (benefit) for loan losses		859			2,451			568			913			9			91			4,891
Allowance for loan losses, September 30, 2013	$	5,553		$	7,041		$	2,641		$	1,761		$	57		$	168		$	17,221

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, 2014 and December 31, 2013. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

September 30, 2014

	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	$	339	$	296	$	201	$	0	$	0	$	0	$	836
Collectively evaluated for impairment		8,276		2,288		2,360		2,073		79		206		15,282
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		111		1,614		0		0		0		0		1,725
Total ending allowance balance	$	8,726	$	4,198	$	2,561	$	2,073	$	79	$	206	$	17,843
Loans:
Individually evaluated for impairment	$	4,173	$	1,084	$	551	$	0	$	0	$	0	$	5,808
Collectively evaluated for impairment		418,225		325,143		494,248		67,753		5,079		445		1,310,893
Acquired with deteriorated credit quality		0		2,217		0		0		0		0		2,217
Modified in a troubled debt restructuring		1,661		10,001		0		0		0		0		11,662
Total ending loans balance	$	424,059	$	338,445	$	494,799	$	67,753	$	5,079	$	445	$	1,330,580

December 31, 2013

	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	$	372	$	55	$	0	$	0	$	0	$	0	$	427
Collectively evaluated for impairment		7,725		2,141		2,450		1,763		66		207		14,352
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		115		1,340		0		0		0		0		1,455
Total ending allowance balance	$	8,212	$	3,536	$	2,450	$	1,763	$	66	$	207	$	16,234
Loans:
Individually evaluated for impairment	$	4,923	$	1,249	$	0	$	0	$	0	$	0	$	6,172
Collectively evaluated for impairment		421,002		329,645		459,114		63,491		5,065		409		1,278,726
Acquired with deteriorated credit quality		0		2,225		0		0		0		0		2,225
Modified in a troubled debt restructuring		1,790		10,346		0		0		0		0		12,136
Total ending loans balance	$	427,715	$	343,465	$	459,114	$	63,491	$	5,065	$	409	$	1,299,259

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, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013:

September 30, 2014

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	4,051	$	4,051	$	450
Commercial mortgage		5,800		5,413		1,910
Residential real estate		400		400		201
With no related allowance recorded:
Commercial, industrial, and agricultural		2,680		1,783		0
Commercial mortgage		5,671		5,672		0
Residential real estate		152		151		0
Total	$	18,754	$	17,470	$	2,561

December 31, 2013

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,929	$	4,679	$	487
Commercial mortgage		5,646		5,443		1,395
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,055		2,034		0
Commercial mortgage		6,178		6,152		0
Residential real estate		0		0		0
Total	$	19,808	$	18,308	$	1,882

Impaired Financing Receivables with Related and not Related Allowances

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
	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	$	4,023	$	62	$	62	$	4,342	$	64	$	64
Commercial mortgage		5,511		18		18		5,415		18		18
Residential real estate		400		45		45		200		56		56
With no related allowance recorded:
Commercial, industrial, and agricultural		2,012		32		32		2,071		32		32
Commercial mortgage		6,288		22		22		6,080		22		22
Residential real estate		76		0		0		38		0		0
Total	$	18,310	$	179	$	179	$	18,146	$	192	$	192

	Three Months Ended September 30, 2013						Nine Months Ended September 30, 2013
	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	$	1,267	$	3	$	3	$	1,439	$	4	$	4
Commercial mortgage		8,337		0		0		7,657		3		3
Residential real estate		0		1		1		191		4		4
With no related allowance recorded:
Commercial, industrial, and agricultural		2,055		0		0		2,121		0		0
Commercial mortgage		10,602		0		0		10,888		0		0
Residential real estate		69		0		0		138		0		0
Total	$	22,330	$	4	$	4	$	22,434	$	11	$	11

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, 2014 and December 31, 2013:

	September 30, 2014				December 31, 2013
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	1,272	$	0	$	1,006	$	0
Commercial mortgages		5,002		199		7,236		0
Residential real estate		3,048		106		2,389		150
Consumer		1,090		0		942		170
Credit cards		0		45		0		24
Total	$	10,412	$	350	$	11,573	$	344

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, 2014 and December 31, 2013 by class of loans.

September 30, 2014

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	1,114	$	834	$	665	$	2,613	$	421,446	$	424,059
Commercial mortgages		0		1,160		5,201		6,361		332,084		338,445
Residential real estate		2,300		689		3,154		6,143		488,656		494,799
Consumer		202		70		1,090		1,362		66,391		67,753
Credit cards		0		56		45		101		4,978		5,079
Overdrafts		0		0		0		0		445		445
Total	$	3,616	$	2,809	$	10,155	$	16,580	$	1,314,000	$	1,330,580

December 31, 2013

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	211	$	542	$	855	$	1,608	$	426,107	$	427,715
Commercial mortgages		1,258		713		7,236		9,207		334,258		343,465
Residential real estate		4,216		114		2,539		6,869		452,245		459,114
Consumer		334		1,049		1,112		2,495		60,996		63,491
Credit cards		0		29		24		53		5,012		5,065
Overdrafts		0		0		0		0		409		409
Total	$	6,019	$	2,447	$	11,766	$	20,232	$	1,279,027	$	1,299,259

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 September 30, 2014 and December 31, 2013.

	September 30, 2014						December 31, 2013
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		5	$	1,661	$	111		5	$	1,790	$	115
Commercial mortgages		7		10,001		1,614		7		10,346		1,340
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		12	$	11,662	$	1,725		12	$	12,136	$	1,455

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2013. There were no loans modified as troubled debt restructurings during the three months ended September 30, 2013.

	Nine Months Ended September 30, 2013
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		0	$	0	$	0
Commercial mortgages		2		3,615		3,549
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		2	$	3,615	$	3,549

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

All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.

September 30, 2014

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	386,235	$	8,630	$	28,874	$	320	$	424,059
Commercial mortgages		311,135		147		26,722		441		338,445
Total	$	697,370	$	8,777	$	55,596	$	761	$	762,504

December 31, 2013

			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	388,868	$	8,510	$	29,956	$	381	$	427,715
Commercial mortgages		295,060		13,622		34,298		485		343,465
Total	$	683,928	$	22,132	$	64,254	$	866	$	771,180

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, 2014 and December 31, 2013:

	September 30, 2014						December 31, 2013
	Residential				Credit		Residential				Credit
	Real Estate		Consumer		Cards		Real Estate		Consumer		Cards
Performing	$	491,645	$	66,663	$	5,034	$	456,575	$	62,379	$	5,041
Non-performing		3,154		1,090		45		2,539		1,112		24
Total	$	494,799	$	67,753	$	5,079	$	459,114	$	63,491	$	5,065

Summary of Holiday's Loan Portfolio Included in Consumer and Residential Loans

Holiday’s loan portfolio is summarized as follows at September 30, 2014 and December 31, 2013:

	September 30,			December 31,
	2014			2013
Consumer	$	26,976		$	24,891
Residential real estate		1,332			1,552
Less: unearned discount		(4,205	)		(3,896	)
Total	$	24,103		$	22,547