Loans (Tables)

3 Months Ended

Mar. 31, 2015

Total net loans at March 31, 2015 and December 31, 2014 are summarized as follows:


	March 31, 2015			December 31, 2014
Commercial, industrial, and agricultural	$	436,305		$	428,458
Commercial mortgages		345,561			352,752
Residential real estate		504,569			502,317
Consumer		67,461			69,648
Credit cards		5,004			5,233
Overdrafts		1,075			1,188
Less: unearned discount		(3,849	)		(4,307	)
allowance for loan losses		(17,682	)		(17,373	)

Loans, net	$	1,338,444		$	1,337,916

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended March 31, 2015 were as follows:


	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2015	$	7,114		$	5,310		$	2,479		$	2,205		$	71		$	194		$	17,373
Charge-offs		(74	)		0			(66	)		(523	)		(42	)		(57	)		(762	)
Recoveries		15			50			1			29			3			30			128
Provision (benefit) for loan losses		168			(64	)		372			418			42			7			943

Allowance for loan losses, March 31, 2015	$	7,223		$	5,296		$	2,786		$	2,129		$	74		$	174		$	17,682

Transactions in the allowance for loan losses for the three months ended March 31, 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		0		(50	)		(122	)		(399	)		(21	)		(58	)		(650	)
Recoveries		0		0			19			22			2			28			71
Provision (benefit) for loan losses		66		218			108			586			21			20			1,019

Allowance for loan losses, March 31, 2014	$	8,278	$	3,704		$	2,455		$	1,972		$	68		$	197		$	16,674

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, 2015 and December 31, 2014. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

March 31, 2015


	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	$	205	$	407	$	193	$	0	$	0	$	0	$	805
Collectively evaluated for impairment		6,240		2,471		2,593		2,129		74		174		13,681
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		778		2,418		0		0		0		0		3,196

Total ending allowance balance	$	7,223	$	5,296	$	2,786	$	2,129	$	74	$	174	$	17,682

Loans:
Individually evaluated for impairment	$	3,434	$	490	$	657	$	0	$	0	$	0	$	4,581
Collectively evaluated for impairment		428,991		329,829		503,912		67,461		5,004		1,075		1,336,272
Acquired with deteriorated credit quality		0		713		0		0		0		0		713
Modified in a troubled debt restructuring		3,880		14,529		0		0		0		0		18,409

Total ending loans balance	$	436,305	$	345,561	$	504,569	$	67,461	$	5,004	$	1,075	$	1,359,975

December 31, 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	$	254	$	294	$	197	$	0	$	0	$	0	$	745
Collectively evaluated for impairment		6,703		2,503		2,282		2,205		71		194		13,958
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		157		2,513		0		0		0		0		2,670

Total ending allowance balance	$	7,114	$	5,310	$	2,479	$	2,205	$	71	$	194	$	17,373

Loans:
Individually evaluated for impairment	$	3,394	$	494	$	657	$	0	$	0	$	0	$	4,545
Collectively evaluated for impairment		421,144		336,801		501,660		69,648		5,233		1,188		1,335,674
Acquired with deteriorated credit quality		0		719		0		0		0		0		719
Modified in a troubled debt restructuring		3,920		14,738		0		0		0		0		18,658

Total ending loans balance	$	428,458	$	352,752	$	502,317	$	69,648	$	5,233	$	1,188	$	1,359,596

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, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014:

March 31, 2015


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	6,225	$	6,225	$	983
Commercial mortgage		10,762		10,269		2,825
Residential real estate		400		400		193
With no related allowance recorded:
Commercial, industrial, and agricultural		2,644		1,693		0
Commercial mortgage		4,757		4,750		0
Residential real estate		319		257		0

Total	$	25,107	$	23,594	$	4,001

December 31, 2014


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,737	$	5,737	$	411
Commercial mortgage		10,651		10,212		2,807
Residential real estate		400		400		197
With no related allowance recorded:
Commercial, industrial, and agricultural		2,530		1,577		0
Commercial mortgage		5,020		5,020		0
Residential real estate		319		257		0

Total	$	24,657	$	23,203	$	3,415

Impaired Financing Receivables with Related and not Related Allowances


	Three Months Ended March 31, 2015
	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,981	$	35	$	35
Commercial mortgage		10,241		0		0
Residential real estate		400		2		2
With no related allowance recorded:
Commercial, industrial, and agricultural		1,636		10		10
Commercial mortgage		4,886		0		0
Residential real estate		257		2		2

Total	$	23,401	$	49	$	49


	Three Months Ended March 31, 2014
	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	4,660	$	1	$	1
Commercial mortgage		5,319		0		0
Residential real estate		0		8		8
With no related allowance recorded:
Commercial, industrial, and agricultural		2,130		0		0
Commercial mortgage		6,970		0		0
Residential real estate		0		0		0

Total	$	19,079	$	9	$	9

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, 2015 and December 31, 2014:


	March 31, 2015				December 31, 2014
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	715	$	0	$	796	$	0
Commercial mortgages		4,447		0		4,323		0
Residential real estate		3,152		57		3,026		213
Consumer		844		0		1,045		0
Credit cards		0		0		0		0

Total	$	9,158	$	57	$	9,190	$	213

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, 2015 and December 31, 2014 by class of loans.

March 31, 2015


					Greater Than
	30-59 Days		60-89 Days		90 Days		Total Past		Loans Not
	Past Due		Past Due		Past Due		Due		Past Due		Total
Commercial, industrial, and agricultural	$	2,550	$	69	$	223	$	2,842	$	433,463	$	436,305
Commercial mortgages		2,395		1,144		4,447		7,986		337,575		345,561
Residential real estate		2,385		614		3,209		6,208		498,361		504,569
Consumer		146		49		844		1,039		66,422		67,461
Credit cards		0		0		0		0		5,004		5,004
Overdrafts		0		0		0		0		1,075		1,075

Total	$	7,476	$	1,876	$	8,723	$	18,075	$	1,341,900	$	1,359,975

December 31, 2014


					Greater Than
	30-59 Days		60-89 Days		90 Days		Total Past		Loans Not
	Past Due		Past Due		Past Due		Due		Past Due		Total
Commercial, industrial, and agricultural	$	888	$	588	$	294	$	1,770	$	426,688	$	428,458
Commercial mortgages		20		1,351		4,323		5,694		347,058		352,752
Residential real estate		2,719		1,191		3,239		7,149		495,168		502,317
Consumer		265		122		1,045		1,432		68,216		69,648
Credit cards		0		83		0		83		5,150		5,233
Overdrafts		0		0		0		0		1,188		1,188

Total	$	5,083	$	2,144	$	8,901	$	16,128	$	1,343,468	$	1,359,596

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, 2015 and December 31, 2014.


	March 31, 2015						December 31, 2014
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		6	$	3,880	$	778		6	$	3,920	$	157
Commercial mortgages		9		14,529		2,418		9		14,738		2,513
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		15	$	18,409	$	3,196		15	$	18,658	$	2,670

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

March 31, 2015


	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	414,492	$	4,818	$	16,641	$	354	$	436,305
Commercial mortgages		323,722		0		21,403		436		345,561

Total	$	738,214	$	4,818	$	38,044	$	790	$	781,866

December 31, 2014


	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	402,923	$	6,703	$	18,525	$	307	$	428,458
Commercial mortgages		328,614		0		23,699		439		352,752

Total	$	731,537	$	6,703	$	42,224	$	746	$	781,210

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, 2015 and December 31, 2014:


	March 31, 2015						December 31, 2014
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	501,360	$	66,617	$	5,004	$	499,078	$	68,603	$	5,233
Non-performing		3,209		844		0		3,239		1,045		0

Total	$	504,569	$	67,461	$	5,004	$	502,317	$	69,648	$	5,233

Summary of Holiday's Loan Portfolio

Holiday’s loan portfolio is summarized as follows at March 31, 2015 and December 31, 2014:


	March 31,			December 31,
	2015			2014
Consumer	$	25,700		$	27,916
Residential real estate		1,219			1,270
Less: unearned discount		(3,849	)		(4,307	)

Total	$	23,070		$	24,879