Loans (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Schedule of Net Loans

Total net loans at June 30, 2015 and December 31, 2014 are summarized as follows:

	June 30, 2015			December 31, 2014
Commercial, industrial, and agricultural	$	439,810		$	428,458
Commercial mortgages		399,255			352,752
Residential real estate		538,329			502,317
Consumer		71,584			69,648
Credit cards		5,130			5,233
Overdrafts		1,560			1,188
Less: unearned discount		(4,204	)		(4,307	)
allowance for loan losses		(17,504	)		(17,373	)
Loans, net	$	1,433,960		$	1,337,916

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended June 30, 2015 were as follows:

	Commercial,					Residential
	Industrial, and			Commercial		Real						Credit
	Agricultural			Mortgages		Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, April 1, 2015	$	7,223		$	5,296	$	2,786		$	2,129		$	74		$	174		$	17,682
Charge-offs		(65	)		0		(90	)		(477	)		(44	)		(48	)		(724	)
Recoveries		12			0		0			26			2			20			60
Provision (benefit) for loan losses		(572	)		632		(84	)		440			66			4			486
Allowance for loan losses, June 30, 2015	$	6,598		$	5,928	$	2,612		$	2,118		$	98		$	150		$	17,504

Transactions in the allowance for loan losses for the six months ended June 30, 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		(139	)		0		(156	)		(1,000	)		(86	)		(105	)		(1,486	)
Recoveries		27			50		1			55			5			50			188
Provision (benefit) for loan losses		(404	)		568		288			858			108			11			1,429
Allowance for loan losses, June 30, 2015	$	6,598		$	5,928	$	2,612		$	2,118		$	98		$	150		$	17,504

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

	Commercial, Industrial, and Agricultural			Commercial Mortgages		Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, April 1, 2014	$	8,278		$	3,704	$	2,455		$	1,972		$	68		$	197		$	16,674
Charge-offs		(319	)		0		(76	)		(369	)		(2	)		(64	)		(830	)
Recoveries		1			10		0			31			1			27			70
Provision for loan losses		136			867		88			362			21			27			1,501
Allowance for loan losses, June 30, 2014	$	8,096		$	4,581	$	2,467		$	1,996		$	88		$	187		$	17,415

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

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2014	$	8,212		$	3,536		$	2,450		$	1,763		$	66		$	207		$	16,234
Charge-offs		(319	)		(50	)		(198	)		(768	)		(23	)		(122	)		(1,480	)
Recoveries		1			10			19			53			3			55			141
Provision for loan losses		202			1,085			196			948			42			47			2,520
Allowance for loan losses, June 30, 2014	$	8,096		$	4,581		$	2,467		$	1,996		$	88		$	187		$	17,415

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 June 30, 2015 and December 31, 2014. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

June 30, 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	$	282	$	490	$	190	$	0	$	0	$	0	$	962
Collectively evaluated for impairment		5,655		2,987		2,422		2,118		98		150		13,430
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		661		2,451		0		0		0		0		3,112
Total ending allowance balance	$	6,598	$	5,928	$	2,612	$	2,118	$	98	$	150	$	17,504
Loans:
Individually evaluated for impairment	$	4,106	$	490	$	400	$	0	$	0	$	0	$	4,996
Collectively evaluated for impairment		431,721		384,841		537,929		71,584		5,130		1,560		1,432,765
Acquired with deteriorated credit quality		0		704		0		0		0		0		704
Modified in a troubled debt restructuring		3,983		13,220		0		0		0		0		17,203
Total ending loans balance	$	439,810	$	399,255	$	538,329	$	71,584	$	5,130	$	1,560	$	1,455,668
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 June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014:

June 30, 2015

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	6,405	$	6,405	$	943
Commercial mortgage		9,554		9,022		2,941
Residential real estate		400		400		190
With no related allowance recorded:
Commercial, industrial, and agricultural		2,642		1,684		0
Commercial mortgage		4,687		4,688		0
Residential real estate		0		0		0
Total	$	23,688	$	22,199	$	4,074

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 June 30, 2015						Six Months Ended June 30, 2015
	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	$	6,315	$	7	$	7	$	6,071	$	42	$	42
Commercial mortgage		9,646		0		0		9,617		0		0
Residential real estate		400		11		11		400		13		13
With no related allowance recorded:
Commercial, industrial, and agricultural		1,689		2		2		1,631		12		12
Commercial mortgage		4,719		0		0		4,854		0		0
Residential real estate		129		4		4		129		6		6
Total	$	22,898	$	24	$	24	$	22,702	$	73	$	73

	Three Months Ended June 30, 2014						Six Months Ended June 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	$	4,318	$	1	$	1	$	4,438	$	2	$	2
Commercial mortgage		5,402		0		0		5,416		0		0
Residential real estate		200		3		3		133		11		11
With no related allowance recorded:
Commercial, industrial, and agricultural		2,234		0		0		2,167		0		0
Commercial mortgage		6,249		0		0		6,217		0		0
Residential real estate		0		0		0		0		0		0
Total	$	18,403	$	4	$	4	$	18,371	$	13	$	13

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 June 30, 2015 and December 31, 2014:

	June 30, 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	$	4,184	$	0	$	796	$	0
Commercial mortgages		3,716		0		4,323		0
Residential real estate		3,359		50		3,026		213
Consumer		730		17		1,045		0
Credit cards		0		0		0		0
Total	$	11,989	$	67	$	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 June 30, 2015 and December 31, 2014 by class of loans.

June 30, 2015

	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	$	1,012	$	1,775	$	1,106	$	3,893	$	435,917	$	439,810
Commercial mortgages		1,136		0		3,716		4,852		394,403		399,255
Residential real estate		1,047		896		3,409		5,352		532,977		538,329
Consumer		287		159		747		1,193		70,391		71,584
Credit cards		0		0		0		0		5,130		5,130
Overdrafts		0		0		0		0		1,560		1,560
Total	$	3,482	$	2,830	$	8,978	$	15,290	$	1,440,378	$	1,455,668

December 31, 2014

					Greater Than
	30-59 Days		60-89 Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past 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 June 30, 2015 and December 31, 2014.

	June 30, 2015						December 31, 2014
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		7	$	3,983	$	661		7	$	4,076	$	179
Commercial mortgages		8		13,220		2,451		8		14,582		2,491
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	$	17,203	$	3,112		15	$	18,658	$	2,670

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

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, 2015

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	418,471	$	3,824	$	17,237	$	278	$	439,810
Commercial mortgages		386,302		0		12,520		433		399,255
Total	$	804,773	$	3,824	$	29,757	$	711	$	839,065

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 June 30, 2015 and December 31, 2014:

	June 30, 2015						December 31, 2014
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	534,920	$	70,837	$	5,130	$	499,078	$	68,603	$	5,233
Non-performing		3,409		747		0		3,239		1,045		0
Total	$	538,329	$	71,584	$	5,130	$	502,317	$	69,648	$	5,233

Summary of Holiday's Loan Portfolio

Holiday’s loan portfolio is summarized as follows at June 30, 2015 and December 31, 2014:

	June 30,			December 31,
	2015			2014
Consumer	$	27,431		$	27,916
Residential real estate		1,192			1,270
Less: unearned discount		(4,204	)		(4,307	)
Total	$	24,419		$	24,879