Loans (Tables)

9 Months Ended

Sep. 30, 2015

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


	September 30, 2015			December 31, 2014
Commercial, industrial, and agricultural	$	450,969		$	428,458
Commercial mortgages		421,799			352,752
Residential real estate		566,045			502,317
Consumer		75,126			69,648
Credit cards		5,037			5,233
Overdrafts		1,543			1,188
Less: unearned discount		(4,398	)		(4,307	)
allowance for loan losses		(17,236	)		(17,373	)

Loans, net	$	1,498,885		$	1,337,916

Allowance for Loan Losses

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


	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, July 1, 2015	$	6,598		$	5,928		$	2,612		$	2,118		$	98		$	150		$	17,504
Charge-offs		(80	)		0			(191	)		(448	)		(17	)		(54	)		(790	)
Recoveries		12			1			4			21			3			18			59
Provision (benefit) for loan losses		89			(384	)		115			585			14			44			463

Allowance for loan losses, September 30, 2015	$	6,619		$	5,545		$	2,540		$	2,276		$	98		$	158		$	17,236

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


	Commercial, Industrial, and Agricultural			Commercial Mortgages		Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2015	$	7,114		$	5,310	$	2,479		$	2,205		$	71		$	194		$	17,373
Charge-offs		(219	)		0		(347	)		(1,448	)		(103	)		(159	)		(2,276	)
Recoveries		39			51		5			76			8			68			247
Provision (benefit) for loan losses		(315	)		184		403			1,443			122			55			1,892

Allowance for loan losses, September 30, 2015	$	6,619		$	5,545	$	2,540		$	2,276		$	98		$	158		$	17,236

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


	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit 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, 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		(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

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

September 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	$	371	$	486	$	186	$	0	$	0	$	0	$	1,043
Collectively evaluated for impairment		5,288		3,121		2,354		2,276		98		158		13,295
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		960		1,938		0		0		0		0		2,898

Total ending allowance balance	$	6,619	$	5,545	$	2,540	$	2,276	$	98	$	158	$	17,236

Loans:
Individually evaluated for impairment	$	4,056	$	486	$	400	$	0	$	0	$	0	$	4,942
Collectively evaluated for impairment		443,035		410,555		565,645		75,126		5,037		1,543		1,500,941
Acquired with deteriorated credit quality		0		695		0		0		0		0		695
Modified in a troubled debt restructuring		3,878		10,063		0		0		0		0		13,941

Total ending loans balance	$	450,969	$	421,799	$	566,045	$	75,126	$	5,037	$	1,543	$	1,520,519


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 September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014:

September 30, 2015


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	6,520	$	6,520	$	1,331
Commercial mortgage		6,716		5,926		2,424
Residential real estate		400		400		186
With no related allowance recorded:
Commercial, industrial, and agricultural		2,305		1,414		0
Commercial mortgage		4,624		4,623		0
Residential real estate		0		0		0

Total	$	20,565	$	18,883	$	3,941

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 September 30, 2015						Nine Months Ended September 30, 2015
	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	$	6,463	$	0	$	0	$	6,129	$	42	$	42
Commercial mortgage		7,474		0		0		8,069		0		0
Residential real estate		400		5		5		400		18		18
With no related allowance recorded:
Commercial, industrial, and agricultural		1,549		0		0		1,496		10		10
Commercial mortgage		4,656		0		0		4,822		0		0
Residential real estate		0		0		0		129		6		6

Total	$	20,542	$	5	$	5	$	21,045	$	76	$	76


	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
	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	$	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

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, 2015 and December 31, 2014:


	September 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	$	3,346	$	0	$	796	$	0
Commercial mortgages		4,176		0		4,323		0
Residential real estate		3,715		104		3,026		213
Consumer		924		89		1,045		0
Credit cards		0		0		0		0

Total	$	12,161	$	193	$	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 September 30, 2015 and December 31, 2014 by class of loans.

September 30, 2015


					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	$	823	$	428	$	286	$	1,537	$	449,432	$	450,969
Commercial mortgages		137		0		4,176		4,313		417,486		421,799
Residential real estate		856		685		3,819		5,360		560,685		566,045
Consumer		190		93		1,013		1,296		73,830		75,126
Credit cards		0		0		0		0		5,037		5,037
Overdrafts		0		0		0		0		1,543		1,543

Total	$	2,006	$	1,206	$	9,294	$	12,506	$	1,508,013	$	1,520,519

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 September 30, 2015 and December 31, 2014.


	September 30, 2015						December 31, 2014
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		7	$	3,878	$	960		7	$	4,076	$	179
Commercial mortgages		8		10,063		1,938		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	$	13,941	$	2,898		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.

September 30, 2015


	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	423,173	$	4,438	$	23,134	$	224	$	450,969
Commercial mortgages		405,251		0		16,120		428		421,799

Total	$	828,424	$	4,438	$	39,254	$	652	$	872,768

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 September 30, 2015 and December 31, 2014:


	September 30, 2015						December 31, 2014
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	562,226	$	74,113	$	5,037	$	499,078	$	68,603	$	5,233
Non-performing		3,819		1,013		0		3,239		1,045		0

Total	$	566,045	$	75,126	$	5,037	$	502,317	$	69,648	$	5,233

Summary of Holiday's Loan Portfolio

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


	September 30,			December 31,
	2015			2014
Consumer	$	28,790		$	27,916
Residential real estate		1,184			1,270
Less: unearned discount		(4,398	)		(4,307	)

Total	$	25,576		$	24,879