Loans (Tables)

12 Months Ended

Dec. 31, 2015

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


	2015			2014

Commercial, industrial, and agricultural	$	475,364		$	428,458
Commercial mortgages		448,179			352,752
Residential real estate		574,225			502,317
Consumer		78,345			69,648
Credit cards		5,201			5,233
Overdrafts		1,040			1,188
Less: unearned discount		(4,556	)		(4,307	)
allowance for loan losses		(16,737	)		(17,373	)

Loans, net	$	1,561,061		$	1,337,916

Allowance for Loan Losses

Transactions in the allowance for loan losses for the year ended December 31, 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		(307	)		(486	)		(632	)		(1,956	)		(116	)		(221	)		(3,718	)
Recoveries		267			52			8			96			14			85			522
Provision for loan losses		(1,039	)		729			620			2,026			121			103			2,560

Allowance for loan losses, December 31, 2015	$	6,035		$	5,605		$	2,475		$	2,371		$	90		$	161		$	16,737

Transactions in the allowance for loan losses for the year ended December 31, 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		(618	)		(50	)		(436	)		(1,744	)		(78	)		(256	)		(3,182	)
Recoveries		1			210			41			93			25			111			481
Provision for loan losses		(481	)		1,614			424			2,093			58			132			3,840

Allowance for loan losses, December 31, 2014	$	7,114		$	5,310		$	2,479		$	2,205		$	71		$	194		$	17,373

Transactions in the allowance for loan losses for the year ended December 31, 2013 were as follows:


	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2013	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060
Charge-offs		(958	)		(1,931	)		(467	)		(1,919	)		(97	)		(258	)		(5,630	)
Recoveries		7			1,430			5			114			16			94			1,666
Provision for loan losses		4,223			(660	)		446			1,869			64			196			6,138

Allowance for loan losses, December 31, 2013	$	8,212		$	3,536		$	2,450		$	1,763		$	66		$	207		$	16,234

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


December 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	$	239	$	0	$	39	$	0	$	0	$	0	$	278
Collectively evaluated for impairment		4,909		3,580		2,436		2,371		90		161		13,547
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		887		2,025		0		0		0		0		2,912

Total ending allowance balance	$	6,035	$	5,605	$	2,475	$	2,371	$	90	$	161	$	16,737

Loans:
Individually evaluated for impairment	$	1,196	$	393	$	248	$	0	$	0	$	0	$	1,837
Collectively evaluated for impairment		469,128		437,200		573,977		78,345		5,201		1,040		1,564,891
Acquired with deteriorated credit quality		0		685		0		0		0		0		685
Modified in a troubled debt restructuring		5,040		9,901		0		0		0		0		14,941

Total ending loans balance	$	475,364	$	448,179	$	574,225	$	78,345	$	5,201	$	1,040	$	1,582,354


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 December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014, and 2013:


December 31, 2015	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,448	$	3,448	$	1,126
Commercial mortgage		5,985		5,343		2,025
Residential real estate		351		248		39
With no related allowance recorded:
Commercial, industrial, and agricultural		3,716		2,788		0
Commercial mortgage		5,001		4,951		0
Residential real estate		0		0		0

Total	$	18,501	$	16,778	$	3,190


December 31, 2014	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	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

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off.


	Year Ended December 31, 2015
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,667	$	44	$	44
Commercial mortgage		8,154		0		0
Residential real estate		370		21		21
With no related allowance recorded:
Commercial, industrial, and agricultural		1,831		14		14
Commercial mortgage		4,806		0		0
Residential real estate		103		6		6

Total	$	20,931	$	85	$	85


	Year Ended December 31, 2014
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized


With an allowance recorded:
Commercial, industrial, and agricultural	$	4,621	$	73	$	73
Commercial mortgage		6,374		85		85
Residential real estate		240		46		46
With no related allowance recorded:
Commercial, industrial, and agricultural		1,972		31		31
Commercial mortgage		5,868		78		78
Residential real estate		82		16		16

Total	$	19,157	$	329	$	329


	Year Ended December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized


With an allowance recorded:
Commercial, industrial, and agricultural	$	1,989	$	7	$	7
Commercial mortgage		6,572		3		3
Residential real estate		101		7		7
With no related allowance recorded:
Commercial, industrial, and agricultural		2,124		0		0
Commercial mortgage		11,885		0		0
Residential real estate		86		0		0

Total	$	22,757	$	17	$	17

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 on accrual by class of loans as of December 31, 2015 and 2014:


	December 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	$	3,560	$	3	$	796	$	0
Commercial mortgages		3,651		0		4,323		0
Residential real estate		3,671		87		3,026		213
Consumer		1,277		15		1,045		0
Credit cards		0		0		0		0

Total	$	12,159	$	105	$	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 December 31, 2015 and 2014 by class of loans.


December 31, 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	$	131	$	622	$	698	$	1,451	$	473,913	$	475,364
Commercial mortgages		7		343		3,651		4,001		444,178		448,179
Residential real estate		2,834		378		3,001		6,213		568,012		574,225
Consumer		216		179		1,292		1,687		76,658		78,345
Credit cards		0		0		0		0		5,201		5,201
Overdrafts		0		0		0		0		1,040		1,040

Total	$	3,188	$	1,522	$	8,642	$	13,352	$	1,569,002	$	1,582,354


December 31, 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	$	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 December 31, 2015 and December 31, 2014.


	December 31, 2015						December 31, 2014
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		8	$	5,040	$	887		7	$	4,076	$	179
Commercial mortgages		8		9,901		2,025		9		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		16	$	14,941	$	2,912		16	$	18,658	$	2,670

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2015, 2014 and 2013:


	Year Ended December 31, 2015
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural		1	$	1,327	$	1,327
Commercial mortgages		0		0		0
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0

Total		1	$	1,327	$	1,327


	Year Ended December 31, 2014
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural		1	$	2,315	$	2,315
Commercial mortgages		3		4,879		4,879
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0

Total		4	$	7,194	$	7,194


	Year Ended December 31, 2013
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural		1	$	132	$	132
Commercial mortgages		2		3,615		3,549
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0

Total		3	$	3,747	$	3,681

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

December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	447,449	$	4,749	$	22,943	$	223	$	475,364
Commercial mortgages		426,870		1,735		19,148		426		448,179

Total	$	874,319	$	6,484	$	42,091	$	649	$	923,543


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 December 31, 2015 and December 31, 2014:


	December 31, 2015						December 31, 2014
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	570,467	$	77,053	$	5,201	$	499,078	$	68,603	$	5,233
Non-performing		3,758		1,292		0		3,239		1,045		0

Total	$	574,225	$	78,345	$	5,201	$	502,317	$	69,648	$	5,233

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

Holiday’s loan portfolio, included in consumer and residential loans above, is summarized as follows at December 31, 2015 and 2014:


	2015			2014
Consumer	$	30,001		$	27,916
Residential real estate		1,263			1,270
Less: unearned discount		(4,556	)		(4,307	)

Total	$	26,708		$	24,879