Loans (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule of Net Loans

Total net loans at June 30, 2016 and December 31, 2015 are summarized as follows:

	June 30, 2016			December 31, 2015
Commercial, industrial, and agricultural	$	490,838		$	475,364
Commercial mortgages		494,619			448,179
Residential real estate		591,779			574,225
Consumer		76,619			78,345
Credit cards		5,329			5,201
Overdrafts		407			1,040
Less: unearned discount		(3,747	)		(4,556	)
allowance for loan losses		(15,988	)		(16,737	)
Loans, net	$	1,639,856		$	1,561,061

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended June 30, 2016 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, April 1, 2016	$	5,627		$	6,044		$	2,574		$	2,274		$	81		$	138		$	16,738
Charge-offs		(162	)		(20	)		(124	)		(701	)		(28	)		(30	)		(1,065	)
Recoveries		39			0			3			30			3			20			95
Provision (benefit) for loan losses		(286	)		183			(154	)		463			(6	)		20			220
Allowance for loan losses, June 30, 2016	$	5,218		$	6,207		$	2,299		$	2,066		$	50		$	148		$	15,988

Transactions in the allowance for loan losses for the six months ended June 30, 2016 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2016	$	6,035		$	5,605		$	2,475		$	2,371		$	90		$	161		$	16,737
Charge-offs		(433	)		(20	)		(149	)		(1,688	)		(37	)		(81	)		(2,408	)
Recoveries		47			5			62			74			15			40			243
Provision (benefit) for loan losses		(431	)		617			(89	)		1,309			(18	)		28			1,416
Allowance for loan losses, June 30, 2016	$	5,218		$	6,207		$	2,299		$	2,066		$	50		$	148		$	15,988

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

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, 2016 and December 31, 2015. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

June 30, 2016

	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	$	168	$	0	$	0	$	0	$	0	$	0	$	168
Collectively evaluated for impairment		4,428		4,146		2,299		2,066		50		148		13,137
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		622		2,061		0		0		0		0		2,683
Total ending allowance balance	$	5,218	$	6,207	$	2,299	$	2,066	$	50	$	148	$	15,988
Loans:
Individually evaluated for impairment	$	930	$	0	$	0	$	0	$	0	$	0	$	930
Collectively evaluated for impairment		485,393		484,378		591,779		76,619		5,329		407		1,643,905
Acquired with deteriorated credit quality		0		670		0		0		0		0		670
Modified in a troubled debt restructuring		4,515		9,571		0		0		0		0		14,086
Total ending loans balance	$	490,838	$	494,619	$	591,779	$	76,619	$	5,329	$	407	$	1,659,591

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

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, 2016 and December 31, 2015 and for the three months ended June 30, 2016 and 2015:

June 30, 2016

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,176	$	2,990	$	790
Commercial mortgage		5,870		5,144		2,061
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		3,394		2,455		0
Commercial mortgage		4,427		4,427		0
Residential real estate		0		0		0
Total	$	16,867	$	15,016	$	2,851

December 31, 2015

	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

Impaired Financing Receivables with Related and not Related Allowances

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	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	$	3,150	$	2	$	2	$	3,249	$	2	$	2
Commercial mortgage		5,309		4		4		5,320		4		4
Residential real estate		0		0		0		83		6		6
With no related allowance recorded:
Commercial, industrial, and agricultural		2,525		2		2		2,612		2		2
Commercial mortgage		4,458		3		3		4,622		3		3
Residential real estate		0		0		0		0		0		0
Total	$	15,442	$	11	$	11	$	15,886	$	17	$	17

	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

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, 2016 and December 31, 2015:

	June 30, 2016				December 31, 2015
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	3,471	$	107	$	3,560	$	3
Commercial mortgages		3,433		0		3,651		0
Residential real estate		3,981		37		3,671		87
Consumer		1,113		2		1,277		15
Credit cards		0		16		0		0
Total	$	11,998	$	162	$	12,159	$	105

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, 2016 and December 31, 2015 by class of loans.

June 30, 2016

	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	$	1,000	$	775	$	1,013	$	2,788	$	488,050	$	490,838
Commercial mortgages		477		0		3,319		3,796		490,823		494,619
Residential real estate		2,480		1,130		3,290		6,900		584,879		591,779
Consumer		365		238		1,088		1,691		74,928		76,619
Credit cards		39		40		16		95		5,234		5,329
Overdrafts		0		0		0		0		407		407
Total	$	4,361	$	2,183	$	8,726	$	15,270	$	1,644,321	$	1,659,591

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

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, 2016 and December 31, 2015.

	June 30, 2016						December 31, 2015
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		7	$	4,515	$	622		8	$	5,040	$	887
Commercial mortgages		8		9,571		2,061		8		9,901		2,025
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	$	14,086	$	2,683		16	$	14,941	$	2,912

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.

June 30, 2016

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	448,340	$	22,860	$	19,408	$	230	$	490,838
Commercial mortgages		473,054		3,393		17,752		420		494,619
Total	$	921,394	$	26,253	$	37,160	$	650	$	985,457

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

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, 2016 and December 31, 2015:

	June 30, 2016						December 31, 2015
	Residential				Credit		Residential				Credit
	Real Estate		Consumer		Cards		Real Estate		Consumer		Cards
Performing	$	587,761	$	75,504	$	5,313	$	570,467	$	77,053	$	5,201
Non-performing		4,018		1,115		16		3,758		1,292		0
Total	$	591,779	$	76,619	$	5,329	$	574,225	$	78,345	$	5,201

Summary of Holiday's Loan Portfolio

Holiday’s loan portfolio is summarized as follows at June 30, 2016 and December 31, 2015:

	June 30,			December 31,
	2016			2015
Consumer	$	25,956		$	30,001
Residential real estate		1,166			1,263
Less: unearned discount		(3,747	)		(4,556	)
Total	$	23,375		$	26,708