Loans (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Net Loans

Total net loans at September 30, 2017 and December 31, 2016 are summarized as follows:

	September 30, 2017			December 31, 2016
Commercial, industrial, and agricultural	$	663,944		$	567,800
Commercial mortgages		656,130			574,826
Residential real estate		697,059			652,883
Consumer		78,264			74,816
Credit cards		6,249			6,046
Overdrafts		549			595
Less: unearned discount		(3,621	)		(3,430	)
allowance for loan losses		(17,849	)		(16,330	)
Loans, net	$	2,080,725		$	1,857,206

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended September 30, 2017 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, July 1, 2017	$	5,563		$	7,641		$	1,670		$	2,068		$	142		$	185		$	17,269
Charge-offs		(20	)		(22	)		(130	)		(703	)		(39	)		(63	)		(977	)
Recoveries		36			3			0			96			8			14			157
Provision (benefit) for loan losses		(223	)		472			468			627			0			56			1,400
Allowance for loan losses, September 30, 2017	$	5,356		$	8,094		$	2,008		$	2,088		$	111		$	192		$	17,849

Transactions in the allowance for loan losses for the nine months ended September 30, 2017 were as follows:

	Commercial,						Residential
	Industrial, and			Commercial			Real						Credit
	Agricultural			Mortgages			Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2017	$	5,428		$	6,753		$	1,653		$	2,215		$	93		$	188		$	16,330
Charge-offs		(50	)		(22	)		(328	)		(1,969	)		(111	)		(192	)		(2,672	)
Recoveries		167			197			73			110			23			71			641
Provision (benefit) for loan losses		(189	)		1,166			610			1,732			106			125			3,550
Allowance for loan losses, September 30, 2017	$	5,356		$	8,094		$	2,008		$	2,088		$	111		$	192		$	17,849

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

	Commercial,					Residential
	Industrial, and			Commercial		Real						Credit
	Agricultural			Mortgages		Estate			Consumer			Cards			Overdrafts			Total
Allowance for loan losses, July 1, 2016	$	5,218		$	6,207	$	2,299		$	2,066		$	50		$	148		$	15,988
Charge-offs		(86	)		0		(95	)		(709	)		(17	)		(86	)		(993	)
Recoveries		37			2		10			20			3			14			86
Provision (benefit) for loan losses		(24	)		27		(65	)		545			36			103			622
Allowance for loan losses, September 30, 2016	$	5,145		$	6,236	$	2,149		$	1,922		$	72		$	179		$	15,703

Transactions in the allowance for loan losses for the nine months ended September 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		(519	)		(20	)		(244	)		(2,397	)		(54	)		(167	)		(3,401	)
Recoveries		84			7			72			94			18			54			329
Provision (benefit) for loan losses		(455	)		644			(154	)		1,854			18			131			2,038
Allowance for loan losses, September 30, 2016	$	5,145		$	6,236		$	2,149		$	1,922		$	72		$	179		$	15,703

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, 2017 and December 31, 2016. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

September 30, 2017

	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	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Collectively evaluated for impairment		5,236		4,186		2,008		2,088		111		192		13,821
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		120		3,908		0		0		0		0		4,028
Total ending allowance balance	$	5,356	$	8,094	$	2,008	$	2,088	$	111	$	192	$	17,849
Loans:
Individually evaluated for impairment	$	602	$	51	$	0	$	0	$	0	$	0	$	653
Collectively evaluated for impairment		660,461		639,965		697,059		78,264		6,249		549		2,082,547
Acquired with deteriorated credit quality		0		1,487		0		0		0		0		1,487
Modified in a troubled debt restructuring		2,881		14,627		0		0		0		0		17,508
Total ending loans balance	$	663,944	$	656,130	$	697,059	$	78,264	$	6,249	$	549	$	2,102,195

December 31, 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	$	188	$	996	$	0	$	0	$	0	$	0	$	1,184
Collectively evaluated for impairment		5,115		3,543		1,653		2,215		93		188		12,807
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		125		2,214		0		0		0		0		2,339
Total ending allowance balance	$	5,428	$	6,753	$	1,653	$	2,215	$	93	$	188	$	16,330

Loans:
Individually evaluated for impairment	$	775	$	6,176	$	0	$	0	$	0	$	0	$	6,951
Collectively evaluated for impairment		564,180		557,932		652,883		74,816		6,046		595		1,856,452
Acquired with deteriorated credit quality		205		1,527		0		0		0		0		1,732
Modified in a troubled debt restructuring		2,640		9,191		0		0		0		0		11,831
Total ending loans balance	$	567,800	$	574,826	$	652,883	$	74,816	$	6,046	$	595	$	1,876,966

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, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016:

September 30, 2017

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,212	$	1,213	$	120
Commercial mortgage		9,995		9,611		3,908
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		3,089		2,270		0
Commercial mortgage		5,836		5,067		0
Residential real estate		0		0		0
Total	$	20,132	$	18,161	$	4,028

December 31, 2016

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,644	$	1,644	$	313
Commercial mortgage		16,200		15,367		3,210
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,669		1,771		0
Commercial mortgage		0		0		0
Residential real estate		0		0		0
Total	$	20,513	$	18,782	$	3,523

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.

	Three Months Ended September 30, 2017						Three Months Ended September 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	$	1,190	$	20	$	20	$	2,340	$	34	$	34
Commercial mortgage		9,724		77		77		7,253		57		57
Residential real estate		0		0		0		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,142		23		23		2,148		24		24
Commercial mortgage		4,981		33		33		2,214		17		17
Residential real estate		0		0		0		0		0		0
Total	$	18,037	$	153	$	153	$	13,955	$	132	$	132

	Nine Months Ended September 30, 2017						Nine Months Ended September 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	$	1,413	$	56	$	56	$	2,859	$	36	$	36
Commercial mortgage		12,497		293		293		6,331		61		61
Residential real estate		0		0		0		83		6		6
With no related allowance recorded:
Commercial, industrial, and agricultural		1,927		73		73		2,420		26		26
Commercial mortgage		2,490		100		100		3,467		20		20
Residential real estate		0		0		0		0		0		0
Total	$	18,327	$	522	$	522	$	15,160	$	149	$	149

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, 2017 and December 31, 2016:

	September 30, 2017				December 31, 2016
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	1,885	$	408	$	2,734	$	0
Commercial mortgages		11,526		0		5,996		0
Residential real estate		5,663		163		5,600		0
Consumer		712		0		999		0
Credit cards		0		21		0		10
Total	$	19,786	$	592	$	15,329	$	10

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, 2017 and December 31, 2016 by class of loans.

September 30, 2017

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	1,827	$	486	$	947	$	3,260	$	660,684	$	663,944
Commercial mortgages		0		40		704		744		655,386		656,130
Residential real estate		1,688		1,932		4,647		8,267		688,792		697,059
Consumer		484		305		677		1,466		76,798		78,264
Credit cards		63		36		21		120		6,129		6,249
Overdrafts		0		0		0		0		549		549
Total	$	4,062	$	2,799	$	6,996	$	13,857	$	2,088,338	$	2,102,195

December 31, 2016

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	1,558	$	299	$	1,294	$	3,151	$	564,649	$	567,800
Commercial mortgages		559		0		1,516		2,075		572,751		574,826
Residential real estate		2,155		737		3,710		6,602		646,281		652,883
Consumer		648		890		974		2,512		72,304		74,816
Credit cards		105		0		10		115		5,931		6,046
Overdrafts		0		0		0		0		595		595
Total	$	5,025	$	1,926	$	7,504	$	14,455	$	1,862,511	$	1,876,966

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, 2017 and December 31, 2016.

	September 30, 2017						December 31, 2016
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		8	$	2,881	$	120		7	$	2,640	$	125
Commercial mortgages		10		14,627		3,908		8		9,191		2,214
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		18	$	17,508	$	4,028		15	$	11,831	$	2,339

Loans by Class Modified as Troubled Debt Restructurings

The following tables present loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017.

	Nine Months Ended September 30, 2017
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural		2	$	324	$	379
Commercial mortgages		2		6,227		6,276
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		4	$	6,551	$	6,655

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.

September 30, 2017

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	631,550	$	9,312	$	23,082	$	0	$	663,944
Commercial mortgages		636,522		3,129		16,479		0		656,130
Total	$	1,268,072	$	12,441	$	39,561	$	0	$	1,320,074

December 31, 2016

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	531,320	$	14,638	$	21,831	$	11	$	567,800
Commercial mortgages		551,474		1,809		21,543		0		574,826
Total	$	1,082,794	$	16,447	$	43,374	$	11	$	1,142,626

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, 2017 and December 31, 2016:

	September 30, 2017						December 31, 2016
	Residential				Credit		Residential				Credit
	Real Estate		Consumer		Cards		Real Estate		Consumer		Cards
Performing	$	691,233	$	77,552	$	6,228	$	647,283	$	73,817	$	6,036
Nonperforming		5,826		712		21		5,600		999		10
Total	$	697,059	$	78,264	$	6,249	$	652,883	$	74,816	$	6,046

Summary of Holiday's Loan Portfolio

Holiday’s loan portfolio is summarized as follows at September 30, 2017 and December 31, 2016:

	September 30,			December 31,
	2017			2016
Consumer	$	22,393		$	24,026
Residential real estate		0			1,209
Less: unearned discount		(3,621	)		(3,430	)
Total	$	18,772		$	21,805