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Loans (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Schedule of Net Loans
Total net loans at September 30, 2018 and December 31, 2017 are summarized as follows:
 
September 30, 2018
 
December 31, 2017
Commercial, industrial, and agricultural
$
853,495

 
$
749,138

Commercial mortgages
683,979

 
600,065

Residential real estate
760,342

 
713,347

Consumer
85,888

 
80,193

Credit cards
7,434

 
6,753

Overdrafts
325

 
352

Less: unearned discount
(4,508
)
 
(3,889
)
allowance for loan losses
(22,510
)
 
(19,693
)
Loans, net
$
2,364,445

 
$
2,126,266
Allowance for Loan Losses
Transactions in the allowance for loan losses for the three months ended September 30, 2018 were as follows:
 
Commercial,
Industrial, and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, July 1, 2018
$
7,143

 
$
10,615

 
$
1,900

 
$
2,156

 
$
101

 
$
207

 
$
22,122

Charge-offs
(30
)
 
—

 
(212
)
 
(469
)
 
(8
)
 
(94
)
 
(813
)
Recoveries
3

 
—

 
55

 
28

 
3

 
17

 
106

Provision (benefit) for loan losses
(536
)
 
682

 
235

 
608

 
11

 
95

 
1,095

Allowance for loan losses, September 30, 2018
$
6,580

 
$
11,297

 
$
1,978

 
$
2,323

 
$
107

 
$
225

 
$
22,510

Transactions in the allowance for loan losses for the nine months ended September 30, 2018 were as follows:
 
Commercial,
Industrial, and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, January 1, 2018
$
6,160

 
$
9,007

 
$
2,033

 
$
2,179

 
$
120

 
$
194

 
$
19,693

Charge-offs
(61
)
 
—

 
(289
)
 
(1,610
)
 
(53
)
 
(236
)
 
(2,249
)
Recoveries
165

 
—

 
67

 
112

 
27

 
64

 
435

Provision for loan losses
316

 
2,290

 
167

 
1,642

 
13

 
203

 
4,631

Allowance for loan losses, September 30, 2018
$
6,580

 
$
11,297

 
$
1,978

 
$
2,323

 
$
107

 
$
225

 
$
22,510


Transactions in the allowance for loan losses for the three months ended September 30, 2017 were as follows:
 
Commercial,
Industrial, and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
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

 
—

 
96

 
8

 
14

 
157

Provision (benefit) for loan losses
(223
)
 
472

 
468

 
627

 
—

 
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,
Industrial, and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
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
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, 2018 and December 31, 2017. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.
September 30, 2018
 
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
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

Collectively evaluated for impairment
6,343

 
5,062

 
1,978

 
2,323

 
107

 
225

 
16,038

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

Modified in a troubled debt restructuring
237

 
6,234

 
—

 
—

 
—

 
—

 
6,471

Total ending allowance balance
$
6,580

 
$
11,297

 
$
1,978

 
$
2,323

 
$
107

 
$
225

 
$
22,510

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,500

 
$
467

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,967

Collectively evaluated for impairment
847,197

 
669,989

 
760,342

 
85,888

 
7,434

 
325

 
2,371,175

Acquired with deteriorated credit quality
—

 
577

 
—

 
—

 
—

 
—

 
577

Modified in a troubled debt restructuring
4,798

 
12,946

 
—

 
—

 
—

 
—

 
17,744

Total ending loans balance
$
853,495

 
$
683,979

 
$
760,342

 
$
85,888

 
$
7,434

 
$
325

 
$
2,391,463

December 31, 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
$
47

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
47

Collectively evaluated for impairment
5,868

 
3,563

 
2,033

 
2,179

 
120

 
194

 
13,957

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

Modified in a troubled debt restructuring
245

 
5,444

 
—

 
—

 
—

 
—

 
5,689

Total ending allowance balance
$
6,160

 
$
9,007

 
$
2,033

 
$
2,179

 
$
120

 
$
194

 
$
19,693

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,187

 
$
51

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,238

Collectively evaluated for impairment
742,738

 
586,845

 
713,347

 
80,193

 
6,753

 
352

 
2,130,228

Acquired with deteriorated credit quality
—

 
1,079

 
—

 
—

 
—

 
—

 
1,079

Modified in a troubled debt restructuring
5,213

 
12,090

 
—

 
—

 
—

 
—

 
17,303

Total ending loans balance
$
749,138

 
$
600,065

 
$
713,347

 
$
80,193

 
$
6,753

 
$
352

 
$
2,149,848
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, 2018 and December 31, 2017 and for the three and nine months ended September 30, 2018 and 2017:
September 30, 2018
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Allowance for Loan
Losses Allocated
With an allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
$
1,096

 
$
1,096

 
$
237

Commercial mortgage
9,717

 
8,991

 
6,235

Residential real estate
—

 
—

 
—

With no related allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
5,918

 
5,202

 
—

Commercial mortgage
5,464

 
4,422

 
—

Residential real estate
—

 
—

 
—

Total
$
22,195

 
$
19,711

 
$
6,472

December 31, 2017
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Allowance for Loan
Losses Allocated
With an allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
$
1,915

 
$
1,915

 
$
292

Commercial mortgage
9,940

 
9,731

 
5,444

Residential real estate
—

 
—

 
—

With no related allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
5,264

 
4,485

 
—

Commercial mortgage
3,211

 
2,410

 
—

Residential real estate
—

 
—

 
—

Total
$
20,330

 
$
18,541

 
$
5,736
Impaired Financing Receivables with Related and not Related Allowances
 
Three months ended September 30, 2018
 
Three months ended September 30, 2017
 
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
$
3,460

 
$
11

 
$
11

 
$
1,190

 
$
20

 
$
20

Commercial mortgage
9,042

 
37

 
37

 
9,724

 
77

 
77

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
5,569

 
69

 
69

 
2,142

 
23

 
23

Commercial mortgage
5,153

 
20

 
20

 
4,981

 
33

 
33

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

Total
$
23,224

 
$
137

 
$
137

 
$
18,037

 
$
153

 
$
153

 
Nine months ended September 30, 2018
 
Nine months ended September 30, 2017
 
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
$
2,672

 
$
54

 
$
54

 
$
1,413

 
$
56

 
$
56

Commercial mortgage
9,147

 
111

 
111

 
12,497

 
293

 
293

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
5,084

 
160

 
160

 
1,927

 
73

 
73

Commercial mortgage
4,511

 
66

 
66

 
2,490

 
100

 
100

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

Total
$
21,414

 
$
391

 
$
391

 
$
18,327

 
$
522

 
$
522
Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans
The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still accruing interest by class of loans as of September 30, 2018 and December 31, 2017:
 
 
September 30, 2018
 
December 31, 2017
 
Non-accrual
 
Past Due
Over 90 Days
Still on Accrual
 
Non-accrual
 
Past Due
Over 90 Days
Still on Accrual
Commercial, industrial, and agricultural
$
3,824

 
$
265

 
$
1,869

 
$
78

Commercial mortgages
10,151

 
—

 
11,065

 
—

Residential real estate
4,767

 
1,488

 
5,470

 
338

Consumer
140

 
82

 
828

 
17

Credit cards
—

 
26

 
—

 
44

Total
$
18,882

 
$
1,861

 
$
19,232

 
$
477
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, 2018 and December 31, 2017 by class of loans.
September 30, 2018
 
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
$
76

 
$
587

 
$
1,557

 
$
2,220

 
$
851,275

 
$
853,495

Commercial mortgages
614

 
—

 
58

 
672

 
683,307

 
683,979

Residential real estate
2,039

 
844

 
4,937

 
7,820

 
752,522

 
760,342

Consumer
526

 
605

 
830

 
1,961

 
83,927

 
85,888

Credit cards
30

 
33

 
26

 
89

 
7,345

 
7,434

Overdrafts
—

 
—

 
—

 
—

 
325

 
325

Total
$
3,285

 
$
2,069

 
$
7,408

 
$
12,762

 
$
2,378,701

 
$
2,391,463

December 31, 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
$
2,745

 
$
646

 
$
748

 
$
4,139

 
$
744,999

 
$
749,138

Commercial mortgages
233

 
—

 
292

 
525

 
599,540

 
600,065

Residential real estate
2,290

 
1,494

 
4,655

 
8,439

 
704,908

 
713,347

Consumer
454

 
307

 
812

 
1,573

 
78,620

 
80,193

Credit cards
31

 
10

 
44

 
85

 
6,668

 
6,753

Overdrafts
—

 
—

 
—

 
—

 
352

 
352

Total
$
5,753

 
$
2,457

 
$
6,551

 
$
14,761

 
$
2,135,087

 
$
2,149,848
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, 2018 and December 31, 2017.
 
September 30, 2018
 
December 31, 2017
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
Commercial, industrial, and agricultural
11

 
$
4,798

 
$
237

 
11

 
$
5,213

 
$
245

Commercial mortgages
13

 
12,946

 
6,234

 
9

 
12,090

 
5,444

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
—

Credit cards
—

 
—

 
—

 
—

 
—

 
—

Total
24

 
$
17,744

 
$
6,471

 
20

 
$
17,303

 
$
5,689









The following table presents information associated with the loans that were modified as troubled debt restructurings during the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017. There were no loans modified as troubled debt restructurings during the three months ended September 30, 2018.
 
Nine months ended September 30, 2018
 
Three and Nine months ended September 30, 2017
 
Number of
Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number of
Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural
—

 
$
—

 
$
—

 
2

 
$
324

 
$
379

Commercial mortgages
4

 
1,091

 
1,091

 
2

 
6,227

 
6,276

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
—

Credit cards
—

 
—

 
—

 
—

 
—

 
—

Total
4

 
$
1,091

 
$
1,091

 
4

 
$
6,551

 
$
6,655
Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date
September 30, 2018
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
827,425

 
$
10,304

 
$
15,766

 
$
—

 
$
853,495

Commercial mortgages
665,896

 
3,309

 
14,774

 
—

 
683,979

Total
$
1,493,321

 
$
13,613

 
$
30,540

 
$
—

 
$
1,537,474




December 31, 2017
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
713,102

 
$
16,726

 
$
19,310

 
$
—

 
$
749,138

Commercial mortgages
581,631

 
4,419

 
14,015

 
—

 
600,065

Total
$
1,294,733

 
$
21,145

 
$
33,325

 
$
—

 
$
1,349,203
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, 2018 and December 31, 2017:
 
September 30, 2018
 
December 31, 2017
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
Performing
$
754,087

 
$
85,666

 
$
7,408

 
$
707,539

 
$
79,348

 
$
6,709

Nonperforming
6,255

 
222

 
26

 
5,808

 
845

 
44

Total
$
760,342

 
$
85,888

 
$
7,434

 
$
713,347

 
$
80,193

 
$
6,753
Summary of Holiday's Loan Portfolio
Holiday’s loan portfolio is summarized as follows at September 30, 2018 and December 31, 2017:
 
September 30, 2018
 
December 31, 2017
Consumer
$
25,242

 
$
23,428

Less: unearned discount
(4,508
)
 
(3,889
)
Total
$
20,734

 
$
19,539