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Loans (Tables)
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Schedule of Net Loans
Total net loans at June 30, 2019 and December 31, 2018 are summarized as follows:
 
June 30, 2019
 
December 31, 2018
Commercial, industrial, and agricultural
$
993,629

 
$
916,297

Commercial mortgages
750,334

 
697,776

Residential real estate
786,354

 
771,309

Consumer
89,331

 
86,035

Credit cards
7,284

 
7,623

Overdrafts
337

 
308

Less: unearned discount
(4,911
)
 
(4,791
)
allowance for loan losses
(21,437
)
 
(19,704
)
Loans, net
$
2,600,921

 
$
2,454,853
Allowance for Loan Losses
Transactions in the allowance for loan losses for the three months ended June 30, 2019 were as follows:
 
Commercial,Industrial, 
and Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, April 1, 2019
$
7,787

 
$
8,846

 
$
1,383

 
$
2,040

 
$
105

 
$
185

 
$
20,346

Charge-offs
0

 
0

 
(146
)
 
(513
)
 
(26
)
 
(88
)
 
(773
)
Recoveries
4

 
16

 
2

 
28

 
1

 
25

 
76

Provision (benefit) for loan losses
317

 
676

 
164

 
586

 
7

 
38

 
1,788

Allowance for loan losses, June 30, 2019
$
8,108

 
$
9,538

 
$
1,403

 
$
2,141

 
$
87

 
$
160

 
$
21,437

Transactions in the allowance for loan losses for the six months ended June 30, 2019 were as follows:
 
Commercial,Industrial, 
and Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, January 1, 2019
$
7,341

 
$
7,490

 
$
2,156

 
$
2,377

 
$
103

 
$
237

 
$
19,704

Charge-offs
0

 
(2
)
 
(244
)
 
(1,062
)
 
(52
)
 
(216
)
 
(1,576
)
Recoveries
8

 
1

 
67

 
74

 
6

 
59

 
215

Provision (benefit) for loan losses
759

 
2,049

 
(576
)
 
752

 
30

 
80

 
3,094

Allowance for loan losses, June 30, 2019
$
8,108

 
$
9,538

 
$
1,403

 
$
2,141

 
$
87

 
$
160

 
$
21,437

Transactions in the allowance for loan losses for the three months ended June 30, 2018 were as follows:
 
Commercial, Industrial, 
and
Agricultural
 
Commercial
Mortgages
 
Residential
Real
Estate
 
Consumer
 
Credit
Cards
 
Overdrafts
 
Total
Allowance for loan losses, April 1, 2018
$
6,282

 
$
10,020

 
$
2,052

 
$
2,065

 
$
123

 
$
214

 
$
20,756

Charge-offs
0

 
0

 
(77
)
 
(551
)
 
(26
)
 
(56
)
 
(710
)
Recoveries
94

 
0

 
9

 
35

 
17

 
16

 
171

Provision (benefit) for loan losses
767

 
595

 
(84
)
 
607

 
(13
)
 
33

 
1,905

Allowance for loan losses, June 30, 2018
$
7,143

 
$
10,615

 
$
1,900

 
$
2,156

 
$
101

 
$
207

 
$
22,122


Transactions in the allowance for loan losses for the six months ended June 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
(31
)
 
0

 
(77
)
 
(1,141
)
 
(45
)
 
(142
)
 
(1,436
)
Recoveries
162

 
0

 
12

 
84

 
24

 
47

 
329

Provision (benefit) for loan losses
852

 
1,608

 
(68
)
 
1,034

 
2

 
108

 
3,536

Allowance for loan losses, June 30, 2018
$
7,143

 
$
10,615

 
$
1,900

 
$
2,156

 
$
101

 
$
207

 
$
22,122
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, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

June 30, 2019
 
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
$
222

 
$
664

 
$
0

 
$
0

 
$
0

 
$
0

 
$
886

Collectively evaluated for impairment
7,795

 
4,154

 
1,403

 
2,141

 
87

 
160

 
15,740

Acquired with deteriorated credit quality
0

 
0

 
0

 
0

 
0

 
0

 
0

Modified in a troubled debt restructuring
91

 
4,720

 
0

 
0

 
0

 
0

 
4,811

Total ending allowance balance
$
8,108

 
$
9,538

 
$
1,403

 
$
2,141

 
$
87

 
$
160

 
$
21,437

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,666

 
$
1,435

 
$
472

 
$
0

 
$
0

 
$
0

 
$
3,573

Collectively evaluated for impairment
988,617

 
738,828

 
785,882

 
89,331

 
7,284

 
337

 
2,610,279

Acquired with deteriorated credit quality
0

 
545

 
0

 
0

 
0

 
0

 
545

Modified in a troubled debt restructuring
3,346

 
9,526

 
0

 
0

 
0

 
0

 
12,872

Total ending loans balance
$
993,629

 
$
750,334

 
$
786,354

 
$
89,331

 
$
7,284

 
$
337

 
$
2,627,269


December 31, 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
$
54

 
$
4

 
$
100

 
$
0

 
$
0

 
$
10

 
$
168

Collectively evaluated for impairment
7,183

 
3,036

 
2,056

 
2,377

 
103

 
227

 
14,982

Acquired with deteriorated credit quality
0

 
0

 
0

 
0

 
0

 
0

 
0

Modified in a troubled debt restructuring
104

 
4,450

 
0

 
0

 
0

 
0

 
4,554

Total ending allowance balance
$
7,341

 
$
7,490

 
$
2,156

 
$
2,377

 
$
103

 
$
237

 
$
19,704

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,334

 
1,446

 
502

 
0

 
0

 
10

 
$
3,292

Collectively evaluated for impairment
910,386

 
685,714

 
770,807

 
86,035

 
7,623

 
298

 
2,460,863

Acquired with deteriorated credit quality
0

 
567

 
0

 
0

 
0

 
0

 
567

Modified in a troubled debt restructuring
4,577

 
10,049

 
0

 
0

 
0

 
0

 
14,626

Total ending loans balance
$
916,297

 
697,776

 
771,309

 
86,035

 
7,623

 
308

 
$
2,479,348
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, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018:
June 30, 2019
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Allowance for Loan
Losses Allocated
With an allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
$
2,829

 
$
1,268

 
$
313

Commercial mortgage
8,179

 
7,790

 
5,384

Residential real estate
0

 
0

 
0

With no related allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
4,493

 
3,744

 
0

Commercial mortgage
4,084

 
3,171

 
0

Residential real estate
492

 
472

 
0

Total
$
20,077

 
$
16,445

 
$
5,697

December 31, 2018
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Allowance for Loan
Losses Allocated
With an allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
$
3,053

 
$
3,037

 
$
158

Commercial mortgage
10,799

 
6,709

 
4,454

Residential real estate
502

 
502

 
100

Overdrafts
10

 
10

 
10

With no related allowance recorded:
 
 
 
 
 
Commercial, industrial, and agricultural
3,684

 
2,874

 
0

Commercial mortgage
5,659

 
4,786

 
0

Residential real estate
0

 
0

 
0

Overdrafts
0

 
0

 
0

Total
$
23,707

 
$
17,918

 
$
4,722
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 June 30, 2019
 
Three months ended June 30, 2018
 
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
$
1,273

 
$
27

 
$
27

 
$
3,838

 
$
21

 
$
21

Commercial mortgage
7,807

 
46

 
46

 
8,738

 
56

 
56

Residential real estate
0

 
0

 
0

 
0

 
0

 
0

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
3,811

 
32

 
32

 
5,326

 
45

 
45

Commercial mortgage
3,257

 
20

 
20

 
5,490

 
33

 
33

Residential real estate
485

 
4

 
4

 
0

 
0

 
0

Total
$
16,633

 
$
129

 
$
129

 
$
23,392

 
$
155

 
$
155

 
Six months ended June 30, 2019
 
Six months ended June 30, 2018
 
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
$
1,861

 
$
65

 
$
65

 
$
3,197

 
$
43

 
$
43

Commercial mortgage
7,441

 
86

 
86

 
9,069

 
74

 
74

Residential real estate
0

 
0

 
0

 
0

 
0

 
0

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and agricultural
3,499

 
86

 
86

 
5,045

 
91

 
91

Commercial mortgage
3,767

 
38

 
38

 
4,463

 
46

 
46

Residential real estate
490

 
11

 
11

 
0

 
0

 
0

Total
$
17,058

 
$
286

 
$
286

 
$
21,774

 
$
254

 
$
254
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, 2019 and December 31, 2018:
 
June 30, 2019
 
December 31, 2018
 
Nonaccrual
 
Past Due
Over 90 Days
Still on Accrual
 
Nonaccrual
 
Past Due
Over 90 Days
Still on Accrual
Commercial, industrial, and agricultural
$
3,263

 
$
248

 
$
2,076

 
$
487

Commercial mortgages
6,219

 
0

 
6,329

 
53

Residential real estate
4,824

 
195

 
5,187

 
299

Consumer
554

 
—

 
670

 
43

Credit cards
0

 
21

 
0

 
5

Total
$
14,860

 
$
464

 
$
14,262

 
$
887
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, 2019 and December 31, 2018 by class of loans.
June 30, 2019
 
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
$
3,221

 
$
2,607

 
$
2,983

 
$
8,811

 
$
984,818

 
$
993,629

Commercial mortgages
904

 
5,283

 
4,111

 
10,298

 
740,036

 
750,334

Residential real estate
3,704

 
774

 
2,757

 
7,235

 
779,119

 
786,354

Consumer
460

 
153

 
284

 
897

 
88,434

 
89,331

Credit cards
105

 
5

 
21

 
131

 
7,153

 
7,284

Overdrafts
0

 
0

 
0

 
0

 
337

 
337

Total
$
8,394

 
$
8,822

 
$
10,156

 
$
27,372

 
$
2,599,897

 
$
2,627,269


December 31, 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
$
2,339

 
$
9

 
$
2,264

 
$
4,612

 
$
911,685

 
$
916,297

Commercial mortgages
758

 
3,055

 
283

 
4,096

 
693,680

 
697,776

Residential real estate
3,982

 
1,257

 
3,988

 
9,227

 
762,082

 
771,309

Consumer
470

 
282

 
363

 
1,115

 
84,920

 
86,035

Credit cards
59

 
15

 
5

 
79

 
7,544

 
7,623

Overdrafts
0

 
0

 
0

 
0

 
308

 
308

Total
$
7,608

 
$
4,618

 
$
6,903

 
$
19,129

 
$
2,460,219

 
$
2,479,348
Restructured in Troubled Debt
 
Three and six months ended June 30, 2018
 
Number of
Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural
0

 
$
0

 
$
0

Commercial mortgages
4

 
1,091

 
1,091

Residential real estate
0

 
0

 
0

Consumer
0

 
0

 
0

Credit cards
0

 
0

 
0

Total
4

 
$
1,091

 
$
1,091


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, 2019 and December 31, 2018.
 
June 30, 2019
 
December 31, 2018
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
 
Number of
Loans
 
Loan
Balance
 
Specific
Reserve
Commercial, industrial, and agricultural
10

 
$
3,346

 
$
91

 
10

 
$
4,577

 
$
104

Commercial mortgages
15

 
9,526

 
4,720

 
15

 
10,049

 
4,450

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
25

 
$
12,872

 
$
4,811

 
25

 
$
14,626

 
$
4,554
Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date
June 30, 2019
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
952,065

 
$
23,169

 
$
18,395

 
$
0

 
$
993,629

Commercial mortgages
730,455

 
8,935

 
10,944

 
0

 
750,334

Total
$
1,682,520

 
$
32,104

 
$
29,339

 
$
0

 
$
1,743,963

December 31, 2018
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Commercial, industrial, and agricultural
$
890,360

 
$
10,484

 
$
15,453

 
$
0

 
$
916,297

Commercial mortgages
684,806

 
3,236

 
9,734

 
0

 
697,776

Total
$
1,575,166

 
$
13,720

 
$
25,187

 
$
0

 
$
1,614,073
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, 2019 and December 31, 2018:
 
June 30, 2019
 
December 31, 2018
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
 
Residential
Real Estate
 
Consumer
 
Credit
Cards
Performing
$
781,335

 
$
88,777

 
$
7,263

 
$
765,823

 
$
85,322

 
$
7,618

Nonperforming
5,019

 
554

 
21

 
5,486

 
713

 
5

Total
$
786,354

 
$
89,331

 
$
7,284

 
$
771,309

 
$
86,035

 
$
7,623
Summary of Holiday's Loan Portfolio
Holiday’s loan portfolio is summarized as follows at June 30, 2019 and December 31, 2018:
 
6/30/2019
 
12/31/2018
Consumer
$
26,898

 
$
26,568

Less: unearned discount
(4,911
)
 
(4,791
)
Total
$
21,987

 
$
21,777