XML 53 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Loans | 6 Months Ended
--- | ---
Jun. 30, 2012
Loans [Abstract] |
LOANS | 5. LOANS Total net loans at June 30, 2012 and December 31, 2011 are summarized as follows:
|  | June 30, 2012 |  |  | December 31, 2011 |
Commercial, industrial, and agricultural |  | $ | 266,122 |  |  | $ | 253,324 |
Commercial mortgages |  |  | 260,788 |  |  |  | 242,511 |
Residential real estate |  |  | 325,200 |  |  |  | 298,628 |
Consumer |  |  | 54,251 |  |  |  | 54,677 |
Credit cards |  |  | 3,239 |  |  |  | 3,206 |
Overdrafts |  |  | 284 |  |  |  | 423 |
Less: unearned discount |  |  | (3,117 | ) |  |  | (2,886 | )
allowance for loan losses |  |  | (13,690 | ) |  |  | (12,615 | )
Loans, net |  | $ | 893,077 |  |  | $ | 837,268 |
At June 30, 2012 and December 31, 2011, net unamortized loan costs and fees of $71 and ($7), respectively, have been included in the carrying value of loans. The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within Central and Western Pennsylvania. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. Transactions in the allowance for loan losses for the three months ended June 30, 2012 were as follows:
|  | Commercial, Industrial, and Agricultural |  |  | Commercial Mortgages |  |  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |  |  | Overdrafts |  |  | Total |
Allowance for loan losses, April 1, 2012 |  | $ | 4,942 |  |  | $ | 4,377 |  |  | $ | 1,997 |  |  | $ | 1,435 |  |  | $ | 96 |  |  | $ | 168 |  |  | $ | 13,015 |
Charge-offs |  |  | (422 | ) |  |  | (121 | ) |  |  | (137 | ) |  |  | (382 | ) |  |  | (14 | ) |  |  | (50 | ) |  |  | (1,126 | )
Recoveries |  |  | 5 |  |  |  | 0 |  |  |  | 0 |  |  |  | 22 |  |  |  | 6 |  |  |  | 22 |  |  |  | 55 |
Provision (benefit) for loan losses |  |  | 590 |  |  |  | 297 |  |  |  | 365 |  |  |  | 493 |  |  |  | (7 | ) |  |  | 8 |  |  |  | 1,746 |
Allowance for loan losses, June 30, 2012 |  | $ | 5,115 |  |  | $ | 4,553 |  |  | $ | 2,225 |  |  | $ | 1,568 |  |  | $ | 81 |  |  | $ | 148 |  |  | $ | 13,690 |
Transactions in the allowance for loan losses for the six months ended June 30, 2012 were as follows:
|  | Commercial, Industrial, and Agricultural |  |  | Commercial Mortgages |  |  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |  |  | Overdrafts |  |  | Total |
Allowance for loan losses, January 1, 2012 |  | $ | 4,511 |  |  | $ | 4,470 |  |  | $ | 1,991 |  |  | $ | 1,404 |  |  | $ | 71 |  |  | $ | 168 |  |  | $ | 12,615 |
Charge-offs |  |  | (647 | ) |  |  | (236 | ) |  |  | (224 | ) |  |  | (638 | ) |  |  | (33 | ) |  |  | (117 | ) |  |  | (1,895 | )
Recoveries |  |  | 8 |  |  |  | 0 |  |  |  | 0 |  |  |  | 49 |  |  |  | 7 |  |  |  | 56 |  |  |  | 120 |
Provision for loan losses |  |  | 1,243 |  |  |  | 319 |  |  |  | 458 |  |  |  | 753 |  |  |  | 36 |  |  |  | 41 |  |  |  | 2,850 |
Allowance for loan losses, June 30, 2012 |  | $ | 5,115 |  |  | $ | 4,553 |  |  | $ | 2,225 |  |  | $ | 1,568 |  |  | $ | 81 |  |  | $ | 148 |  |  | $ | 13,690 |
Transactions in the allowance for loan losses for the three months ended June 30, 2011 were as follows:
|  | Commercial, Industrial, and Agricultural |  |  | Commercial Mortgages |  |  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |  |  | Overdrafts |  |  | Total |
Allowance for loan losses, April 1, 2011 |  | $ | 3,732 |  |  | $ | 3,879 |  |  | $ | 1,879 |  |  | $ | 1,507 |  |  | $ | 96 |  |  | $ | 131 |  |  | $ | 11,224 |
Charge-offs |  |  | (173 | ) |  |  | (41 | ) |  |  | (63 | ) |  |  | (202 | ) |  |  | (7 | ) |  |  | (62 | ) |  |  | (548 | )
Recoveries |  |  | 3 |  |  |  | 0 |  |  |  | 0 |  |  |  | 21 |  |  |  | 3 |  |  |  | 20 |  |  |  | 47 |
Provision (benefit) for loan losses |  |  | 208 |  |  |  | 561 |  |  |  | 84 |  |  |  | 74 |  |  |  | 12 |  |  |  | 53 |  |  |  | 992 |
Allowance for loan losses, June 30, 2011 |  | $ | 3,770 |  |  | $ | 4,399 |  |  | $ | 1,900 |  |  | $ | 1,400 |  |  | $ | 104 |  |  | $ | 142 |  |  | $ | 11,715 |
Transactions in the allowance for loan losses for the six months ended June 30, 2011 were as follows:
|  | Commercial, Industrial, and Agricultural |  |  | Commercial Mortgages |  |  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |  |  | Overdrafts |  |  | Total |
Allowance for loan losses, January 1, 2011 |  | $ | 3,517 |  |  | $ | 3,511 |  |  | $ | 1,916 |  |  | $ | 1,561 |  |  | $ | 96 |  |  | $ | 219 |  |  | $ | 10,820 |
Charge-offs |  |  | (215 | ) |  |  | (88 | ) |  |  | (77 | ) |  |  | (462 | ) |  |  | (25 | ) |  |  | (115 | ) |  |  | (982 | )
Recoveries |  |  | 4 |  |  |  | 0 |  |  |  | 0 |  |  |  | 45 |  |  |  | 5 |  |  |  | 54 |  |  |  | 108 |
Provision (benefit) for loan losses |  |  | 464 |  |  |  | 976 |  |  |  | 61 |  |  |  | 256 |  |  |  | 28 |  |  |  | (16 | ) |  |  | 1,769 |
Allowance for loan losses, June 30, 2011 |  | $ | 3,770 |  |  | $ | 4,399 |  |  | $ | 1,900 |  |  | $ | 1,400 |  |  | $ | 104 |  |  | $ | 142 |  |  | $ | 11,715 |
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, 2012 and December 31, 2011:
June 30, 2012 |  | 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 |  | $ | 1,282 |  |  | $ | 347 |  |  | $ | 55 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,684 |
Collectively evaluated for impairment |  |  | 3,833 |  |  |  | 3,434 |  |  |  | 2,170 |  |  |  | 1,568 |  |  |  | 81 |  |  |  | 148 |  |  |  | 11,234 |
Modified in a troubled debt restructuring |  |  | 0 |  |  |  | 772 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 772 |
Total ending allowance balance |  | $ | 5,115 |  |  | $ | 4,553 |  |  | $ | 2,225 |  |  | $ | 1,568 |  |  | $ | 81 |  |  | $ | 148 |  |  | $ | 13,690 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 7,778 |  |  | $ | 8,343 |  |  | $ | 628 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 16,749 |
Loans collectively evaluated for impairment |  |  | 258,047 |  |  |  | 242,292 |  |  |  | 324,572 |  |  |  | 54,251 |  |  |  | 3,239 |  |  |  | 284 |  |  |  | 882,685 |
Loans modified in a troubled debt restructuring |  |  | 297 |  |  |  | 10,153 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 10,450 |
Total ending loans balance |  | $ | 266,122 |  |  | $ | 260,788 |  |  | $ | 325,200 |  |  | $ | 54,251 |  |  | $ | 3,239 |  |  | $ | 284 |  |  | $ | 909,884 |
December 31, 2011 |  | 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 |  | $ | 329 |  |  | $ | 917 |  |  | $ | 19 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,265 |
Collectively evaluated for impairment |  |  | 4,182 |  |  |  | 3,325 |  |  |  | 1,972 |  |  |  | 1,404 |  |  |  | 71 |  |  |  | 168 |  |  |  | 11,122 |
Modified in a troubled debt restructuring |  |  | — |  |  |  | 228 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 228 |
Total ending allowance balance |  | $ | 4,511 |  |  | $ | 4,470 |  |  | $ | 1,991 |  |  | $ | 1,404 |  |  | $ | 71 |  |  | $ | 168 |  |  | $ | 12,615 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 6,115 |  |  | $ | 8,457 |  |  | $ | 124 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 14,696 |
Loans collectively evaluated for impairment |  |  | 247,209 |  |  |  | 226,366 |  |  |  | 298,504 |  |  |  | 54,677 |  |  |  | 3,206 |  |  |  | 423 |  |  |  | 830,385 |
Loans modified in a troubled debt restructuring |  |  | — |  |  |  | 7,688 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 7,688 |
Total ending loans balance |  | $ | 253,324 |  |  | $ | 242,511 |  |  | $ | 298,628 |  |  | $ | 54,677 |  |  | $ | 3,206 |  |  | $ | 423 |  |  | $ | 852,769 |
The following tables present information related to loans individually evaluated for impairment by portfolio segment as of June 30, 2012 and December 31, 2011 and for the three and six months ended June 30, 2012 and 2011:
June 30, 2012 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Allowance for Loan Losses Allocated |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  | $ | 6,636 |  |  | $ | 4,525 |  |  | $ | 1,282 |
Commercial mortgage |  |  | 7,004 |  |  |  | 6,292 |  |  |  | 1,119 |
Residential real estate |  |  | 598 |  |  |  | 492 |  |  |  | 55 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  |  | 8,812 |  |  |  | 8,097 |  |  |  | 0 |
Commercial mortgage |  |  | 9,558 |  |  |  | 7,657 |  |  |  | 0 |
Residential real estate |  |  | 136 |  |  |  | 136 |  |  |  | 0 |
Total |  | $ | 32,744 |  |  | $ | 27,199 |  |  | $ | 2,456 |
December 31, 2011 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Allowance for Loan Losses Allocated |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  | $ | 4,329 |  |  | $ | 2,815 |  |  | $ | 462 |
Commercial mortgage |  |  | 4,724 |  |  |  | 4,065 |  |  |  | 1,012 |
Residential real estate |  |  | 187 |  |  |  | 124 |  |  |  | 19 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  |  | 3,892 |  |  |  | 3,300 |  |  |  | 0 |
Commercial mortgage |  |  | 13,839 |  |  |  | 12,080 |  |  |  | 0 |
Residential real estate |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  | $ | 26,971 |  |  | $ | 22,384 |  |  | $ | 1,493 |
|  | Three Months Ended June 30, 2012 |  |  | Six Months Ended June 30, 2012 |
|  | 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 |  | $ | 3,528 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 3,290 |  |  | $ | 4 |  |  | $ | 4 |
Commercial mortgage |  |  | 6,031 |  |  |  | 0 |  |  |  | 0 |  |  |  | 5,376 |  |  |  | 0 |  |  |  | 0 |
Residential real estate |  |  | 353 |  |  |  | 4 |  |  |  | 4 |  |  |  | 277 |  |  |  | 8 |  |  |  | 8 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  |  | 3,537 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,458 |  |  |  | 0 |  |  |  | 0 |
Commercial mortgage |  |  | 12,123 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,108 |  |  |  | 0 |  |  |  | 0 |
Residential real estate |  |  | 68 |  |  |  | 0 |  |  |  | 0 |  |  |  | 45 |  |  |  | 0 |  |  |  | 0 |
Total |  | $ | 25,640 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 24,554 |  |  | $ | 12 |  |  | $ | 12 |
|  | Three Months Ended June 30, 2011 |  |  | Six Months Ended June 30, 2011 |
|  | 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 |  | $ | 1,183 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,660 |  |  | $ | 0 |  |  | $ | 0 |
Commercial mortgage |  |  | 8,835 |  |  |  | 14 |  |  |  | 14 |  |  |  | 8,810 |  |  |  | 16 |  |  |  | 16 |
Residential real estate |  |  | 185 |  |  |  | 0 |  |  |  | 0 |  |  |  | 202 |  |  |  | 0 |  |  |  | 0 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, industrial, and agricultural |  |  | 2,411 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,607 |  |  |  | 0 |  |  |  | 0 |
Commercial mortgage |  |  | 4,584 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,506 |  |  |  | 0 |  |  |  | 0 |
Residential real estate |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  | $ | 17,198 |  |  | $ | 14 |  |  | $ | 14 |  |  | $ | 15,785 |  |  | $ | 16 |  |  | $ | 16 |
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, 2012 and December 31, 2011:
|  | June 30, 2012 |  |  | December 31, 2011 |
|  | Nonaccrual |  |  | Past Due Over 90 Days Still on Accrual |  |  | Nonaccrual |  |  | Past Due Over 90 Days Still on Accrual |
Commercial, industrial, and agricultural |  | $ | 7,354 |  |  | $ | 0 |  |  | $ | 6,949 |  |  | $ | 10 |
Commercial mortgages |  |  | 8,530 |  |  |  | 0 |  |  |  | 8,359 |  |  |  | 122 |
Residential real estate |  |  | 2,221 |  |  |  | 82 |  |  |  | 1,254 |  |  |  | 157 |
Consumer |  |  | 4 |  |  |  | 187 |  |  |  | 5 |  |  |  | 125 |
Credit cards |  |  | 0 |  |  |  | 15 |  |  |  | 0 |  |  |  | 27 |
Total |  | $ | 18,109 |  |  | $ | 284 |  |  | $ | 16,567 |  |  | $ | 441 |
Nonaccrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 and December 31, 2011 by class of loans. The recorded investment in loans excludes accrued interest and loan origination fees, net due to their insignificance.
June 30, 2012 |  | 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 |  | $ | 246 |  |  | $ | 56 |  |  | $ | 4,946 |  |  | $ | 5,248 |  |  | $ | 260,874 |  |  | $ | 266,122 |
Commercial mortgages |  |  | 813 |  |  |  | 422 |  |  |  | 8,530 |  |  |  | 9,765 |  |  |  | 251,023 |  |  |  | 260,788 |
Residential real estate |  |  | 1,696 |  |  |  | 420 |  |  |  | 2,021 |  |  |  | 4,137 |  |  |  | 321,063 |  |  |  | 325,200 |
Consumer |  |  | 587 |  |  |  | 132 |  |  |  | 191 |  |  |  | 910 |  |  |  | 53,341 |  |  |  | 54,251 |
Credit cards |  |  | 11 |  |  |  | 28 |  |  |  | 15 |  |  |  | 54 |  |  |  | 3,185 |  |  |  | 3,239 |
Overdrafts |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 284 |  |  |  | 284 |
Total |  | $ | 3,353 |  |  | $ | 1,058 |  |  | $ | 15,703 |  |  | $ | 20,114 |  |  | $ | 889,770 |  |  | $ | 909,884 |
December 31, 2011 |  | 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 |  | $ | 239 |  |  | $ | 53 |  |  | $ | 6,959 |  |  | $ | 7,251 |  |  | $ | 246,073 |  |  | $ | 253,324 |
Commercial mortgages |  |  | 1,064 |  |  |  | 2,620 |  |  |  | 7,043 |  |  |  | 10,727 |  |  |  | 231,784 |  |  |  | 242,511 |
Residential real estate |  |  | 1,816 |  |  |  | 682 |  |  |  | 1,411 |  |  |  | 3,909 |  |  |  | 294,719 |  |  |  | 298,628 |
Consumer |  |  | 392 |  |  |  | 185 |  |  |  | 130 |  |  |  | 707 |  |  |  | 53,970 |  |  |  | 54,677 |
Credit cards |  |  | 34 |  |  |  | 19 |  |  |  | 27 |  |  |  | 80 |  |  |  | 3,126 |  |  |  | 3,206 |
Overdrafts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 423 |  |  |  | 423 |
Total |  | $ | 3,545 |  |  | $ | 3,559 |  |  | $ | 15,570 |  |  | $ | 22,674 |  |  | $ | 830,095 |  |  | $ | 852,769 |
Troubled Debt Restructurings In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. All loans modified in troubled debt restructurings are performing in accordance with their modified terms as of June 30, 2012 and no principal balances were forgiven in connection with the loan restructurings. The Corporation has allocated $209 and $228 of specific reserves to one commercial mortgage customer whose loan terms have been modified in troubled debt restructurings as of June 30, 2012 and December 31, 2011, respectively. The interest rate on the original loan was 6.60%. Due to financial difficulties experienced by the customer, the interest rate was reduced to 4.19% in the third quarter of 2010 and further reduced to 4.07% in the third quarter of 2011. In the first quarter of 2012, the customer was granted interest-only terms for six months, resulting in an additional provision for loan losses that was insignificant for the three and six months ended June 30, 2012. This loan had a total recorded investment of $1,657 and $1,662 as of June 30, 2012 and December 31, 2011, respectively. The Corporation has allocated $101 of specific reserves to one commercial mortgage customer with two loans whose terms have been modified in a troubled debt restructuring as of June 30, 2012. The interest rates on the original loans were 6.45% and 6.47%. Due to financial difficulties experienced by the customer, the interest rates on both loans were reduced to 5.75% in the first quarter of 2012, and the maturity dates were extended to 2020 and 2024, resulting in an additional provision for loan losses of $101 for the three and six months ended June 30, 2012. These loans had a total recorded investment of $1,832 as of June 30, 2012. This commercial customer has two additional mortgage loans that were deemed to be impaired as of December 31, 2011 and whose terms were modified in a troubled debt restructuring in the first quarter of 2012. The loan payments were modified to reflect a twenty year amortization with a balloon payment due after five years. These loans had a total recorded investment of $712 and $728 and specific reserves of $463 and $465 as of June 30, 2012 and December 31, 2011, respectively. No additional provision for loan losses was required to be recorded during the three and six months ended June 30, 2012 in connection with the loan modifications. The Corporation has a commercial mortgage customer whose loan relationships have interest-only terms that were extended during 2011. The original interest rates on the loans, which were also the market rates of interest at the time of the loan modification, were not reduced; therefore, no additional provision for loan losses was required to be recorded. These loans have a total recorded investment of $4,547 and $4,588 at June 30, 2012 and December 31, 2011, respectively. In addition, the Corporation has a commercial mortgage customer whose loan relationship was restructured due to the forgiveness of accrued interest and late charges. The original interest rate on the loan, which was also the market rate of interest at the time of the loan modification, was not reduced; therefore, no additional provision for loan losses was required to be recorded. This loan has a recorded investment of $1,405 and $1,438 at June 30, 2012 and December 31, 2011. The Corporation has a commercial customer with five loans whose terms were modified in a troubled debt restructuring in the first quarter of 2012 due to financial difficulties experienced by the customer. The outstanding balances on the five loans, which ranged in maturity from 2012 to 2014, were combined into one new loan with a five year term. The blended original interest rates on the loans, which were also the market rates of interest at the time of the loan modification, were not reduced; therefore no additional provision for loan losses was required to be recorded. This loan has a total recorded investment of $297 at June 30, 2012. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring, and there have been no payment defaults on loans modified in a troubled debt restructuring. Credit Quality Indicators The Corporation classifies commercial, industrial, and agricultural loans and commercial mortgage loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. Loans with an outstanding balance greater than $1 million are analyzed at least semi-annually and loans with an outstanding balance of less than $1 million are analyzed at least annually. The Corporation uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans. All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.
June 30, 2012 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Commercial, industrial, and agricultural |  | $ | 250,151 |  |  | $ | 1,566 |  |  | $ | 14,228 |  |  | $ | 177 |  |  | $ | 266,122 |
Commercial mortgages |  |  | 236,706 |  |  |  | 1,385 |  |  |  | 21,985 |  |  |  | 712 |  |  |  | 260,788 |
Total |  | $ | 486,857 |  |  | $ | 2,951 |  |  | $ | 36,213 |  |  | $ | 889 |  |  | $ | 526,910 |
December 31, 2011 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Commercial, industrial, and agricultural |  | $ | 223,457 |  |  | $ | 4,176 |  |  | $ | 25,490 |  |  | $ | 201 |  |  | $ | 253,324 |
Commercial mortgages |  |  | 214,098 |  |  |  | 3,172 |  |  |  | 24,513 |  |  |  | 728 |  |  |  | 242,511 |
Total |  | $ | 437,555 |  |  | $ | 7,348 |  |  | $ | 50,003 |  |  | $ | 929 |  |  | $ | 495,835 |
The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”), a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio, are considered to be subprime loans. Holiday’s loan portfolio is summarized as follows at June 30, 2012 and December 31, 2011:
|  | June 30, 2012 |  |  | December 31, 2011 |
Consumer |  | $ | 19,134 |  |  | $ | 18,176 |
Residential real estate |  |  | 1,020 |  |  |  | 1,056 |
Less: unearned discount |  |  | (3,117 | ) |  |  | (2,886 | )
Total |  | $ | 17,037 |  |  | $ | 16,346 |
The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate, consumer, and credit card loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of June 30, 2012 and December 31, 2011:
|  | June 30, 2012 |  |  | December 31, 2011 |
|  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |  |  | Residential Real Estate |  |  | Consumer |  |  | Credit Cards |
Performing |  | $ | 322,897 |  |  | $ | 54,060 |  |  | $ | 3,224 |  |  | $ | 297,217 |  |  | $ | 54,547 |  |  | $ | 3,179 |
Non-performing |  |  | 2,303 |  |  |  | 191 |  |  |  | 15 |  |  |  | 1,411 |  |  |  | 130 |  |  |  | 27 |
Total |  | $ | 325,200 |  |  | $ | 54,251 |  |  | $ | 3,239 |  |  | $ | 298,628 |  |  | $ | 54,677 |  |  | $ | 3,206 |

X
- Details
Name: | us-gaap_AccountsAndNotesReceivableUnclassifiedAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration