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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2020
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]  
Allowance for Loan Losses
The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended June 30. 
Allowance for Loan Losses:June 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$9,323  $1,452  $8,757  $1,531  $21,063  
Provision for loan losses813  527  1,950  (325) 2,965  
Loans charged -off(141) (166) (1,233) —  (1,540) 
Recoveries154  63  580  —  797  
Ending Balance$10,149  $1,876  $10,054  $1,206  $23,285  
Allowance for Loan Losses:June 30, 2019
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$9,239  $1,492  $7,562  $2,667  $20,960  
Provision for loan losses482  (141) 854  (965) 230  
Loans charged -off(403) (117) (1,386) —  (1,906) 
Recoveries163  89  714  —  966  
Ending Balance$9,481  $1,323  $7,744  $1,702  $20,250  

The following table presents the activity of the allowance for loan losses by portfolio segment for the six months ended June 30. 
Allowance for Loan Losses:June 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$8,945  $1,302  $8,304  $1,392  $19,943  
Provision for loan losses1,333  778  3,730  (186) 5,655  
Loans charged -off(674) (423) (3,347) —  (4,444) 
Recoveries545  219  1,367  —  2,131  
Ending Balance$10,149  $1,876  $10,054  $1,206  $23,285  
Allowance for Loan Losses:June 30, 2019
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$9,848  $1,313  $7,481  $1,794  $20,436  
Provision for loan losses(158) 155  1,795  (92) 1,700  
Loans charged -off(659) (419) (2,937) —  (4,015) 
Recoveries450  274  1,405  —  2,129  
Ending Balance$9,481  $1,323  $7,744  $1,702  $20,250  
The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at June 30, 2020 and December 31, 2019. 
Allowance for Loan LossesJune 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Individually evaluated for impairment$237  $—  $—  $—  $237  
Collectively evaluated for impairment9,912  1,876  10,054  1,206  23,048  
Acquired with deteriorated credit quality—  —  —  —  —  
Ending Balance$10,149  $1,876  $10,054  $1,206  $23,285  
 
Loans:June 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
Individually evaluated for impairment$7,433  $4,669  $—  $12,102  
Collectively evaluated for impairment1,691,030  654,902  427,370  2,773,302  
Acquired with deteriorated credit quality4,973  —  —  4,973  
Ending Balance$1,703,436  $659,571  $427,370  $2,790,377  
Allowance for Loan Losses:December 31, 2019
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Individually evaluated for impairment48  —  —  —  48  
Collectively evaluated for impairment8,897  1,302  8,304  1,392  19,895  
Acquired with deteriorated credit quality—  —  —  —  —  
Ending Balance$8,945  $1,302  $8,304  $1,392  $19,943  
LoansDecember 31, 2019
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
Individually evaluated for impairment3,161  3,952  —  7,113  
Collectively evaluated for impairment1,584,169  680,069  387,655  2,651,893  
Acquired with deteriorated credit quality7,436  —  —  7,436  
Ending Balance$1,594,766  $684,021  $387,655  $2,666,442  
The following tables present loans individually evaluated for impairment by class of loans. 
   June 30, 2020  
Unpaid
Principal		RecordedAllowance
for Loan
Losses		Average
Recorded		Interest
Income		Cash Basis
Interest
(Dollar amounts in thousands)BalanceInvestmentAllocatedInvestmentRecognizedRecognized
With no related allowance recorded:      
Commercial      
 Commercial & Industrial$1,654  $1,124  $—  $1,087  $—  $—  
 Farmland1,324  1,324  —  1,548  —  —  
 Non Farm, Non Residential3,512  3,512  —  2,341  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial25  25  —  26  —  —  
Residential      
 First Liens3,358  3,358  —  3,630  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
With an allowance recorded:      
Commercial      
 Commercial & Industrial523  523  89  271  —  —  
 Farmland—  —  —  —  —  —  
 Non Farm, Non Residential171  171  —  57  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial754  754  148  251  —  —  
Residential      
 First Liens—  —  —  —  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily1,311  1,311  —  437  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
TOTAL$12,632  $12,102  $237  $9,648  $—  $—  
 
  December 31, 2019  
Unpaid
Principal		RecordedAllowance
for Loan
Losses		Average
Recorded		Interest
Income		Cash Basis
Interest
Income
(Dollar amounts in thousands)BalanceInvestmentAllocatedInvestmentRecognizedRecognized
With no related allowance recorded:      
Commercial      
 Commercial & Industrial$1,519  $989  $—  $848  $—  $—  
 Farmland1,997  1,997  —  1,999  —  —  
 Non Farm, Non Residential—  —  —  —  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial27  27  —  461  —  —  
Residential      
 First Liens3,952  3,952  —  4,055  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
With an allowance recorded:      
Commercial      
 Commercial & Industrial148  148  48  1,108  —  —  
 Farmland—  —  —  84  —  —  
 Non Farm, Non Residential—  —  —  —  —  
 Agriculture—  —  —  138  —  —  
 All Other Commercial—  —  —  —  —  —  
Residential      
 First Liens—  —  —  —  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
TOTAL$7,643  $7,113  $48  $8,693  $—  $—  
 
Three Months Ended
June 30, 2020		Six Months Ended
June 30, 2020
 Average
Recorded		Interest
Income		Cash Basis
Interest Income		Average
Recorded		Interest
Income		Cash Basis
Interest Income
(Dollar amounts in thousands)InvestmentRecognizedRecognizedInvestmentRecognizedRecognized
With no related allowance recorded:      
Commercial      
 Commercial & Industrial$1,137  $—  $—  $1,087  $—  $—  
 Farmland1,324  —  —  1,548  —  —  
 Non Farm, Non Residential3,512  —  —  2,341  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial26  —  —  26  —  —  
Residential      
 First Liens3,469  —  —  3,630  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
With an allowance recorded:      
Commercial      
 Commercial & Industrial332  —  —  271  —  —  
 Farmland—  —  —  —  —  —  
 Non Farm, Non Residential86  —  —  57  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial377  —  —  251  —  —  
Residential      
 First Liens—  —  —  —  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily656  —  —  437  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
TOTAL$10,919  $—  $—  $9,648  $—  $—  
Three Months Ended
June 30, 2019		Six Months Ended
June 30, 2019
 Average
Recorded		Interest
Income		Cash Basis
Interest Income		Average
Recorded		Interest
Income		Cash Basis
Interest Income
(Dollar amounts in thousands)InvestmentRecognizedRecognizedInvestmentRecognizedRecognized
With no related allowance recorded:      
Commercial      
 Commercial & Industrial$720  $—  $—  $676  $—  $—  
 Farmland1,982  —  —  1,995  —  —  
 Non Farm, Non Residential—  —  —  —  —  —  
 Agriculture—  —  —  —  —  —  
 All Other Commercial569  —  —  750  —  —  
Residential      
 First Liens4,121  —  —  4,219  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
With an allowance recorded:      
Commercial      
 Commercial & Industrial1,711  —  —  1,747  —  —  
 Farmland105  —  —  140  —  —  
 Non Farm, Non Residential—  —  —  —  —  —  
 Agriculture173  —  —  231  —  —  
 All Other Commercial—  —  —  —  —  —  
Residential      
 First Liens—  —  —  —  —  —  
 Home Equity—  —  —  —  —  —  
 Junior Liens—  —  —  —  —  —  
 Multifamily—  —  —  —  —  —  
 All Other Residential—  —  —  —  —  —  
Consumer      
 Motor Vehicle—  —  —  —  —  —  
 All Other Consumer—  —  —  —  —  —  
TOTAL$9,381  $—  $—  $9,758  $—  $—  
The tables below presents the recorded investment in non-performing loans.
 June 30, 2020
Loans Past
Due Over
90 Days Still		Troubled
Debt Restructured		Nonaccrual Excluding
(Dollar amounts in thousands)AccruingAccruingNonaccrualTDR
Commercial    
 Commercial & Industrial$—  $—  $4  $2,934  
 Farmland—  —  —  1,536  
 Non Farm, Non Residential—  —  —  4,139  
 Agriculture126  —  —  72  
 All Other Commercial—  —  —  805  
Residential   
 First Liens3,791  2,558  588  2,659  
 Home Equity138  —  —  41  
 Junior Liens185  80  8  155  
 Multifamily—  —  —  1,311  
 All Other Residential—  —  —  45  
Consumer   
 Motor Vehicle334  —  14  411  
 All Other Consumer3  142  512  526  
TOTAL$4,577  $2,780  $1,126  $14,634  
 December 31, 2019
Loans Past
Due Over
90 Days Still		Troubled
Debt Restructured		Nonaccrual Excluding
(Dollar amounts in thousands)AccruingAccruingNonaccrualTDR
Commercial    
 Commercial & Industrial$—  $—  $11  $2,191  
 Farmland5  —  —  2,410  
 Non Farm, Non Residential—  —  —  441  
 Agriculture—  —  —  485  
 All Other Commercial—  —  —  114  
Residential   
 First Liens625  3,007  396  2,876  
 Home Equity12  —  —  61  
 Junior Liens51  94  9  175  
 Multifamily—  —  —  —  
 All Other Residential738  —  —  203  
Consumer   
 Motor Vehicle227  —  15  138  
 All Other Consumer4  239  444  452  
TOTAL$1,662  $3,340  $875  $9,546  

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.
The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  
June 30, 2020
30-59 Days60-89 DaysGreater
than 90 days		Total
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
 Commercial & Industrial$463  $536  $1,519  $2,518  $743,472  $745,990  
 Farmland—  —  1,416  1,416  125,455  126,871  
 Non Farm, Non Residential4,594  —  222  4,816  371,401  376,217  
 Agriculture460  145  205  810  149,166  149,976  
 All Other Commercial98  754  33  885  303,497  304,382  
Residential      
 First Liens996  896  4,327  6,219  360,695  366,914  
 Home Equity149  249  156  554  64,451  65,005  
 Junior Liens330  343  222  895  54,453  55,348  
 Multifamily298  —  1,311  1,609  153,795  155,404  
 All Other Residential—  352  —  352  16,548  16,900  
Consumer      
 Motor Vehicle4,451  1,401  368  6,220  391,601  397,821  
 All Other Consumer94  36  9  139  29,410  29,549  
TOTAL$11,933  $4,712  $9,788  $26,433  $2,763,944  $2,790,377  
 
 December 31, 2019
30-59 Days60-89 DaysGreater
than 90 days		Total
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
 Commercial & Industrial$2,885  $766  $1,379  $5,030  $594,925  $599,955  
 Farmland132  —  2,089  2,221  137,730  139,951  
 Non Farm, Non Residential3,749  104  —  3,853  398,854  402,707  
 Agriculture277  128  —  405  162,794  163,199  
 All Other Commercial—  —  109  109  288,845  288,954  
Residential      
 First Liens6,452  1,292  1,458  9,202  375,924  385,126  
 Home Equity124  63  34  221  70,813  71,034  
 Junior Liens384  43  137  564  54,533  55,097  
 Multifamily—  —  —  —  148,282  148,282  
 All Other Residential1,082  —  890  1,972  22,510  24,482  
Consumer      
 Motor Vehicle6,488  983  270  7,741  347,950  355,691  
 All Other Consumer228  42  2  272  31,692  31,964  
TOTAL$21,801  $3,421  $6,368  $31,590  $2,634,852  $2,666,442  
During the three and six months ended June 30, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.
2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
April 1,$4  $3,438  $714  $4,156  
    Added—  63  41  104  
    Charged Off—  —  (15) (15) 
    Payments(4) (270) (72) (346) 
June 30,$—  $3,231  $668  $3,899  
2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$11  $3,485  $698  $4,194  
    Added—  123  135  258  
    Charged Off—  (6) (50) (56) 
    Payments(11) (371) (115) (497) 
June 30,$—  $3,231  $668  $3,899  
2019
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
April 1,136  4,019  619  4,774  
    Added—  —  92  92  
    Charged Off—  —  (30) (30) 
    Payments(9) (222) (64) (295) 
June 30,127  3,797  617  4,541  
2019
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,145  4,043  618  4,806  
    Added—  122  163  285  
    Charged Off—  (16) (46) (62) 
    Payments(18) (352) (118) (488) 
June 30,127  3,797  617  4,541  
Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2020 or 2019 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three months ended June 30, 2020 and 2019 did not result in any material charge-offs or additional provision expense.

The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2020 and 2019. The Corporation has not committed to lend additional amounts as of June 30, 2020 and 2019 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three and six months ended June 30, 2020 and 2019 were of restructurings that had occurred in the previous 12 months.

        The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies
issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of June 30, 2020, 1,341 loans totaling $343 million were modified, related to COVID-19, that were not considered troubled debt restructurings.

Credit Quality Indicators:
 
The Corporation categorizes 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. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. 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 institution’s credit position at some future date.
 
Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.
 
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.
 
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of June 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:
June 30, 2020
(Dollar amounts in thousands)PassSpecial
Mention		SubstandardDoubtfulNot RatedTotal
Commercial      
 Commercial & Industrial$694,384  $17,364  $19,298  $—  $12,799  $743,845  
 Farmland111,597  5,706  7,684  —  86  125,073  
 Non Farm, Non Residential350,871  11,599  11,637  —  702  374,809  
 Agriculture123,953  6,784  16,697  —  497  147,931  
 All Other Commercial298,835  3,036  817  —  30  302,718  
Residential      
 First Liens94,359  856  6,301  —  264,155  365,671  
 Home Equity2,537  —  170  —  62,156  64,863  
 Junior Liens2,115  33  307  —  52,761  55,216  
 Multifamily153,622  108  1,311  —  14  155,055  
 All Other Residential3,684  —  11  —  13,157  16,852  
Consumer      
 Motor Vehicle430  —  579  —  395,174  396,183  
 All Other Consumer267  —  41  —  29,110  29,418  
TOTAL$1,836,654  $45,486  $64,853  $—  $830,641  $2,777,634  
 December 31, 2019
(Dollar amounts in thousands)PassSpecial
Mention		SubstandardDoubtfulNot RatedTotal
Commercial      
 Commercial & Industrial$549,341  $19,253  $26,349  $5  $2,761  $597,709  
 Farmland119,858  8,673  8,644  —  100  137,275  
 Non Farm, Non Residential381,404  4,424  12,269  —  3,678  401,775  
 Agriculture127,144  4,507  27,490  —  985  160,126  
 All Other Commercial283,266  3,141  1,120  —  35  287,562  
Residential      
 First Liens174,338  926  4,382  —  204,266  383,912  
 Home Equity18,417  —  134  11  52,280  70,842  
 Junior Liens2,839  64  178  76  51,817  54,974  
 Multifamily146,497  112  1,315  —  19  147,943  
 All Other Residential12,624  —  205  —  11,577  24,406  
Consumer     
 Motor Vehicle2,880  —  538  —  350,780  354,198  
 All Other Consumer3,155  —  38  —  28,615  31,808  
TOTAL$1,821,763  $41,100  $82,662  $92  $706,913  $2,652,530