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Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]  
Allowance for Loan Losses Allowance for Credit Losses
The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended September 30. 
Allowance for Credit Losses:September 30, 2021
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$15,693 $17,837 $10,988 $214 $44,732 
Provision for credit losses(531)(1,387)173 245 (1,500)
Loans charged-off(313)(61)(1,240)— (1,614)
Recoveries182 130 1,032 — 1,344 
Ending Balance$15,031 $16,519 $10,953 $459 $42,962 
Allowance for Credit Losses:September 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$10,149 $1,876 $10,054 $1,206 $23,285 
Provision for credit losses1,992 17 1,695 721 4,425 
Loans charged-off(160)(296)(1,542)— (1,998)
Recoveries147 185 916 — 1,248 
Ending Balance$12,128 $1,782 $11,123 $1,927 $26,960 

The following table presents the activity of the allowance for credit losses by portfolio segment for the nine months ended September 30. 

Allowance for Credit Losses:September 30, 2021
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$16,901 $19,142 $11,009 $— $47,052 
Provision for credit losses(2,067)(2,577)941 459 (3,244)
Loans charged -off(612)(492)(3,999)— (5,103)
Recoveries809 446 3,002 — 4,257 
Ending Balance$15,031 $16,519 $10,953 $459 $42,962 
Allowance for Credit Losses:September 30, 2020
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$8,945 $1,302 $8,304 $1,392 $19,943 
Provision for credit losses3,325 795 5,425 535 10,080 
Loans charged -off(834)(719)(4,889)— (6,442)
Recoveries692 404 2,283 — 3,379 
Ending Balance$12,128 $1,782 $11,123 $1,927 $26,960 
The following table presents loans individually evaluated for impairment by class of loans. 
Three Months Ended
September 30, 2020		Nine Months Ended
September 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$1,026 $— $— $1,048 $— $— 
 Farmland662 — — 1,161 — — 
 Non Farm, Non Residential3,436 — — 2,596 — — 
 Agriculture— — — — — — 
 All Other Commercial25 — — 26 — — 
Residential      
 First Liens3,452 — — 3,609 — — 
 Home Equity— — — — — — 
 Junior Liens— — — — — — 
 Multifamily— — — — — — 
 All Other Residential— — — — — — 
Consumer      
 Motor Vehicle— — — — — — 
 All Other Consumer— — — — — — 
With an allowance recorded:      
Commercial      
 Commercial & Industrial2,136 — — 1,140 — — 
 Farmland— — — — — — 
 Non Farm, Non Residential171 — — 86 — — 
 Agriculture190 — — 95 — — 
 All Other Commercial754 — — 377 — — 
Residential      
 First Liens— — — — — — 
 Home Equity— — — — — — 
 Junior Liens— — — — — — 
 Multifamily1,346 — — 673 — — 
 All Other Residential— — — — — — 
Consumer      
 Motor Vehicle— — — — — — 
 All Other Consumer— — — — — — 
TOTAL$13,198 $— $— $10,811 $— $— 
The tables below present the recorded investment in non-performing loans by class of loans.
 September 30, 2021
Loans Past
Due Over
90 Days Still		Nonaccrual
With No
Allowance
(Dollar amounts in thousands)AccruingNonaccrualFor Credit Loss
Commercial   
 Commercial & Industrial$— $3,451 $750 
 Farmland— 1,039 1,014 
 Non Farm, Non Residential— 3,100 2,990 
 Agriculture— 1,214 1,150 
 All Other Commercial— 252 — 
Residential  
 First Liens1,173 2,723 46 
 Home Equity13 86 — 
 Junior Liens35 300 — 
 Multifamily— 205 — 
 All Other Residential— 114 — 
Consumer  
 Motor Vehicle191 528 — 
 All Other Consumer— 638 — 
TOTAL$1,412 $13,650 $5,950 


 December 31, 2020
Loans Past
Due Over
90 Days Still		Nonaccrual
With No
Allowance
(Dollar amounts in thousands)AccruingNonaccrualFor Credit Loss
Commercial   
 Commercial & Industrial$— $4,838 $1,080 
 Farmland— 195 — 
 Non Farm, Non Residential— 3,729 3,267 
 Agriculture— 409 — 
 All Other Commercial— 533 24 
Residential  
 First Liens1,746 2,604 86 
 Home Equity88 30 — 
 Junior Liens252 206 — 
 Multifamily— 1,380 — 
 All Other Residential— 135 — 
Consumer  
 Motor Vehicle372 754 — 
 All Other Consumer— 554 — 
TOTAL$2,458 $15,367 $4,457 
The following tables present the amortized cost basis of collateral dependent loans by class of loans:

September 30, 2021
Collateral Type
(Dollar amounts in thousands)Real EstateOther
Commercial
Commercial & Industrial$2,993 $1,053 
Farmland3,699 
Non Farm, Non Residential6,367 
Agriculture— 1,150 
All Other Commercial248 — 
Residential
First Liens46 — 
Home Equity— — 
Junior Liens— — 
Multifamily205 — 
All Other Residential— — 
Consumer
Motor Vehicle— — 
All Other Consumer— — 
Total$13,558 $2,203 



December 31, 2020
Collateral Type
(Dollar amounts in thousands)Real EstateOther
Commercial
Commercial & Industrial$3,293 $2,221 
Farmland2,771 
Non Farm, Non Residential6,838 
Agriculture— 599 
All Other Commercial528 24 
Residential
First Liens86 — 
Home Equity— — 
Junior Liens— — 
Multifamily1,380 — 
All Other Residential— — 
Consumer
Motor Vehicle— — 
All Other Consumer— — 
Total$14,896 $2,844 
The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  
September 30, 2021
30-59 Days60-89 Days90 Days and GreaterTotal
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
 Commercial & Industrial$2,283 $59 $2,741 $5,083 $569,962 $575,045 
 Farmland— — — — 114,045 114,045 
 Non Farm, Non Residential63 68 7 138 342,073 342,211 
 Agriculture96 — 1,188 1,284 122,284 123,568 
 All Other Commercial77 — — 77 310,325 310,402 
Residential      
 First Liens858 873 1,840 3,571 302,634 306,205 
 Home Equity304 210 86 600 57,099 57,699 
 Junior Liens81 71 188 340 50,794 51,134 
 Multifamily— — — — 106,564 106,564 
 All Other Residential— 45 — 45 15,556 15,601 
Consumer      
 Motor Vehicle5,147 836 229 6,212 444,294 450,506 
 All Other Consumer127 50 — 177 33,380 33,557 
TOTAL$9,036 $2,212 $6,279 $17,527 $2,469,010 $2,486,537 
 
 December 31, 2020
30-59 Days60-89 Days90 Days and GreaterTotal
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
 Commercial & Industrial$685 $746 $3,364 $4,795 $603,777 $608,572 
 Farmland22 — 91 113 118,528 118,641 
 Non Farm, Non Residential155 — 271 426 350,681 351,107 
 Agriculture28 30 275 333 146,147 146,480 
 All Other Commercial— — 24 24 305,612 305,636 
Residential      
 First Liens5,506 1,866 2,365 9,737 314,730 324,467 
 Home Equity260 29 104 393 60,362 60,755 
 Junior Liens421 68 341 830 53,346 54,176 
 Multifamily— — — — 151,042 151,042 
 All Other Residential— 50 — 50 15,918 15,968 
Consumer      
 Motor Vehicle6,975 1,294 560 8,829 441,283 450,112 
 All Other Consumer164 19 13 196 31,401 31,597 
TOTAL$14,216 $4,102 $7,408 $25,726 $2,592,827 $2,618,553 
During the three and nine months ended September 30, 2021 and 2020, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.
2021
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
July 1,$— $3,904 $556 $4,460 
    Added— — 172 172 
    Charged Off— — — — 
    Payments— (91)(52)(143)
September 30,$— $3,813 $676 $4,489 
2021
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$— $3,589 $617 $4,206 
    Added— 491 294 785 
    Charged Off— (27)(75)(102)
    Payments— (240)(160)(400)
September 30,$— $3,813 $676 $4,489 
2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
July 1,— 3,231 668 3,899 
    Added— 313 81 394 
    Charged Off— — (30)(30)
    Payments— (112)(54)(166)
September 30,— 3,432 665 4,097 
2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,11 3,485 698 4,194 
    Added— 436 216 652 
    Charged Off— (6)(80)(86)
    Payments(11)(483)(169)(663)
September 30,— 3,432 665 4,097 
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 2021 or 2020 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 September 30, 2021 and 2020 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 September 30, 2021 and 2020. The Corporation has not committed to lend additional amounts as of September 30, 2021 and 2020 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three and nine months ended September 30, 2021 and 2020 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. From the inception of the CARES Act through September 30, 2021, 1,332 loans totaling $268 million were modified, related to COVID-19, that were not considered troubled debt restructurings. 1,053 loans totaling $224 million have resumed normal scheduled payments. 217 remaining loans are still under a debt relief plan, which include 12 commercial loans totaling $36 million that have been provided additional payment relief since the initial payment relief plan. 5 loans totaling $232 thousand are under the original payment relief plan.

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.
 
The following tables present the commercial loan portfolio by risk category:
September 30, 2021
Term Loans at Amortized Cost Basis by Origination YearRevolving
20212020201920182017PriorLoansTotal
Commercial
Commercial and IndustrialPass$122,680$50,449$77,006$39,487$30,908$108,292$88,924$517,746
Special Mention1,8182441,1906,8353154,4217,780$22,603
Substandard2,780143593,5194183,769268$11,127
Doubtful———————$0
Not Rated17,9331,8411,065630266162—$21,897
Subtotal$145,211$52,548$79,620$50,471$31,907$116,644$96,972$573,373
FarmlandPass$11,133$9,892$11,010$11,103$8,471$46,333$1,315$99,257
Special Mention——914—2213,257—$4,392
Substandard3,4551,635——6802,595—$8,365
Doubtful———————$0
Not Rated—————27—$27
Subtotal$14,588$11,527$11,924$11,103$9,372$52,212$1,315$112,041
Non Farm, Non ResidentialPass$42,941$37,200$28,621$34,126$59,981$104,483$8,969$316,321
Special Mention——1,1121831,9733,344—$6,612
Substandard——927—1,45615,694—$18,077
Doubtful———————$0
Not Rated—————508—$508
Subtotal$42,941$37,200$30,660$34,309$63,410$124,029$8,969$341,518
AgriculturePass$5,246$10,723$10,609$2,831$4,667$17,305$55,670$107,051
Special Mention——1,403—5702,6994,587$9,259
Substandard——2861131,6993,091$5,090
Doubtful———————$0
Not Rated5131159575——$357
Subtotal$5,251$10,854$12,457$2,889$5,255$21,703$63,348$121,757
Other CommercialPass$32,312$65,747$42,256$36,953$55,929$69,970$5,736$308,903
Special Mention———————$0
Substandard—————259—$259
Doubtful———————$0
Not Rated90——43———$133
Subtotal$32,402$65,747$42,256$36,996$55,929$70,229$5,736$309,295
Residential
Multifamily >5 ResidentialPass$8,658$48,145$8,903$6,982$2,757$18,865$1,467$95,777
Special Mention—————10,386—$10,386
Substandard———205———$205
Doubtful———————$0
Not Rated———————$0
Subtotal$8,658$48,145$8,903$7,187$2,757$29,251$1,467$106,368
TotalPass$222,970$222,156$178,405$131,482$162,713$365,248$162,081$1,445,055
Special Mention1,8182444,6197,0183,07924,10712,367$53,252
Substandard6,2351,6491,5723,7252,56724,0163,359$43,123
Doubtful———————$0
Not Rated18,0281,9721,224730271697—$22,922
Total commercial loans$249,051$226,021$185,820$142,955$168,630$414,068$177,807$1,564,352
December 31, 2020
Term Loans at Amortized Cost Basis by Origination YearRevolving
20202019201820172016PriorLoansTotal
Commercial
Commercial and IndustrialPass$159,494$77,253$64,298$41,806$20,564$103,598$91,615$558,628
Special Mention4,8481,3314,4272161,2784,5663,695$20,361
Substandard3,7803234,1871,1483,5432,5653,124$18,670
Doubtful———————$0
Not Rated2,6181,7721,4465801052,255—$8,776
Subtotal$170,740$80,679$74,358$43,750$25,490$112,984$98,434$606,435
FarmlandPass$10,010$12,775$12,149$10,089$15,863$40,338$1,386$102,610
Special Mention988947—2301,9002,656—$6,721
Substandard1,7182,303—7161,628826—$7,191
Doubtful———————$0
Not Rated———————$0
Subtotal$12,716$16,025$12,149$11,035$19,391$43,820$1,386$116,522
Non Farm, Non ResidentialPass$39,914$33,261$38,111$63,371$49,511$83,052$4,092$311,312
Special Mention—998—3059,9826,811—$18,096
Substandard—1,188—4,3107,4847,028—$20,010
Doubtful———————$0
Not Rated—————682—$682
Subtotal$39,914$35,447$38,111$67,986$66,977$97,573$4,092$350,100
AgriculturePass$13,336$8,330$3,485$5,329$3,732$16,792$67,052$118,056
Special Mention—1,4831,20366454287,611$11,394
Substandard—3,834182232,4351,9885,926$14,424
Doubtful———————$0
Not Rated159216110613——$504
Subtotal$13,495$13,863$4,816$6,222$6,185$19,208$80,589$144,378
Other CommercialPass$44,673$57,200$41,470$61,442$40,196$50,325$5,162$300,468
Special Mention———7—2,786—$2,793
Substandard———2452824—$576
Doubtful———————$0
Not Rated—35239345——$439
Subtotal$44,673$57,203$41,522$61,512$41,069$53,135$5,162$304,276
Residential
Multifamily >5 ResidentialPass$44,599$9,892$36,563$19,749$4,676$21,704$1,293$138,476
Special Mention————10210,662—$10,764
Substandard——1,380————$1,380
Doubtful———————$0
Not Rated———————$0
Subtotal$44,599$9,892$37,943$19,749$4,778$32,366$1,293$150,620
TotalPass$312,026$198,711$196,076$201,786$134,542$315,809$170,600$1,529,550
Special Mention5,8364,7595,6301,42213,26727,90911,306$70,129
Substandard5,4987,6485,5856,42115,61812,4319,050$62,251
Doubtful———————$0
Not Rated2,7771,9911,6086254632,937—$10,401
Total commercial loans$326,137$213,109$208,899$210,254$163,890$359,086$190,956$1,672,331
The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the balance of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:
September 30, 2021
Term Loans at Amortized Cost Basis by Origination YearRevolving
20212020201920182017PriorLoansTotal
Residential
First LiensPerforming$50,313$41,216$22,039$24,469$26,484$134,510$2,417$301,448
Non-performing—150528703192,801—$3,868
Subtotal$50,313$41,366$22,567$24,539$26,803$137,311$2,417$305,316
Home EquityPerforming$1,643$9$191$131$64$1,367$54,088$57,493
Non-performing————396—$99
Subtotal$1,643$9$191$131$67$1,463$54,088$57,592
Junior LiensPerforming$10,379$10,642$8,962$8,640$4,650$6,306$1,102$50,681
Non-performing—7397412299—$341
Subtotal$10,379$10,649$9,001$8,714$4,772$6,405$1,102$51,022
Other ResidentialPerforming$7,849$4,493$1,405$325$281$1,072$0$15,425
Non-performing——5745—30—$132
Subtotal$7,849$4,493$1,462$370$281$1,102$0$15,557
Consumer
Motor VehiclePerforming$155,728$176,592$71,421$28,477$12,091$3,674$—$447,983
Non-performing292032661445011—$703
Subtotal$155,757$176,795$71,687$28,621$12,141$3,685$—$448,686
Other ConsumerPerforming$13,309$9,441$3,651$1,065$327$982$4,013$32,788
Non-performing251199125411942$641
Subtotal$13,560$9,640$3,776$1,106$346$986$4,015$33,429
TotalPerforming$239,221$242,393$107,669$63,107$43,897$147,911$61,620$905,818
Non-performing2805591,0153745133,0412$5,784
Total other loans$239,501$242,952$108,684$63,481$44,410$150,952$61,622$911,602
December 31, 2020
Term Loans at Amortized Cost Basis by Origination YearRevolving
20202019201820172016PriorLoansTotal
Residential
First LiensPerforming$47,875$33,737$31,634$36,426$30,419$135,456$3,235$318,782
Non-performing—40953431074,062—$4,647
Subtotal$47,875$33,777$31,729$36,769$30,526$139,518$3,235$323,429
Home EquityPerforming$854$135$644$20$—$1,525$57,334$60,512
Non-performing——1——9124$116
Subtotal$854$135$645$20$—$1,616$57,358$60,628
Junior LiensPerforming$13,125$12,742$11,139$6,214$3,948$5,099$1,333$53,600
Non-performing—12948198966—$450
Subtotal$13,125$12,871$11,187$6,412$3,957$5,165$1,333$54,050
Other ResidentialPerforming$9,773$2,775$1,372$292$178$733$651$15,774
Non-performing—6250——39—$151
Subtotal$9,773$2,837$1,422$292$178$772$651$15,925
Consumer
Motor VehiclePerforming$245,839$113,293$51,649$24,786$10,026$1,600$—$447,193
Non-performing3183552571273611—$1,104
Subtotal$246,157$113,648$51,906$24,913$10,062$1,611$—$448,297
Other ConsumerPerforming$15,298$7,328$2,622$724$854$703$3,352$30,881
Non-performing2312009222—819$572
Subtotal$15,529$7,528$2,714$746$854$711$3,371$31,453
TotalPerforming$332,764$170,010$99,060$68,462$45,425$145,116$65,905$926,742
Non-performing5497865436901524,27743$7,040
Total other loans$333,313$170,796$99,603$69,152$45,577$149,393$65,948$933,782