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ALLOWANCE FOR LOAN LOSSES:
 12 Months Ended
Dec. 31, 2021
Allowance For Loan Losses Disclosure [Abstract]  
ALLOWANCE FOR LOAN LOSSES
The following table presents the activity of the allowance for credit losses by portfolio segment for the years ended December 31, 2021, 2020 and 2019.

Allowance for Credit Losses: December 31, 2021 
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$13,925 $19,142 $11,009 $— $44,076 
PCD ACL on acquired loans4,410 — — 4,410 
Provision for credit losses1,637 (630)1,074 385 2,466 
Loans charged off(2,158)(812)(5,246)— (8,216)
Recoveries1,069 616 3,884 — 5,569 
Ending Balance$18,883 $18,316 $10,721 $385 $48,305 
Allowance for Credit Losses: December 31, 2020 
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$8,945 $1,302 $8,304 $1,392 $19,943 
Impact of adopting ASC 3266,843 9,515 2,118 17,084 
Provision for credit losses(1,622)8,612 3,538 — 10,528 
Loans charged off(1,097)(944)(6,355)— (8,396)
Recoveries856 657 3,404 — 4,917 
Ending Balance$13,925 $19,142 $11,009 $— $44,076 
  
Allowance for Credit Losses: December 31, 2019 
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$9,848 $1,313 $7,481 $1,794 $20,436 
Provision for credit losses621 (321)4,802 (402)4,700 
Loans charged off(2,616)(1,050)(7,007)— (10,673)
Recoveries1,092 1,360 3,028 — 5,480 
Ending Balance$8,945 $1,302 $8,304 $1,392 $19,943 
 
The following tables present the recorded investment in nonperforming loans by class of loans.
December 31, 2021
 Loans PastNon-accrual
Due Over
90 Day Still		With No Allowance
(Dollar amounts in thousands)AccruingNon-accrualFor Credit Loss
Commercial  
Commercial & Industrial$14 $1,950 $1,662 
Farmland— 15 — 
Non Farm, Non Residential— 2,911 2,898 
Agriculture— 111 — 
All Other Commercial— 4 — 
Residential  
First Liens346 2,339 33 
Home Equity— 84 — 
Junior Liens89 294 — 
Multifamily— 225 — 
All Other Residential— 107 — 
Consumer  
Motor Vehicle94 864 — 
All Other Consumer— 686 — 
TOTAL$543 $9,590 $4,593 
 
December 31, 2020
 Loans PastNon-accrual
Due Over
90 Day Still		With No Allowance
(Dollar amounts in thousands)AccruingNon-accrualFor 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 


 
During the years ending December 31, 2021, 2020, and 2019 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.
2021
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$— $3,589 $617 $4,206 
    Added407 491 402 1,300 
    Charged Off— (29)(82)(111)
    Payments— (365)(231)(596)
December 31,$407 $3,686 $706 $4,799 
2020
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$11 $3,485 $698 $4,194 
    Added— 692 304 996 
    Charged Off— (6)(158)(164)
    Payments(11)(582)(227)(820)
December 31,$— $3,589 $617 $4,206 
2019
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$145 $4,043 $618 $4,806 
    Added— 195 375 570 
    Charged Off— (24)(81)(105)
    Payments(134)(729)(214)(1,077)
December 31,$11 $3,485 $698 $4,194 

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, 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.

During the years ended December 31, 2021, 2020 and 2019 the Corporation modified 39, 42, and 45 loans respectively as troubled debt restructurings. All of the loans modified were smaller balance residential and consumer loans. There were no loans that were charged off within 12 months of the modification for 2021, 2020, or 2019.
 
The Corporation had no allocation of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at December 31, 2021, 2020, and 2019. The Corporation has not committed to lend additional amounts as of December 31, 2021 and 2020 to customers with outstanding loans that are classified as troubled debt restructurings.

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 December 31, 2021, 1,225 loans totaling $253 million were modified, related to COVID-19, that were not considered troubled debt restructurings. As of December 31, 2020, 961 loans totaling $210 million have resumed normal scheduled payments. 204 remaining loans are still under a debt
relief plan, which include 9 commercial loans totaling $36 million that have been provided additional payment relief since the initial payment relief plan. 1 loan totaling $17 thousand is under the original payment relief plan.

The following table presents the amortized cost basis of collateral dependent loans by class of loans:
December 31, 2021
Collateral Type
(Dollar amounts in thousands)Real EstateOther
Commercial
Commercial & Industrial$17,734 $720 
Farmland3,669 — 
Non Farm, Non Residential6,135 — 
Agriculture— — 
All Other Commercial— — 
Residential
First Liens33 — 
Home Equity— — 
Junior Liens— — 
Multifamily935 — 
All Other Residential— — 
Consumer
Motor Vehicle— — 
All Other Consumer— — 
Total$28,506 $720 

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 present the aging of the recorded investment in loans by past due category and class of loans.
   Greater   
December 31, 202130-59 Days60-89 Daysthan 90 daysTotal  
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
Commercial & Industrial$1,132 $388 $1,614 $3,134 $693,949 $697,083 
Farmland57 — — 57 141,189 141,246 
Non Farm, Non Residential62 — — 62 361,174 361,236 
Agriculture90 42 89 221 141,682 141,903 
All Other Commercial390 — — 390 340,076 340,466 
Residential      
First Liens4,686 680 949 6,315 336,064 342,379 
Home Equity131 24 58 213 62,085 62,298 
Junior Liens179 120 283 582 50,048 50,630 
Multifamily342 146 — 488 178,849 179,337 
All Other Residential284 291 — 575 30,843 31,418 
Consumer      
Motor Vehicle7,633 1,105 486 9,224 433,095 442,319 
All Other Consumer192 37 — 229 33,425 33,654 
TOTAL$15,178 $2,833 $3,479 $21,490 $2,802,479 $2,823,969 
   Greater   
December 31, 202030-59 Days60-89 Daysthan 90 daysTotal  
(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 
 
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 less than $100 thousand or are included in groups of homogeneous loans.
The following tables present the recorded investment of the commercial loan portfolio by risk category:
December 31, 2021
Term Loans at Amortized Cost Basis by Origination YearRevolving
20212020201920182017PriorLoansTotal
Commercial
Commercial and IndustrialPass$163,588 $71,271 $80,668 $40,441 $37,739 $113,887 $111,594 $619,188 
Special Mention7,561 393 1,841 5,375 263 4,523 7,482 27,438 
Substandard4,521 896 348 5,148 2,325 7,934 2,648 23,820 
Doubtful— — — — — — — — 
Not Rated21,134 1,610 959 466 189 140 — 24,498 
Subtotal$196,804 $74,170 $83,816 $51,430 $40,516 $126,484 $121,724 $694,944 
FarmlandPass$25,673 $12,060 $13,111 $13,246 $11,049 $49,158 $1,418 $125,715 
Special Mention— 1,191 914 — 342 3,247 — 5,694 
Substandard3,455 444 — 326 558 2,876 — 7,659 
Doubtful— — — — — — — — 
Not Rated— — — — — — — — 
Subtotal$29,128 $13,695 $14,025 $13,572 $11,949 $55,281 $1,418 $139,068 
Non Farm, Non ResidentialPass$81,203 $37,971 $24,716 $32,775 $54,732 $97,241 $10,548 $339,186 
Special Mention— — 1,103 182 1,948 1,996 — 5,229 
Substandard— — 910 — 1,440 13,391 — 15,741 
Doubtful— — — — — — — — 
Not Rated— — — — — 402 — 402 
Subtotal$81,203 $37,971 $26,729 $32,957 $58,120 $113,030 $10,548 $360,558 
AgriculturePass$14,426 $10,386 $10,135 $2,585 $4,932 $15,755 $68,937 $127,156 
Special Mention— — 1,000 — 537 271 5,257 7,065 
Substandard— 20 216 — 46 485 4,828 5,595 
Doubtful— — — — — — — — 
Not Rated110 120 131 55 1 — — 417 
Subtotal$14,536 $10,526 $11,482 $2,640 $5,516 $16,511 $79,022 $140,233 
Other CommercialPass$77,821 $69,117 $33,231 $36,495 $53,479 $58,819 $3,488 $332,450 
Special Mention— — — — — 6,106 — 6,106 
Substandard72 — 25 475 — 9 — 581 
Doubtful— — — — — — — — 
Not Rated89 — — 37 — — — 126 
Subtotal$77,982 $69,117 $33,256 $37,007 $53,479 $64,934 $3,488 $339,263 
Residential
Multifamily >5 ResidentialPass$37,244 $63,312 $16,037 $7,471 $5,370 $35,284 $1,434 $166,152 
Special Mention— — — — — 10,282 — 10,282 
Substandard— — — — — 958 — 958 
Doubtful— — — — — — — — 
Not Rated1,149 — — — 44 384 — 1,577 
Subtotal$38,393 $63,312 $16,037 $7,471 $5,414 $46,908 $1,434 $178,969 
TotalPass$399,955 $264,117 $177,898 $133,013 $167,301 $370,144 $197,419 $1,709,847 
Special Mention7,561 1,584 4,858 5,557 3,090 26,425 12,739 61,814 
Substandard8,048 1,360 1,499 5,949 4,369 25,653 7,476 54,354 
Doubtful— — — — — — — — 
Not Rated22,482 1,730 1,090 558 234 926 — 27,020 
Total commercial loans$438,046 $268,791 $185,345 $145,077 $174,994 $423,148 $217,634 $1,853,035 
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 Mention4,848 1,331 4,427 216 1,278 4,566 3,695 20,361 
Substandard3,780 323 4,187 1,148 3,543 2,565 3,124 18,670 
Doubtful— — — — — — — — 
Not Rated2,618 1,772 1,446 580 105 2,255 — 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 Mention988 947 — 230 1,900 2,656 — 6,721 
Substandard1,718 2,303 — 716 1,628 826 — 7,191 
Doubtful— — — — — — — — 
Not Rated— — — — — — — — 
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 — 305 9,982 6,811 — 18,096 
Substandard— 1,188 — 4,310 7,484 7,028 — 20,010 
Doubtful— — — — — — — — 
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— 1,483 1,203 664 5 428 7,611 11,394 
Substandard— 3,834 18 223 2,435 1,988 5,926 14,424 
Doubtful— — — — — — — — 
Not Rated159 216 110 6 13 — — 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— — — 24 528 24 — 576 
Doubtful— — — — — — — — 
Not Rated— 3 52 39 345 — — 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— — — — 102 10,662 — 10,764 
Substandard— — 1,380 — — — — 1,380 
Doubtful— — — — — — — — 
Not Rated— — — — — — — — 
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 Mention5,836 4,759 5,630 1,422 13,267 27,909 11,306 70,129 
Substandard5,498 7,648 5,585 6,421 15,618 12,431 9,050 62,251 
Doubtful— — — — — — — — 
Not Rated2,777 1,991 1,608 625 463 2,937 — 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 recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming:
December 31, 2021
Term Loans at Amortized Cost Basis by Origination YearRevolving
20212020201920182017PriorLoansTotal
Residential
First LiensPerforming$86,224 $49,633 $22,262 $24,377 $26,437 $126,828 $3,061 $338,822 
Non-performing— — 35 69 160 2,421 — 2,685 
Subtotal$86,224 $49,633 $22,297 $24,446 $26,597 $129,249 $3,061 $341,507 
Home EquityPerforming$757 $9 $152 $719 $62 $1,332 $59,059 $62,090 
Non-performing— 25 — — 3 57 — 85 
Subtotal$757 $34 $152 $719 $65 $1,389 $59,059 $62,175 
Junior LiensPerforming$13,255 $10,189 $8,124 $7,888 $4,158 $5,554 $968 $50,136 
Non-performing— 6 64 97 119 94 — 380 
Subtotal$13,255 $10,195 $8,188 $7,985 $4,277 $5,648 $968 $50,516 
Other ResidentialPerforming$20,218 $6,665 $1,697 $662 $883 $1,092 $— $31,217 
Non-performing— — 55 43 — 27 — 125 
Subtotal$20,218 $6,665 $1,752 $705 $883 $1,119 $— $31,342 
Consumer
Motor VehiclePerforming$188,675 $155,156 $60,676 $23,367 $9,307 $2,384 $— $439,565 
Non-performing199 373 191 109 43 23 — 938 
Subtotal$188,874 $155,529 $60,867 $23,476 $9,350 $2,407 $— $440,503 
Other ConsumerPerforming$14,924 $8,225 $3,119 $948 $304 $1,121 $4,194 $32,835 
Non-performing342 181 107 35 18 3 2 688 
Subtotal$15,266 $8,406 $3,226 $983 $322 $1,124 $4,196 $33,523 
TotalPerforming$324,053 $229,877 $96,030 $57,961 $41,151 $138,311 $67,282 $954,665 
Non-performing541 585 452 353 343 2,625 2 4,901 
Total other loans$324,594 $230,462 $96,482 $58,314 $41,494 $140,936 $67,284 $959,566 
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— 40 95 343 107 4,062 — 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 — — 91 24 116 
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— 129 48 198 9 66 — 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— 62 50 — — 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-performing318 355 257 127 36 11 — 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-performing231 200 92 22 — 8 19 572 
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-performing549 786 543 690 152 4,277 43 7,040 
Total other loans$333,313 $170,796 $99,603 $69,152 $45,577 $149,393 $65,948 $933,782