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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2022
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 June 30. 
Allowance for Credit Losses:June 30, 2022
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$17,300 $13,235 $9,662 $319 $40,516 
Provision for credit losses(1,392)895 1,319 (72)750 
Loans charged-off(370)(56)(1,985)— (2,411)
Recoveries931 94 1,588 — 2,613 
Ending Balance$16,469 $14,168 $10,584 $247 $41,468 
Allowance for Credit Losses:June 30, 2021
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$13,739 $18,839 $11,058 $164 $43,800 
Provision for credit losses(1,058)(928)(260)50 (2,196)
Loans charged-off(113)(243)(795)— (1,151)
Recoveries149 169 985 — 1,303 
Ending Balance$12,717 $17,837 $10,988 $214 $41,756 

The following table presents the activity of the allowance for credit losses by portfolio segment for the six months ended June 30. 
Allowance for Credit Losses:June 30, 2022
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$18,883 $18,316 $10,721 $385 $48,305 
Provision for credit losses(2,432)(4,249)1,019 (138)(5,800)
Loans charged -off(1,253)(522)(3,890)— (5,665)
Recoveries1,271 623 2,734 — 4,628 
Ending Balance$16,469 $14,168 $10,584 $247 $41,468 
Allowance for Credit Losses:June 30, 2021
(Dollar amounts in thousands)CommercialResidentialConsumerUnallocatedTotal
Beginning balance$13,925 $19,142 $11,009 $— $44,076 
Provision for credit losses(1,536)(1,190)768 214 (1,744)
Loans charged -off(299)(431)(2,759)— (3,489)
Recoveries627 316 1,970 — 2,913 
Ending Balance$12,717 $17,837 $10,988 $214 $41,756 
The tables below present the recorded investment in non-performing loans by class of loans.
 June 30, 2022
Loans Past
Due Over
90 Days Still		Nonaccrual
With No
Allowance
(Dollar amounts in thousands)AccruingNonaccrualFor Credit Loss
Commercial   
 Commercial & Industrial$— $734 $322 
 Farmland— 304 — 
 Non Farm, Non Residential— 2,521 2,508 
 Agriculture— 451 — 
 All Other Commercial— 4 — 
Residential  
 First Liens755 1,687 5 
 Home Equity75 85 — 
 Junior Liens106 208 — 
 Multifamily— 241 — 
 All Other Residential— 113 — 
Consumer  
 Motor Vehicle68 1,426 — 
 All Other Consumer3 609 — 
TOTAL$1,007 $8,383 $2,835 


 December 31, 2021
Loans Past
Due Over
90 Days Still		Nonaccrual
With No
Allowance
(Dollar amounts in thousands)AccruingNonaccrualFor 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 
The following tables present the amortized cost basis of collateral dependent loans by class of loans:

June 30, 2022
Collateral Type
(Dollar amounts in thousands)Real EstateOther
Commercial
Commercial & Industrial$5,891 $323 
Farmland3,330 
Non Farm, Non Residential13,460 
Agriculture— — 
All Other Commercial— — 
Residential
First Liens5 — 
Home Equity— — 
Junior Liens— — 
Multifamily916 — 
All Other Residential— — 
Consumer
Motor Vehicle— — 
All Other Consumer— — 
Total$23,602 $323 



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 
The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  
June 30, 2022
30-59 Days60-89 Days90 Days and GreaterTotal
(Dollar amounts in thousands)Past DuePast DuePast DuePast DueCurrentTotal
Commercial      
 Commercial & Industrial$4,641 $616 $114 $5,371 $688,504 $693,875 
 Farmland116 56 289 461 125,314 125,775 
 Non Farm, Non Residential374 14 — 388 374,629 375,017 
 Agriculture— — — — 117,755 117,755 
 All Other Commercial75 117 — 192 401,242 401,434 
Residential      
 First Liens1,062 857 1,174 3,093 330,319 333,412 
 Home Equity147 190 114 451 62,484 62,935 
 Junior Liens213 108 189 510 53,079 53,589 
 Multifamily68 67 — 135 191,493 191,628 
 All Other Residential— — — — 30,769 30,769 
Consumer      
 Motor Vehicle10,431 1,650 550 12,631 465,968 478,599 
 All Other Consumer238 50 20 308 33,027 33,335 
TOTAL$17,365 $3,725 $2,450 $23,540 $2,874,583 $2,898,123 
 
 December 31, 2021
30-59 Days60-89 Days90 Days and GreaterTotal
(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 
During the three and six months ended June 30, 2022 and 2021, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.
2022
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
April 1,$407 $3,445 $690 $4,542 
    Added/(Disposed)305 101 (679)(273)
    Charged Off— — — — 
    Payments(40)(72)(11)(123)
June 30,$672 $3,474 $— $4,146 
2022
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,$407 $3,686 $706 $4,799 
Added/(Disposed)305 128 (611)(178)
    Charged Off— — — — 
    Payments(40)(340)(95)(475)
June 30,$672 $3,474 $— $4,146 
2021
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
April 1,— 3,888 576 4,464 
    Added— 113 74 187 
    Charged Off— (27)(32)(59)
    Payments— (70)(62)(132)
June 30,— 3,904 556 4,460 
2021
(Dollar amounts in thousands)CommercialResidentialConsumerTotal
January 1,— 3,589 617 4,206 
    Added— 491 122 613 
    Charged Off— (27)(75)(102)
    Payments— (149)(108)(257)
June 30,— 3,904 556 4,460 
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 2022 or 2021 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, 2022 and 2021 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, 2022 and 2021. The Corporation has not committed to lend additional amounts as of June 30, 2022 and 2021 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, 2022 and 2021 were of restructurings that had occurred in the previous 12 months.

    The CARES Act included a provision that permitted 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 have been (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 were not troubled debt restructurings under ASC Subtopic 310-40. This included short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that were insignificant. Borrowers considered current were those that were less than 30 days past due on their contractual payments at the time a modification program was implemented. From the inception of the CARES Act through December 31, 2021, 1,360 loans totaling $200 million were modified, related to COVID-19, that were not considered troubled debt restructurings. 1,189 loans totaling $195 million have resumed normal scheduled payments. 116 remaining loans are still under a debt relief plan, which include no commercial loans that have been provided additional payment relief since the initial payment relief plan. There are no loans 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:
June 30, 2022
Term Loans at Amortized Cost Basis by Origination YearRevolving
20222021202020192018PriorLoansTotal
Commercial
Commercial and IndustrialPass$81,025$149,492$61,094$65,887$31,721$109,210$140,793$639,222
Special Mention1,4893,1652064,1232,8474,26372$16,165
Substandard—4241,4974472,6486,09614,596$25,708
Doubtful———52———$52
Not Rated6,7981,8791,085736270146—$10,914
Subtotal$89,312$154,960$63,882$71,245$37,486$119,715$155,461$692,061
FarmlandPass$7,471$23,441$10,308$10,610$11,128$52,240$290$115,488
Special Mention——1,191882—3,922—$5,995
Substandard———289562,261—$2,606
Doubtful—————76—$76
Not Rated—————20—$20
Subtotal$7,471$23,441$11,499$11,781$11,184$58,519$290$124,185
Non Farm, Non ResidentialPass$53,042$78,738$32,040$21,975$32,250$125,503$8,012$351,560
Special Mention———941—376—$1,317
Substandard—1,738—5432,40816,476—$21,165
Doubtful———————$0
Not Rated—————311—$311
Subtotal$53,042$80,476$32,040$23,459$34,658$142,666$8,012$374,353
AgriculturePass$5,818$10,025$8,730$9,156$1,996$19,726$53,576$109,027
Special Mention89—105—7993,736$4,639
Substandard———597—3931,370$2,360
Doubtful———————$0
Not Rated79101897532——$376
Subtotal$5,986$10,126$8,829$9,833$2,028$20,918$58,682$116,402
Other CommercialPass$97,758$64,636$82,886$20,245$29,738$89,207$3,282$387,752
Special Mention—————11,171—$11,171
Substandard————4628—$470
Doubtful———————$0
Not Rated1885——33575—$711
Subtotal$97,776$64,721$82,886$20,245$30,233$100,961$3,282$400,104
Residential
Multifamily >5 ResidentialPass$50,963$31,102$44,676$12,281$5,191$37,204$951$182,368
Special Mention—————6,406—$6,406
Substandard—————964—$964
Doubtful———————$0
Not Rated—1,137———267—$1,404
Subtotal$50,963$32,239$44,676$12,281$5,191$44,841$951$191,142
TotalPass$296,077$357,434$239,734$140,154$112,024$433,090$206,904$1,785,417
Special Mention1,5783,1651,4075,9512,84726,9373,808$45,693
Substandard—2,1621,4971,8765,57426,19815,966$53,273
Doubtful———52—76—$128
Not Rated6,8953,2021,1748113351,319—$13,736
Total commercial loans$304,550$365,963$243,812$148,844$120,780$487,620$226,678$1,898,247
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 Mention7,5613931,8415,3752634,5237,482$27,438
Substandard4,5218963485,1482,3257,9342,648$23,820
Doubtful———————$0
Not Rated21,1341,610959466189140—$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—1,191914—3423,247—$5,694
Substandard3,455444—3265582,876—$7,659
Doubtful———————$0
Not Rated———————$0
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——1,1031821,9481,996—$5,229
Substandard——910—1,44013,391—$15,741
Doubtful———————$0
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—5372715,257$7,065
Substandard—20216—464854,828$5,595
Doubtful———————$0
Not Rated110120131551——$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—25475—9—$581
Doubtful———————$0
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———————$0
Not Rated1,149———44384—$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 Mention7,5611,5844,8585,5573,09026,42512,739$61,814
Substandard8,0481,3601,4995,9494,36925,6537,476$54,354
Doubtful———————$0
Not Rated22,4821,7301,090558234926—$27,020
Total commercial loans$438,046$268,791$185,345$145,077$174,994$423,148$217,634$1,853,035
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:
June 30, 2022
Term Loans at Amortized Cost Basis by Origination YearRevolving
20222021202020192018PriorLoansTotal
Residential
First LiensPerforming$41,977$68,440$43,841$19,263$21,173$133,208$2,121$330,023
Non-performing———34662,419—$2,519
Subtotal$41,977$68,440$43,841$19,297$21,239$135,627$2,121$332,542
Home EquityPerforming$1,411$862$8$122$129$1,284$58,829$62,645
Non-performing——80—155015$160
Subtotal$1,411$862$88$122$144$1,334$58,844$62,805
Junior LiensPerforming$10,470$12,055$8,695$6,818$6,395$7,667$1,064$53,164
Non-performing——66—74173—$313
Subtotal$10,470$12,055$8,761$6,818$6,469$7,840$1,064$53,477
Other ResidentialPerforming$6,103$15,578$4,997$1,375$598$1,911$0$30,562
Non-performing———523922—$113
Subtotal$6,103$15,578$4,997$1,427$637$1,933$0$30,675
Consumer
Motor VehiclePerforming$145,103$150,683$116,862$42,134$14,775$5,561$—$475,118
Non-performing655414752536352—$1,449
Subtotal$145,168$151,224$117,337$42,387$14,838$5,613$—$476,567
Other ConsumerPerforming$7,956$10,825$5,678$1,920$626$1,022$4,571$32,598
Non-performing192852026623174$616
Subtotal$7,975$11,110$5,880$1,986$649$1,039$4,575$33,214
TotalPerforming$213,020$258,443$180,081$71,632$43,696$150,653$66,585$984,110
Non-performing848268234052802,73319$5,170
Total other loans$213,104$259,269$180,904$72,037$43,976$153,386$66,604$989,280
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——35691602,421—$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——357—$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—6649711994—$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$0$31,217
Non-performing——5543—27—$125
Subtotal$20,218$6,665$1,752$705$883$1,119$0$31,342
Consumer
Motor VehiclePerforming$188,675$155,156$60,676$23,367$9,307$2,384$—$439,565
Non-performing1993731911094323—$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-performing342181107351832$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-performing5415854523533432,6252$4,901
Total other loans$324,594$230,462$96,482$58,314$41,494$140,936$67,284$959,566