Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for Credit Losses

Schedule of allowances for loan losses by portfolio segment

The following table presents the activity of the allowance for credit losses by portfolio segment for the three months ended March 31.

Allowance for Credit Losses:			March 31, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,949	$	14,568	$	12,104	$	158	$	39,779
Provision for credit losses		(54)		500		1,254		100		1,800
Loans charged-off		(306)		(79)		(3,991)		—		(4,376)
Recoveries		201		70		2,146		—		2,417
Ending Balance	$	12,790	$	15,059	$	11,513	$	258	$	39,620

Allowance for Credit Losses:			March 31, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	18,883	$	18,316	$	10,721	$	385	$	48,305
Provision for credit losses		(1,040)		(5,144)		(300)		(66)		(6,550)
Loans charged-off		(883)		(466)		(1,905)		—		(3,254)
Recoveries		340		529		1,146		—		2,015
Ending Balance	$	17,300	$	13,235	$	9,662	$	319	$	40,516

Schedule of recorded investment in non-performing loans by class of loans

	March 31, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	—	$	1,503	$	972
Farmland		—		584		456
Non Farm, Non Residential		—		1,803		1,791
Agriculture		—		184		155
All Other Commercial		297		24		—
Residential
First Liens		766		1,205		—
Home Equity		41		73		—
Junior Liens		80		220		—
Multifamily		—		1,459		1,264
All Other Residential		—		465		—
Consumer
Motor Vehicle		—		2,993		—
All Other Consumer		—		407		—
TOTAL	$	1,184	$	10,920	$	4,638

	December 31, 2022
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	114	$	2,137	$	254
Farmland		—		461		—
Non Farm, Non Residential		—		2,064		2,052
Agriculture		—		186		155
All Other Commercial		—		26		—
Residential
First Liens		666		1,380		—
Home Equity		180		133		—
Junior Liens		197		256		—
Multifamily		—		1,468		—
All Other Residential		—		478		—
Consumer
Motor Vehicle		—		2,549		—
All Other Consumer		—		416		—
TOTAL	$	1,157	$	11,554	$	2,461

Schedule of amortized cost basis of collateral dependent loans

	March 31, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	3,983	$	—
Farmland		2,224		—
Non Farm, Non Residential		4,818		—
Agriculture		—		155
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		1,264		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	12,289	$	155

	December 31, 2022
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	4,613	$	1
Farmland		3,289		—
Non Farm, Non Residential		5,123		—
Agriculture		—		155
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		895		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	13,920	$	156

Schedule of aging of the recorded investment in loans by past due category and class of loans

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.

	March 31, 2023
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	3,199	$	67	$	983	$	4,249	$	660,729	$	664,978
Farmland		60		470		530		1,060		131,569		132,629
Non Farm, Non Residential		149		103		—		252		396,054		396,306
Agriculture		1,503		—		—		1,503		107,065		108,568
All Other Commercial		173		—		297		470		504,908		505,378
Residential
First Liens		3,187		574		961		4,722		348,644		353,366
Home Equity		213		107		80		400		61,512		61,912
Junior Liens		191		211		223		625		56,088		56,713
Multifamily		145		946		373		1,464		179,813		181,277
All Other Residential		369		—		—		369		24,369		24,738
Consumer
Motor Vehicle		8,113		1,595		730		10,438		558,332		568,770
All Other Consumer		232		40		5		277		31,578		31,855
TOTAL	$	17,534	$	4,113	$	4,182	$	25,829	$	3,060,661	$	3,086,490

	December 31, 2022
					90 Days
	30-59 Days		60-89 Days		and Greater		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	1,698	$	529	$	726	$	2,953	$	674,569	$	677,522
Farmland		112		—		—		112		127,498		127,610
Non Farm, Non Residential		274		34		—		308		387,108		387,416
Agriculture		—		1,231		—		1,231		136,451		137,682
All Other Commercial		333		—		14		347		478,095		478,442
Residential
First Liens		4,528		1,203		1,054		6,785		341,131		347,916
Home Equity		305		144		276		725		63,615		64,340
Junior Liens		213		69		327		609		56,367		56,976
Multifamily		317		83		—		400		180,305		180,705
All Other Residential		1,115		350		—		1,465		24,058		25,523
Consumer
Motor Vehicle		15,151		1,930		985		18,066		539,651		557,717
All Other Consumer		341		56		15		412		32,967		33,379
TOTAL	$	24,387	$	5,629	$	3,397	$	33,413	$	3,041,815	$	3,075,228

Schedule of commercial loan portfolio by risk category

The following tables present the commercial loan portfolio by risk category:

		March 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	20,794	$	143,766	$	123,586	$	46,757	$	51,857	$	114,938	$	108,126	$	609,824
	Special Mention		43		—		9,423		3,264		43		3,676		948	$	17,397
	Substandard		3,297		256		676		1,167		931		8,456		7,823	$	22,606
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		8,745		1,668		1,284		718		368		175		—	$	12,958
	Subtotal	$	32,879	$	145,690	$	134,969	$	51,906	$	53,199	$	127,245	$	116,897	$	662,785
	Current period gross charge-offs	$	8	$	15	$	39	$	-	$	-	$	-	$	-	$	62
Farmland	Pass	$	12,394	$	16,577	$	21,962	$	8,885	$	9,067	$	54,997	$	283	$	124,165
	Special Mention		—		—		—		—		882		2,495		—	$	3,377
	Substandard		—		—		—		504		608		2,133		—	$	3,245
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	12,394	$	16,577	$	21,962	$	9,389	$	10,557	$	59,642	$	283	$	130,804
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	15,142	$	112,290	$	73,946	$	32,431	$	18,736	$	130,690	$	2,893	$	386,128
	Special Mention		—		96		1,025		—		904		276		—	$	2,301
	Substandard		—		—		—		—		505		5,647		—	$	6,152
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		692		—		91		—	$	783
	Subtotal	$	15,142	$	112,386	$	74,971	$	33,123	$	20,145	$	136,704	$	2,893	$	395,364
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	2,397	$	13,026	$	8,962	$	7,319	$	8,134	$	18,202	$	43,559	$	101,599
	Special Mention		—		86		—		8		3		705		1,446	$	2,248
	Substandard		—		—		—		—		224		1,406		549	$	2,179
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		62		37		63		45		15		—	$	222
	Subtotal	$	2,397	$	13,174	$	8,999	$	7,390	$	8,406	$	20,328	$	45,554	$	106,248
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	7,514	$	153,260	$	96,815	$	95,111	$	18,223	$	108,023	$	10,792	$	489,738
	Special Mention		—		22		—		—		846		11,815		—	$	12,683
	Substandard		—		—		21		—		—		6		—	$	27
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		15		80		—		—		496		—	$	591
	Subtotal	$	7,514	$	153,297	$	96,916	$	95,111	$	19,069	$	120,340	$	10,792	$	503,039
	Current period gross charge-offs	$	244	$	-	$	-	$	-	$	-	$	-	$	-	$	244
Residential
Multifamily >5 Residential	Pass	$	696	$	55,592	$	34,781	$	42,724	$	6,672	$	29,669	$	170	$	170,304
	Special Mention		—		—		—		368		—		7,278		—	$	7,646
	Substandard		—		—		—		—		—		1,275		—	$	1,275
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,118		—		—		260		—	$	1,378
	Subtotal	$	696	$	55,592	$	35,899	$	43,092	$	6,672	$	38,482	$	170	$	180,603
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	58,937	$	494,511	$	360,052	$	233,227	$	112,689	$	456,519	$	165,823	$	1,881,758
	Special Mention		43		204		10,448		3,640		2,678		26,245		2,394	$	45,652
	Substandard		3,297		256		697		1,671		2,268		18,923		8,372	$	35,484
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		8,745		1,745		2,519		1,473		413		1,054		—	$	15,949
		$	71,022	$	496,716	$	373,716	$	240,011	$	118,048	$	502,741	$	176,589	$	1,978,843

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	163,479	$	128,012	$	56,830	$	54,208	$	26,514	$	99,522	$	92,110	$	620,675
	Special Mention		2,071		9,738		3,434		2,572		2,061		1,848		453	$	22,177
	Substandard		423		723		1,861		954		3,169		6,264		9,103	$	22,497
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,041		1,408		822		469		149		85		—	$	9,974
	Subtotal	$	173,014	$	139,881	$	62,947	$	58,203	$	31,893	$	107,719	$	101,666	$	675,323
Farmland	Pass	$	16,261	$	22,530	$	9,244	$	9,438	$	10,352	$	48,847	$	340	$	117,012
	Special Mention		—		—		1,164		882		—		2,930		—	$	4,976
	Substandard		—		—		456		608		337		1,969		—	$	3,370
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	16,261	$	22,530	$	10,864	$	10,928	$	10,689	$	53,763	$	340	$	125,375
Non Farm, Non Residential	Pass	$	102,629	$	75,011	$	33,214	$	19,596	$	31,438	$	111,586	$	2,975	$	376,449
	Special Mention		99		1,035		—		921		—		279		—	$	2,334
	Substandard		—		—		—		513		—		6,281		—	$	6,794
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		696		—		—		269		—	$	965
	Subtotal	$	102,728	$	76,046	$	33,910	$	21,030	$	31,438	$	118,415	$	2,975	$	386,542
Agriculture	Pass	$	13,085	$	9,028	$	8,015	$	8,422	$	1,987	$	26,729	$	62,397	$	129,663
	Special Mention		89		—		10		3		—		709		2,519	$	3,330
	Substandard		—		—		—		224		1,201		56		762	$	2,243
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		71		39		68		61		25		—		—	$	264
	Subtotal	$	13,245	$	9,067	$	8,093	$	8,710	$	3,213	$	27,494	$	65,678	$	135,500
Other Commercial	Pass	$	143,941	$	91,615	$	90,845	$	19,259	$	29,143	$	82,535	$	5,602	$	462,940
	Special Mention		23		—		—		10		—		11,911		—	$	11,944
	Substandard		—		23		—		—		—		6		—	$	29
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		82		—		—		29		480		—	$	607
	Subtotal	$	143,980	$	91,720	$	90,845	$	19,269	$	29,172	$	94,932	$	5,602	$	475,520
Residential
Multifamily >5 Residential	Pass	$	50,424	$	33,415	$	46,740	$	6,734	$	4,969	$	27,353	$	96	$	169,731
	Special Mention		—		533		372		—		—		6,795		—	$	7,700
	Substandard		—		—		—		—		—		1,280		—	$	1,280
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		1,124		—		—		—		263		—	$	1,387
	Subtotal	$	50,424	$	35,072	$	47,112	$	6,734	$	4,969	$	35,691	$	96	$	180,098
Total	Pass	$	489,819	$	359,611	$	244,888	$	117,657	$	104,403	$	396,572	$	163,520	$	1,876,470
	Special Mention		2,282		11,306		4,980		4,388		2,061		24,472		2,972	$	52,461
	Substandard		423		746		2,317		2,299		4,707		15,856		9,865	$	36,213
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		7,128		2,653		1,586		530		203		1,114		—	$	13,214
		$	499,652	$	374,316	$	253,771	$	124,874	$	111,374	$	438,014	$	176,357	$	1,978,358

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 and loans past due 90 days or more and still accruing interest 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:

		March 31, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	9,258	$	74,715	$	69,431	$	44,378	$	16,703	$	133,024	$	2,835	$	350,344
	Non-performing		—		27		418		—		115		1,521		—	$	2,081
	Subtotal	$	9,258	$	74,742	$	69,849	$	44,378	$	16,818	$	134,545	$	2,835	$	352,425
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	79	$	-	$	79
Home Equity	Performing	$	62	$	590	$	—	$	8	$	169	$	810	$	59,975	$	61,614
	Non-performing		—		—		—		20		—		53		40	$	113
	Subtotal	$	62	$	590	$	—	$	28	$	169	$	863	$	60,015	$	61,727
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	2,874	$	19,375	$	9,764	$	7,038	$	5,452	$	10,747	$	1,020	$	56,270
	Non-performing		—		—		8		72		64		157		—	$	301
	Subtotal	$	2,874	$	19,375	$	9,772	$	7,110	$	5,516	$	10,904	$	1,020	$	56,571
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Residential	Performing	$	747	$	12,414	$	8,261	$	488	$	753	$	1,523	$	—	$	24,186
	Non-performing		—		—		—		—		416		50		—	$	466
	Subtotal	$	747	$	12,414	$	8,261	$	488	$	1,169	$	1,573	$	—	$	24,652
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	64,910	$	287,205	$	104,775	$	75,616	$	23,788	$	7,578	$	6	$	563,878
	Non-performing		—		1,008		709		625		252		90		—	$	2,684
	Subtotal	$	64,910	$	288,213	$	105,484	$	76,241	$	24,040	$	7,668	$	6	$	566,562
	Current period gross charge-offs	$	-	$	1,876	$	1,247	$	561	$	149	$	70	$	-	$	3,903
Other Consumer	Performing	$	2,974	$	11,645	$	6,582	$	3,492	$	1,140	$	1,070	$	4,425	$	31,328
	Non-performing		—		29		234		94		32		18		2	$	409
	Subtotal	$	2,974	$	11,674	$	6,816	$	3,586	$	1,172	$	1,088	$	4,427	$	31,737
	Current period gross charge-offs	$	-	$	28	$	23	$	7	$	-	$	-	$	30	$	88
Total	Performing	$	80,825	$	405,944	$	198,813	$	131,020	$	48,005	$	154,752	$	68,261	$	1,087,620
	Non-performing		—		1,064		1,369		811		879		1,889		42	$	6,054
Total other loans		$	80,825	$	407,008	$	200,182	$	131,831	$	48,884	$	156,641	$	68,303	$	1,093,674

		December 31, 2022
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2022		2021		2020		2019		2018		Prior		Loans		Total
Residential
First Liens	Performing	$	71,607	$	70,197	$	45,080	$	16,968	$	20,258	$	117,488	$	3,245	$	344,843
	Non-performing		106		—		—		141		100		1,782		—	$	2,129
	Subtotal	$	71,713	$	70,197	$	45,080	$	17,109	$	20,358	$	119,270	$	3,245	$	346,972
Home Equity	Performing	$	1,995	$	943	$	8	$	115	$	55	$	820	$	59,875	$	63,811
	Non-performing		—		—		78		—		14		40		176	$	308
	Subtotal	$	1,995	$	943	$	86	$	115	$	69	$	860	$	60,051	$	64,119
Junior Liens	Performing	$	19,074	$	10,485	$	7,507	$	5,830	$	5,366	$	6,195	$	1,928	$	56,385
	Non-performing		—		4		77		90		139		141		—	$	451
	Subtotal	$	19,074	$	10,489	$	7,584	$	5,920	$	5,505	$	6,336	$	1,928	$	56,836
Other Residential	Performing	$	11,542	$	9,923	$	501	$	915	$	498	$	1,582	$	—	$	24,961
	Non-performing		—		—		—		425		35		18		—	$	478
	Subtotal	$	11,542	$	9,923	$	501	$	1,340	$	533	$	1,600	$	—	$	25,439
Consumer
Motor Vehicle	Performing	$	306,565	$	118,362	$	88,144	$	29,004	$	8,652	$	2,230	$	6	$	552,963
	Non-performing		813		739		437		237		66		47		—	$	2,339
	Subtotal	$	307,378	$	119,101	$	88,581	$	29,241	$	8,718	$	2,277	$	6	$	555,302
Other Consumer	Performing	$	13,426	$	7,914	$	4,109	$	1,302	$	429	$	819	$	4,819	$	32,818
	Non-performing		18		247		89		39		12		12		2	$	419
	Subtotal	$	13,444	$	8,161	$	4,198	$	1,341	$	441	$	831	$	4,821	$	33,237
Total	Performing	$	424,209	$	217,824	$	145,349	$	54,134	$	35,258	$	129,134	$	69,873	$	1,075,781
	Non-performing		937		990		681		932		366		2,040		178	$	6,124
Total other loans		$	425,146	$	218,814	$	146,030	$	55,066	$	35,624	$	131,174	$	70,051	$	1,081,905