Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 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 September 30.

Allowance for Credit Losses:			September 30, 2023
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	12,450	$	15,268	$	11,653	$	536	$	39,907
Provision for credit losses		(199)		(747)		2,303		(157)		1,200
Loans charged-off		(187)		(50)		(3,364)		—		(3,601)
Recoveries		177		67		1,284		—		1,528
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 2022
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Beginning balance	$	16,469	$	14,168	$	10,584	$	247	$	41,468
Provision for credit losses		(1,403)		297		2,199		(43)		1,050
Loans charged-off		(2,406)		(57)		(3,190)		—		(5,653)
Recoveries		634		55		1,941		—		2,630
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

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, 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		(630)		(81)		5,290		221		4,800
Loans charged -off		(702)		(192)		(10,626)		—		(11,520)
Recoveries		624		243		5,108		—		5,975
Ending Balance	$	12,241	$	14,538	$	11,876	$	379	$	39,034

Allowance for Credit Losses:			September 30, 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		(3,835)		(3,952)		3,218		(181)		(4,750)
Loans charged -off		(3,659)		(579)		(7,080)		—		(11,318)
Recoveries		1,905		678		4,675		—		7,258
Ending Balance	$	13,294	$	14,463	$	11,534	$	204	$	39,495

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

	September 30, 2023
	Loans Past				Nonaccrual
	Due Over				With No
	90 Days Still				Allowance
(Dollar amounts in thousands)	Accruing		Nonaccrual		For Credit Loss
Commercial
Commercial & Industrial	$	20	$	1,566	$	900
Farmland		—		1,677		1,662
Non Farm, Non Residential		—		1,293		1,291
Agriculture		—		1,115		1,103
All Other Commercial		—		21		—
Residential
First Liens		1,177		933		—
Home Equity		71		70		—
Junior Liens		137		200		—
Multifamily		—		548		373
All Other Residential		—		436		—
Consumer
Motor Vehicle		—		3,092		—
All Other Consumer		—		263		—
TOTAL	$	1,405	$	11,214	$	5,329

	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

	September 30, 2023
	Collateral Type
(Dollar amounts in thousands)	Real Estate		Other
Commercial
Commercial & Industrial	$	3,500	$	—
Farmland		2,094		—
Non Farm, Non Residential		4,239		—
Agriculture		49		1,054
All Other Commercial		—		—
Residential
First Liens		—		—
Home Equity		—		—
Junior Liens		—		—
Multifamily		373		—
All Other Residential		—		—
Consumer
Motor Vehicle		—		—
All Other Consumer		—		—
Total	$	10,255	$	1,054

	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.

	September 30, 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	$	520	$	370	$	1,316	$	2,206	$	641,139	$	643,345
Farmland		54		—		1,662		1,716		132,177		133,893
Non Farm, Non Residential		46		—		—		46		419,193		419,239
Agriculture		117		217		1,054		1,388		118,279		119,667
All Other Commercial		13		1,083		—		1,096		468,728		469,824
Residential
First Liens		902		739		1,405		3,046		355,299		358,345
Home Equity		594		33		110		737		62,829		63,566
Junior Liens		374		119		267		760		57,019		57,779
Multifamily		113		30		373		516		186,035		186,551
All Other Residential		—		1		—		1		23,099		23,100
Consumer
Motor Vehicle		9,549		1,578		1,002		12,129		605,264		617,393
All Other Consumer		356		134		16		506		32,510		33,016
TOTAL	$	12,638	$	4,304	$	7,205	$	24,147	$	3,101,571	$	3,125,718

	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 loans and leases that were modified and the financial effect of loan and lease modifications

The following table presents the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, by class and by type of modification.

										Combination		Combination
										Term		Term		Total
										Extension and		Extension		Class of
	Principal		Payment		Term		Interest Rate			Principal		Interest Rate		Financing
(Dollar amounts in thousands)	Forgiveness		Delay		Extension		Reduction		Forgiveness		Reduction		Receivable
Residential
Home Equity	$	—	$	—	$	—	$	139	$	—	$	26		0.00	%
Consumer
Motor Vehicle		6		—		104		—		41		41		0.00
TOTAL	$	6	$	—	$	104	$	139	$	41	$	67			%

The following table presents the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023.

			Weighted-			Weighted-
			Average			Average
	Principal		Interest Rate			Term
(Dollar amounts in thousands)	Forgiveness		Reduction			Extension
Residential
First Liens	$	—		2.12	%		24
Consumer
Motor Vehicle		13		1.78			23
TOTAL	$	13		2.05	%		23

Schedule of commercial loan portfolio by risk category

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

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Commercial
Commercial and Industrial	Pass	$	67,442	$	134,073	$	114,359	$	42,545	$	44,822	$	103,842	$	84,842	$	591,925
	Special Mention		57		68		10,137		3,213		328		1,001		2,825	$	17,629
	Substandard		17		5,008		2,352		1,068		1,019		8,026		8,012	$	25,502
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,810		1,451		931		548		201		114		—	$	6,055
	Subtotal	$	70,326	$	140,600	$	127,779	$	47,374	$	46,370	$	112,983	$	95,679	$	641,111
	Current period gross charge-offs	$	8	$	20	$	40	$	78	$	-	$	2	$	-	$	148
Farmland	Pass	$	17,799	$	16,393	$	21,274	$	8,364	$	8,928	$	54,026	$	274	$	127,058
	Special Mention		—		—		—		—		—		1,118		—	$	1,118
	Substandard		—		—		—		497		833		1,646		—	$	2,976
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		—		—		17		—	$	17
	Subtotal	$	17,799	$	16,393	$	21,274	$	8,861	$	9,761	$	56,807	$	274	$	131,169
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Non Farm, Non Residential	Pass	$	52,735	$	120,994	$	69,980	$	25,847	$	21,608	$	113,887	$	4,281	$	409,332
	Special Mention		—		88		1,005		—		854		—		—	$	1,947
	Substandard		587		—		—		—		516		4,993		—	$	6,096
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		—		683		—		74		—	$	757
	Subtotal	$	53,322	$	121,082	$	70,985	$	26,530	$	22,978	$	118,954	$	4,281	$	418,132
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Agriculture	Pass	$	8,513	$	11,470	$	7,451	$	6,447	$	7,578	$	17,783	$	52,605	$	111,847
	Special Mention		—		142		—		8		3		609		2,974	$	3,736
	Substandard		—		—		—		—		50		1,279		—	$	1,329
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		16		54		33		42		28		—		—	$	173
	Subtotal	$	8,529	$	11,666	$	7,484	$	6,497	$	7,659	$	19,671	$	55,579	$	117,085
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Other Commercial	Pass	$	26,467	$	106,465	$	101,778	$	96,167	$	7,168	$	103,476	$	9,479	$	451,000
	Special Mention		—		1,041		—		2,516		—		11,623		—	$	15,180
	Substandard		—		—		18		—		826		5		—	$	849
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		13		—		—		—		465		—	$	478
	Subtotal	$	26,467	$	107,519	$	101,796	$	98,683	$	7,994	$	115,569	$	9,479	$	467,507
	Current period gross charge-offs	$	534	$	-	$	-	$	-	$	20	$	-	$	-	$	554
Residential
Multifamily >5 Residential	Pass	$	27,930	$	63,032	$	32,470	$	22,870	$	6,459	$	24,139	$	111	$	177,011
	Special Mention		—		—		—		361		—		6,599		118	$	7,078
	Substandard		—		—		—		—		—		373		—	$	373
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		—		—		1,107		—		—		256		—	$	1,363
	Subtotal	$	27,930	$	63,032	$	33,577	$	23,231	$	6,459	$	31,367	$	229	$	185,825
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Total	Pass	$	200,886	$	452,427	$	347,312	$	202,240	$	96,563	$	417,153	$	151,592	$	1,868,173
	Special Mention		57		1,339		11,142		6,098		1,185		20,950		5,917	$	46,688
	Substandard		604		5,008		2,370		1,565		3,244		16,322		8,012	$	37,125
	Doubtful		—		—		—		—		—		—		—	$	—
	Not Rated		2,826		1,518		2,071		1,273		229		926		—	$	8,843
		$	204,373	$	460,292	$	362,895	$	211,176	$	101,221	$	455,351	$	165,521	$	1,960,829

		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:

		September 30, 2023
		Term Loans at Amortized Cost Basis by Origination Year												Revolving
		2023		2022		2021		2020		2019		Prior		Loans		Total
Residential
First Liens	Performing	$	35,883	$	72,998	$	65,931	$	40,751	$	16,167	$	121,304	$	1,970	$	355,004
	Non-performing		—		24		413		222		30		1,541		—	$	2,230
	Subtotal	$	35,883	$	73,022	$	66,344	$	40,973	$	16,197	$	122,845	$	1,970	$	357,234
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	156	$	-	$	156
Home Equity	Performing	$	141	$	271	$	—	$	7	$	94	$	875	$	61,829	$	63,217
	Non-performing		—		51		—		19		—		71		—	$	141
	Subtotal	$	141	$	322	$	—	$	26	$	94	$	946	$	61,829	$	63,358
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Junior Liens	Performing	$	10,899	$	16,419	$	8,781	$	5,926	$	4,609	$	9,037	$	1,625	$	57,296
	Non-performing		—		—		8		104		65		160		—	$	337
	Subtotal	$	10,899	$	16,419	$	8,789	$	6,030	$	4,674	$	9,197	$	1,625	$	57,633
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	24	$	12	$	-	$	36
Other Residential	Performing	$	6,090	$	10,078	$	3,471	$	431	$	653	$	1,557	$	302	$	22,582
	Non-performing		—		—		—		—		394		43		—	$	437
	Subtotal	$	6,090	$	10,078	$	3,471	$	431	$	1,047	$	1,600	$	302	$	23,019
	Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	—
Consumer
Motor Vehicle	Performing	$	221,153	$	236,144	$	80,919	$	55,243	$	15,316	$	3,412	$	—	$	612,187
	Non-performing		66		1,306		461		562		185		31		—	$	2,611
	Subtotal	$	221,219	$	237,450	$	81,380	$	55,805	$	15,501	$	3,443	$	—	$	614,798
	Current period gross charge-offs	$	284	$	5,802	$	2,590	$	1,159	$	359	$	161	$	-	$	10,355
Other Consumer	Performing	$	10,564	$	8,336	$	4,462	$	2,483	$	850	$	748	$	5,149	$	32,592
	Non-performing		—		28		160		51		20		6		3	$	268
	Subtotal	$	10,564	$	8,364	$	4,622	$	2,534	$	870	$	754	$	5,152	$	32,860
	Current period gross charge-offs	$	6	$	83	$	49	$	30	$	3	$	5	$	95	$	271
Total	Performing	$	284,730	$	344,246	$	163,564	$	104,841	$	37,689	$	136,933	$	70,875	$	1,142,878
	Non-performing		66		1,409		1,042		958		694		1,852		3	$	6,024
Total other loans		$	284,796	$	345,655	$	164,606	$	105,799	$	38,383	$	138,785	$	70,878	$	1,148,902

		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