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Loans (Tables)

12 Months Ended

Dec. 31, 2020

Total net loans at December 31, 2020 and December 31, 2019 are summarized as follows:


	2020		Percentage of Total
Farmland	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	407,924		12.1	%
Agricultural production and other loans to farmers	2,664		0.1	%
Commercial and Industrial	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	132,818		3.9	%
Other loans	11,961		0.4	%
Other construction loans and all land development and other land loans	205,734		6.1	%
Multifamily (5 or more) residential properties	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	640,945		19.0	%
1-4 Family Construction	27,768		0.8	%
Home equity lines of credit	109,444		3.2	%
Residential Mortgages secured by first liens	777,030		23.0	%
Residential Mortgages secured by junior liens	53,726		1.6	%
Other revolving credit plans	25,507		0.8	%
Automobile	25,344		0.8	%
Other consumer	42,792		1.3	%
Credit cards	8,115		0.2	%
Overdrafts	336		0.0	%
Total loans	$	3,371,789	100.0	%
Less: Allowance for credit losses	(34,340)
Loans, net	$	3,337,449

Net deferred loan origination fees (costs) and unearned discount included in the above loan table	$	8,789


	2019		Percentage of Total
Commercial, industrial, and agricultural	$	1,046,665	37.3	%
Commercial mortgages	814,002		29.0	%
Residential real estate	814,030		29.0	%
Consumer	124,785		4.5	%
Credit cards	7,569		0.3	%
Overdrafts	2,146		0.1	%
Less: unearned discount	(5,162)		(0.2)	%
Total loans	$	2,804,035	100.0	%
Less: Allowance for loan losses	(19,473)
Loans, net	$	2,784,562

Net deferred loan origination fees (costs) included in the above loan table	$	3,092

Allowance for Credit/Loan Losses

Transactions in the allowance for credit losses for the year ended December 31, 2020 were as follows:


	Beginning Allowance (Before ASC 326 Adoption)		Impact of ASC 326 Adoption		Initial Allowance on Loans Purchased with Credit Deterioration		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance (After ASC 326 Adoption)
Farmland	$	190	$	61	$	0	$	0	$	0	$	(30)	$	221
Owner-occupied, nonfarm nonresidential properties	2,390		(754)		82		(61)		12		2,031		3,700
Agricultural production and other loans to farmers	25		5		0		0		0		(6)		24
Commercial and Industrial	4,105		(631)		216		(2,779)		39		5,283		6,233
Obligations (other than securities and leases) of states and political subdivisions	1,022		(231)		0		0		0		207		998
Other loans	41		8		0		0		0		19		68
Other construction loans and all land development and other land loans	2,327		780		228		0		125		(1,504)		1,956
Multifamily (5 or more) residential properties	1,087		312		24		0		0		1,301		2,724
Non-owner occupied, nonfarm nonresidential properties	3,980		2,547		335		(1,522)		52		3,266		8,658
1-4 Family Construction	56		(35)		0		0		0		61		82
Home equity lines of credit	180		421		22		(6)		1		367		985
Residential Mortgages secured by first liens	1,220		1,100		73		(285)		65		2,366		4,539
Residential Mortgages secured by junior liens	114		135		0		(158)		2		148		241
Other revolving credit plans	296		378		0		(137)		21		(51)		507
Automobile	156		(96)		0		(29)		2		99		132
Other consumer	1,960		1,021		0		(1,513)		130		1,364		2,962
Credit cards	84		(58)		0		(153)		14		179		66
Overdrafts	240		0		0		(435)		185		254		244
Total loans	$	19,473	$	4,963	$	980	$	(7,078)	$	648	$	15,354	$	34,340

Transactions in the allowance for loan losses for the year ended December 31, 2019 were as follows:


	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2019	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704
Charge-offs	(205)		(3,391)		(386)		(2,200)		(116)		(453)		(6,751)
Recoveries	17		124		73		154		15		113		496
Provision for loan losses	1,134		2,729		(344)		2,080		82		343		6,024
Allowance for loan losses, December 31, 2019	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473

Transactions in the allowance for loan losses for the year ended December 31, 2018 were as follows:


	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2018	$	6,160	$	9,007	$	2,033	$	2,179	$	120	$	194	$	19,693
Charge-offs	(253)		(3,337)		(315)		(2,279)		(90)		(319)		(6,593)
Recoveries	171		30		67		141		33		90		532
Provision for loan losses	1,263		1,790		371		2,336		40		272		6,072
Allowance for loan losses, December 31, 2018	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of December 31, 2019. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.


December 31, 2019	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	645	$	1,264	$	34	$	0	$	0	$	0	$	1,943
Collectively evaluated for impairment	7,614		5,358		1,465		2,411		84		240		17,172
Acquired with deteriorated credit quality	0		0		0		0		0		0		0
Modified in a troubled debt restructuring	28		330		0		0		0		0		358
Total ending allowance balance	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473
Loans:
Individually evaluated for impairment	$	8,078	$	2,410	$	465	$	0	$	0	$	0	$	10,953
Collectively evaluated for impairment	1,035,494		804,360		813,565		124,785		7,569		2,146		2,787,919
Acquired with deteriorated credit quality	0		523		0		0		0		0		523
Modified in a troubled debt restructuring	3,093		6,709		0		0		0		0		9,802
Total ending loans balance	$	1,046,665	$	814,002	$	814,030	$	124,785	$	7,569	$	2,146	$	2,809,197

Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment

The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of December 31, 2019 and for the years ended December 31, 2019, and December 31, 2018, respectively.


December 31, 2019	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,657	$	1,476	$	673
Commercial mortgage	6,541		4,349		1,594
Residential real estate	485		465		34

With no related allowance recorded:
Commercial, industrial, and agricultural	9,845		9,695		0
Commercial mortgage	4,903		4,770		0
Residential real estate	0		0		0

Total	$	24,431	$	20,755	$	2,301

Impaired Financing Receivables with Related and not Related Allowances


	Year Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,750	$	90	$	90
Commercial mortgage	6,586		119		119
Residential real estate	191		13		13
Overdrafts	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,919		208		208
Commercial mortgage	3,985		158		158
Residential real estate	294		11		11
Overdrafts	0		0		0
Total	$	17,725	$	599	$	599


	Year Ended December 31, 2018
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,745	$	254	$	249
Commercial mortgage	8,456		338		326
Residential real estate	304		20		19
Overdrafts	2		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,642		157		148
Commercial mortgage	4,566		146		144
Residential real estate	0		0		0
Total	$	20,715	$	915	$	886

Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2020:


	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	1,844	$	51	$	0
Owner-occupied, nonfarm nonresidential properties	1,781		909		0

Commercial and Industrial	6,657		464		0


Other construction loans and all land development and other land loans	2,349		77		0
Multifamily (5 or more) residential properties	288		0		0
Non-owner occupied, nonfarm nonresidential properties	11,932		394		0

Home equity lines of credit	685		685		0
Residential Mortgages secured by first liens	4,175		3,495		283
Residential Mortgages secured by junior liens	114		114		0
Other revolving credit plans	6		6		0
Automobile	32		32		0
Other consumer	496		496		8
Credit cards	0		0		34

Total loans	$	30,359	$	6,723	$	325

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2019:


	December 31, 2019
	Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	11,644	0
Commercial mortgages	4,533		0
Residential real estate	4,724		59
Consumer	835		0
Credit cards	0		2
Total	$	21,736	$	61

Aging of Recorded Investment in Past Due Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2020:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	1,793	$	0
Owner-occupied, nonfarm nonresidential properties	285		587

Commercial and Industrial	594		5,600


Other construction loans and all land development and other land loans	2,272		0
Multifamily (5 or more) residential properties	288		0
Non-owner occupied, nonfarm nonresidential properties	9,072		880


Residential Mortgages secured by first liens	1,135		0






Total loans	$	15,439	$	7,067

The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2020 by class of loans:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Farmland	$	195	$	0	$	1,211	$	1,406	$	21,910	$	23,316
Owner-occupied, nonfarm nonresidential properties	10		885		732		1,627		406,297		407,924
Agricultural production and other loans to farmers	0		0		0		0		2,664		2,664
Commercial and Industrial	476		335		3,887		4,698		658,852		663,550
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		132,818		132,818
Other loans	0		0		0		0		11,961		11,961
Other construction loans and all land development and other land loans	0		0		1,917		1,917		203,817		205,734
Multifamily (5 or more) residential properties	0		0		0		0		212,815		212,815
Non-owner occupied, nonfarm nonresidential properties	314		156		10,184		10,654		630,291		640,945
1-4 Family Construction	0		0		0		0		27,768		27,768
Home equity lines of credit	166		235		486		887		108,557		109,444
Residential Mortgages secured by first liens	2,834		629		1,911		5,374		771,656		777,030
Residential Mortgages secured by junior liens	8		0		66		74		53,652		53,726
Other revolving credit plans	36		19		0		55		25,452		25,507
Automobile	73		0		9		82		25,262		25,344
Other consumer	246		132		245		623		42,169		42,792
Credit cards	72		39		34		145		7,970		8,115
Overdrafts	0		0		0		0		336		336
Total loans	$	4,430	$	2,430	$	20,682	$	27,542	$	3,344,247	$	3,371,789

The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans.


December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	1,273	$	548	$	3,784	$	5,605	$	1,041,060	$	1,046,665
Commercial mortgages	162		183		2,594		2,939		811,063		814,002
Residential real estate	3,383		1,270		2,714		7,367		806,663		814,030
Consumer	412		311		415		1,138		123,647		124,785
Credit cards	48		54		2		104		7,465		7,569
Overdrafts	0		0		0		0		2,146		2,146
Total	$	5,278	$	2,366	$	9,509	$	17,153	$	2,792,044	$	2,809,197

Restructured in Troubled Debt

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2020, December 31, 2019, and December 31, 2018:


	Year Ended December 31, 2020
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

Owner-occupied, nonfarm nonresidential properties	1	$	260	$	260

Commercial and Industrial	6	1,140		1,140


Other construction loans and all land development and other land loans	1	46		46

Non-owner occupied, nonfarm nonresidential properties	1	3,684		3,684


Residential Mortgages secured by first liens	2	309		309






Total loans	11	$	5,439	$	5,439


	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural	0	$	0	$	0
Commercial mortgages	1	383		383
Residential real estate	0	0		0
Consumer	0	0		0
Credit cards	0	0		0
Total	1	$	383	$	383


	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial, industrial, and agricultural	0	$	0	$	0
Commercial mortgages	5	1,570		1,570
Residential real estate	0	0		0
Consumer	0	0		0
Credit cards	0	0		0
Total	5	$	1,570	$	1,570

Amortized Cost of Loans, by Year of Origination

The following tables detail the amortized cost of loans, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2020. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	1,617	$	4,448	$	3,767	$	3,648	$	894	$	5,280	$	662	$	0	$	20,316
Special mention	1,156		0		0		0		0		0		0		0		1,156
Substandard	0		0		0		51		582		1,211		0		0		1,844
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	2,773	$	4,448	$	3,767	$	3,699	$	1,476	$	6,491	$	662	$	0	$	23,316
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	86,694	$	109,228	$	52,818	$	56,948	$	26,119	$	50,839	$	9,253	$	0	$	391,899
Special mention	0		452		74		541		318		1,310		131		0		2,826
Substandard	1,021		2,449		2,438		938		3,675		2,430		248		0		13,199
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	87,715	$	112,129	$	55,330	$	58,427	$	30,112	$	54,579	$	9,632	$	0	$	407,924
Agricultural production and other loans to farmers
Risk rating
Pass	$	267	$	155	$	601	$	0	$	54	$	0	$	1,587	$	0	$	2,664
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	267	$	155	$	601	$	0	$	54	$	0	$	1,587	$	0	$	2,664
Commercial and Industrial
Risk rating
Pass	$	318,323	$	54,620	$	46,854	$	32,426	$	7,197	$	7,265	$	170,386	$	0	$	637,071
Special mention	127		1,017		3,489		712		300		1,033		4,690		0		11,368
Substandard	801		1,916		1,212		112		37		4,858		6,175		0		15,111
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	319,251	$	57,553	$	51,555	$	33,250	$	7,534	$	13,156	$	181,251	$	0	$	663,550
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	10,722	$	12,279	$	35,176	$	20,891	$	19,365	$	24,789	$	8,888	$	0	$	132,110
Special mention	0		0		0		0		0		0		0		0		0
Substandard	708		0		0		0		0		0		0		0		708
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	11,430	$	12,279	$	35,176	$	20,891	$	19,365	$	24,789	$	8,888	$	0	$	132,818
Other loans
Risk rating
Pass	$	7,268	$	1,237	$	386	$	0	$	0	$	0	$	3,070	$	0	$	11,961
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	7,268	$	1,237	$	386	$	0	$	0	$	0	$	3,070	$	0	$	11,961


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Other construction loans and all land development and other land loans
Risk rating
Pass	$	119,380	$	52,078	$	19,977	$	2,300	$	28	$	1,895	$	2,548	$	0	$	198,206
Special mention	1,417		672		29		3,303		0		190		0		0		5,611
Substandard	0		0		0		0		0		1,840		77		0		1,917
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	120,797	$	52,750	$	20,006	$	5,603	$	28	$	3,925	$	2,625	$	0	$	205,734
Multifamily (5 or more) residential properties
Risk rating
Pass	$	73,572	$	39,633	$	26,230	$	49,178	$	4,086	$	16,957	$	1,907	$	0	$	211,563
Special mention	0		0		0		0		0		0		0		0		0
Substandard	6		753		288		205		0		0		0		0		1,252
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	73,578	$	40,386	$	26,518	$	49,383	$	4,086	$	16,957	$	1,907	$	0	$	212,815
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	161,045	$	127,518	$	89,520	$	55,966	$	44,959	$	105,962	$	9,633	$	0	$	594,603
Special mention	99		895		2,111		3,969		835		4,137		450		0		12,496
Substandard	0		12,325		326		7,584		722		12,289		600		0		33,846
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	161,144	$	140,738	$	91,957	$	67,519	$	46,516	$	122,388	$	10,683	$	0	$	640,945


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016			Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	16,081	$	11,547	$	140	$	0	$	0		$	0	$	0	$	0	$	27,768
Nonperforming	0		0		0		0		0			0		0		0		0
Total	$	16,081	$	11,547	$	140	$	0	$	0		$	0	$	0	$	0	$	27,768
Home equity lines of credit
Payment performance
Performing	$	19,764	$	12,823	$	12,842	$	8,793	$	8,182		$	42,514	$	3,841	$	0	$	108,759
Nonperforming	0		0		0		302		33			350		0		0		685
Total	$	19,764	$	12,823	$	12,842	$	9,095	$	8,215		$	42,864	$	3,841	$	0	$	109,444
Residential mortgages secured by first lien
Payment performance
Performing	$	211,910	$	136,181	$	93,588	$	99,520	$	62,312		$	163,556	$	5,505	$	0	$	772,572
Nonperforming	0		84		887		143		61			3,261		22		0		4,458
Total	$	211,910	$	136,265	$	94,475	$	99,663	$	62,373		$	166,817	$	5,527	$	0	$	777,030
Residential mortgages secured by junior liens
Payment performance
Performing	$	14,552	$	12,255	$	7,031	$	5,660	$	3,347		$	10,389	$	378	$	0	$	53,612
Nonperforming	0		0		0		0		19			95		0		0		114
Total	$	14,552	$	12,255	$	7,031	$	5,660	$	3,366		$	10,484	$	378	$	0	$	53,726
Other revolving credit plans
Payment performance
Performing	$	4,088	$	4,516	$	3,320	$	3,149	$	1,301		$	9,127	$	0	$	0	$	25,501
Nonperforming	0		0		4		0		0			2		0		0		6
Total	$	4,088	$	4,516	$	3,324	$	3,149	$	1,301		$	9,129	$	0	$	0	$	25,507
Automobile
Payment performance
Performing	$	8,965	$	8,595	$	4,652	$	1,635	$	764		$	701	$	0	$	0	$	25,312
Nonperforming	0		4		0		6		0			22		0		0		32
Total	$	8,965	$	8,599	$	4,652	$	1,641	$	764		$	723	$	0	$	0	$	25,344
Other consumer
Payment performance
Performing	$	24,857	$	11,183	$	3,579	$	796	$	218	1	$	1,654	$	0	$	0	$	42,288
Nonperforming	82		264		75		13		0			70		0		0		504
Total	$	24,939	$	11,447	$	3,654	$	809	$	218		$	1,724	$	0	$	0	$	42,792


	December 31, 2020
	Consumer
Credit card
Payment performance
Performing	$	8,081
Nonperforming	34
Total	$	8,115

Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date

All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.


December 31, 2019	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	1,004,445	$	16,696	$	25,524	$	0	$	1,046,665
Commercial mortgages	780,798		18,837		14,367		0		814,002
Total	$	1,785,243	$	35,533	$	39,891	$	0	$	1,860,667

Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity

The following table presents the recorded investment in residential, consumer, and credit card loans based on performance status as of December 31, 2019:


	December 31, 2019
	Residential Real Estate		Consumer		Credit Cards
Performing	$	809,247	$	123,950	$	7,567
Nonperforming	4,783		835		2
Total	$	814,030	$	124,785	$	7,569

Purchased Credit Deteriorated Loans

The carrying amount of those loans is as follows:


	July 17, 2020
Purchase price of loans at acquisition	$	21,768
Allowance for credit losses at acquisition	980
Non-credit discount / (premium) at acquisition	1,063
Par value of acquired loans at acquisition	$	23,811

Summary of Holiday's Loan Portfolio Included in Consumer and Residential Loans

Holiday’s loan portfolio, included in consumer loans above, is summarized as follows at December 31, 2020 and December 31, 2019:


	December 31, 2020		December 31, 2019
Gross consumer loans	$	27,998	$	28,122

Less: unearned discounts	(5,181)		(5,162)
Total consumer loans, net of unearned discounts	$	22,817	$	22,960