Loans (Tables)

3 Months Ended

Mar. 31, 2021

Total net loans at March 31, 2021 and December 31, 2020 are summarized as follows:


	March 31, 2021		Percentage of Total		December 31, 2020		Percentage of Total
Farmland	$	24,066	0.7	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	408,355		12.0	%	407,924		12.1	%
Agricultural production and other loans to farmers	3,519		0.1	%	2,664		0.1	%
Commercial and Industrial	690,927		20.3	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	130,859		3.8	%	132,818		3.9	%
Other loans	11,413		0.3	%	11,961		0.4	%
Other construction loans and all land development and other land loans	221,012		6.5	%	205,734		6.1	%
Multifamily (5 or more) residential properties	235,702		6.9	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	622,765		18.3	%	640,945		19.0	%
1-4 Family Construction	23,667		0.7	%	27,768		0.8	%
Home equity lines of credit	105,754		3.1	%	109,444		3.2	%
Residential Mortgages secured by first liens	771,564		22.7	%	777,030		23.0	%
Residential Mortgages secured by junior liens	53,014		1.6	%	53,726		1.6	%
Other revolving credit plans	25,966		0.8	%	25,507		0.8	%
Automobile	24,171		0.7	%	25,344		0.8	%
Other consumer	40,120		1.2	%	42,792		1.3	%
Credit cards	7,875		0.2	%	8,115		0.2	%
Overdrafts	235		0.0	%	336		0.0	%
Total loans	$	3,400,984	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(35,555)				(34,340)
Loans, net	$	3,365,429			$	3,337,449

Net deferred loan origination fees (costs) included in the above loan table	$	10,889			$	8,789

Transactions in the allowance for credit losses for the three months ended March 31, 2021 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	3	$	224
Owner-occupied, nonfarm nonresidential properties	3,700		(531)		2		(236)		2,935
Agricultural production and other loans to farmers	24		0		0		4		28
Commercial and Industrial	6,233		(56)		5		297		6,479
Obligations (other than securities and leases) of states and political subdivisions	998		0		0		717		1,715
Other loans	68		0		0		5		73
Other construction loans and all land development and other land loans	1,956		0		0		50		2,006
Multifamily (5 or more) residential properties	2,724		0		0		30		2,754
Non-owner occupied, nonfarm nonresidential properties	8,658		0		0		2,668		11,326
1-4 Family Construction	82		0		0		(15)		67
Home equity lines of credit	985		0		0		(142)		843
Residential Mortgages secured by first liens	4,539		(28)		31		(992)		3,550
Residential Mortgages secured by junior liens	241		0		0		(17)		224
Other revolving credit plans	507		(6)		2		24		527
Automobile	132		(5)		0		55		182
Other consumer	2,962		(315)		48		(321)		2,374
Credit cards	66		(33)		8		24		65
Overdrafts	244		(84)		55		(32)		183
Total loans	$	34,340	$	(1,058)	$	151	$	2,122	$	35,555

Allowance for Loan Losses

Transactions in the allowance for loan losses for the three months ended March 31, 2020 under the incurred loss methodology were as follows:


	Commercial, Industrial and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2020	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473
Charge-offs	(25)		0		(143)		(592)		(31)		(119)		(910)
Recoveries	18		172		3		43		1		36		273
Provision (benefit) for loan losses	2,252		368		99		276		58		26		3,079
Allowance for loan losses, March 31, 2020	$	10,532	$	7,492	$	1,458	$	2,138	$	112	$	183	$	21,915

Impaired Financing Receivables with Related and not Related Allowances

The following table presents information for impaired loans for the three months ended March 31, 2020:


	Three months ended March 31, 2020
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial and agricultural	$	4,272	$	17	$	17
Commercial mortgage	4,331		37		37
Residential real estate	463		5		5
With no related allowance recorded:
Commercial, industrial and agricultural	7,161		42		42
Commercial mortgage	9,598		158		158
Residential real estate	0		0		0
Total	$	25,825	$	259	$	259

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

The following tables presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of March 31, 2021 and December 31, 2020, respectively:


	March 31, 2021
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	1,843	$	50	$	0
Owner-occupied, nonfarm nonresidential properties	1,482		1,179		0

Commercial and Industrial	6,477		587		884
Obligations (other than securities and leases) of states and political subdivisions	706		0		0

Other construction loans and all land development and other land loans	1,892		77		0
Multifamily (5 or more) residential properties	994		0		0
Non-owner occupied, nonfarm nonresidential properties	13,980		489		0

Home equity lines of credit	754		754		0
Residential Mortgages secured by first liens	3,283		3,283		76
Residential Mortgages secured by junior liens	100		100		0
Other revolving credit plans	17		17		0
Automobile	7		7		0
Other consumer	347		347		0
Credit cards	0		0		27

Total loans	$	31,882	$	6,890	$	987


	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

Aging of Recorded Investment in Past Due Loans

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

Restructured in Troubled Debt

The following table presents loans modified as TDRs during the three months ended March 31, 2021:


	Three Months Ended March 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment







Multifamily (5 or more) residential properties	1	$	717	$	717
Non-owner occupied, nonfarm nonresidential properties	1	1,604		1,604









Total loans	2	$	2,321	$	2,321

There were no loans modified as troubled debt restructurings during the three months ended March 31, 2020.

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

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 March 31, 2021. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	2,340	$	1,609	$	4,018	$	3,686	$	3,623	$	5,112	$	680	$	0	$	21,068
Special mention	0		1,156		0		0		0		0		0		0		1,156
Substandard	0		0		0		0		49		1,793		0		0		1,842
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	2,340	$	2,765	$	4,018	$	3,686	$	3,672	$	6,905	$	680	$	0	$	24,066
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	21,542	$	92,037	$	97,475	$	48,063	$	54,569	$	71,633	$	8,211	$	0	$	393,530
Special mention	0		0		863		65		146		1,595		77		0		2,746
Substandard	0		996		2,401		2,006		384		6,035		257		0		12,079
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	21,542	$	93,033	$	100,739	$	50,134	$	55,099	$	79,263	$	8,545	$	0	$	408,355
Agricultural production and other loans to farmers
Risk rating
Pass	$	785	$	217	$	142	$	599	$	0	$	53	$	1,723	$	0	$	3,519
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	$	785	$	217	$	142	$	599	$	0	$	53	$	1,723	$	0	$	3,519
Commercial and Industrial
Risk rating
Pass	$	160,165	$	209,202	$	46,734	$	35,707	$	23,364	$	28,812	$	164,494	$	0	$	668,478
Special mention	0		110		980		3,544		223		1,223		939		0		7,019
Substandard	70		786		1,949		1,214		144		5,613		5,654		0		15,430
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	160,235	$	210,098	$	49,663	$	40,465	$	23,731	$	35,648	$	171,087	$	0	$	690,927
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	69	$	10,596	$	12,163	$	34,411	$	20,742	$	43,512	$	8,660	$	0	$	130,153
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		706		0		0		0		0		0		0		706
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	69	$	11,302	$	12,163	$	34,411	$	20,742	$	43,512	$	8,660	$	0	$	130,859
Other loans
Risk rating
Pass	$	11	$	7,855	$	699	$	366	$	0	$	0	$	2,482	$	0	$	11,413
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	$	11	$	7,855	$	699	$	366	$	0	$	0	$	2,482	$	0	$	11,413


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		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	$	9,167	$	127,040	$	54,770	$	18,002	$	1,035	$	1,648	$	3,088	$	0	$	214,750
Special mention	0		1,340		666		29		2,774		0		0		0		4,809
Substandard	0		0		0		0		0		1,376		77		0		1,453
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	9,167	$	128,380	$	55,436	$	18,031	$	3,809	$	3,024	$	3,165	$	0	$	221,012
Multifamily (5 or more) residential properties
Risk rating
Pass	$	45,945	$	70,202	$	33,892	$	14,010	$	48,845	$	19,039	$	2,566	$	0	$	234,499
Special mention	0		0		0		0		0		0		0		0		0
Substandard	717		6		0		276		204		0		0		0		1,203
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	46,662	$	70,208	$	33,892	$	14,286	$	49,049	$	19,039	$	2,566	$	0	$	235,702
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	15,475	$	141,872	$	124,898	$	87,695	$	50,563	$	147,584	$	9,371	$	0	$	577,458
Special mention	3,727		91		754		1,201		3,660		1,668		450		0		11,551
Substandard	1,604		0		12,294		326		7,552		11,382		598		0		33,756
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	20,806	$	141,963	$	137,946	$	89,222	$	61,775	$	160,634	$	10,419	$	0	$	622,765

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


	March 31, 2021		December 31, 2020
	Consumer		Consumer
Credit card
Payment performance
Performing	$	7,848	$	8,081
Nonperforming	27		34
Total	$	7,875	$	8,115

Purchased Credit Deteriorated Loans

The Corporation has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. 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

Holiday’s loan portfolio, included in consumer loans above, is summarized as follows at March 31, 2021 and December 31, 2020:


	March 31, 2021		December 31, 2020
Gross consumer loans	$	25,999	$	27,998

Less: unearned discounts	(4,753)		(5,181)
Total consumer loans, net of unearned discounts	$	21,246	$	22,817