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Loans

12 Months Ended

Dec. 31, 2021

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


	2021		Percentage of Total		2020		Percentage of Total
Farmland	$	23,768	0.7	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	434,672		12.0	%	407,924		12.1	%
Agricultural production and other loans to farmers	1,379		0.0	%	2,664		0.1	%
Commercial and Industrial 1	708,989		19.5	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	140,887		3.9	%	132,818		3.9	%
Other loans	13,979		0.4	%	11,961		0.4	%
Other construction loans and all land development and other land loans	298,869		8.2	%	205,734		6.1	%
Multifamily (5 or more) residential properties	216,143		5.9	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	663,062		18.2	%	640,945		19.0	%
1-4 Family Construction	37,822		1.0	%	27,768		0.8	%
Home equity lines of credit	104,517		2.9	%	109,444		3.2	%
Residential Mortgages secured by first liens	826,729		22.7	%	777,030		23.0	%
Residential Mortgages secured by junior liens	56,689		1.6	%	53,726		1.6	%
Other revolving credit plans	26,536		0.7	%	25,507		0.8	%
Automobile	20,862		0.6	%	25,344		0.8	%
Other consumer	49,676		1.4	%	42,792		1.3	%
Credit cards	9,935		0.3	%	8,115		0.2	%
Overdrafts	278		0.0	%	336		0.0	%
Total loans	$	3,634,792	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(37,588)				(34,340)
Loans, net	$	3,597,204			$	3,337,449

Net deferred loan origination fees (costs) included in the above loan table	$	5,667			$	8,789

1 PPP loans, net of deferred PPP processing fees, both those disbursed in 2020 and those disbursed in 2021, are included in the Commercial and Industrial classification and totaled $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. In addition, syndicated loans, net of deferred fees and costs, are included in the Commercial and Industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, western New York and Roanoke, Virginia. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors.

As a result of the adoption of ASC 326 effective January 1, 2020, there is a lack of comparability in both the allowance and provisions for credit losses for the periods presented. Beginning with the quarter ended December 31, 2020, the Corporation adopted ASC 326 and subsequent results are presented using the current expected credit losses (“CECL”) methodology. Prior to the quarter ended December 31, 2020, the results were reported in accordance with the incurred loss methodology and have not been restated.

PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no required allowance for credit losses was recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

Transactions in the allowance for credit losses for the year ended December 31, 2021 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	(70)	$	151
Owner-occupied, nonfarm nonresidential properties	3,700		(584)		10		213		3,339
Agricultural production and other loans to farmers	24		0		0		(15)		9
Commercial and Industrial	6,233		(163)		203		2,564		8,837
Obligations (other than securities and leases) of states and political subdivisions	998		(407)		30		1,028		1,649
Other loans	68		0		0		81		149
Other construction loans and all land development and other land loans	1,956		(282)		0		524		2,198
Multifamily (5 or more) residential properties	2,724		0		0		(435)		2,289
Non-owner occupied, nonfarm nonresidential properties	8,658		(49)		0		(2,128)		6,481
1-4 Family Construction	82		0		0		76		158
Home equity lines of credit	985		(7)		5		186		1,169
Residential Mortgages secured by first liens	4,539		(79)		47		2,436		6,943
Residential Mortgages secured by junior liens	241		(3)		0		308		546
Other revolving credit plans	507		(41)		13		49		528
Automobile	132		(26)		3		154		263
Other consumer	2,962		(1,193)		140		637		2,546
Credit cards	66		(112)		18		120		92
Overdrafts	244		(438)		160		275		241
Total loans	$	34,340	$	(3,384)	$	629	$	6,003	$	37,588

The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.

For the year ended December 31, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, coupled with qualitative adjustments in the Corporation's residential and consumer loan portfolios, growth in new market areas, and qualitative adjustments related to the continued uncertainty with the pandemic and economic environment. These factors were partially offset by improvements in the Corporation's historical loss rates and quantitative inputs including the unemployment forecast and prepayment and curtailment speeds, as well as the impact of net charge-offs and improvements or resolutions in the Corporation's individually evaluated loans.

There is still a significant amount of uncertainty related to the economic impact of COVID-19, including duration, new variants, future government responses, and the resiliency of the U.S. economy. During 2021, management reviewed internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Specifically, management reevaluated the loss given default assumptions that utilize Frye Jacobs, the time period used for prepayment and curtailment speeds and the unemployment forecast. Management will continue to evaluate its estimate of expected credit losses as new information becomes available.

Transactions in the allowance for loan 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

The following table presents information related to impaired loans by class of loan as of and for the year ended December 31, 2019:


	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

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, 2021:


	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	965	$	965	$	0
Owner-occupied, nonfarm nonresidential properties	850		762		0

Commercial and Industrial	7,060		1,653		8


Other construction loans and all land development and other land loans	516		77		0
Multifamily (5 or more) residential properties	1,270		5		0
Non-owner occupied, nonfarm nonresidential properties	3,771		2,143		0

Home equity lines of credit	824		824		0
Residential Mortgages secured by first liens	3,410		3,410		137
Residential Mortgages secured by junior liens	147		147		0
Other revolving credit plans	13		13		0
Automobile	36		36		0
Other consumer	558		558		0
Credit cards	0		0		23

Total loans	$	19,420	$	10,593	$	168

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	$	633	$	0
Owner-occupied, nonfarm nonresidential properties	1,781		967		0

Commercial and Industrial	6,657		959		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		9,466		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	$	16,930	$	325

All payments received while on nonaccrual status are applied against the principal balance of the loan. The Corporation does not recognize interest income while loans are on nonaccrual status.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated as of December 31, 2021:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	920	$	0
Owner-occupied, nonfarm nonresidential properties	194		9

Commercial and Industrial	1,488		2,351


Other construction loans and all land development and other land loans	438		0
Multifamily (5 or more) residential properties	1,265		0
Non-owner occupied, nonfarm nonresidential properties	3,378		0


Residential Mortgages secured by first liens	435		0






Total loans	$	8,118	$	2,360

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated 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, 2021 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	$	348	$	0	$	0	$	348	$	23,420	$	23,768
Owner-occupied, nonfarm nonresidential properties	278		18		414		710		433,962		434,672
Agricultural production and other loans to farmers	0		0		0		0		1,379		1,379
Commercial and Industrial	377		13		333		723		708,266		708,989
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		140,887		140,887
Other loans	0		0		0		0		13,979		13,979
Other construction loans and all land development and other land loans	0		0		77		77		298,792		298,869
Multifamily (5 or more) residential properties	0		10		209		219		215,924		216,143
Non-owner occupied, nonfarm nonresidential properties	0		0		1,792		1,792		661,270		663,062
1-4 Family Construction	0		0		0		0		37,822		37,822
Home equity lines of credit	506		50		172		728		103,789		104,517
Residential Mortgages secured by first liens	1,286		1,145		1,647		4,078		822,651		826,729
Residential Mortgages secured by junior liens	32		24		1		57		56,632		56,689
Other revolving credit plans	56		17		4		77		26,459		26,536
Automobile	45		3		23		71		20,791		20,862
Other consumer	283		158		295		736		48,940		49,676
Credit cards	26		12		23		61		9,874		9,935
Overdrafts	0		0		0		0		278		278
Total loans	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

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

Troubled Debt Restructurings

During the years ended December 31, 2021 and 2020, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan; or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. The Corporation had an amortized cost in troubled debt restructurings of $16.6 million and $15.1 million as of December 31, 2021 and 2020, respectively. The Corporation has allocated $2.6 million and $779 thousand of allowance for those loans as of December 31, 2021 and 2020, respectively.

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2021, 2020, and 2019:


	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment



Commercial and Industrial	2	$	3,336	$	3,336



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









Total loans	4	$	5,657	$	5,657


	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 mortgages	1	$	383	$	383



Total	1	$	383	$	383

The troubled debt restructurings described above increased the allowance for credit losses by immaterial amounts for the years ended December 31, 2021, 2020, and 2019, respectively.

There were no loans modified as troubled debt restructures for which there was a payment default within twelve months following the modification during the years ended December 31, 2021, 2020 and 2019, respectively, and no principal balances were forgiven in connection with the loan restructurings.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring.

Generally, nonperforming troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

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 to classify the loans as to credit risk.

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 Corporation’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables represent the Corporation's credit risk profile by risk rating as of December 31, 2021 and 2020. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans.


	December 31, 2021
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	21,286	$	1,514	$	968	$	0	$	2,482	$	23,768
Owner-occupied, nonfarm nonresidential properties	419,368		6,723		8,581		0		15,304		434,672
Agricultural production and other loans to farmers	1,379		0		0		0		0		1,379
Commercial and Industrial	687,010		7,946		12,654		1,379		21,979		708,989
Obligations (other than securities and leases) of states and political subdivisions	140,887		0		0		0		0		140,887
Other loans	13,979		0		0		0		0		13,979
Other construction loans and all land development and other land loans	294,103		4,221		545		0		4,766		298,869
Multifamily (5 or more) residential properties	214,772		100		1,271		0		1,371		216,143
Non-owner occupied, nonfarm nonresidential properties	631,534		9,628		21,900		0		31,528		663,062









Total loans	$	2,424,318	$	30,132	$	45,919	$	1,379	$	77,430	$	2,501,748


	December 31, 2020
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	20,316	$	1,156	$	1,844	$	0	$	3,000	$	23,316
Owner-occupied, nonfarm nonresidential properties	391,899		2,826		13,199		0		16,025		407,924
Agricultural production and other loans to farmers	2,664		0		0		0		0		2,664
Commercial and Industrial	637,071		11,368		15,111		0		26,479		663,550
Obligations (other than securities and leases) of states and political subdivisions	132,110		0		708		0		708		132,818
Other loans	11,961		0		0		0		0		11,961
Other construction loans and all land development and other land loans	198,206		5,611		1,917		0		7,528		205,734
Multifamily (5 or more) residential properties	211,563		0		1,252		0		1,252		212,815
Non-owner occupied, nonfarm nonresidential properties	594,603		12,496		33,846		0		46,342		640,945









Total loans	$	2,200,393	$	33,457	$	67,877	$	0	$	101,334	$	2,301,727

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, 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	$	8,203	$	1,690	$	3,276	$	3,547	$	564	$	3,545	$	461	$	0	$	21,286
Special mention	0		0		0		0		394		1,120		0		0		1,514
Substandard	388		0		0		0		48		532		0		0		968
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,591	$	1,690	$	3,276	$	3,547	$	1,006	$	5,197	$	461	$	0	$	23,768
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	135,095	$	78,068	$	78,621	$	29,100	$	40,677	$	50,079	$	7,728	$	0	$	419,368
Special mention	243		0		903		4,287		135		1,145		10		0		6,723
Substandard	687		416		2,190		868		250		4,152		18		0		8,581
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	136,025	$	78,484	$	81,714	$	34,255	$	41,062	$	55,376	$	7,756	$	0	$	434,672
Agricultural production and other loans to farmers
Risk rating
Pass	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
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	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
Commercial and Industrial
Risk rating
Pass	$	313,983	$	84,815	$	31,375	$	16,577	$	12,389	$	6,777	$	221,094	$	0	$	687,010
Special mention	0		363		793		381		82		844		5,483		0		7,946
Substandard	1,991		800		1,862		452		29		2,016		5,504		0		12,654
Doubtful(1)	1,379		0		0		0		0		0		0		0		1,379
Total	$	317,353	$	85,978	$	34,030	$	17,410	$	12,500	$	9,637	$	232,081	$	0	$	708,989
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
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	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
Other loans
Risk rating
Pass	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979
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	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979

(1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period.


	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	$	98,406	$	168,372	$	8,752	$	11,141	$	853	$	898	$	5,681	$	0	$	294,103
Special mention	1,500		0		650		0		2,071		0		0		0		4,221
Substandard	0		0		0		29		439		0		77		0		545
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	99,906	$	168,372	$	9,402	$	11,170	$	3,363	$	898	$	5,758	$	0	$	298,869
Multifamily (5 or more) residential properties
Risk rating
Pass	$	74,687	$	55,663	$	33,436	$	7,937	$	27,729	$	12,882	$	2,438	$	0	$	214,772
Special mention	0		0		0		0		0		100		0		0		100
Substandard	0		6		682		379		204		0		0		0		1,271
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	74,687	$	55,669	$	34,118	$	8,316	$	27,933	$	12,982	$	2,438	$	0	$	216,143
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	194,800	$	125,039	$	84,943	$	52,233	$	42,714	$	123,021	$	8,784	$	0	$	631,534
Special mention	0		0		428		1,004		189		5,556		2,451		0		9,628
Substandard	826		0		2,305		1,662		4,638		12,134		335		0		21,900
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	195,626	$	125,039	$	87,676	$	54,899	$	47,541	$	140,711	$	11,570	$	0	$	663,062

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

The Corporation considers the performance of the loan portfolio and its impact on the allowance for credit losses. For 1-4 family construction, home equity lines of credit, residential mortgages secured by first liens, residential mortgages secured by junior liens, automobile, credit cards, other revolving credit plans and other consumer segments, the Corporation also evaluates credit quality based on the performance status the loan, which was previously presented, and by payment activity. Nonperforming loans include loans on nonaccrual status and loans past due over 89 days and still accruing interest.


	December 31, 2021						December 31, 2020
	Performing		Nonperforming		Total		Performing		Nonperforming		Total









1-4 Family Construction	$	37,822	$	0	$	37,822	$	27,768	$	0	$	27,768
Home equity lines of credit	103,693		824		104,517		108,759		685		109,444
Residential Mortgages secured by first liens	823,182		3,547		826,729		772,572		4,458		777,030
Residential Mortgages secured by junior liens	56,542		147		56,689		53,612		114		53,726
Other revolving credit plans	26,523		13		26,536		25,501		6		25,507
Automobile	20,826		36		20,862		25,312		32		25,344
Other consumer	49,118		558		49,676		42,288		504		42,792


Total loans	$	1,117,706	$	5,125	$	1,122,831	$	1,055,812	$	5,799	$	1,061,611


	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
1-4 Family Construction
Payment performance
Performing	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Home equity lines of credit
Payment performance
Performing	$	14,383	$	14,621	$	9,564	$	10,584	$	6,863	$	39,527	$	8,151	$	0	$	103,693
Nonperforming	0		0		9		10		377		428		0		0		824
Total	$	14,383	$	14,621	$	9,573	$	10,594	$	7,240	$	39,955	$	8,151	$	0	$	104,517
Residential mortgages secured by first lien
Payment performance
Performing	$	232,606	$	178,380	$	111,333	$	62,850	$	74,136	$	160,402	$	3,475	$	0	$	823,182
Nonperforming	79		259		227		151		258		2,379		194		0		3,547
Total	$	232,685	$	178,639	$	111,560	$	63,001	$	74,394	$	162,781	$	3,669	$	0	$	826,729
Residential mortgages secured by junior liens
Payment performance
Performing	$	20,617	$	11,256	$	7,239	$	4,407	$	3,508	$	9,095	$	420	$	0	$	56,542
Nonperforming	0		0		0		0		84		63		0		0		147
Total	$	20,617	$	11,256	$	7,239	$	4,407	$	3,592	$	9,158	$	420	$	0	$	56,689
Other revolving credit plans
Payment performance
Performing	$	5,313	$	3,596	$	3,090	$	2,592	$	2,977	$	8,955	$	0	$	0	$	26,523
Nonperforming	0		0		4		4		0		5		0		0		13
Total	$	5,313	$	3,596	$	3,094	$	2,596	$	2,977	$	8,960	$	0	$	0	$	26,536
Automobile
Payment performance
Performing	$	7,047	$	5,448	$	4,668	$	2,457	$	682	$	524	$	0	$	0	$	20,826
Nonperforming	11		13		12		0		0		0		0		0		36
Total	$	7,058	$	5,461	$	4,680	$	2,457	$	682	$	524	$	0	$	0	$	20,862
Other consumer
Payment performance
Performing	$	30,423	$	11,017	$	4,537	$	1,451	$	316	$	1,374	$	0	$	0	$	49,118
Nonperforming	204		170		96		25		3		60		0		0		558
Total	$	30,627	$	11,187	$	4,633	$	1,476	$	319	$	1,434	$	0	$	0	$	49,676


	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, 2021		December 31, 2020

Credit card
Payment performance
Performing	$	9,912	$	8,081
Nonperforming	23		34
Total	$	9,935	$	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

The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday, a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio, are considered to be subprime loans.

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


	December 31, 2021		December 31, 2020
Gross consumer loans	$	29,227	$	27,998

Less: unearned discounts	(5,716)		(5,181)
Total consumer loans, net of unearned discounts	$	23,511	$	22,817