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LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2022

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Total net loans receivable at September 30, 2022 and December 31, 2021 are summarized as follows:


	September 30, 2022		Percentage of Total		December 31, 2021		Percentage of Total
Farmland	$	30,738	0.8	%	$	23,768	0.7	%
Owner-occupied, nonfarm nonresidential properties	461,709		11.5	%	434,672		12.0	%
Agricultural production and other loans to farmers	1,097		0.0	%	1,379		0.0	%
Commercial and Industrial 1	760,975		18.9	%	708,989		19.5	%
Obligations (other than securities and leases) of states and political subdivisions	147,956		3.7	%	140,887		3.9	%
Other loans	13,654		0.3	%	13,979		0.4	%
Other construction loans and all land development and other land loans	349,286		8.7	%	298,869		8.2	%
Multifamily (5 or more) residential properties	248,694		6.2	%	216,143		5.9	%
Non-owner occupied, nonfarm nonresidential properties	742,214		18.4	%	663,062		18.2	%
1-4 Family Construction	40,426		1.0	%	37,822		1.0	%
Home equity lines of credit	124,022		3.1	%	104,517		2.9	%
Residential Mortgages secured by first liens	921,180		22.9	%	826,729		22.7	%
Residential Mortgages secured by junior liens	68,494		1.7	%	56,689		1.6	%
Other revolving credit plans	29,374		0.7	%	26,536		0.7	%
Automobile	21,041		0.5	%	20,862		0.6	%
Other consumer	52,653		1.3	%	49,676		1.4	%
Credit cards	10,916		0.3	%	9,935		0.3	%
Overdrafts	236		0.0	%	278		0.0	%
Total loans receivable	$	4,024,665	100.0	%	$	3,634,792	100.0	%
Less: Allowance for credit losses	(41,269)				(37,588)
Loans receivable, net	$	3,983,396			$	3,597,204

Net deferred loan origination fees included in the above table	$	4,393			$	5,667

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.

The Corporation’s outstanding loans receivable and related unfunded commitments are primarily concentrated within Central and Northwest Pennsylvania, Central and Northeast Ohio, Western New York and Southwest 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 approved annually by the Corporation’s Board of Directors.

During the second quarter of 2020, the Corporation began originating loans to qualified small businesses under the Paycheck Protection Program ("PPP") administered by the Small Business Administration (“SBA”) under the provisions of the Coronavirus Aid, Relief, and Economic Security Act. 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 SBA, no allowance for credit losses was required to be recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $462 thousand and $45.2 million as of September 30, 2022 and December 31, 2021, respectively.

Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $152.8 million and $125.8 million as of September 30, 2022 and December 31, 2021, respectively.

Transactions in the allowance for credit losses for the three months ended September 30, 2022 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	191	$	0	$	0	$	(8)	$	183
Owner-occupied, nonfarm nonresidential properties	3,714		0		3		(272)		3,445
Agricultural production and other loans to farmers	7		0		0		(2)		5
Commercial and Industrial	9,555		0		32		(21)		9,566
Obligations (other than securities and leases) of states and political subdivisions	1,665		0		0		97		1,762
Other loans	167		0		0		(2)		165
Other construction loans and all land development and other land loans	2,328		0		0		208		2,536
Multifamily (5 or more) residential properties	2,277		0		0		(171)		2,106
Non-owner occupied, nonfarm nonresidential properties	6,748		(169)		336		215		7,130
1-4 Family Construction	236		0		0		(56)		180
Home equity lines of credit	1,353		0		1		26		1,380
Residential Mortgages secured by first liens	7,664		(4)		1		198		7,859
Residential Mortgages secured by junior liens	628		0		0		338		966
Other revolving credit plans	598		(28)		12		58		640
Automobile	242		(7)		2		27		264
Other consumer	2,704		(404)		22		437		2,759
Credit cards	110		(15)		25		(33)		87
Overdrafts	356		(152)		35		(3)		236
Total	$	40,543	$	(779)	$	469	$	1,036	$	41,269

(1) Excludes provision for credit losses related to unfunded commitments. Note 8, "Off-Balance Sheet Commitments and Contingencies," in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

Transactions in the allowance for credit losses for the nine months ended September 30, 2022 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	151	$	0	$	0	$	32	$	183
Owner-occupied, nonfarm nonresidential properties	3,339		(21)		12		115		3,445
Agricultural production and other loans to farmers	9		0		0		(4)		5
Commercial and Industrial	8,837		(85)		123		691		9,566
Obligations (other than securities and leases) of states and political subdivisions	1,649		0		0		113		1,762
Other loans	149		0		0		16		165
Other construction loans and all land development and other land loans	2,198		0		0		338		2,536
Multifamily (5 or more) residential properties	2,289		0		0		(183)		2,106
Non-owner occupied, nonfarm nonresidential properties	6,481		(169)		336		482		7,130
1-4 Family Construction	158		0		0		22		180
Home equity lines of credit	1,169		0		11		200		1,380
Residential Mortgages secured by first liens	6,943		(51)		13		954		7,859
Residential Mortgages secured by junior liens	546		0		0		420		966
Other revolving credit plans	528		(73)		46		139		640
Automobile	263		(20)		2		19		264
Other consumer	2,546		(1,174)		63		1,324		2,759
Credit cards	92		(74)		33		36		87
Overdrafts	241		(398)		109		284		236
Total	$	37,588	$	(2,065)	$	748	$	4,998	$	41,269

Transactions in the allowance for credit losses for the three months ended September 30, 2021 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	124	$	0	$	0	$	(26)	$	98
Owner-occupied, nonfarm nonresidential properties	2,880		0		3		154		3,037
Agricultural production and other loans to farmers	12		0		0		(5)		7
Commercial and Industrial	7,312		(23)		52		989		8,330
Obligations (other than securities and leases) of states and political subdivisions	2,325		(157)		0		(289)		1,879
Other loans	117		0		0		(15)		102
Other construction loans and all land development and other land loans	2,364		(282)		0		287		2,369
Multifamily (5 or more) residential properties	2,314		0		0		(219)		2,095
Non-owner occupied, nonfarm nonresidential properties	10,162		(18)		0		(2,865)		7,279
1-4 Family Construction	110		0		0		116		226
Home equity lines of credit	1,029		(7)		1		197		1,220
Residential Mortgages secured by first liens	4,398		(5)		2		2,030		6,425
Residential Mortgages secured by junior liens	408		(3)		0		144		549
Other revolving credit plans	459		(5)		4		70		528
Automobile	241		(12)		0		49		278
Other consumer	2,402		(268)		25		331		2,490
Credit cards	68		(5)		6		43		112
Overdrafts	183		(127)		41		109		206
Total	$	36,908	$	(912)	$	134	$	1,100	$	37,230

Transactions in the allowance for credit losses for the nine months ended September 30, 2021 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	221	$	0	$	0	$	(123)	$	98
Owner-occupied, nonfarm nonresidential properties	3,700		(531)		8		(140)		3,037
Agricultural production and other loans to farmers	24		0		0		(17)		7
Commercial and Industrial	6,233		(93)		72		2,118		8,330
Obligations (other than securities and leases) of states and political subdivisions	998		(407)		0		1,288		1,879
Other loans	68		0		0		34		102
Other construction loans and all land development and other land loans	1,956		(282)		0		695		2,369
Multifamily (5 or more) residential properties	2,724		0		0		(629)		2,095
Non-owner occupied, nonfarm nonresidential properties	8,658		(18)		0		(1,361)		7,279
1-4 Family Construction	82		0		0		144		226
Home equity lines of credit	985		(7)		3		239		1,220
Residential Mortgages secured by first liens	4,539		(75)		34		1,927		6,425
Residential Mortgages secured by junior liens	241		(3)		0		311		549
Other revolving credit plans	507		(28)		9		40		528
Automobile	132		(17)		3		160		278
Other consumer	2,962		(829)		120		237		2,490
Credit cards	66		(77)		17		106		112
Overdrafts	244		(318)		120		160		206
Total	$	34,340	$	(2,685)	$	386	$	5,189	$	37,230

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 three and nine months ended September 30, 2022, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, including growth in new market areas. This was partially offset by improvements in the Corporation's historical loss rates, as well as the impact of net charge-offs. There is still a significant amount of uncertainty related to the domestic and global economy, continued supply chain challenges, persistent inflation and the COVID-19 pandemic. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Provision for credit losses was $1.1 million and $5.6 million for the three and nine months ended September 30, 2022, respectively, compared to $1.1 million and $5.2 million for the three and nine months ended September 30, 2021. The increase in provision for the nine months ended September 30, 2022 was primarily due to the growth in commercial loans. Included in the provision for credit losses for the three and nine months ended September 30, 2022 was $55 thousand and $641 thousand, respectively, related to the allowance for unfunded commitments compared to no accrual towards the allowance for unfunded commitments for the nine months ended September 30, 2021.

The following tables presents the amortized cost basis of loans receivable on nonaccrual status and loans receivable past due over 89 days still accruing as of September 30, 2022 and December 31, 2021, respectively:


	September 30, 2022
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable Past Due over 89 Days Still Accruing
Farmland	$	1,043	$	1,043	$	995
Owner-occupied, nonfarm nonresidential properties	1,665		1,593		0

Commercial and Industrial	6,101		2,882		0


Other construction loans and all land development and other land loans	68		68		0
Multifamily (5 or more) residential properties	1,085		435		0
Non-owner occupied, nonfarm nonresidential properties	3,828		2,610		0

Home equity lines of credit	486		194		0
Residential Mortgages secured by first liens	4,311		3,565		0
Residential Mortgages secured by junior liens	114		114		0
Other revolving credit plans	34		34		0
Automobile	22		22		0
Other consumer	751		751		0
Credit cards	0		0		56

Total	$	19,508	$	13,311	$	1,051


	December 31, 2021
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable 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	$	19,420	$	10,593	$	168

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

The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of September 30, 2022:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	854	$	0
Owner-occupied, nonfarm nonresidential properties	1,332		6

Commercial and Industrial	91		2,018



Multifamily (5 or more) residential properties	1,085		0
Non-owner occupied, nonfarm nonresidential properties	5,264		0

Home equity lines of credit	341		0
Residential Mortgages secured by first liens	1,167		0






Total	$	10,134	$	2,024

The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans 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	$	8,118	$	2,360

The following table presents the aging of the amortized cost basis in past-due loans receivable as of September 30, 2022 by class of loans:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Receivable Not Past Due		Total
Farmland	$	0	$	0	$	1,142	$	1,142	$	29,596	$	30,738
Owner-occupied, nonfarm nonresidential properties	230		99		334		663		461,046		461,709
Agricultural production and other loans to farmers	0		0		0		0		1,097		1,097
Commercial and Industrial	117		230		715		1,062		759,913		760,975
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		147,956		147,956
Other loans	0		0		0		0		13,654		13,654
Other construction loans and all land development and other land loans	0		68		0		68		349,218		349,286
Multifamily (5 or more) residential properties	0		0		90		90		248,604		248,694
Non-owner occupied, nonfarm nonresidential properties	114		0		1,037		1,151		741,063		742,214
1-4 Family Construction	0		0		0		0		40,426		40,426
Home equity lines of credit	113		50		49		212		123,810		124,022
Residential Mortgages secured by first liens	698		239		1,590		2,527		918,653		921,180
Residential Mortgages secured by junior liens	11		0		52		63		68,431		68,494
Other revolving credit plans	14		24		4		42		29,332		29,374
Automobile	19		0		1		20		21,021		21,041
Other consumer	416		230		351		997		51,656		52,653
Credit cards	54		22		56		132		10,784		10,916
Overdrafts	0		0		0		0		236		236
Total	$	1,786	$	962	$	5,421	$	8,169	$	4,016,496	$	4,024,665

The following table presents the aging of the amortized cost basis in past-due loans receivable 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 Receivable 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	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

Troubled Debt Restructurings

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 loan receivables are classified as a TDR.

As of September 30, 2022 and December 31, 2021, the terms of certain loans were modified as TDRs. 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 TDRs of $13.5 million and $16.6 million as of September 30, 2022 and December 31, 2021, respectively. The Corporation has allocated $2.2 million and $2.6 million of allowance for those loans as of September 30, 2022 and December 31, 2021, respectively.

There was one loan modified as TDRs during the three months ended September 30, 2022.


	Three Months Ended September 30, 2022
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Type of Modification



Commercial and Industrial	1	$	96	$	96	Extend Amortization














Total	1	$	96	$	96

There were two loans modified as a TDR during the nine months ended September 30, 2022:


	Nine Months Ended September 30, 2022
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Type of Modification



Commercial and Industrial	1	$	96	$	96	Extend Amortization




Non-owner occupied, nonfarm nonresidential properties	1	1,784		1,784		Modify Rate and Extend Amortization









Total	2	$	1,880	$	1,880

There were no loans modified as TDRs during the three months ended September 30, 2021. There were three loans modified as TDRs during the nine months ended September 30, 2021.


	Nine Months Ended September 30, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Type of Modification



Commercial and Industrial	1	$	578	$	578	Modify Payment



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









Total	3	$	2,899	$	2,899

The TDRs described above increased the allowance for credit losses by an immaterial amount for the three and nine months ended September 30, 2022 and 2021, respectively.

A loan receivable is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified as TDRs for which there was a payment default within a twelve-month cycle following the modification during the three and nine months ended September 30, 2022 and 2021, respectively. There were no principal balances forgiven in connection with the loans restructurings.

Generally, nonperforming TDRs 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 receivable 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: A loan classified as special mention has 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: A loan classified as substandard is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. The loan has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: A loan classified as doubtful has 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 commercial credit risk profile by risk rating. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans.


	September 30, 2022
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	28,245	$	1,450	$	1,043	$	0	$	2,493	$	30,738
Owner-occupied, nonfarm nonresidential properties	448,691		5,877		7,141		0		13,018		461,709
Agricultural production and other loans to farmers	1,097		0		0		0		0		1,097
Commercial and Industrial	742,819		6,376		10,443		1,337		18,156		760,975
Obligations (other than securities and leases) of states and political subdivisions	147,956		0		0		0		0		147,956
Other loans	13,654		0		0		0		0		13,654
Other construction loans and all land development and other land loans	347,704		1,514		68		0		1,582		349,286
Multifamily (5 or more) residential properties	247,609		0		1,085		0		1,085		248,694
Non-owner occupied, nonfarm nonresidential properties	716,589		2,625		23,000		0		25,625		742,214









Total	$	2,694,364	$	17,842	$	42,780	$	1,337	$	61,959	$	2,756,323


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

The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of September 30, 2022. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	8,744	$	7,732	$	1,583	$	2,733	$	3,328	$	3,736	$	389	$	0	$	28,245
Special mention	0		0		0		0		0		1,450		0		0		1,450
Substandard	0		347		0		0		147		549		0		0		1,043
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,744	$	8,079	$	1,583	$	2,733	$	3,475	$	5,735	$	389	$	0	$	30,738
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	97,380	$	115,207	$	67,363	$	56,604	$	25,856	$	65,843	$	20,438	$	0	$	448,691
Special mention	0		0		0		880		4,146		841		10		0		5,877
Substandard	0		0		371		2,393		400		3,977		0		0		7,141
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	97,380	$	115,207	$	67,734	$	59,877	$	30,402	$	70,661	$	20,448	$	0	$	461,709
Agricultural production and other loans to farmers
Risk rating
Pass	$	149	$	145	$	88	$	51	$	182	$	0	$	482	$	0	$	1,097
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	$	149	$	145	$	88	$	51	$	182	$	0	$	482	$	0	$	1,097
Commercial and Industrial
Risk rating
Pass	$	159,525	$	226,900	$	63,413	$	18,933	$	10,118	$	21,378	$	242,552	$	0	$	742,819
Special mention	0		0		149		296		325		60		5,546		0		6,376
Substandard	313		1,894		712		408		341		1,002		5,773		0		10,443
Doubtful(1)	0		1,337		0		0		0		0		0		0		1,337
Total	$	159,838	$	230,131	$	64,274	$	19,637	$	10,784	$	22,440	$	253,871	$	0	$	760,975
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	17,175	$	36,577	$	15,983	$	4,680	$	13,647	$	55,089	$	4,805	$	0	$	147,956
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	$	17,175	$	36,577	$	15,983	$	4,680	$	13,647	$	55,089	$	4,805	$	0	$	147,956
Other loans
Risk rating
Pass	$	2,204	$	5,411	$	2,395	$	377	$	0	$	0	$	3,267	$	0	$	13,654
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	$	2,204	$	5,411	$	2,395	$	377	$	0	$	0	$	3,267	$	0	$	13,654

(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
	2022		2021		2020		2019		2018		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	$	162,843	$	87,702	$	69,273	$	7,154	$	9,103	$	969	$	10,660	$	0	$	347,704
Special mention	0		1,514		0		0		0		0		0		0		1,514
Substandard	0		0		0		0		0		0		68		0		68
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	162,843	$	89,216	$	69,273	$	7,154	$	9,103	$	969	$	10,728	$	0	$	349,286
Multifamily (5 or more) residential properties
Risk rating
Pass	$	99,684	$	51,694	$	48,900	$	11,976	$	6,815	$	25,770	$	2,770	$	0	$	247,609
Special mention	0		0		0		0		0		0		0		0		0
Substandard	650		0		0		0		345		90		0		0		1,085
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	100,334	$	51,694	$	48,900	$	11,976	$	7,160	$	25,860	$	2,770	$	0	$	248,694
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	258,817	$	157,824	$	53,483	$	70,548	$	45,859	$	121,425	$	8,633	$	0	$	716,589
Special mention	0		0		0		370		508		1,299		448		0		2,625
Substandard	2,270		805		0		1,789		1,646		14,414		2,076		0		23,000
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	261,087	$	158,629	$	53,483	$	72,707	$	48,013	$	137,138	$	11,157	$	0	$	742,214

The following tables detail the amortized cost of loans receivable, 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


	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 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 evaluates credit quality based on the performance status of the loan, which was previously presented, and by payment activity. Nonperforming loans include loans receivable on nonaccrual status and loans receivable past due over 89 days and still accruing interest.


	September 30, 2022						December 31, 2021
	Performing		Nonperforming		Total		Performing		Nonperforming		Total









1-4 Family Construction	$	40,426	$	0	$	40,426	$	37,822	$	0	$	37,822
Home equity lines of credit	123,536		486		124,022		103,693		824		104,517
Residential Mortgages secured by first liens	916,869		4,311		921,180		823,182		3,547		826,729
Residential Mortgages secured by junior liens	68,380		114		68,494		56,542		147		56,689
Other revolving credit plans	29,340		34		29,374		26,523		13		26,536
Automobile	21,019		22		21,041		20,826		36		20,862
Other consumer	51,902		751		52,653		49,118		558		49,676


Total	$	1,251,472	$	5,718	$	1,257,190	$	1,117,706	$	5,125	$	1,122,831

The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of September 30, 2022. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	19,306	$	16,873	$	2,926	$	725	$	63	$	0	$	533	$	0	$	40,426
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	19,306	$	16,873	$	2,926	$	725	$	63	$	0	$	533	$	0	$	40,426
Home equity lines of credit
Payment performance
Performing	$	30,024	$	15,182	$	12,949	$	9,192	$	8,682	$	38,806	$	8,701	$	0	$	123,536
Nonperforming	0		0		0		10		0		476		0		0		486
Total	$	30,024	$	15,182	$	12,949	$	9,202	$	8,682	$	39,282	$	8,701	$	0	$	124,022
Residential mortgages secured by first lien
Payment performance
Performing	$	186,664	$	227,676	$	163,921	$	93,549	$	51,249	$	190,091	$	3,719	$	0	$	916,869
Nonperforming	0		782		323		409		421		2,188		188		0		4,311
Total	$	186,664	$	228,458	$	164,244	$	93,958	$	51,670	$	192,279	$	3,907	$	0	$	921,180
Residential mortgages secured by junior liens
Payment performance
Performing	$	23,532	$	17,958	$	8,619	$	5,336	$	3,260	$	9,017	$	658	$	0	$	68,380
Nonperforming	0		0		0		2		0		68		44		0		114
Total	$	23,532	$	17,958	$	8,619	$	5,338	$	3,260	$	9,085	$	702	$	0	$	68,494
Other revolving credit plans
Payment performance
Performing	$	5,690	$	3,304	$	4,498	$	2,915	$	2,284	$	10,649	$	0	$	0	$	29,340
Nonperforming	0		0		0		8		15		11		0		0		34
Total	$	5,690	$	3,304	$	4,498	$	2,923	$	2,299	$	10,660	$	0	$	0	$	29,374
Automobile
Payment performance
Performing	$	7,520	$	5,120	$	3,528	$	2,749	$	1,416	$	686	$	0	$	0	$	21,019
Nonperforming	0		0		11		8		3		0		0		0		22
Total	$	7,520	$	5,120	$	3,539	$	2,757	$	1,419	$	686	$	0	$	0	$	21,041
Other consumer
Payment performance
Performing	$	22,387	$	18,395	$	6,355	$	2,548	$	861	$	1,356	$	0	$	0	$	51,902
Nonperforming	287		291		77		34		7		55		0		0		751
Total	$	22,674	$	18,686	$	6,432	$	2,582	$	868	$	1,411	$	0	$	0	$	52,653

The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity 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
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


	September 30, 2022		December 31, 2021

Credit card
Payment performance
Performing	$	10,860	$	9,912
Nonperforming	56		23
Total	$	10,916	$	9,935

Holiday’s loan portfolio, included in other consumer loans above, is summarized as follows at September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Gross other consumer	$	30,660	$	29,227
Less: other consumer unearned discounts	(5,790)		(5,716)
Total other consumer loans, net of unearned discounts	$	24,870	$	23,511