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Loans and Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure Loans and Leases and Allowance for Credit Losses
Loans and leases are presented in the Consolidated Statements of Financial Condition net of deferred fees and costs, and discounts related to purchased loans. Net deferred fees were $5.2 million and $0.8 million as of September 30, 2022 and December 31, 2021, respectively, and discounts on purchased loans were $5.5 million and $6.0 million September 30, 2022 and December 31, 2021, respectively. The following table provides outstanding balances related to each of our loan types:
 
September 30, 2022December 31, 2021
 (dollars in thousands)
Commercial, financial, agricultural and other$1,169,206 $1,173,452 
Time and demand1,012,169 1,159,524 
Commercial credit cards13,368 13,928 
Equipment finance43,777 
Time and demand other99,892 
Real estate construction422,690 494,456 
Construction other326,539 
Construction residential96,151 
Residential real estate2,153,904 1,920,250 
Residential first lien1,510,570 1,299,534 
Residential junior lien/home equity643,334 620,716 
Commercial real estate2,393,276 2,251,097 
Multifamily404,328 385,432 
Nonowner occupied1,516,255 1,465,247 
Owner occupied472,693 400,418 
Loans to individuals1,209,841 999,975 
Automobile and recreational vehicles1,120,838 901,280 
Consumer credit cards10,274 11,151 
Consumer other78,729 87,544 
Total loans and leases$7,348,917 $6,839,230 
In the table above, Commercial, financial, agricultural and other loans at September 30, 2022 and December 31, 2021 includes $4.9 million and $71.3 million, respectively, in Paycheck Protection Program ("PPP") loans for small businesses who meet the necessary eligibility requirements. PPP loans are 100% guaranteed by the Small Business Administration ("SBA") under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the PPP requirements. Because PPP loans are fully guaranteed by the SBA, there is no allowance for credit losses recognized for these loans. Although the Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program, there could be risks and liability to the Company associated with participation in the program.
First Commonwealth’s loan portfolio includes five primary loan categories. When calculating the allowance for credit losses these categories are classified into fourteen portfolio segments. The composition of loans by portfolio segment includes:
Commercial, financial, agricultural and other
Time & Demand - Consists primarily of commercial and industrial loans. This category consists of loans that are typically cash flow dependent and therefore have different risk and loss characteristics than other commercial loans. Loans in this category include revolving and term structures with fixed and variable interest rates. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.
Commercial Credit Cards - Consists of unsecured credit cards for commercial customers. These commercial credit cards have separate characteristics outside of normal commercial non-real estate loans, as they tend to have shorter overall duration. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.
Equipment Finance - Consists of loans and leases to finance the purchase of equipment for commercial customers. The risk and loss characteristics are unique for this group due to the type of collateral. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP. There were no equipment finance loans or leases in the portfolio prior to the first quarter of 2022.
Time & Demand Other - Consists primarily of loans to state and political subdivisions and other commercial loans that have different characteristics than loans in the Time and Demand category. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of household debt to income and economic conditions measured by GDP. Prior to the first quarter of 2022, these loans were included in the Time and Demand category. The breakout into a separate category is the result of an annual review of the peer group loss history and loss drivers used in the allowance for credit losses model.
Real estate construction
Construction Other - Consists of construction loans to commercial builders and developers and are secured by the properties under development.
Construction Residential - Consists of loans to finance the construction of residential properties during the construction period. Borrowers are typically individuals who will occupy the completed single family property.
The risk and loss characteristics of these two construction categories are different than other real estate secured categories due to the collateral being at various stages of completion. The nature of the project and type of borrower of the two construction categories provides for unique risk and loss characteristics for each category. The primary macroeconomic drivers for estimating credit losses for construction loans include forecasts of national unemployment and measures of completed construction projects. Prior to the first quarter of 2022, all construction loans were included in one loan category. The breakout into separate construction categories is the result of an annual review of the peer group loss history and loss drivers used in the allowance for credit losses model.
Residential real estate
Residential first lien - Consists of loans with collateral of 1-4 family residencies with a senior lien position. The risk and loss characteristics are unique for this group because the collateral for these loans are the borrower’s primary residence. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.
Residential Junior Lien/Home Equity - Consists of loans with collateral of 1-4 family residencies with an open end line of credit or junior lien position. The junior lien position for the majority of these loans provides a higher risk of loss than other residential real estate loans. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.
Commercial real estate
Multifamily - Consists of loans secured by commercial multifamily properties. Real estate related to rentals to consumers provide unique risk and loss characteristics. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of commercial real estate values and national unemployment. In the first quarter of 2022, as a result of an annual review of peer group loss history and loss drivers, national unemployment replaced rental vacancy as one of the primary macroeconomic drivers in this category.
Nonowner Occupied - Consists of loans secured by commercial real estate non-owner occupied and provides different loss characteristics than other real estate categories. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.
Owner Occupied - Consists of loans secured by commercial real estate owner occupied properties. The risk and loss characteristics of this category were considered different than other real estate categories because it is owner occupied and would impact the ability to conduct business. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions measured by GDP.
Loans to individuals
Automobile and Recreational Vehicles - Consists of both direct and indirect loans with automobiles and recreational vehicles held as collateral. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and automobile retention value.
Consumer Credit Cards – Consists of unsecured consumer credit cards. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and economic conditions measured by GDP.
Other Consumer - Consists of lines of credit, student loans and other consumer loans, not secured by real estate or autos. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and retail sales. In the first quarter of 2022, as a result of an annual review of peer group loss history and loss drivers, retail sales replaced household debt as one of the primary macroeconomic factors for this category.
The allowance for credit losses is calculated by pooling loans of similar credit risk characteristics and applying a discounted cash flow methodology after incorporating probability of default and loss given default estimates. Probability of default represents an estimate of the likelihood of default, and loss given default measures the expected loss upon default. Inputs impacting the expected losses include a forecast of macroeconomic factors, using a weighted forecast from a nationally recognized firm. Our model incorporates a one-year forecast of macroeconomic factors, after which the factors revert back to the historical mean over a one-year period. The most significant macroeconomic factor used in estimating credit losses is the national unemployment rate. The forecasted value for national unemployment at the beginning of the forecast period was 3.70% and during the one-year forecast period it was projected to average 4.57%, with a peak of 4.89%. Current forecast assumptions consider the impact of rising interest rates, global oil prices and supply chain disruption, inflation, Russia's invasion of Ukraine and the potential effects of these on the US economy.
Credit Quality Information
As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:
Pass  Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM)Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Company’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
SubstandardWell-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
DoubtfulLoans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.

The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance.
The following tables represent our credit risk profile by creditworthiness:
 September 30, 2022
Non-Pass
PassOAEMSubstandardDoubtfulLossTotal Non-PassTotal
(dollars in thousands)
Commercial, financial, agricultural and other$1,123,075 $33,998 $12,133 $— $— $46,131 $1,169,206 
Time and demand966,079 33,998 12,092 — — 46,090 1,012,169 
Commercial credit cards13,368 — — — — — 13,368 
Equipment finance43,777 — — — — — 43,777 
Time and demand other99,851 — 41 — — 41 99,892 
Real estate construction422,690 — — — — — 422,690 
Construction other326,539 — — — — — 326,539 
Construction residential96,151 — — — — — 96,151 
Residential real estate2,147,081 804 6,019 — — 6,823 2,153,904 
Residential first lien1,506,421 740 3,409 — — 4,149 1,510,570 
Residential junior lien/home equity640,660 64 2,610 — — 2,674 643,334 
Commercial real estate2,307,356 58,800 27,120 — — 85,920 2,393,276 
Multifamily403,777 496 55 — — 551 404,328 
Nonowner occupied1,440,168 53,980 22,107 — — 76,087 1,516,255 
Owner occupied463,411 4,324 4,958 — — 9,282 472,693 
Loans to individuals1,209,457 — 384 — — 384 1,209,841 
Automobile and recreational vehicles1,120,521 — 317 — — 317 1,120,838 
Consumer credit cards10,274 — — — — — 10,274 
Consumer other78,662 — 67 — — 67 78,729 
Total loans and leases$7,209,659 $93,602 $45,656 $— $— $139,258 $7,348,917 
 
 December 31, 2021
Non-Pass
PassOAEMSubstandardDoubtfulLossTotal Non-PassTotal
(dollars in thousands)
Commercial, financial, agricultural and other$1,121,234 $33,765 $18,453 $— $— $52,218 $1,173,452 
Time and demand1,107,306 33,765 18,453 — — 52,218 1,159,524 
Commercial credit cards13,928 — — — — — 13,928 
Real estate construction493,913 498 45 — — 543 494,456 
Residential real estate1,913,064 976 6,210 — — 7,186 1,920,250 
Residential first lien1,295,524 905 3,105 — — 4,010 1,299,534 
Residential junior lien/home equity617,540 71 3,105 — — 3,176 620,716 
Commercial real estate2,113,123 85,324 52,650 — — 137,974 2,251,097 
Multifamily355,702 14,565 15,165 — — 29,730 385,432 
Nonowner occupied1,368,922 63,783 32,542 — — 96,325 1,465,247 
Owner occupied388,499 6,976 4,943 — — 11,919 400,418 
Loans to individuals999,770 — 205 — — 205 999,975 
Automobile and recreational vehicles901,132 — 148 — — 148 901,280 
Consumer credit cards11,151 — — — — — 11,151 
Consumer other87,487 — 57 — — 57 87,544 
Total loans and leases$6,641,104 $120,563 $77,563 $— $— $198,126 $6,839,230 

The following table summarizes the loan risk rating category by loan type including term loans on an amortized cost basis by origination year:
September 30, 2022
Term LoansRevolving Loans
20222021202020192018PriorTotal
(dollars in thousands)
Time and demand$151,625 $166,338 $69,788 $94,503 $66,019 $62,843 $401,053 $1,012,169 
Pass151,625 157,344 60,402 85,295 65,892 61,385 384,136 966,079 
OAEM— 8,586 8,786 2,138 46 597 13,845 33,998 
Substandard— 408 600 7,070 81 861 3,072 12,092 
Commercial credit cards— — — — — — 13,368 13,368 
Pass— — — — — — 13,368 13,368 
Equipment finance43,777 — — — — — — 43,777 
Pass43,777 — — — — — — 43,777 
Time and demand other5,835 20,287 20,851 4,024 2,925 41,637 4,333 99,892 
Pass5,835 20,287 20,851 4,024 2,925 41,596 4,333 99,851 
Substandard— — — — — 41 — 41 
Construction other41,792 134,773 81,657 42,998 23,951 1,082 286 326,539 
Pass41,792 134,773 81,657 42,998 23,951 1,082 286 326,539 
Construction residential44,079 52,020 — 32 18 — 2 96,151 
Pass44,079 52,020 — 32 18 — 2 96,151 
OAEM— — — — — — — — 
Residential first lien228,085 490,963 344,244 105,769 72,054 267,696 1,759 1,510,570 
Pass228,085 490,580 344,228 105,244 71,453 265,149 1,682 1,506,421 
OAEM— 175 — 136 55 297 77 740 
Substandard— 208 16 389 546 2,250 — 3,409 
Residential junior lien/home equity60,751 51,084 1,574 2,718 1,808 4,600 520,799 643,334 
Pass60,751 51,084 1,574 2,648 1,808 4,462 518,333 640,660 
OAEM— — — — — 54 10 64 
Substandard— — — 70 — 84 2,456 2,610 
Multifamily107,522 89,935 61,212 42,617 20,040 81,620 1,382 404,328 
Pass107,522 89,935 61,212 42,617 20,040 81,069 1,382 403,777 
OAEM— — — — — 496 — 496 
Substandard— — — — — 55 — 55 
Nonowner occupied234,038 168,018 108,037 216,851 151,080 633,344 4,887 1,516,255 
Pass234,038 168,018 108,037 216,851 114,601 594,896 3,727 1,440,168 
OAEM— — — — 28,643 24,335 1,002 53,980 
Substandard— — — — 7,836 14,113 158 22,107 
Owner occupied93,475 98,472 58,582 46,871 27,587 141,869 5,837 472,693 
Pass93,475 98,449 56,345 45,159 26,677 137,581 5,725 463,411 
OAEM— — 1,252 876 836 1,327 33 4,324 
Substandard— 23 985 836 74 2,961 79 4,958 
Automobile and recreational vehicles464,203 356,266 188,208 79,358 25,839 6,964 — 1,120,838 
Pass464,203 356,264 188,112 79,240 25,770 6,932 — 1,120,521 
Substandard— 2 96 118 69 32 — 317 
Consumer credit cards— — — — — — 10,274 10,274 
Pass— — — — — — 10,274 10,274 
Consumer other5,229 18,003 2,873 4,690 2,390 4,390 41,154 78,729 
Pass5,229 18,003 2,873 4,681 2,390 4,385 41,101 78,662 
Substandard— — — 9 — 5 53 67 
Total$1,480,411 $1,646,159 $937,026 $640,431 $393,711 $1,246,045 $1,005,134 $7,348,917 
December 31, 2021
Term LoansRevolving Loans
20212020201920182017PriorTotal
(dollars in thousands)
Time and demand$281,244 $126,403 $143,030 $91,118 $45,442 $111,127 $361,160 $1,159,524 
Pass280,854 125,728 128,080 83,204 31,472 102,399 355,569 1,107,306 
OAEM390 596 1,125 7,780 13,945 7,126 2,803 33,765 
Substandard— 79 13,825 134 25 1,602 2,788 18,453 
Commercial credit cards— — — — — — 13,928 13,928 
Pass— — — — — — 13,928 13,928 
Real estate construction202,016 129,298 123,153 38,267 441 841 440 494,456 
Pass201,992 128,824 123,153 38,267 441 796 440 493,913 
OAEM24 474 — — — — — 498 
Substandard— — — — — 45 — 45 
Residential first lien376,106 375,904 126,788 84,484 74,268 260,010 1,974 1,299,534 
Pass376,095 375,885 126,618 84,079 74,135 256,815 1,897 1,295,524 
OAEM— — — 67 — 761 77 905 
Substandard11 19 170 338 133 2,434 — 3,105 
Residential junior lien/home equity56,861 1,999 3,322 2,684 1,009 5,348 549,493 620,716 
Pass56,861 1,999 3,246 2,684 1,009 5,195 546,546 617,540 
OAEM— — — — — 61 10 71 
Substandard— — 76 — — 92 2,937 3,105 
Multifamily90,062 73,068 16,782 36,523 63,872 103,774 1,351 385,432 
Pass90,062 73,068 16,782 21,846 49,832 102,761 1,351 355,702 
OAEM— — — — 14,040 525 — 14,565 
Substandard— — — 14,677 — 488 — 15,165 
Nonowner occupied194,137 98,840 202,236 173,053 177,295 615,943 3,743 1,465,247 
Pass194,137 98,840 202,236 155,293 152,174 563,743 2,499 1,368,922 
OAEM— — — 3,723 19,235 39,737 1,088 63,783 
Substandard— — — 14,037 5,886 12,463 156 32,542 
Owner occupied77,710 62,380 53,954 34,115 32,989 134,713 4,557 400,418 
Pass77,710 59,973 51,513 33,623 31,644 129,593 4,443 388,499 
OAEM— 2,194 1,220 492 1,321 1,716 33 6,976 
Substandard— 213 1,221 — 24 3,404 81 4,943 
Automobile and recreational vehicles456,730 252,518 122,943 48,375 17,230 3,484 — 901,280 
Pass456,730 252,518 122,867 48,361 17,224 3,432 — 901,132 
Substandard— — 76 14 6 52 — 148 
Consumer credit cards— — — — — — 11,151 11,151 
Pass— — — — — — 11,151 11,151 
Consumer other22,156 4,655 8,030 5,084 542 5,503 41,574 87,544 
Pass22,156 4,655 8,030 5,084 542 5,460 41,560 87,487 
Substandard— — — — — 43 14 57 
Total$1,757,022 $1,125,065 $800,238 $513,703 $413,088 $1,240,743 $989,371 $6,839,230 
Portfolio Risks
The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital and liquidity. First Commonwealth devotes substantial resources to managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting loans. Credit administration is independent of lending departments and oversight is provided by the Credit Committee of the First Commonwealth Board of Directors.
Total net charge-offs for the nine months ended September 30, 2022 and 2021 were $5.1 million and $9.5 million, respectively.
Age Analysis of Past Due Loans by Segment
The following tables delineate the aging analysis of the recorded investments in past due loans as of September 30, 2022 and December 31, 2021. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.
 September 30, 2022
 30 - 59 days past due60 - 89 days past due90 days or greater and still accruingNonaccrualTotal past due and nonaccrualCurrentTotal
 (dollars in thousands)
Commercial, financial, agricultural and other$241 $— $4 $2,805 $3,050 $1,166,156 $1,169,206 
Time and demand228 — — 2,805 3,033 1,009,136 1,012,169 
Commercial credit cards11 — — — 11 13,357 13,368 
Equipment finance— — — — — 43,777 43,777 
Time and demand other2 — 4 — 6 99,886 99,892 
Real estate construction— — — — — 422,690 422,690 
Construction other— — — — — 326,539 326,539 
Construction residential— — — — — 96,151 96,151 
Residential real estate2,794 937 821 5,530 10,082 2,143,822 2,153,904 
Residential first lien1,914 474 487 3,102 5,977 1,504,593 1,510,570 
Residential junior lien/home equity880 463 334 2,428 4,105 639,229 643,334 
Commercial real estate372 29 — 20,757 21,158 2,372,118 2,393,276 
Multifamily73 — — — 73 404,255 404,328 
Nonowner occupied93 — — 19,808 19,901 1,496,354 1,516,255 
Owner occupied206 29 — 949 1,184 471,509 472,693 
Loans to individuals2,622 862 723 384 4,591 1,205,250 1,209,841 
Automobile and recreational vehicles2,129 477 285 317 3,208 1,117,630 1,120,838 
Consumer credit cards44 39 — — 83 10,191 10,274 
Consumer other449 346 438 67 1,300 77,429 78,729 
Total loans and leases$6,029 $1,828 $1,548 $29,476 $38,881 $7,310,036 $7,348,917 
 
 December 31, 2021
 30 - 59 days past due60 - 89 days past due90 days or greater and still accruingNonaccrualTotal past due and nonaccrual CurrentTotal
 (dollars in thousands)
Commercial, financial, agricultural and other$633 $987 $155 $2,006 $3,781 $1,169,671 $1,173,452 
Time and demand605 972 144 2,006 3,727 1,155,797 1,159,524 
Commercial credit cards28 15 11 — 54 13,874 13,928 
Real estate construction813 — 448 45 1,306 493,150 494,456 
Residential real estate3,393 983 218 5,608 10,202 1,910,048 1,920,250 
Residential first lien1,934 354 51 2,706 5,045 1,294,489 1,299,534 
Residential junior lien/home equity1,459 629 167 2,902 5,157 615,559 620,716 
Commercial real estate— 74 — 40,195 40,269 2,210,828 2,251,097 
Multifamily— — — 15,097 15,097 370,335 385,432 
Nonowner occupied— — — 23,930 23,930 1,441,317 1,465,247 
Owner occupied— 74 — 1,168 1,242 399,176 400,418 
Loans to individuals1,611 417 785 206 3,019 996,956 999,975 
Automobile and recreational vehicles1,228 175 199 148 1,750 899,530 901,280 
Consumer credit cards36 44 63 — 143 11,008 11,151 
Consumer other347 198 523 58 1,126 86,418 87,544 
Total loans and leases$6,450 $2,461 $1,606 $48,060 $58,577 $6,780,653 $6,839,230 
Nonaccrual Loans
The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for consumer loans, which are placed on nonaccrual status at 150 days past due.
When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal becomes current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.
Nonperforming Loans
Management considers loans to be nonperforming when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Nonperforming loans include nonaccrual loans and all troubled debt restructured loans. When management identifies a loan as nonperforming, the credit loss is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source for repayment of the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines that the value of the loan is less than the recorded investment in the loan, a credit loss is recognized through an allowance estimate or a charge-off to the allowance for credit losses.
When the ultimate collectability of the total principal of a nonperforming loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of a nonperforming loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.
At September 30, 2022 and December 31, 2021, there were no nonperforming loans held for sale. During the nine months ended September 30, 2022, there were no gains recognized on the sale of nonperforming loans. During the nine months ended September 30, 2021 $0.4 million in gains were recognized on the sale of nonperforming loans.
The following tables include the recorded investment and unpaid principal balance for nonperforming loans with the associated allowance amount, if applicable, as of September 30, 2022 and December 31, 2021. Also presented are the average recorded investment in nonperforming loans and the related amount of interest recognized while the loan was considered nonperforming. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.
 September 30, 2022December 31, 2021
 Recorded
investment		Unpaid
principal
balance		Related
allowance		Recorded
investment		Unpaid
principal
balance		Related
allowance
 (dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,381 $9,749 $3,720 $10,303 
Time and demand3,381 9,749 3,720 10,303 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 45 53 
Construction other— — 
Construction residential— — 
Residential real estate8,711 10,573 9,365 11,294 
Residential first lien5,180 6,262 5,200 6,337 
Residential junior lien/home equity3,531 4,311 4,165 4,957 
Commercial real estate15,467 16,434 40,591 41,525 
Multifamily— — 14,677 14,677 
Nonowner occupied14,121 14,896 24,581 25,310 
Owner occupied1,346 1,538 1,333 1,538 
Loans to individuals475 553 446 485 
Automobile and recreational vehicles408 481 388 422 
Consumer other67 72 58 63 
Subtotal28,034 37,309 54,167 63,660 
With an allowance recorded:
Commercial, financial, agricultural and other1,380 1,555 $1,380 327 349 $307 
Time and demand1,380 1,555 1,380 327 349 307 
Equipment finance— — — 
Time and demand other— — — 
Real estate construction— — — — — — 
Construction other— — — 
Construction residential— — — 
Residential real estate— — — — — — 
Residential first lien— — — — — — 
Residential junior lien/home equity— — — — — — 
Commercial real estate6,278 7,200 154 686 711 88 
Multifamily— — — 421 446 88 
Nonowner occupied6,278 7,200 154 — — — 
Owner occupied— — — 265 265 — 
Loans to individuals— — — — — — 
Automobile and recreational vehicles— — — — — — 
Consumer other— — — — — — 
Subtotal7,658 8,755 1,534 1,013 1,060 395 
Total$35,692 $46,064 $1,534 $55,180 $64,720 $395 
 For the Nine Months Ended September 30,
 20222021
 Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
income
recognized
 (dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,762 $88 $9,266 $50 
Time and demand3,762 88 9,266 50 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 54 — 
Construction other— — 
Construction residential— — 
Residential real estate8,984 190 10,504 275 
Residential first lien5,120 139 5,734 210 
Residential junior lien/home equity3,864 51 4,770 65 
Commercial real estate16,663 89 20,813 101 
Multifamily230 — — — 
Nonowner occupied14,869 69 18,050 15 
Owner occupied1,564 20 2,763 86 
Loans to individuals435 13 486 12 
Automobile and recreational vehicles363 13 433 12 
Consumer other72 — 53 — 
Subtotal29,844 380 41,123 438 
With an allowance recorded:
Commercial, financial, agricultural and other195 — 1,820 50 
Time and demand195 — 1,820 50 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — — — 
Construction other— — 
Construction residential— — 
Residential real estate— — — — 
Residential first lien— — — — 
Residential junior lien/home equity— — — — 
Commercial real estate6,795 — 7,408 — 
Multifamily— — 451 — 
Nonowner occupied6,795 — 6,917 — 
Owner occupied— — 40 — 
Loans to individuals— — — — 
Automobile and recreational vehicles— — — — 
Consumer other— — — — 
Subtotal6,990 — 9,228 50 
Total$36,834 $380 $50,351 $488 
For the Three Months Ended September 30,
20222021
Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
Income
Recognized
(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,518 $30 $9,858 $3 
Time and demand3,518 30 9,858 3 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 54 — 
Construction other— — 
Construction residential— — 
Residential real estate8,981 48 10,060 54 
Residential first lien5,200 33 5,558 34 
Residential junior lien/home equity3,781 15 4,502 20 
Commercial real estate16,124 27 15,967 68 
Multifamily— — — — 
Nonowner occupied14,637 18 13,633 4 
Owner occupied1,487 9 2,334 64 
Loans to individuals443 5 504 6 
Automobile369 5 448 6 
Consumer other74 — 56 — 
Subtotal29,066 110 36,443 131 
With an allowance recorded:
Commercial, financial, agricultural and other584 — 1,842 19 
Time and demand584 — 1,842 19 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — — — 
Construction other— — 
Construction residential— — 
Residential real estate— — — — 
Residential first lien— — — — 
Residential junior lien/home equity— — — — 
Commercial real estate6,336 — 7,476 — 
Multifamily— — 439 — 
Nonowner occupied6,336 — 6,917 — 
Owner occupied— — 120 — 
Loans to individuals— — — — 
Automobile— — — — 
Consumer other— — — — 
Subtotal6,920 — 9,318 19 
Total$35,986 $110 $45,761 $150 
Unfunded commitments related to nonperforming loans were $0.2 million at both September 30, 2022 and December 31, 2021. After consideration of the requirements to draw and available collateral related to these commitments, it was determined that no reserve was required at September 30, 2022 and December 31, 2021.
Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternative financing sources. Troubled debt restructured loans are considered to be nonperforming loans.
The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans:
September 30, 2022December 31, 2021
 (dollars in thousands)
Troubled debt restructured loans
Accrual status$6,216 $7,120 
Nonaccrual status8,981 13,134 
Total$15,197 $20,254 
Commitments
Letters of credit$60 $60 
Unused lines of credit21 16 
Total$81 $76 
The following tables provide detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings:
 For the Nine Months Ended September 30, 2022
  Type of Modification   
 Number
of
Contracts		Extend
Maturity		Modify
Rate		Modify
Payments		Total
Pre-Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Specific
Reserve
 (dollars in thousands)
Residential real estate2 $— $10 $59 $69 $68 $— 
Residential first lien2 — 10 59 69 68 — 
Total2 $— $10 $59 $69 $68 $— 

 For the Nine Months Ended September 30, 2021
  Type of Modification   
 Number
of
Contracts		Extend
Maturity		Modify
Rate		Modify
Payments		Total
Pre-Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Specific
Reserve
 (dollars in thousands)
Commercial, financial, agricultural and other6 $— $— $6,803 $6,803 $2,895 $— 
Time and demand6 — — 6,803 6,803 2,895 — 
Residential real estate13 — 219 301 520 500 — 
Residential first lien10 — 219 171 390 375 — 
Residential junior lien/home equity3 — — 130 130 125 — 
Commercial real estate2 — — 644 644 645 — 
Nonowner occupied2 — — 644 644 645 — 
Loans to individuals7 — 110 63 173 151 — 
Automobile and recreational vehicles7 — 110 63 173 151 — 
Total28 $— $329 $7,811 $8,140 $4,191 $— 
The troubled debt restructurings included in the above tables are also included in the nonperforming loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For the nine months ended September 30, 2022 and 2021, $10 thousand and $284 thousand, respectively, of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For both 2022 and 2021, the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments.
The following table provides detail, including specific reserves and reasons for modification, related to loans identified as troubled debt restructurings for the three months ended September 30, 2021.
 For the Three Months Ended September 30, 2021
  Type of Modification   
 Number
of
Contracts		Extend
Maturity		Modify
Rate		Modify
Payments		Total
Pre-Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Specific
Reserve
 (dollars in thousands)
Commercial, financial, agricultural and other5 $— $— $206 $206 $202 $— 
Time and demand5 — — 206 206 202 — 
Residential real estate5 — 113 117 230 221 — 
Residential first lien3 — 113 — 113 109 — 
Residential junior lien/home equity2 — — 117 117 112 — 
Commercial real estate2 — — 644 644 645 — 
Nonowner occupied2 — — 644 644 645 — 
Loans to individuals3 — 17 63 80 76 — 
Automobile and recreational vehicles3 — 17 63 80 76 — 
Total15 $— $130 $1,030 $1,160 $1,144 $— 
The troubled debt restructurings included in the above tables are also included in the nonperforming loan tables provided earlier in this note. Loans defined as modified due to a change in rate may include loans that were modified for a change in rate as well as a re-amortization of the principal and an extension of the maturity. For the three months ended September 30, 2021, $86 thousand of total rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. For three months ended September 30, 2022, there were no similar modifications. For modifications made in 2021, the changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments.
The following tables provide detail related to the allowance for credit losses:
 For the Nine Months Ended September 30, 2022
Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
(dollars in thousands)
Commercial, financial, agricultural and other$18,093 $(1,836)$313 $5,902 $22,472 
Time and demand15,283 (604)155 5,712 20,546 
Commercial credit cards247 (209)68 194 300 
Equipment finance— — — 569 569 
Time and demand other2,563 (1,023)90 (573)1,057 
Real estate construction4,220 — 9 2,682 6,911 
Construction other3,278 — 9 1,736 5,023 
Construction residential942 — — 946 1,888 
Residential real estate12,625 (263)143 6,798 19,303 
Residential first lien7,459 (124)112 5,562 13,009 
Residential junior lien/home equity5,166 (139)31 1,236 6,294 
Commercial real estate33,376 (1,887)351 (3,941)27,899 
Multifamily3,561 (411)1 1,273 4,424 
Nonowner occupied24,838 (1,236)340 (7,940)16,002 
Owner occupied4,977 (240)10 2,726 7,473 
Loans to individuals24,208 (3,113)1,160 (2,747)19,508 
Automobile and recreational vehicles21,392 (1,515)699 (3,416)17,160 
Consumer credit cards496 (415)53 255 389 
Consumer other2,320 (1,183)408 414 1,959 
Total loans and leases$92,522 $(7,099)$1,976 $8,694 $96,093 
a) The provision expense(credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
For the Nine Months Ended September 30, 2022
Loans
Ending balanceEnding balance: individually evaluated for credit lossesEnding balance: collectively evaluated for credit lossesEnding balanceEnding balance: individually evaluated for credit lossesEnding balance: collectively evaluated for credit losses
(dollars in thousands)
Commercial, financial, agricultural and other$22,472 $1,380 $21,092 $1,169,206 $3,853 $1,165,353 
Time and demand20,546 1,380 19,166 1,012,169 3,853 1,008,316 
Commercial credit cards300 — 300 13,368 — 13,368 
Equipment finance569 — 569 43,777 — 43,777 
Time and demand other1,057 — 1,057 99,892 — 99,892 
Real estate construction6,911 — 6,911 422,690 — 422,690 
Construction other5,023 — 5,023 326,539 — 326,539 
Construction residential1,888 — 1,888 96,151 — 96,151 
Residential real estate19,303 — 19,303 2,153,904 — 2,153,904 
Residential first lien13,009 — 13,009 1,510,570 — 1,510,570 
Residential junior lien/home equity6,294 — 6,294 643,334 — 643,334 
Commercial real estate27,899 154 27,745 2,393,276 20,775 2,372,501 
Multifamily4,424 — 4,424 404,328 — 404,328 
Nonowner occupied16,002 154 15,848 1,516,255 20,101 1,496,154 
Owner occupied7,473 — 7,473 472,693 674 472,019 
Loans to individuals19,508 — 19,508 1,209,841 — 1,209,841 
Automobile and recreational vehicles17,160 — 17,160 1,120,838 — 1,120,838 
Consumer credit cards389 — 389 10,274 — 10,274 
Consumer other1,959 — 1,959 78,729 — 78,729 
Total loans and leases$96,093 $1,534 $94,559 $7,348,917 $24,628 $7,324,289 
 For the Nine Months Ended September 30, 2021
 Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
 (dollars in thousands)
Commercial, financial, agricultural and other$17,187 $(6,522)$299 $6,898 $17,862 
Time and demand16,838 (6,397)292 6,849 17,582 
Commercial credit cards349 (125)7 49 280 
Real estate construction7,966 — 135 (3,768)4,333 
Residential real estate14,358 (130)309 (1,732)12,805 
Residential first lien7,919 (36)206 (632)7,457 
Residential junior lien/home equity6,439 (94)103 (1,100)5,348 
Commercial real estate41,953 (1,659)130 (5,784)34,640 
Multifamily6,240 (1)— (2,408)3,831 
Nonowner occupied28,414 (1,556)120 (880)26,098 
Owner occupied7,299 (102)10 (2,496)4,711 
Loans to individuals19,845 (3,199)1,163 6,736 24,545 
Automobile and recreational vehicles16,133 (1,399)826 5,642 21,202 
Consumer credit cards635 (372)51 182 496 
Consumer other3,077 (1,428)286 912 2,847 
Total loans and leases$101,309 $(11,510)$2,036 $2,350 $94,185 
a) The provision expense(credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
For the Three Months Ended September 30, 2022
Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
(dollars in thousands)
Commercial, financial, agricultural and other$21,989 $(852)$154 $1,181 $22,472 
Time and demand19,921 (321)77 869 20,546 
Commercial credit cards387 (132)42 3 300 
Equipment finance272 — — 297 569 
Time and demand other1,409 (399)35 12 1,057 
Real estate construction5,529 — 9 1,373 6,911 
Construction other3,600 — 9 1,414 5,023 
Construction residential1,929 — — (41)1,888 
Residential real estate17,747 (119)83 1,592 19,303 
Residential first lien11,860 (79)67 1,161 13,009 
Residential junior lien/home equity5,887 (40)16 431 6,294 
Commercial real estate31,387 (1,335)332 (2,485)27,899 
Multifamily3,555 — 1 868 4,424 
Nonowner occupied20,953 (1,095)330 (4,186)16,002 
Owner occupied6,879 (240)1 833 7,473 
Loans to individuals16,951 (1,064)331 3,290 19,508 
Automobile and recreational vehicles14,563 (538)156 2,979 17,160 
Consumer credit cards312 (182)15 244 389 
Consumer other2,076 (344)160 67 1,959 
Total loans and leases$93,603 $(3,370)$909 $4,951 $96,093 
a) The provision expense(credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
 For the Three Months Ended September 30, 2021
 Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
 (dollars in thousands)
Commercial, financial, agricultural and other$21,466 $(2,066)$106 $(1,644)$17,862 
Time and demand21,098 (2,059)104 (1,561)17,582 
Commercial credit cards368 (7)2 (83)280 
Real estate construction4,285 — — 48 4,333 
Residential real estate12,933 (11)98 (215)12,805 
Residential first lien7,394 — 24 39 7,457 
Residential junior lien/home equity5,539 (11)74 (254)5,348 
Commercial real estate35,795 (102)90 (1,143)34,640 
Multifamily4,379 — — (548)3,831 
Nonowner occupied26,911 — 80 (893)26,098 
Owner occupied4,505 (102)10 298 4,711 
Loans to individuals22,559 (727)335 2,378 24,545 
Automobile and recreational vehicles19,298 (331)251 1,984 21,202 
Consumer credit cards528 (125)9 84 496 
Consumer other2,733 (271)75 310 2,847 
Total loans and leases$97,038 $(2,906)$629 $(576)$94,185 
a) The provision expense(credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance The following tables include the recorded investment and unpaid principal balance for nonperforming loans with the associated allowance amount, if applicable, as of September 30, 2022 and December 31, 2021. Also presented are the average recorded investment in nonperforming loans and the related amount of interest recognized while the loan was considered nonperforming. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.
 September 30, 2022December 31, 2021
 Recorded
investment		Unpaid
principal
balance		Related
allowance		Recorded
investment		Unpaid
principal
balance		Related
allowance
 (dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,381 $9,749 $3,720 $10,303 
Time and demand3,381 9,749 3,720 10,303 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 45 53 
Construction other— — 
Construction residential— — 
Residential real estate8,711 10,573 9,365 11,294 
Residential first lien5,180 6,262 5,200 6,337 
Residential junior lien/home equity3,531 4,311 4,165 4,957 
Commercial real estate15,467 16,434 40,591 41,525 
Multifamily— — 14,677 14,677 
Nonowner occupied14,121 14,896 24,581 25,310 
Owner occupied1,346 1,538 1,333 1,538 
Loans to individuals475 553 446 485 
Automobile and recreational vehicles408 481 388 422 
Consumer other67 72 58 63 
Subtotal28,034 37,309 54,167 63,660 
With an allowance recorded:
Commercial, financial, agricultural and other1,380 1,555 $1,380 327 349 $307 
Time and demand1,380 1,555 1,380 327 349 307 
Equipment finance— — — 
Time and demand other— — — 
Real estate construction— — — — — — 
Construction other— — — 
Construction residential— — — 
Residential real estate— — — — — — 
Residential first lien— — — — — — 
Residential junior lien/home equity— — — — — — 
Commercial real estate6,278 7,200 154 686 711 88 
Multifamily— — — 421 446 88 
Nonowner occupied6,278 7,200 154 — — — 
Owner occupied— — — 265 265 — 
Loans to individuals— — — — — — 
Automobile and recreational vehicles— — — — — — 
Consumer other— — — — — — 
Subtotal7,658 8,755 1,534 1,013 1,060 395 
Total$35,692 $46,064 $1,534 $55,180 $64,720 $395 
 For the Nine Months Ended September 30,
 20222021
 Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
income
recognized
 (dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,762 $88 $9,266 $50 
Time and demand3,762 88 9,266 50 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 54 — 
Construction other— — 
Construction residential— — 
Residential real estate8,984 190 10,504 275 
Residential first lien5,120 139 5,734 210 
Residential junior lien/home equity3,864 51 4,770 65 
Commercial real estate16,663 89 20,813 101 
Multifamily230 — — — 
Nonowner occupied14,869 69 18,050 15 
Owner occupied1,564 20 2,763 86 
Loans to individuals435 13 486 12 
Automobile and recreational vehicles363 13 433 12 
Consumer other72 — 53 — 
Subtotal29,844 380 41,123 438 
With an allowance recorded:
Commercial, financial, agricultural and other195 — 1,820 50 
Time and demand195 — 1,820 50 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — — — 
Construction other— — 
Construction residential— — 
Residential real estate— — — — 
Residential first lien— — — — 
Residential junior lien/home equity— — — — 
Commercial real estate6,795 — 7,408 — 
Multifamily— — 451 — 
Nonowner occupied6,795 — 6,917 — 
Owner occupied— — 40 — 
Loans to individuals— — — — 
Automobile and recreational vehicles— — — — 
Consumer other— — — — 
Subtotal6,990 — 9,228 50 
Total$36,834 $380 $50,351 $488 
For the Three Months Ended September 30,
20222021
Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
Income
Recognized
(dollars in thousands)
With no related allowance recorded:
Commercial, financial, agricultural and other$3,518 $30 $9,858 $3 
Time and demand3,518 30 9,858 3 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — 54 — 
Construction other— — 
Construction residential— — 
Residential real estate8,981 48 10,060 54 
Residential first lien5,200 33 5,558 34 
Residential junior lien/home equity3,781 15 4,502 20 
Commercial real estate16,124 27 15,967 68 
Multifamily— — — — 
Nonowner occupied14,637 18 13,633 4 
Owner occupied1,487 9 2,334 64 
Loans to individuals443 5 504 6 
Automobile369 5 448 6 
Consumer other74 — 56 — 
Subtotal29,066 110 36,443 131 
With an allowance recorded:
Commercial, financial, agricultural and other584 — 1,842 19 
Time and demand584 — 1,842 19 
Equipment finance— — 
Time and demand other— — 
Real estate construction— — — — 
Construction other— — 
Construction residential— — 
Residential real estate— — — — 
Residential first lien— — — — 
Residential junior lien/home equity— — — — 
Commercial real estate6,336 — 7,476 — 
Multifamily— — 439 — 
Nonowner occupied6,336 — 6,917 — 
Owner occupied— — 120 — 
Loans to individuals— — — — 
Automobile— — — — 
Consumer other— — — — 
Subtotal6,920 — 9,318 19 
Total$35,986 $110 $45,761 $150