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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

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 $7.4 million and $5.9 million as of September 30, 2023 and December 31, 2022, respectively, and discounts on purchased loans from acquisitions were $27.6 million and $5.4 million as of September 30, 2023 and December 31, 2022, respectively. The following table provides outstanding balances related to each of our loan types:


	September 30, 2023		December 31, 2022

	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,496,021	$	1,211,706
Time and demand	1,189,604		1,023,824

Commercial credit cards	12,934		13,920
Equipment finance	190,116		79,674
Time and demand other	103,367		94,288
Real estate construction	575,547		513,101
Construction other	508,875		395,439
Construction residential	66,672		117,662
Residential real estate	2,414,781		2,194,669
Residential first lien	1,737,203		1,547,192
Residential junior lien/home equity	677,578		647,477
Commercial real estate	3,050,084		2,425,012
Multifamily	537,565		431,151
Nonowner occupied	1,806,738		1,510,347
Owner occupied	705,781		483,514
Loans to individuals	1,365,292		1,297,655
Automobile and recreational vehicles	1,285,380		1,210,451
Consumer credit cards	9,997		10,657
Consumer other	69,915		76,547
Total loans and leases	$	8,901,725	$	7,642,143

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. At September 30, 2023 and December 31, 2022, this category includes $0.9 million and $4.3 million in Paycheck Protection Program ("PPP") loans for small businesses. Because PPP loans are fully guaranteed by the SBA, there is no allowance for credit losses recognized for these loans.

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.

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.

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.

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.

Nonowner Occupied - Consists of loans secured by non-owner occupied commercial real estate 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 owner occupied commercial real estate 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.

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 3.78% and during the one-year forecast period it was projected to average 4.59%, with a peak of 4.86%.

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.

Substandard						Well-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.

Doubtful						Loans 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, 2023
			Non-Pass
	Pass		OAEM		Substandard		Doubtful		Loss		Total Non-Pass		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,417,177	$	46,843	$	32,001	$	—	$	—	$	78,844	$	1,496,021
Time and demand	1,111,155		46,843		31,606		—		—		78,449		1,189,604
Commercial credit cards	12,934		—		—		—		—		—		12,934
Equipment finance	189,735		—		381		—		—		381		190,116
Time and demand other	103,353		—		14		—		—		14		103,367
Real estate construction	570,581		1,678		3,288		—		—		4,966		575,547
Construction other	503,909		1,678		3,288		—		—		4,966		508,875
Construction residential	66,672		—		—		—		—		—		66,672
Residential real estate	2,404,117		2,581		8,083		—		—		10,664		2,414,781
Residential first lien	1,730,461		2,581		4,161		—		—		6,742		1,737,203
Residential junior lien/home equity	673,656		—		3,922		—		—		3,922		677,578
Commercial real estate	2,951,568		75,818		22,698		—		—		98,516		3,050,084
Multifamily	537,000		461		104		—		—		565		537,565
Nonowner occupied	1,738,117		50,807		17,814		—		—		68,621		1,806,738
Owner occupied	676,451		24,550		4,780		—		—		29,330		705,781
Loans to individuals	1,365,090		—		202		—		—		202		1,365,292
Automobile and recreational vehicles	1,285,180		—		200		—		—		200		1,285,380
Consumer credit cards	9,997		—		—		—		—		—		9,997
Consumer other	69,913		—		2		—		—		2		69,915
Total loans and leases	$	8,708,533	$	126,920	$	66,272	$	—	$	—	$	193,192	$	8,901,725


	December 31, 2022
			Non-Pass
	Pass		OAEM		Substandard		Doubtful		Loss		Total Non-Pass		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,164,193	$	35,389	$	12,124	$	—	$	—	$	47,513	$	1,211,706
Time and demand	976,346		35,389		12,089		—		—		47,478		1,023,824
Commercial credit cards	13,920		—		—		—		—		—		13,920
Equipment finance	79,674		—		—		—		—		—		79,674
Time and demand other	94,253		—		35		—		—		35		94,288
Real estate construction	513,101		—		—		—		—		—		513,101
Construction other	395,439		—		—		—		—		—		395,439
Construction residential	117,662		—		—		—		—		—		117,662
Residential real estate	2,187,780		736		6,153		—		—		6,889		2,194,669
Residential first lien	1,542,854		675		3,663		—		—		4,338		1,547,192
Residential junior lien/home equity	644,926		61		2,490		—		—		2,551		647,477
Commercial real estate	2,347,000		52,291		25,721		—		—		78,012		2,425,012
Multifamily	430,613		488		50		—		—		538		431,151
Nonowner occupied	1,439,478		49,037		21,832		—		—		70,869		1,510,347
Owner occupied	476,909		2,766		3,839		—		—		6,605		483,514
Loans to individuals	1,297,206		—		449		—		—		449		1,297,655
Automobile and recreational vehicles	1,210,090		—		361		—		—		361		1,210,451
Consumer credit cards	10,657		—		—		—		—		—		10,657
Consumer other	76,459		—		88		—		—		88		76,547
Total loans and leases	$	7,509,280	$	88,416	$	44,447	$	—	$	—	$	132,863	$	7,642,143

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, 2023
	Term Loans												Revolving Loans
	2023		2022		2021		2020		2019		Prior				Total
	(dollars in thousands)
Time and demand	$	140,075	$	201,945	$	123,174	$	76,068	$	52,514	$	76,227	$	519,601	$	1,189,604
Pass	137,708		193,983		112,478		71,311		40,027		69,936		485,712		1,111,155
OAEM	1,784		2,653		2,983		1,980		10,517		780		26,146		46,843
Substandard	583		5,309		7,713		2,777		1,970		5,511		7,743		31,606
Gross charge-offs	—		(6)		(6)		—		(2,363)		(1,112)		(3,937)		(7,424)
Gross recoveries	—		—		—		96		4		107		7		214
Commercial credit cards	—		—		—		—		—		—		12,934		12,934
Pass	—		—		—		—		—		—		12,934		12,934


Gross charge-offs	—		—		—		—		—		—		(63)		(63)
Gross recoveries	—		—		—		—		—		—		13		13


	September 30, 2023
	Term Loans						Revolving Loans
	2023	2022	2021	2020	2019	Prior		Total
	(dollars in thousands)
Equipment finance	122,806	67,310	—	—	—	—	—	190,116
Pass	122,806	66,929	—	—	—	—	—	189,735

Substandard	—	381	—	—	—	—	—	381
Gross charge-offs	—	(45)	—	—	—	—	—	(45)
Gross recoveries	—	—	—	—	—	—	—	—
Time and demand other	3,214	6,482	17,867	20,272	3,219	48,542	3,771	103,367
Pass	3,214	6,482	17,867	20,272	3,219	48,528	3,771	103,353

Substandard	—	—	—	—	—	14	—	14
Gross charge-offs	—	—	—	—	—	—	(1,570)	(1,570)
Gross recoveries	—	—	—	—	—	—	125	125
Construction other	60,546	174,511	193,450	43,890	21,676	14,105	697	508,875
Pass	60,546	171,223	191,772	43,890	21,676	14,105	697	503,909
OAEM	—	—	1,678	—	—	—	—	1,678
Substandard	—	3,288	—	—	—	—	—	3,288
Gross charge-offs	—	—	—	—	—	—	—	—
Gross recoveries	—	—	—	—	—	—	—	—
Construction residential	17,883	36,866	2,290	5,596	3,559	—	478	66,672
Pass	17,883	36,866	2,290	5,596	3,559	—	478	66,672


Gross charge-offs	—	—	—	—	—	—	—	—
Gross recoveries	—	—	—	—	—	—	—	—
Residential first lien	100,354	372,352	537,574	326,371	99,473	299,027	2,052	1,737,203
Pass	100,349	371,775	535,103	326,218	98,655	296,386	1,975	1,730,461
OAEM	—	—	2,059	—	124	321	77	2,581
Substandard	5	577	412	153	694	2,320	—	4,161
Gross charge-offs	—	(2)	(1)	(4)	(1)	(116)	—	(124)
Gross recoveries	—	—	—	—	—	65	—	65
Residential junior lien/home equity	49,611	72,616	46,038	2,118	2,554	5,299	499,342	677,578
Pass	49,611	72,616	46,038	2,118	2,552	5,227	495,494	673,656

Substandard	—	—	—	—	2	72	3,848	3,922
Gross charge-offs	—	—	—	—	—	—	(260)	(260)
Gross recoveries	—	—	—	—	—	—	63	63
Multifamily	5,960	156,540	141,101	97,027	32,940	101,828	2,169	537,565
Pass	5,960	156,540	141,101	97,027	32,940	101,263	2,169	537,000
OAEM	—	—	—	—	—	461	—	461
Substandard	—	—	—	—	—	104	—	104
Gross charge-offs	—	—	—	—	—	—	—	—
Gross recoveries	—	—	—	—	—	—	—	—
Nonowner occupied	142,431	418,600	170,408	163,124	232,990	670,243	8,942	1,806,738
Pass	142,431	418,118	170,408	158,484	224,009	615,790	8,877	1,738,117
OAEM	—	—	—	4,640	8,823	37,344	—	50,807
Substandard	—	482	—	—	158	17,109	65	17,814
Gross charge-offs	—	—	—	—	—	(172)	—	(172)
Gross recoveries	—	—	—	—	—	126	—	126


	September 30, 2023
	Term Loans												Revolving Loans
	2023		2022		2021		2020		2019		Prior				Total
	(dollars in thousands)
Owner occupied	79,093		165,825		139,993		82,204		61,033		166,516		11,117		705,781
Pass	79,093		165,137		134,769		77,517		45,192		163,742		11,001		676,451
OAEM	—		688		4,133		3,683		14,253		1,760		33		24,550
Substandard	—		—		1,091		1,004		1,588		1,014		83		4,780
Gross charge-offs	—		—		—		—		—		(1,517)		—		(1,517)
Gross recoveries	—		—		—		—		—		16		—		16
Automobile and recreational vehicles	356,253		495,340		254,706		127,614		42,439		9,028		—		1,285,380
Pass	356,253		495,312		254,681		127,591		42,370		8,973		—		1,285,180

Substandard	—		28		25		23		69		55		—		200
Gross charge-offs	(153)		(1,370)		(794)		(714)		(350)		(88)		—		(3,469)
Gross recoveries	1		259		255		224		246		129		—		1,114
Consumer credit cards	—		—		—		—		—		—		9,997		9,997
Pass	—		—		—		—		—		—		9,997		9,997


Gross charge-offs	—		—		—		—		—		—		(205)		(205)
Gross recoveries	—		—		—		—		—		—		63		63
Consumer other	5,387		4,741		14,055		1,651		1,613		3,799		38,669		69,915
Pass	5,387		4,741		14,055		1,651		1,613		3,799		38,667		69,913

Substandard	—		—		—		—		—		—		2		2
Gross charge-offs	—		(24)		(49)		(30)		(136)		(17)		(719)		(975)
Gross recoveries	—		1		2		8		32		55		113		211
Total loans and leases	$	1,083,613	$	2,173,128	$	1,640,656	$	945,935	$	554,010	$	1,394,614	$	1,109,769	$	8,901,725
Total charge-offs	(153)		(1,447)		(850)		(748)		(2,850)		(3,022)		(6,754)		(15,824)
Total recoveries	1		260		257		328		282		498		384		2,010


	December 31, 2022
	Term Loans												Revolving Loans
	2022		2021		2020		2019		2018		Prior				Total
	(dollars in thousands)
Time and demand	$	180,134	$	165,064	$	66,006	$	88,959	$	57,030	$	57,907	$	408,724	$	1,023,824
Pass	180,134		154,542		56,592		79,935		56,718		56,309		392,116		976,346
OAEM	—		10,489		8,387		1,846		250		895		13,522		35,389
Substandard	—		33		1,027		7,178		62		703		3,086		12,089
Commercial credit cards	—		—		—		—		—		—		13,920		13,920
Pass	—		—		—		—		—		—		13,920		13,920


Equipment finance	79,674		—		—		—		—		—		—		79,674
Pass	79,674		—		—		—		—		—		—		79,674


Time and demand other	7,172		20,281		19,626		3,823		2,885		36,197		4,304		94,288
Pass	7,172		20,281		19,626		3,823		2,885		36,162		4,304		94,253

Substandard	—		—		—		—		—		35		—		35
Construction other	81,870		179,919		85,264		23,001		24,005		1,011		369		395,439
Pass	81,870		179,919		85,264		23,001		24,005		1,011		369		395,439


Construction residential	82,829		34,783		—		31		18		—		1		117,662
Pass	82,829		34,783		—		31		18		—		1		117,662


Residential first lien	272,136		507,573		337,995		102,870		69,890		255,573		1,155		1,547,192
Pass	272,136		507,042		337,979		102,097		69,212		253,310		1,078		1,542,854
OAEM	—		164		—		133		51		250		77		675
Substandard	—		367		16		640		627		2,013		—		3,663
Residential junior lien/home equity	77,016		49,273		1,499		2,584		1,683		4,396		511,026		647,477
Pass	77,016		49,273		1,499		2,517		1,683		4,263		508,675		644,926
OAEM	—		—		—		—		—		51		10		61
Substandard	—		—		—		67		—		82		2,341		2,490
Multifamily	140,004		90,868		60,699		39,848		19,914		78,483		1,335		431,151
Pass	140,004		90,868		60,699		39,848		19,914		77,945		1,335		430,613
OAEM	—		—		—		—		—		488		—		488
Substandard	—		—		—		—		—		50		—		50
Nonowner occupied	298,751		153,918		115,947		214,068		141,814		581,060		4,789		1,510,347
Pass	298,751		153,918		115,947		212,588		113,638		541,007		3,629		1,439,478
OAEM	—		—		—		1,480		20,349		26,207		1,001		49,037
Substandard	—		—		—		—		7,827		13,846		159		21,832
Owner occupied	113,010		105,513		56,977		44,430		26,456		131,432		5,696		483,514
Pass	113,010		105,309		55,468		43,014		26,294		128,230		5,584		476,909
OAEM	—		182		745		791		92		923		33		2,766
Substandard	—		22		764		625		70		2,279		79		3,839
Automobile and recreational vehicles	613,513		330,298		172,530		68,996		20,589		4,525		—		1,210,451
Pass	613,513		330,252		172,435		68,865		20,524		4,501		—		1,210,090

Substandard	—		46		95		131		65		24		—		361
Consumer credit cards	—		—		—		—		—		—		10,657		10,657
Pass	—		—		—		—		—		—		10,657		10,657


Consumer other	6,561		17,177		2,489		3,798		1,656		4,085		40,781		76,547
Pass	6,561		17,177		2,489		3,775		1,652		4,085		40,720		76,459

Substandard	—		—		—		23		4		—		61		88
Total loans and leases	$	1,952,670	$	1,654,667	$	919,032	$	592,408	$	365,940	$	1,154,669	$	1,002,757	$	7,642,143

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, 2023 and 2022 were $13.8 million and $5.1 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, 2023 and December 31, 2022. 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, 2023
	30 - 59 days past due		60 - 89 days past due		90 days or greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	2,112	$	956	$	532	$	17,900	$	21,500	$	1,474,521	$	1,496,021
Time and demand	1,630		737		531		17,519		20,417		1,169,187		1,189,604
Commercial credit cards	97		18		—		—		115		12,819		12,934
Equipment finance	384		201		—		381		966		189,150		190,116
Time and demand other	1		—		1		—		2		103,365		103,367
Real estate construction	—		1,678		—		3,288		4,966		570,581		575,547
Construction other	—		1,678		—		3,288		4,966		503,909		508,875
Construction residential	—		—		—		—		—		66,672		66,672
Residential real estate	4,905		1,709		1,203		7,750		15,567		2,399,214		2,414,781
Residential first lien	2,665		1,306		599		3,883		8,453		1,728,750		1,737,203
Residential junior lien/home equity	2,240		403		604		3,867		7,114		670,464		677,578
Commercial real estate	2,436		294		300		18,784		21,814		3,028,270		3,050,084
Multifamily	117		—		—		68		185		537,380		537,565
Nonowner occupied	592		49		—		16,176		16,817		1,789,921		1,806,738
Owner occupied	1,727		245		300		2,540		4,812		700,969		705,781
Loans to individuals	4,260		1,607		449		202		6,518		1,358,774		1,365,292
Automobile and recreational vehicles	3,890		1,067		99		200		5,256		1,280,124		1,285,380
Consumer credit cards	37		45		—		—		82		9,915		9,997
Consumer other	333		495		350		2		1,180		68,735		69,915
Total loans and leases	$	13,713	$	6,244	$	2,484	$	47,924	$	70,365	$	8,831,360	$	8,901,725


	December 31, 2022
	30 - 59 days past due		60 - 89 days past due		90 days or greater and still accruing		Nonaccrual		Total past due and nonaccrual		Current		Total
	(dollars in thousands)
Commercial, financial, agricultural and other	$	1,233	$	279	$	355	$	2,374	$	4,241	$	1,207,465	$	1,211,706
Time and demand	1,121		270		352		2,374		4,117		1,019,707		1,023,824
Commercial credit cards	27		9		—		—		36		13,884		13,920
Equipment finance	—		—		—		—		—		79,674		79,674
Time and demand other	85		—		3		—		88		94,200		94,288
Real estate construction	502		—		—		—		502		512,599		513,101
Construction other	—		—		—		—		—		395,439		395,439
Construction residential	502		—		—		—		502		117,160		117,662
Residential real estate	3,023		1,178		811		5,683		10,695		2,183,974		2,194,669
Residential first lien	1,547		771		214		3,369		5,901		1,541,291		1,547,192
Residential junior lien/home equity	1,476		407		597		2,314		4,794		642,683		647,477
Commercial real estate	7,870		25		93		20,539		28,527		2,396,485		2,425,012
Multifamily	202		—		—		—		202		430,949		431,151
Nonowner occupied	7,547		—		92		19,575		27,214		1,483,133		1,510,347
Owner occupied	121		25		1		964		1,111		482,403		483,514
Loans to individuals	3,268		571		732		449		5,020		1,292,635		1,297,655
Automobile and recreational vehicles	2,694		368		295		361		3,718		1,206,733		1,210,451
Consumer credit cards	53		29		5		—		87		10,570		10,657
Consumer other	521		174		432		88		1,215		75,332		76,547
Total loans and leases	$	15,896	$	2,053	$	1,991	$	29,045	$	48,985	$	7,593,158	$	7,642,143

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. 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, 2023 and December 31, 2022, there were no nonperforming loans held for sale. During both the nine months ended September 30, 2023 and 2022, there were no gains 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, 2023 and December 31, 2022. 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. The increase in nonperforming loans is primarily a result of $22.0 million in loans acquired from Centric, offset by the removal of $6.4 million in accruing troubled debt restructurings ("TDR's"). The TDR's were eliminated as a result of our adoption of ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). This standard was adopted on January 1, 2023 and eliminates the accounting guidance for TDR's while enhancing disclosure requirements for loan modifications for borrowers experiencing financial difficulty.


	September 30, 2023						December 31, 2022
	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	$	2,671	$	11,142			$	3,141	$	9,555
Time and demand	2,290		10,761				3,141		9,555

Equipment finance	381		381				—		—
Time and demand other	—		—				—		—
Real estate construction	3,288		3,288				—		—
Construction other	3,288		3,288				—		—
Construction residential	—		—				—		—
Residential real estate	6,514		8,328				9,145		11,010
Residential first lien	3,883		4,970				5,754		6,848
Residential junior lien/home equity	2,631		3,358				3,391		4,162
Commercial real estate	5,114		5,847				21,505		24,119
Multifamily	68		68				—		—
Nonowner occupied	3,575		4,553				20,155		22,565
Owner occupied	1,471		1,226				1,350		1,554
Loans to individuals	202		353				528		563
Automobile and recreational vehicles	200		351				440		475

Consumer other	2		2				88		88
Subtotal	17,789		28,958				34,319		45,247
With an allowance recorded:
Commercial, financial, agricultural and other	15,229		16,562		$	11,994	1,168		1,186		$	711
Time and demand	15,229		16,562		11,994		1,168		1,186		711

Equipment finance	—		—		—		—		—		—
Time and demand other	—		—		—		—		—		—
Real estate construction	—		—		—		—		—		—
Construction other	—		—		—		—		—		—
Construction residential	—		—		—		—		—		—
Residential real estate	1,236		1,406		70		—		—		—
Residential first lien	—		—		—		—		—		—
Residential junior lien/home equity	1,236		1,406		70		—		—		—
Commercial real estate	13,670		14,459		4,162		—		—		—
Multifamily	—		—		—		—		—		—
Nonowner occupied	12,601		13,369		4,099		—		—		—
Owner occupied	1,069		1,090		63		—		—		—
Loans to individuals	—		—		—		—		—		—
Automobile and recreational vehicles	—		—		—		—		—		—

Consumer other	—		—		—		—		—		—
Subtotal	30,135		32,427		16,226		1,168		1,186		711
Total	$	47,924	$	61,385	$	16,226	$	35,487	$	46,433	$	711


	For the Nine Months Ended September 30,
	2023				2022

	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	$	3,974	$	141	$	3,762	$	88
Time and demand	3,786		141		3,762		88

Equipment finance	188		—		—		—
Time and demand other	—		—		—		—
Real estate construction	365		—		—		—
Construction other	365		—		—		—
Construction residential	—		—		—		—
Residential real estate	6,224		75		8,984		190
Residential first lien	3,602		74		5,120		139
Residential junior lien/home equity	2,622		1		3,864		51
Commercial real estate	9,253		170		16,663		89
Multifamily	30		—		230		—
Nonowner occupied	7,313		57		14,869		69
Owner occupied	1,910		113		1,564		20
Loans to individuals	428		7		435		13
Automobile and recreational vehicles	341		7		363		13

Consumer other	87		—		72		—
Subtotal	20,244		393		29,844		380
With an allowance recorded:
Commercial, financial, agricultural and other	10,190		(16)		195		—
Time and demand	10,190		(16)		195		—

Equipment finance	—		—		—		—
Time and demand other	—		—		—		—
Real estate construction	—		—		—		—
Construction other	—		—		—		—
Construction residential	—		—		—		—
Residential real estate	1,099		—		—		—
Residential first lien	—		—		—		—
Residential junior lien/home equity	1,099		—		—		—
Commercial real estate	13,134		—		6,795		—
Multifamily	—		—		—		—
Nonowner occupied	12,763		—		6,795		—
Owner occupied	371		—		—		—
Loans to individuals	—		—		—		—
Automobile and recreational vehicles	—		—		—		—

Consumer other	—		—		—		—
Subtotal	24,423		(16)		6,990		—
Total	$	44,667	$	377	$	36,834	$	380


	For the Three Months Ended September 30,
	2023				2022

	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	$	2,509	$	135		$	3,518	$	30
Time and demand	2,269		135			3,518		30

Equipment finance	240		—			—		—
Time and demand other	—		—			—		—
Real estate construction	1,096		—			—		—
Construction other	1,096		—			—		—
Construction residential	—		—			—		—
Residential real estate	6,290		35			8,981		48
Residential first lien	3,784		34			5,200		33
Residential junior lien/home equity	2,506		1			3,781		15
Commercial real estate	7,908		213			16,124		27
Multifamily	68		—			—		—
Nonowner occupied	6,498		53			14,637		18
Owner occupied	1,342		160			1,487		9
Loans to individuals	401		6			443		5
Automobile	315		6			369		5

Consumer other	86		—			74		—
Subtotal	18,204		389			29,066		110
With an allowance recorded:
Commercial, financial, agricultural and other	14,980		—			584		—
Time and demand	14,980		—			584		—

Equipment finance	—		—			—		—
Time and demand other	—		—			—		—
Real estate construction	—		—			—		—
Construction other	—		—			—		—
Construction residential	—		—			—		—
Residential real estate	1,236		—			—		—
Residential first lien	—		—			—		—
Residential junior lien/home equity	1,236		—			—		—
Commercial real estate	13,514		—			6,336		—
Multifamily	—		—			—		—
Nonowner occupied	12,601		—			6,336		—
Owner occupied	913		—			—		—
Loans to individuals	—		—			—		—
Automobile	—		—			—		—

Consumer other	—		—			—		—
Subtotal	29,730		—			6,920		—
Total	$	47,934	$	389		$	35,986	$	110

Unfunded commitments related to nonperforming loans were $0.1 million at both September 30, 2023 and December 31, 2022. After consideration of the requirements to draw and available collateral related to these commitments, it was determined that no reserve was required for these commitments at September 30, 2023 and December 31, 2022.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis. Disclosures for years prior to adoption continue to reflect TDR's as nonperforming loans and include TDR disclosures required under the previous guidance. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective loan segment and an allowance is determined by a loss given default and probability of default methodology.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal forgiveness, other- than-insignificant payment delay, term extensions or any combination thereof.

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty:


	For the Nine Months Ended September 30, 2023
	Rate Reduction		Term Extension		Principal Forgiveness		Term Extension and Payment Deferral		Total		Percentage of Total Loans and Leases
	(dollars in thousands)




Residential real estate	$	22	$	305	$	—	$	305	$	632	0.03	%
Residential first lien	22		305		—		305		632		0.04









Total	$	22	$	305	$	—	$	305	$	632	0.01	%



	For the Three Months Ended September 30, 2023
	Rate Reduction		Term Extension		Principal Forgiveness		Term Extension and Payment Deferral		Total		Percentage of Total Loans and Leases
	(dollars in thousands)




Residential real estate	$	—	$	144	$	—	$	63	$	207	0.01	%
Residential first lien	—		144		—		63		207		0.01









Total	$	—	$	144	$	—	$	63	$	207	—	%

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:


	For the Nine Months Ended September 30, 2023
	Rate Reduction		Term Extension (Years)	Principal Forgiveness		Payment Deferral (Years)
	(dollars in thousands)




Residential real estate	2.25	%	2.8	$	—	0.5
Residential first lien	2.25		2.8	—		0.5









Total	2.25	%	2.8	$	—	0.5


	For the Three Months Ended September 30, 2023
	Rate Reduction		Term Extension (Years)	Principal Forgiveness		Payment Deferral (Years)
	(dollars in thousands)




Residential real estate	—	%	2.2	$	—	0.5
Residential first lien	—		2.2	—		0.5









Total	—	%	2.2	$	—	0.5

A modification is considered to be in default when the loan is 90 days or more past due. For the nine months ended September 30, 2023, there were no modified loans that were considered to be in default. The following table shows the payment status of loans that have been modified on or after January 1, 2023, the date we adopted ASU 2022-02:


	September 30, 2023
	Current		30 - 59 days past due		60 - 89 days past due		90 days or greater and still accruing		Total
	(dollars in thousands)








Residential real estate	$	632	$	—	$	—	$	—	$	632
Residential first lien	632		—		—		—		632









Total loans and leases	$	632	$	—	$	—	$	—	$	632

Troubled Debt Restructurings Disclosures Prior to Adoption of ASU 2022-02

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 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 estate	2	$	—	$	10	$	59	$	69	$	68	$	—
Residential first lien	2	—		10		59		69		68		—









Total	2	$	—	$	10	$	59	$	69	$	68	$	—

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, $10 thousand in rate modifications represent loans with modifications to the rate as well as payment as a result of re-amortization. The changes in loan balances between the pre-modification balance and the post-modification balance are due to customer payments.

A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. For both the three and nine months ended September 30, 2022, there were no loans restructured within the past twelve months that were considered to be in default.

The following tables provide detail related to the allowance for credit losses:


	For the Nine Months Ended September 30, 2023
	Beginning balance		Allowance for credit loss on PCD acquired loans		Charge-offs		Recoveries		Provision (credit)a		Ending balance
	(dollars in thousands)
Commercial, financial, agricultural and other	$	22,650	$	19,417	$	(9,102)	$	352	$	4,088	$	37,405
Time and demand	20,040		19,417		(7,424)		214		804		33,051
Commercial credit cards	335		—		(63)		13		22		307
Equipment finance	1,086		—		(45)		—		1,586		2,627
Time and demand other	1,189		—		(1,570)		125		1,676		1,420
Real estate construction	8,822		287		—		—		(605)		8,504
Construction other	6,360		227		—		—		765		7,352
Construction residential	2,462		60		—		—		(1,370)		1,152
Residential real estate	21,412		527		(384)		128		2,257		23,940
Residential first lien	14,822		197		(124)		65		2,071		17,031
Residential junior lien/home equity	6,590		330		(260)		63		186		6,909
Commercial real estate	28,804		6,971		(1,689)		142		8,871		43,099
Multifamily	4,726		234		—		—		861		5,821
Nonowner occupied	16,426		2,739		(172)		126		6,373		25,492
Owner occupied	7,652		3,998		(1,517)		16		1,637		11,786
Loans to individuals	21,218		3		(4,649)		1,388		3,429		21,389
Automobile and recreational vehicles	18,819		3		(3,469)		1,114		2,823		19,290
Consumer credit cards	412		—		(205)		63		100		370
Consumer other	1,987		—		(975)		211		506		1,729
Total loans and leases	$	102,906	$	27,205	$	(15,824)	$	2,010	$	18,040	$	134,337

a) The provision expense (credit) shown here includes the day 1 provision on non-PCD loans acquired from Centric and excludes the provision for off-balance sheet credit exposure included in the income statement.


	For the Nine Months Ended September 30, 2022
	Beginning balance		Charge-offs		Recoveries		Provision (credit)a		Ending balance
	(dollars in thousands)
Commercial, financial, agricultural and other	$	18,093	$	(1,836)	$	313	$	5,902	$	22,472
Time and demand	15,283		(604)		155		5,712		20,546
Commercial credit cards	247		(209)		68		194		300
Equipment finance	—		—		—		569		569
Time and demand other	2,563		(1,023)		90		(573)		1,057
Real estate construction	4,220		—		9		2,682		6,911
Construction other	3,278		—		9		1,736		5,023
Construction residential	942		—		—		946		1,888
Residential real estate	12,625		(263)		143		6,798		19,303
Residential first lien	7,459		(124)		112		5,562		13,009
Residential junior lien/home equity	5,166		(139)		31		1,236		6,294
Commercial real estate	33,376		(1,887)		351		(3,941)		27,899
Multifamily	3,561		(411)		1		1,273		4,424
Nonowner occupied	24,838		(1,236)		340		(7,940)		16,002
Owner occupied	4,977		(240)		10		2,726		7,473
Loans to individuals	24,208		(3,113)		1,160		(2,747)		19,508
Automobile and recreational vehicles	21,392		(1,515)		699		(3,416)		17,160
Consumer credit cards	496		(415)		53		255		389
Consumer other	2,320		(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 Three Months Ended September 30, 2023
	Beginning balance		Allowance for credit loss on PCD acquired loans		Charge-offs		Recoveries		Provision (credit)a		Ending balance
	(dollars in thousands)
Commercial, financial, agricultural and other	$	41,714	$	—	$	(1,762)	$	98	$	(2,645)	$	37,405
Time and demand	37,873		—		(954)		46		(3,914)		33,051

Commercial credit cards	320		—		(28)		6		9		307
Equipment finance	2,074		—		—		—		553		2,627
Time and demand other	1,447		—		(780)		46		707		1,420
Real estate construction	7,728		—		—		—		776		8,504
Construction other	6,145		—		—		—		1,207		7,352
Construction residential	1,583		—		—		—		(431)		1,152
Residential real estate	23,740		—		(304)		57		447		23,940
Residential first lien	16,563		—		(107)		22		553		17,031
Residential junior lien/home equity	7,177		—		(197)		35		(106)		6,909
Commercial real estate	38,927		—		(172)		6		4,338		43,099
Multifamily	5,775		—		—		—		46		5,821
Nonowner occupied	21,710		—		(172)		2		3,952		25,492
Owner occupied	11,442		—		—		4		340		11,786
Loans to individuals	21,437		—		(2,360)		461		1,851		21,389
Automobile and recreational vehicles	19,258		—		(1,883)		412		1,503		19,290
Consumer credit cards	375		—		(59)		16		38		370
Consumer other	1,804		—		(418)		33		310		1,729
Total loans and leases	$	133,546	$	—	$	(4,598)	$	622	$	4,767	$	134,337

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 balance		Charge-offs		Recoveries		Provision (credit)a		Ending balance
	(dollars in thousands)
Commercial, financial, agricultural and other	$	21,989	$	(852)	$	154	$	1,181	$	22,472
Time and demand	19,921		(321)		77		869		20,546
Commercial credit cards	387		(132)		42		3		300
Equipment finance	272		—		—		297		569
Time and demand other	1,409		(399)		35		12		1,057
Real estate construction	5,529		—		9		1,373		6,911
Construction other	3,600		—		9		1,414		5,023
Construction residential	1,929		—		—		(41)		1,888
Residential real estate	17,747		(119)		83		1,592		19,303
Residential first lien	11,860		(79)		67		1,161		13,009
Residential junior lien/home equity	5,887		(40)		16		431		6,294
Commercial real estate	31,387		(1,335)		332		(2,485)		27,899
Multifamily	3,555		—		1		868		4,424
Nonowner occupied	20,953		(1,095)		330		(4,186)		16,002
Owner occupied	6,879		(240)		1		833		7,473
Loans to individuals	16,951		(1,064)		331		3,290		19,508
Automobile and recreational vehicles	14,563		(538)		156		2,979		17,160
Consumer credit cards	312		(182)		15		244		389
Consumer other	2,076		(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.

Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance


	September 30, 2023						December 31, 2022
	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	$	2,671	$	11,142			$	3,141	$	9,555
Time and demand	2,290		10,761				3,141		9,555

Equipment finance	381		381				—		—
Time and demand other	—		—				—		—
Real estate construction	3,288		3,288				—		—
Construction other	3,288		3,288				—		—
Construction residential	—		—				—		—
Residential real estate	6,514		8,328				9,145		11,010
Residential first lien	3,883		4,970				5,754		6,848
Residential junior lien/home equity	2,631		3,358				3,391		4,162
Commercial real estate	5,114		5,847				21,505		24,119
Multifamily	68		68				—		—
Nonowner occupied	3,575		4,553				20,155		22,565
Owner occupied	1,471		1,226				1,350		1,554
Loans to individuals	202		353				528		563
Automobile and recreational vehicles	200		351				440		475

Consumer other	2		2				88		88
Subtotal	17,789		28,958				34,319		45,247
With an allowance recorded:
Commercial, financial, agricultural and other	15,229		16,562		$	11,994	1,168		1,186		$	711
Time and demand	15,229		16,562		11,994		1,168		1,186		711

Equipment finance	—		—		—		—		—		—
Time and demand other	—		—		—		—		—		—
Real estate construction	—		—		—		—		—		—
Construction other	—		—		—		—		—		—
Construction residential	—		—		—		—		—		—
Residential real estate	1,236		1,406		70		—		—		—
Residential first lien	—		—		—		—		—		—
Residential junior lien/home equity	1,236		1,406		70		—		—		—
Commercial real estate	13,670		14,459		4,162		—		—		—
Multifamily	—		—		—		—		—		—
Nonowner occupied	12,601		13,369		4,099		—		—		—
Owner occupied	1,069		1,090		63		—		—		—
Loans to individuals	—		—		—		—		—		—
Automobile and recreational vehicles	—		—		—		—		—		—

Consumer other	—		—		—		—		—		—
Subtotal	30,135		32,427		16,226		1,168		1,186		711
Total	$	47,924	$	61,385	$	16,226	$	35,487	$	46,433	$	711


	For the Nine Months Ended September 30,
	2023				2022

	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	$	3,974	$	141	$	3,762	$	88
Time and demand	3,786		141		3,762		88

Equipment finance	188		—		—		—
Time and demand other	—		—		—		—
Real estate construction	365		—		—		—
Construction other	365		—		—		—
Construction residential	—		—		—		—
Residential real estate	6,224		75		8,984		190
Residential first lien	3,602		74		5,120		139
Residential junior lien/home equity	2,622		1		3,864		51
Commercial real estate	9,253		170		16,663		89
Multifamily	30		—		230		—
Nonowner occupied	7,313		57		14,869		69
Owner occupied	1,910		113		1,564		20
Loans to individuals	428		7		435		13
Automobile and recreational vehicles	341		7		363		13

Consumer other	87		—		72		—
Subtotal	20,244		393		29,844		380
With an allowance recorded:
Commercial, financial, agricultural and other	10,190		(16)		195		—
Time and demand	10,190		(16)		195		—

Equipment finance	—		—		—		—
Time and demand other	—		—		—		—
Real estate construction	—		—		—		—
Construction other	—		—		—		—
Construction residential	—		—		—		—
Residential real estate	1,099		—		—		—
Residential first lien	—		—		—		—
Residential junior lien/home equity	1,099		—		—		—
Commercial real estate	13,134		—		6,795		—
Multifamily	—		—		—		—
Nonowner occupied	12,763		—		6,795		—
Owner occupied	371		—		—		—
Loans to individuals	—		—		—		—
Automobile and recreational vehicles	—		—		—		—

Consumer other	—		—		—		—
Subtotal	24,423		(16)		6,990		—
Total	$	44,667	$	377	$	36,834	$	380


	For the Three Months Ended September 30,
	2023				2022

	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	$	2,509	$	135		$	3,518	$	30
Time and demand	2,269		135			3,518		30

Equipment finance	240		—			—		—
Time and demand other	—		—			—		—
Real estate construction	1,096		—			—		—
Construction other	1,096		—			—		—
Construction residential	—		—			—		—
Residential real estate	6,290		35			8,981		48
Residential first lien	3,784		34			5,200		33
Residential junior lien/home equity	2,506		1			3,781		15
Commercial real estate	7,908		213			16,124		27
Multifamily	68		—			—		—
Nonowner occupied	6,498		53			14,637		18
Owner occupied	1,342		160			1,487		9
Loans to individuals	401		6			443		5
Automobile	315		6			369		5

Consumer other	86		—			74		—
Subtotal	18,204		389			29,066		110
With an allowance recorded:
Commercial, financial, agricultural and other	14,980		—			584		—
Time and demand	14,980		—			584		—

Equipment finance	—		—			—		—
Time and demand other	—		—			—		—
Real estate construction	—		—			—		—
Construction other	—		—			—		—
Construction residential	—		—			—		—
Residential real estate	1,236		—			—		—
Residential first lien	—		—			—		—
Residential junior lien/home equity	1,236		—			—		—
Commercial real estate	13,514		—			6,336		—
Multifamily	—		—			—		—
Nonowner occupied	12,601		—			6,336		—
Owner occupied	913		—			—		—
Loans to individuals	—		—			—		—
Automobile	—		—			—		—

Consumer other	—		—			—		—
Subtotal	29,730		—			6,920		—
Total	$	47,934	$	389		$	35,986	$	110