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Loans (Tables)

12 Months Ended

Dec. 31, 2022

Loans were comprised of the following classifications at December 31:


	2022		2021
Commercial:
Commercial and Industrial Loans	$	620,106	$	493,005
Commercial Real Estate Loans	1,966,884		1,530,677
Agricultural Loans	417,413		358,150
Leases	56,396		55,345
Retail:
Home Equity Loans	279,748		222,525
Consumer Loans	79,904		70,302
Credit Cards	17,512		14,357
Residential Mortgage Loans	350,682		263,565
Subtotal	3,788,645		3,007,926
Less: Unearned Income	(3,711)		(3,662)
Allowance for Credit Losses	(44,168)		(37,017)
Loans, net	$	3,740,766	$	2,967,247

The table above includes $21,149 and $9,861 of purchase credit deteriorated loans as of December 31, 2022 and 2021, respectively.

Business Combination, Acquired Receivables

The table below summarizes the loans acquired on January 1, 2022.


	Acquired Loan Balance		Fair Value Discounts		Fair Value

Bank Acquisition	$	683,501	$	(5,359)	$	678,142

The table below summarizes the remaining carrying amount of acquired loans included in the December 31, 2022 table above.


	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total

Loan Balance	$	48,330	$	319,893	$	46,181	$	—	$	10,249	$	21,766	$	—	$	70,250	$	516,669
Fair Value (Discount)/Premium	(1,051)		(1,893)		172		—		(45)		(176)		—		477		(2,516)

The Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans is as follow:


	2022
Purchase Price of Loans at Acquisition	$	32,997
Allowance for Credit Losses at Acquisition	3,117
Non-Credit Discount/(Premium) at Acquisition	1,456
Total	$	37,570

Schedule of Allowance for Credit Losses For Loans

The following tables present the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2022 and 2021:


December 31, 2022	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Unallocated		Total
Allowance for Credit Losses:
Beginning Balance	$	9,554	$	19,245	$	4,505	$	200	$	507	$	1,061	$	240	$	1,705	$	—	$	37,017
Acquisition of Citizens Union Bank of Shelbyville, KY - PCD Loans	376		1,945		689		—		2		—		—		105		—		3,117
Provision (Benefit) for Credit Losses	4,942		463		(1,006)		9		991		351		163		437		—		6,350
Loans Charged-off	(1,149)		(79)		—		—		(1,364)		(69)		(165)		(24)		—		(2,850)
Recoveries Collected	26		24		—		—		459		1		19		5		—		534
Total Ending Allowance Balance	$	13,749	$	21,598	$	4,188	$	209	$	595	$	1,344	$	257	$	2,228	$	—	$	44,168


December 31, 2021	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Unallocated		Total
Allowance for Credit Losses:
Beginning Balance	$	6,445	$	29,878	$	6,756	$	200	$	490	$	996	$	150	$	1,944	$	—	$	46,859
Provision (Benefit) for Credit Losses	5,825		(10,663)		(2,251)		—		385		44		387		(227)		—		(6,500)
Loans Charged-off	(2,777)		(10)		—		—		(675)		(15)		(313)		(45)		—		(3,835)
Recoveries Collected	61		40		—		—		307		36		16		33		—		493
Total Ending Allowance Balance	$	9,554	$	19,245	$	4,505	$	200	$	507	$	1,061	$	240	$	1,705	$	—	$	37,017


December 31, 2020	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Unallocated		Total
Allowance for Credit Losses:
Beginning balance Prior to Adoption of ASC 326	$	4,799	$	4,692	$	5,315	$	—	$	434	$	200	$	—	$	333	$	505	$	16,278
Impact of Adopting ASC 326	2,245		3,063		1,438		105		(59)		762		124		1,594		(505)		8,767
Impact of Adopting ASC 326 - PCD Loans	2,191		4,385		128		—		—		35		—		147		—		6,886
Provision (Benefit) for Credit Losses	(694)		17,645		(125)		95		527		66		131		(95)		—		17,550
Initial Allowance on Loans Purchased with Credit Deterioration	—		—		—		—		—		—		—		—		—		—
Loans Charged-off	(2,119)		(36)		—		—		(766)		(67)		(109)		(39)		—		(3,136)
Recoveries Collected	23		129		—		—		354		—		4		4		—		514
Total Ending Allowance Balance	$	6,445	$	29,878	$	6,756	$	200	$	490	$	996	$	150	$	1,944	$	—	$	46,859

Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of December 31, 2022 and 2021:


December 31, 2022	Non-Accrual With No Allowance for Credit Loss ⁽¹⁾		Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,142	$	7,936	$	1,427
Commercial Real Estate Loans	49		1,950		—
Agricultural Loans	994		1,062		—
Leases	—		—		—
Home Equity Loans	262		310		—
Consumer Loans	240		254		—
Credit Cards	146		146		—
Residential Mortgage Loans	676		1,230		—
Total	$	3,509	$	12,888	$	1,427

(1) Includes non-accrual loans with no allowance for credit loss and are also included in Non-Accrual loans totaling $12,888.


December 31, 2021	Non-Accrual With No Allowance for Credit Loss ⁽¹⁾		Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,989	$	10,530	$	—
Commercial Real Estate Loans	145		2,243		156
Agricultural Loans	1,041		1,136		—
Leases	—		—		—
Home Equity Loans	1		24		—
Consumer Loans	16		18		—
Credit Cards	64		64		—
Residential Mortgage Loans	587		587		—
Total	$	3,843	$	14,602	$	156

(1) Includes non-accrual loans with no allowance for credit loss and are also included in Non-Accrual loans totaling $14,602

Schedule of Collateral-dependent Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2022 and 2021:


December 31, 2022	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	2,078	$	1,219	$	272	$	5,851	$	9,420
Commercial Real Estate Loans	12,192		36		—		—		12,228
Agricultural Loans	4,944		318		—		—		5,262
Leases	—		—		—		—		—
Home Equity Loans	467		—		—		—		467
Consumer Loans	8		2		—		12		22
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	1,060		—		—		—		1,060
Total	$	20,749	$	1,575	$	272	$	5,863	$	28,459


December 31, 2021	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	1,716	$	2,444	$	549	$	5,822	$	10,531
Commercial Real Estate Loans	4,610		—		—		—		4,610
Agricultural Loans	1,522		—		—		—		1,522
Leases	—		—		—		—		—
Home Equity Loans	441		—		—		—		441
Consumer Loans	6		—		—		2		8
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	652		—		—		—		652
Total	$	8,947	$	2,444	$	549	$	5,824	$	17,764

Schedule of Aging of Past Due Loans

The following tables present the aging of the amortized cost basis in past due loans by class of loans as of December 31, 2022 and 2021:


December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total

Commercial and Industrial Loans	$	268	$	681	$	8,285	$	9,234	$	610,872	$	620,106
Commercial Real Estate Loans	1,617		14		616		2,247		1,964,637		1,966,884
Agricultural Loans	343		—		123		466		416,947		417,413
Leases	—		—		—		—		56,396		56,396
Home Equity Loans	1,770		140		310		2,220		277,528		279,748
Consumer Loans	219		64		252		535		79,369		79,904
Credit Cards	86		24		146		256		17,256		17,512
Residential Mortgage Loans	6,330		2,783		1,051		10,164		340,518		350,682
Total	$	10,633	$	3,706	$	10,783	$	25,122	$	3,763,523	$	3,788,645


December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total

Commercial and Industrial Loans	$	12	$	—	$	6,147	$	6,159	$	486,846	$	493,005
Commercial Real Estate Loans	—		5		891		896		1,529,781		1,530,677
Agricultural Loans	—		—		—		—		358,150		358,150
Leases	—		—		—		—		55,345		55,345
Home Equity Loans	225		229		25		479		222,046		222,525
Consumer Loans	158		58		4		220		70,082		70,302
Credit Cards	61		9		64		134		14,223		14,357
Residential Mortgage Loans	2,726		507		369		3,602		259,963		263,565
Total	$	3,182	$	808	$	7,500	$	11,490	$	2,996,436	$	3,007,926

Schedule of Risk Category of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	156,318	$	117,648	$	39,949	$	46,505	$	18,423	$	51,482	$	154,203	$	584,528
Special Mention	56		148		577		78		551		2,346		1,672		5,428
Substandard	1,714		5,629		849		1,304		1,028		2,237		17,389		30,150
Doubtful	—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	158,088	$	123,425	$	41,375	$	47,887	$	20,002	$	56,065	$	173,264	$	620,106

Commercial Real Estate:
Risk Rating
Pass	$	398,631	$	490,747	$	261,462	$	162,701	$	129,151	$	427,433	$	35,163	$	1,905,288
Special Mention	3,982		1,568		4,612		135		13,689		25,371		—		49,357
Substandard	—		4,628		489		1,415		979		4,728		—		12,239
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	402,613	$	496,943	$	266,563	$	164,251	$	143,819	$	457,532	$	35,163	$	1,966,884

Agricultural:
Risk Rating
Pass	$	62,673	$	47,682	$	47,355	$	25,431	$	21,728	$	92,344	$	83,862	$	381,075
Special Mention	634		842		6,066		4,149		2,355		11,440		4,310		29,796
Substandard	—		210		628		429		85		5,190		—		6,542
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	63,307	$	48,734	$	54,049	$	30,009	$	24,168	$	108,974	$	88,172	$	417,413

Leases:
Risk Rating
Pass	$	20,057	$	14,461	$	9,648	$	8,901	$	1,851	$	1,478	$	—	$	56,396
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	20,057	$	14,461	$	9,648	$	8,901	$	1,851	$	1,478	$	—	$	56,396


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2021	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	141,133	$	57,477	$	60,883	$	29,005	$	15,936	$	48,559	$	122,377	$	475,370
Special Mention	115		128		227		649		7		918		1,510		3,554
Substandard	100		1,221		—		1,062		1,378		2,457		7,863		14,081
Doubtful	—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	141,348	$	58,826	$	61,110	$	30,716	$	17,321	$	51,934	$	131,750	$	493,005

Commercial Real Estate:
Risk Rating
Pass	$	404,175	$	264,011	$	164,204	$	131,746	$	139,788	$	336,066	$	26,697	$	1,466,687
Special Mention	2,279		—		710		14,426		17,356		13,916		—		48,687
Substandard	74		—		7,687		1,528		—		6,014		—		15,303
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	406,528	$	264,011	$	172,601	$	147,700	$	157,144	$	355,996	$	26,697	$	1,530,677

Agricultural:
Risk Rating
Pass	$	44,510	$	45,101	$	22,482	$	24,187	$	24,325	$	71,268	$	81,011	$	312,884
Special Mention	1,714		5,346		5,503		3,025		6,438		6,624		8,271		36,921
Substandard	—		—		63		385		1,048		6,849		—		8,345
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	46,224	$	50,447	$	28,048	$	27,597	$	31,811	$	84,741	$	89,282	$	358,150

Leases:
Risk Rating
Pass	$	19,689	$	12,706	$	12,990	$	5,599	$	2,473	$	1,888	$	—	$	55,345
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	19,689	$	12,706	$	12,990	$	5,599	$	2,473	$	1,888	$	—	$	55,345

Schedule of Residential, Home Equity And Consumer Loans Based on Payment Activity

The following tables present the amortized cost in residential, home equity and consumer loans based on payment activity.


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	42,685	$	22,708	$	5,610	$	2,394	$	1,543	$	1,553	$	3,157	$	79,650
Nonperforming	3		19		212		8		2		10		—		254
Total Consumer Loans	$	42,688	$	22,727	$	5,822	$	2,402	$	1,545	$	1,563	$	3,157	$	79,904

Home Equity:
Payment performance
Performing	$	63	$	—	$	—	$	—	$	—	$	591	$	278,784	$	279,438
Nonperforming	—		20		—		—		19		1		270		310
Total Home Equity Loans	$	63	$	20	$	—	$	—	$	19	$	592	$	279,054	$	279,748

Residential Mortgage:
Payment performance
Performing	$	69,982	$	97,176	$	46,851	$	20,080	$	16,664	$	98,699	$	—	$	349,452
Nonperforming	—		161		253		—		78		738		—		1,230
Total Residential Mortgage Loans	$	69,982	$	97,337	$	47,104	$	20,080	$	16,742	$	99,437	$	—	$	350,682


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2021	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	39,923	$	15,900	$	4,325	$	4,531	$	600	$	1,655	$	3,350	$	70,284
Nonperforming	3		—		—		—		—		15		—		18
Total Consumer Loans	$	39,926	$	15,900	$	4,325	$	4,531	$	600	$	1,670	$	3,350	$	70,302

Home Equity:
Payment performance
Performing	$	—	$	—	$	—	$	21	$	—	$	835	$	221,644	$	222,500
Nonperforming	—		—		—		—		—		1		24		25
Total Home Equity Loans	$	—	$	—	$	—	$	21	$	—	$	836	$	221,668	$	222,525

Residential Mortgage:
Payment performance
Performing	$	84,809	$	38,717	$	15,244	$	17,369	$	19,688	$	87,164	$	—	$	262,991
Nonperforming	—		—		—		—		—		574		—		574
Total Residential Mortgage Loans	$	84,809	$	38,717	$	15,244	$	17,369	$	19,688	$	87,738	$	—	$	263,565

Schedule of Retail Loans Based on Payment Activity

The following table presents the recorded investment in retail loans based on payment activity:


Credit Cards	December 31, 2022		December 31, 2021

Performing	$	17,366	$	14,293
Nonperforming	146		64
Total	$	17,512	$	14,357

Schedule of Loans Purchased and/or Sold During the Year

The following table presents loans purchased and/or sold during the year by portfolio segment:


	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
December 31, 2022
Purchases	$	522	$	411	$	—	$	—	$	—	$	—	$	—	$	—	$	933
Sales	—		3,819		97		—		—		—		—		—		3,916

December 31, 2021
Purchases	$	—	$	2,271	$	—	$	—	$	—	$	—	$	—	$	—	$	2,271
Sales	2,273		15,415		111		—		—		—		—		—		17,799

Schedule of Loans to Directors, Executive Officers and Principal Shareholders

Certain directors, executive officers, and principal shareholders of the Company, including their immediate families and companies in which they are principal owners, were loan customers of the Company during 2022. A summary of the activity of these loans follows:


Balance January 1, 2022		Additions		Changes in Persons or Interests Included		Deductions				Balance December 31, 2022
						Collected		Charged-off

$	46,737	$	20,132	$	(24)	$	(15,759)	$	—	$	51,086