10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2020

Commission File Number 0-16759

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter) 

INDIANA	35-1546989
(State or other jurisdiction	(I.R.S. Employer
incorporation or organization)	Identification No.)
One First Financial Plaza, Terre Haute, IN	47807
(Address of principal executive office)	(Zip Code)
(812)238-6000
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý  No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Yes ý   No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer (Do not check if a smaller reporting company)	¨	Smaller reporting company	¨
Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No ý.

As of May 4, 2020, the registrant had outstanding 13,714,524 shares of common stock, without par value.

FIRST FINANCIAL CORPORATION

FORM 10-Q

INDEX 

	Page No.
PART I.  Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets	3
Consolidated Statements of Income and Comprehensive Income	4
Consolidated Statements of Shareholders’ Equity	5
Consolidated Statements of Cash Flows	6
Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.  Quantitative and Qualitative Disclosures about Market Risk	38
Item 4.  Controls and Procedures	41
PART II. Other Information:
Item 1. Legal Proceedings	42
Item 1A. Risk Factors	42
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.  Defaults upon Senior Securities	43
Item 4.  Mine Safety Disclosures	43
Item 5.  Other Information	43
Item 6.  Exhibits	44
Signatures	45

2

Part I – Financial Information

Item 1. Financial Statements

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)

	March 31, 2020			December 31, 2019
	(unaudited)
ASSETS
Cash and due from banks	$	211,034		$	127,426
Federal funds sold	1			7,500
Securities available-for-sale	932,041			926,717
Loans:
Commercial	1,567,340			1,584,447
Residential	663,060			682,077
Consumer	387,980			386,006
	2,618,380			2,652,530
(Less) plus:
Net deferred loan costs	4,257			3,860
Allowance for loan losses	(21,063		)	(19,943		)
	2,601,574			2,636,447
Restricted stock	15,400			15,394
Accrued interest receivable	17,098			18,523
Premises and equipment, net	63,140			62,576
Bank-owned life insurance	94,633			94,251
Goodwill	78,592			78,592
Other intangible assets	10,236			10,643
Other real estate owned	3,894			3,625
Other assets	34,771			41,556
TOTAL ASSETS	$	4,062,414		$	4,023,250
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	531,758		$	547,189
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	118,162			126,738
Other interest-bearing deposits	2,641,311			2,601,430
	3,291,231			3,275,357
Short-term borrowings	83,784			80,119
Other borrowings	27,494			30,973
Other liabilities	78,134			79,193
TOTAL LIABILITIES	3,480,643			3,465,642
Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,075,154 in 2020 and 16,055,466 in 2019
Outstanding shares-13,714,524 in 2020 and 13,741,825 in 2019	2,005			2,005
Additional paid-in capital	139,898			139,694
Retained earnings	504,236			492,055
Accumulated other comprehensive income/(loss)	6,001			(7,501		)
Less: Treasury shares at cost-2,360,630 in 2020 and 2,313,641 in 2019	(70,369		)	(68,645		)
TOTAL SHAREHOLDERS’ EQUITY	581,771			557,608
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,062,414		$	4,023,250

See accompanying notes. 

3

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data) 

	Three Months Ended   March 31,
	2020			2019
	(unaudited)			(unaudited)
INTEREST INCOME:
Loans, including related fees	$	35,034		$	26,754
Securities:
Taxable	4,029			3,681
Tax-exempt	1,938			1,867
Other	402			314
TOTAL INTEREST INCOME	41,403			32,616
INTEREST EXPENSE:
Deposits	4,530			2,817
Short-term borrowings	267			323
Other borrowings	256			50
TOTAL INTEREST EXPENSE	5,053			3,190
NET INTEREST INCOME	36,350			29,426
Provision for loan losses	2,690			1,470
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES	33,660			27,956
NON-INTEREST INCOME:
Trust and financial services	1,534			1,204
Service charges and fees on deposit accounts	2,998			2,624
Other service charges and fees	3,330			3,114
Securities gains (losses), net	194			(4		)
Gain on sales of mortgage loans	698			420
Other	341			278
TOTAL NON-INTEREST INCOME	9,095			7,636
NON-INTEREST EXPENSE:
Salaries and employee benefits	15,972			12,755
Occupancy expense	1,929			1,815
Equipment expense	2,461			1,817
FDIC Expense	(230		)	140
Other	7,422			7,166
TOTAL NON-INTEREST EXPENSE	27,554			23,693
INCOME BEFORE INCOME TAXES	15,201			11,899
Provision for income taxes	3,020			2,217
NET INCOME	12,181			9,682
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes	13,098			10,224
Change in funded status of post retirement benefits, net of taxes	404			303
COMPREHENSIVE INCOME	$	25,683		$	20,209
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.89		$	0.79
Weighted average number of shares outstanding (in thousands)	13,740			12,282

See accompanying notes.

4

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended

March 31, 2020, and 2019

(Dollar amounts in thousands, except per share data)

(Unaudited)

	Common Stock		Additional Capital		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)			Treasury Stock			Total
Balance, January 1, 2019	$	1,824	$	76,774	$	456,716	$	(23,454	)	$	(69,159	)	$	442,701
Net income	—		—		9,682		—			—			9,682
Other comprehensive income	—		—		—		10,527			—			10,527
Omnibus Equity Incentive Plan	1		200		—		—			—			201
Treasury shares purchased (7,866 shares)	—		—		—		—			(315		)	(315		)
Balance, March 31, 2019	$	1,825	$	76,974	$	466,398	$	(12,927	)	$	(69,474	)	$	462,796
Balance, January 1, 2020	$	2,005	$	139,694	$	492,055	$	(7,501	)	$	(68,645	)	$	557,608
Net income	—		—		12,181		—			—			12,181
Other comprehensive income	—		—		—		13,502			—			13,502
Omnibus Equity Incentive Plan	—		204		—		—			—			204
Treasury shares purchased (46,989 shares)	—		—		—		—			(1,724		)	(1,724		)
Balance, March 31, 2020	$	2,005	$	139,898	$	504,236	$	6,001		$	(70,369	)	$	581,771

See accompanying notes.

5

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)  

	Three Months Ended   March 31,
	2020			2019
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	12,181		$	9,682
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	1,462			900
Provision for loan losses	2,690			1,470
Securities (gains) losses	(194		)	4
Gain on sales of mortgage loans	(698		)	(420		)
(Gain) Loss on sale of other real estate	23			8
Restricted stock compensation	204			201
Depreciation and amortization	1,400			1,000
Other, net	8,611			1,185
NET CASH FROM OPERATING ACTIVITIES	25,679			14,030
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available-for-sale	27,604			—
Calls, maturities and principal reductions on securities available-for-sale	46,517			27,321
Purchases of securities available-for-sale	(63,516		)	(16,214		)
Loans made to customers, net of repayment	33,764			(30,828		)
Purchase of restricted stock	(6		)	(22		)
Proceeds from sales of other real estate owned	44			13
Net change in federal funds sold	7,499			(2,000		)
Additions to premises and equipment	(1,557		)	(309		)
NET CASH FROM INVESTING ACTIVITIES	50,349			(22,039		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	16,281			(17,171		)
Net change in short-term borrowings	3,665			(13,008		)
Maturities of other borrowings	(5,000		)	(92,000		)
Proceeds from other borrowings	1,500			117,000
Purchase of treasury stock	(1,724		)	(315		)
Dividends paid	(7,142		)	(6,258		)
NET CASH FROM FINANCING ACTIVITIES	7,580			(11,752		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	83,608			(19,761		)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD	127,426			74,388
CASH AND DUE FROM BANKS, END OF PERIOD	$	211,034		$	54,627

See accompanying notes.

6

FIRST FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying March 31, 2020 and 2019 consolidated financial statements are unaudited. The December 31, 2019 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2019 annual report. The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2019. 

1. Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market.

 The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. For the three months ended 2020 and 2019, 19,688 and 19,783 shares were awarded, respectively. These shares had a grant date value of $837 thousand and $841 thousand for 2020 and 2019, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

The extent to which the COVID-19 pandemic impacts the Corporation’s business, liquidity, asset valuations, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Moreover, the effects of the COVID-19 pandemic may have a material adverse effect on all or a combination of valuation impairments on the Corporation's intangible assets, investments, loans, or deferred tax assets.

7

2. Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended March 31. 

Allowance for Loan Losses:	March 31, 2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	8,945		$	1,302		$	8,304		$	1,392	$	19,943
Provision for loan losses	520			251			1,780			139		2,690
Loans charged -off	(533		)	(257		)	(2,114		)	—		(2,904		)
Recoveries	391			156			787			—		1,334
Ending Balance	$	9,323		$	1,452		$	8,757		$	1,531	$	21,063

Allowance for Loan Losses:	March 31, 2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	9,848		$	1,313		$	7,481		$	1,794	$	20,436
Provision for loan losses	(640		)	296			941			873		1,470
Loans charged -off	(256		)	(302		)	(1,551		)	—		(2,109		)
Recoveries	287			185			691			—		1,163
Ending Balance	$	9,239		$	1,492		$	7,562		$	2,667	$	20,960

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at March 31, 2020 and December 31, 2019. 

Allowance for Loan Losses	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	42	$	—	$	—	$	—	$	42
Collectively evaluated for impairment	9,281		1,452		8,757		1,531		21,021
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,323	$	1,452	$	8,757	$	1,531	$	21,063

Loans:	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	6,152	$	3,579	$	—	$	9,731
Collectively evaluated for impairment	1,563,334		661,353		389,649		2,614,336
Acquired with deteriorated credit quality	6,549		—		—		6,549
Ending Balance	$	1,576,035	$	664,932	$	389,649	$	2,630,616

Allowance for Loan Losses:	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	48		—		—		—		48
Collectively evaluated for impairment	8,897		1,302		8,304		1,392		19,895
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	8,945	$	1,302	$	8,304	$	1,392	$	19,943

8

Loans	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	3,161		3,952		—		7,113
Collectively evaluated for impairment	1,584,169		680,069		387,655		2,651,893
Acquired with deteriorated credit quality	7,436		—		—		7,436
Ending Balance	$	1,594,766	$	684,021	$	387,655	$	2,666,442

9

The following tables present loans individually evaluated for impairment by class of loans. 

					March 31, 2020
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,679	$	1,149	$	—	$	1,069	$	—	$	—
Farmland	1,324		1,324		—		1,661		—		—
Non Farm, Non Residential	3,512		3,512		—		1,756		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	26		26		—		27		—		—
Residential
First Liens	3,579		3,579		—		3,766		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	141		141		42		145		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,261	$	9,731	$	42	$	8,424	$	—	$	—

10

					December 31, 2019
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,519	$	989	$	—	$	848	$	—	$	—
Farmland	1,997		1,997		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	27		27		—		461		—		—
Residential
First Liens	3,952		3,952		—		4,055		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	148		148		48		1,108		—		—
Farmland	—		—		—		84		—		—
Non Farm, Non Residential	—		—		—		—				—
Agriculture	—		—		—		138		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,643	$	7,113	$	48	$	8,693	$	—	$	—

11

	Three Months Ended   March 31, 2020
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,069	$	—	$	—
Farmland	1,661		—		—
Non Farm, Non Residential	1,756		—		—
Agriculture	—		—		—
All Other Commercial	27		—		—
Residential
First Liens	3,766		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	145		—		—
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	8,424	$	—	$	—

12

	Three Months Ended   March 31, 2019
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	788	$	—	$	—
Farmland	930		—		—
Non Farm, Non Residential	2,442		—		—
Agriculture	116		—		—
All Other Commercial	1,218		—		—
Residential
First Liens	2,032		—		—
Home Equity	—		—		—
Junior Liens	18		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	488		—		—
Farmland	3,041		—		—
Non Farm, Non Residential	—		—		—
Agriculture	537		—		—
All Other Commercial	—		—		—
Residential
First Liens	221		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	11,831	$	—	$	—

13

The tables below presents the recorded investment in non-performing loans.

	March 31, 2020
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	21	$	—	$	4	$	2,882
Farmland	6		—		—		1,534
Non Farm, Non Residential	—		—		—		3,980
Agriculture	—		—		—		3
All Other Commercial	—		—		—		62
Residential
First Liens	1,138		2,960		401		2,604
Home Equity	136		—		—		43
Junior Liens	21		83		8		99
Multifamily	—		—		—		—
All Other Residential	41		—		—		48
Consumer
Motor Vehicle	115		—		14		233
All Other Consumer	12		190		510		523
TOTAL	$	1,490	$	3,233	$	937	$	12,011

	December 31, 2019
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	—	$	11	$	2,191
Farmland	5		—		—		2,410
Non Farm, Non Residential	—		—		—		441
Agriculture	—		—		—		485
All Other Commercial	—		—		—		114
Residential
First Liens	625		3,007		396		2,876
Home Equity	12		—		—		61
Junior Liens	51		94		9		175
Multifamily	—		—		—		—
All Other Residential	738		—		—		203
Consumer
Motor Vehicle	227		—		15		138
All Other Consumer	4		239		444		452
TOTAL	$	1,662	$	3,340	$	875	$	9,546

14

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	March 31, 2020
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	3,593	$	2,695	$	1,635	$	7,923	$	609,765	$	617,688
Farmland	115		—		1,417		1,532		133,247		134,779
Non Farm, Non Residential	4,842		7		44		4,893		379,990		384,883
Agriculture	—		6		—		6		144,779		144,785
All Other Commercial	929		—		43		972		292,928		293,900
Residential
First Liens	6,972		344		1,497		8,813		365,938		374,751
Home Equity	181		23		157		361		68,207		68,568
Junior Liens	379		4		29		412		55,153		55,565
Multifamily	1,621		—		—		1,621		143,192		144,813
All Other Residential	69		—		41		110		21,125		21,235
Consumer
Motor Vehicle	5,215		534		199		5,948		353,305		359,253
All Other Consumer	319		15		14		348		30,048		30,396
TOTAL	$	24,235	$	3,628	$	5,076	$	32,939	$	2,597,677	$	2,630,616

	December 31, 2019
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	2,885	$	766	$	1,379	$	5,030	$	594,925	$	599,955
Farmland	132		—		2,089		2,221		137,730		139,951
Non Farm, Non Residential	3,749		104		—		3,853		398,854		402,707
Agriculture	277		128		—		405		162,794		163,199
All Other Commercial	—		—		109		109		288,845		288,954
Residential
First Liens	6,452		1,292		1,458		9,202		375,924		385,126
Home Equity	124		63		34		221		70,813		71,034
Junior Liens	384		43		137		564		54,533		55,097
Multifamily	—		—		—		—		148,282		148,282
All Other Residential	1,082		—		890		1,972		22,510		24,482
Consumer
Motor Vehicle	6,488		983		270		7,741		347,950		355,691
All Other Consumer	228		42		2		272		31,692		31,964
TOTAL	$	21,801	$	3,421	$	6,368	$	31,590	$	2,634,852	$	2,666,442

15

During the three months ended March 31, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.

				2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	11		$	3,485		$	698		$	4,194
Added	—			60			94			154
Charged Off	—			(6		)	(35		)	(41		)
Payments	(7		)	(101		)	(43		)	(151		)
March 31,	$	4		$	3,438		$	714		$	4,156

			2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	145		4,043		618		4,806
Added	—		122		71		193
Charged Off	—		(16	)	(16	)	(32	)
Payments	(9	)	(130	)	(54	)	(193	)
March 31,	136		4,019		619		4,774

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2020 or 2019 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three months ended March 31, 2020 and 2019 did not result in any material charge-offs or additional provision expense.

The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2020 and 2019. The Corporation has not committed to lend additional amounts as of March 31, 2020 and 2019 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three months ended March 31, 2020 and 2019 were of restructurings that had occurred in the previous 12 months.

The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In the first quarter ending March 31, 2020, 81 loans totaling $110 million were modified, related to COVID-19, that were not considered troubled debt restructurings.

16

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

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

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	March 31, 2020
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	568,957	$	16,870	$	22,758	$	—	$	7,333	$	615,918
Farmland	115,976		9,213		7,753		—		62		133,004
Non Farm, Non Residential	366,697		4,427		12,149		—		685		383,958
Agriculture	118,014		3,999		19,193		—		498		141,704
All Other Commercial	288,600		3,095		1,025		—		36		292,756
Residential
First Liens	103,047		1,026		4,089		—		265,416		373,578
Home Equity	2,466		—		170		—		65,743		68,379
Junior Liens	2,189		34		171		—		53,045		55,439
Multifamily	143,064		110		1,315		—		—		144,489
All Other Residential	8,255		—		52		—		12,868		21,175
Consumer
Motor Vehicle	495		—		546		—		356,688		357,729
All Other Consumer	369		—		50		—		29,832		30,251
TOTAL	$	1,718,129	$	38,774	$	69,271	$	—	$	792,206	$	2,618,380

17

	December 31, 2019
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	549,341	$	19,253	$	26,349	$	5	$	2,761	$	597,709
Farmland	119,858		8,673		8,644		—		100		137,275
Non Farm, Non Residential	381,404		4,424		12,269		—		3,678		401,775
Agriculture	127,144		4,507		27,490		—		985		160,126
All Other Commercial	283,266		3,141		1,120		—		35		287,562
Residential
First Liens	174,338		926		4,382		—		204,266		383,912
Home Equity	18,417		—		134		11		52,280		70,842
Junior Liens	2,839		64		178		76		51,817		54,974
Multifamily	146,497		112		1,315		—		19		147,943
All Other Residential	12,624		—		205		—		11,577		24,406
Consumer
Motor Vehicle	2,880		—		538		—		350,780		354,198
All Other Consumer	3,155		—		38		—		28,615		31,808
TOTAL	$	1,821,763	$	41,100	$	82,662	$	92	$	706,913	$	2,652,530

18

3. Securities

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	March 31, 2020
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	98,780	$	2,762	$	(38	)	$	101,504
Mortgage Backed Securities - residential	235,774		9,082		—			244,856
Mortgage Backed Securities - commercial	21,891		798		—			22,689
Collateralized mortgage obligations	276,125		8,461		(220		)	284,366
State and municipal obligations	259,907		12,410		(188		)	272,129
Municipal taxable	725		1		—			726
U.S. Treasury	2,501		37		—			2,538
Collateralized debt obligations	—		3,233		—			3,233
TOTAL	$	895,703	$	36,784	$	(446	)	$	932,041

	December 31, 2019
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	102,490	$	1,293	$	(150	)	$	103,633
Mortgage Backed Securities-residential	240,753		2,979		(350		)	243,382
Mortgage Backed Securities-commercial	22,036		73		(5		)	22,104
Collateralized mortgage obligations	280,797		1,735		(1,221		)	281,311
State and municipal obligations	253,277		11,265		(108		)	264,434
Municipal taxable	728		2		—			730
U.S. Treasury	7,494		10		—			7,504
Collateralized debt obligations	—		3,619		—			3,619
TOTAL	$	907,575	$	20,976	$	(1,834	)	$	926,717

Contractual maturities of debt securities at March 31, 2020 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	10,297	$	10,359
Due after one but within five years	57,759		59,055
Due after five but within ten years	43,921		45,180
Due after ten years	249,936		265,536
	361,913		380,130
Mortgage-backed securities and collateralized mortgage obligations	533,790		551,911
TOTAL	$	895,703	$	932,041

There were $244 thousand in gross gains and $50 thousand in losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2020. For the three months ended March 31, 2019 there were $2 thousand in gross gains and $6 thousand in losses on sales of investment securities.

19

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2020 and December 31, 2019. 

	March 31, 2020
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	3,756	$	(38	)	$	—	$	—		$	3,756	$	(38	)
Mortgage Backed Securities - Residential	$	—	$	—		$	—	$	—		$	—	$	—
Collateralized mortgage obligations	9,178		(220		)	—		—			9,178		(220		)
State and municipal obligations	8,587		(131		)	464		(57		)	9,051		(188		)
U.S. Treasury	—		—			—		—			—		—
Total temporarily impaired securities	$	21,521	$	(389	)	$	464	$	(57	)	$	21,985	$	(446	)

	December 31, 2019
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
US Government Agencies	$	29,183	$	(150	)	$	—	$	—		$	29,183	$	(150	)
Mortgage Backed Securities - Residential	$	55,665	$	(243	)	$	18,724	$	(107	)	$	74,389	$	(350	)
Mortgage Backed Securities - Commercial	4,391		(5		)	—		—			4,391		(5		)
Collateralized mortgage obligations	33,398		(314		)	61,781		(907		)	95,179		(1,221		)
State and municipal obligations	8,996		(61		)	461		(47		)	9,457		(108		)
Total temporarily impaired securities	$	131,633	$	(773	)	$	80,966	$	(1,061	)	$	212,599	$	(1,834	)

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.

When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $446 thousand as of March 31, 2020 and $1.8 million as of December 31, 2019. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

20

There is one remaining collateralized debt obligations security with previously recorded OTTI but there was no additional OTTI recorded in 2020 or 2019. During the quarter ended June 30, 2018, an obligation was called, resulting in the elimination of the OTTI associated with that obligation. A recovery of previously recorded OTTI of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2020 and 2019:

	Three Months Ended March 31,
(Dollar amounts in thousands)	2020		2019
Beginning balance	$	2,974	$	2,974
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—
Reductions for increases in cash flows collected	—		—
Reductions for securities called during the period	—		—
Ending balance	$	2,974	$	2,974

4. Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity and certain investments in state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. As described previously, management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	March 31, 2020
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	101,504		$	—	$	101,504
Mortgage Backed Securities-residential	—		244,856			—		244,856
Mortgage Backed Securities-commercial	—		22,689			—		22,689
Collateralized mortgage obligations	—		284,366			—		284,366
State and municipal	—		269,894			2,235		272,129
Municipal taxable	—		726			—		726
U.S. Treasury	—		2,538			—		2,538
Collateralized debt obligations	—		—			3,233		3,233
TOTAL	$	—	$	926,573		$	5,468	$	932,041
Derivative Assets			2,742
Derivative Liabilities			(2,742		)

21

	December 31, 2019
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	103,633		$	—	$	103,633
Mortgage Backed Securities-residential	—		243,382			—		243,382
Mortgage Backed Securities-commercial	—		22,104			—		22,104
Collateralized mortgage obligations	—		281,311			—		281,311
State and municipal	—		261,869			2,565		264,434
Municipal taxable	—		730			—		730
U.S. Treasury	—		7,504			—		7,504
Collateralized debt obligations	—		—			3,619		3,619
TOTAL	$	—	$	920,533		$	6,184	$	926,717
Derivative Assets			828
Derivative Liabilities			(828		)

There were no transfers between Level 1 and Level 2 during 2020 and 2019.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2020 and the year ended December 31, 2019. 

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31, 2020
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	2,565		$	3,619		$	6,184
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			(386		)	(386		)
Transfers	—			—			—
Settlements	(330		)	—			(330		)
Ending balance, March 31	$	2,235		$	3,233		$	5,468

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2019
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	3,135		$	3,258		$	6,393
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			498			498
Purchases	—			—			—
Settlements	(570		)	(137		)	(707		)
Ending balance, December 31	$	2,565		$	3,619		$	6,184

22

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at March 31, 2020.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,235	Discounted cash flow	Discount rate Probability of default	3.09%-4.44% 0%
Other real estate	$	3,894	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	99	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2019.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,565	Discounted cash flow	Discount rate Probability of default	2.87%-4.44% 0%
Other real estate	$	3,625	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	100		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Impaired loans disclosed in footnote 2, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $99 thousand, after a valuation allowance of $42 thousand at March 31, 2020 and at a fair value of $100 thousand, net of a valuation allowance of $48 thousand at December 31, 2019. The impact to the provision for loan losses for the three months ended March 31, 2020 and for the twelve months ended December 31, 2019 was a $6 thousand decrease, and a $689 thousand decrease, respectively. Other real estate owned is valued at Level 3. Other real estate owned at March 31, 2020 with a value of $3.9 million was reduced $50 thousand for fair value adjustment. At March 31, 2020 other real estate owned was comprised of $3.5 million from commercial loans and $411 thousand from residential loans. Other real estate owned at December 31, 2019 with a value of $3.6 million was reduced $64 thousand for fair value adjustment. At December 31, 2019 other real estate owned was comprised of $3.5 million from commercial loans and $142 thousand from residential loans.

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties.

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The following tables presents loans identified as impaired by class of loans, and carried at fair value on a non-recurring basis, as of March 31, 2020 and December 31, 2019, which are all considered Level 3.

	March 31, 2020
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	141	$	42	$	99
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	141	$	42	$	99

	December 31, 2019
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	148	$	48	$	100
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	148	$	48	$	100

The carrying amounts and estimated fair value of financial instruments at March 31, 2020 and December 31, 2019, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, non-impaired loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of impaired loans was described previously. Loan fair value estimates represent an exit price. Fair values of loans held for sale are based on market bids on the

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loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	March 31, 2020
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	211,034		$	31,450	$	179,584		$	—	$	211,034
Federal funds sold	1			—		1			—		1
Securities available-for-sale	932,041			—		926,573			5,468		932,041
Restricted stock	15,400			n/a		n/a			n/a		n/a
Loans, net	2,601,574			—		—			2,703,088		2,703,088
Accrued interest receivable	17,098			—		5,000			12,098		17,098
Deposits	(3,291,231		)	—		(3,302,047		)	—		(3,302,047		)
Short-term borrowings	(83,784		)	—		(83,784		)	—		(83,784		)
Other borrowings	(27,494		)	—		(27,938		)	—		(27,938		)
Accrued interest payable	(1,481		)	—		(1,481		)	—		(1,481		)

	December 31, 2019
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	127,426		$	26,275	$	101,151		$	—	$	127,426
Federal funds sold	7,500			—		7,500			—		7,500
Securities available-for-sale	926,717			—		920,533			6,184		926,717
Restricted stock	15,394			n/a		n/a			n/a		n/a
Loans, net	2,636,447			—		—			2,648,692		2,648,692
Accrued interest receivable	18,523			—		3,583			14,940		18,523
Deposits	(3,275,357		)	—		(3,278,099		)	—		(3,278,099		)
Short-term borrowings	(80,119		)	—		(80,119		)	—		(80,119		)
Other borrowings	(30,973		)	—		(31,143		)	—		(31,143		)
Accrued interest payable	(1,739		)	—		(1,739		)	—		(1,739		)

5. Short-Term Borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	March 31, 2020		December 31, 2019
Federal Funds Purchased	$	2,150	$	900
Repurchase Agreements	81,634		79,219
	$	83,784	$	80,119

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

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Collateral pledged to repurchase agreements by remaining maturity are as follows:

	March 31, 2020
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	75,739	$	90	$	65	$	5,740	$	81,634

	December 31, 2019
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	69,709	$	1,927	$	6,552	$	1,031	$	79,219

6. Components of Net Periodic Benefit Cost

	Three Months Ended March 31,
	(000's)
	Pension Benefits						Post-Retirement Health Benefits
	2020			2019			2020		2019
Service cost	$	325		$	304		$	10	$	9
Interest cost	779			866			31		36
Expected return on plan assets	(1,050		)	(896		)	—		—
Net amortization of prior service cost	—			—			—		—
Net amortization of net (gain) loss	492			389			—		(4		)
Net Periodic Benefit Cost	$	546		$	663		$	41	$	41

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2019 that it expected to contribute $3.7 million and $736 thousand respectively to its Pension Plan and ESOP and $251 thousand to the Post Retirement Health Benefits Plan in 2020. Contributions of $435 thousand have been made to the Pension Plan thus far in 2020. Contributions of $60 thousand have been made through the first three months of 2020 for the Post Retirement Health Benefits plan. No contributions have been made in 2020 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first three months of 2020 and 2019 there has been $412 thousand and $390 thousand of expense accrued for potential contributions to these alternative retirement benefit options.

7. New accounting standards

Accounting Pronouncements Adopted:

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. ASU No. 2017-04 is effective for interim and annual reporting

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periods beginning after December 15, 2019, applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Corporation adopted ASU 2017-04 on January 1, 2020. There was not a significant impact to accounting and disclosures.

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. The Corporation adopted ASU 2018-13 on January 1, 2020. As ASU No. 2018-13 only revises disclosure requirements, it did not have a material impact on the Corporation’s financial statements.

In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. The Corporation adopted ASU 2018-15 on January 1, 2020. ASU 2018-15 did not have a material impact on the Corporation’s financial statements.

Recent Accounting Pronouncements:

In June 2016 ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial

Instruments (ASU 2016-13), was issued and requires entities to use a current expected credit loss ("CECL") model which is a

new impairment model based on expected losses rather than incurred losses. Under this model an entity would recognize an

impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from

financial assets measured at amortized cost. The entity's estimate would consider relevant information about past events,

current conditions, and reasonable and supportable forecasts, which will result in recognition of lifetime expected credit losses

upon loan origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019,

with early adoption permitted for annual reporting periods beginning after December 15, 2018.

The Corporation formed a cross-functional internal management committee and engaged a third party vendor to assist with the

transition to the guidance set forth in this update. The new allowance model implemented by the Corporation estimates credit

losses over the expected life of the portfolio and includes a qualitative framework to account for the drivers of losses that are

not captured by the quantitative model. The results continue to be utilized to refine our models and estimation techniques.

Documentation of new methodologies and internal controls that will be implemented as part of CECL as well as model

validation is also being finalized. While the committee continues to analyze and modify calculations, the Corporation currently

expects the adoption of ASU 2016-13 will result in an increase in allowance for loan losses amount at January 1, 2020 in the

range of $15 million to $25 million. The allowance for credit losses also increased due to the requirement to record an

allowance on acquired loan portfolios, previously recorded at fair value. Once finalized, the cumulative effect adjustment, as a

result of the adoption of this guidance, was originally to be recorded on January 1, 2020, net of tax, as an adjustment to retained earnings. This estimate is subject to change as key assumptions are refined and model validations are finalized.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by the President of the United States that included an option for entities to delay the implementation of ASU 2016-13 until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020. Due to the uncertainty on the economy and unemployment from COVID-19, the Corporation has determined to delay its implementation of ASU 2016-13 and has calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASU 2016-13.

In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a material impact on the Corporation’s financial statements.

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In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” These amendments remove specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences where there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. It also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacts changes in tax laws in interim periods. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Corporation is assessing ASU 2019-12 and its impact on its accounting and disclosure.

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8. Revenue from Contracts with Customers

All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Corporation's sources of Non-Interest Income for the three months ended March 31, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

		Three Months Ended March 31,
(Dollar amounts in thousands)		2020		2019
Non-interest income
	Service charges on deposits and debit card fee income	$	5,482	$	2,988
	Asset management fees	1,291		1,147
	Interchange income	91		74
	Net gains on sales of loans (a)	698		420
	Loan servicing fees (a)	325		318
	Net gains/(losses) on sales of securities (a)	194		(4		)
	Other service charges and fees (a)	392		2,320
	Other (b)	622		373
	Total non-interest income	$	9,095	$	7,636

^(a) Not within the scope of ASC 606.

^(b) The Other category includes gains/(losses) on the sale of OREO for the three months ended March 31, 2020 and March 31, 2019, totaling $(6) thousand and $(20) thousand, respectively, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606.

Service charges on deposits: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Asset management fees: The Corporation earns asset management fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. Other related services provided and the fees the Corporation earns, which are based on a fixed fee schedule, are recognized when the services are rendered.

Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

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9. Acquisitions

On July 27, 2019, the Corporation completed its acquisition of HopFed Bancorp, Inc. and its banking subsidiary, Heritage Bank. Therefore, the results of HopFed have been included in the results of operations beginning on July 27, 2019. Pursuant to the terms of the merger agreement, each issued and outstanding share of HopFed common stock, $0.01 par value per share, was converted into the right to receive, at the stockholder's election, either (or a combination of) 0.444 shares of Corporation common stock, without par value, or $21.00 in cash, subject to proration provisions specified in the merger agreement that provide for an aggregate split of 50% of shares of HopFed Common Stock being exchanged for Corporation Common Stock and 50% for cash, with cash to be paid in lieu of fractional shares. Each outstanding share of Corporation common stock remained outstanding and was unaffected by the merger. Acquisition-related costs of $3.3 million are included in the Corporation's income statement for the year ended December 31, 2019.

Goodwill of $44.2 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.

(Dollar amounts in thousands)	As Initially Reported		Measurement Period Adjustments			As Adjusted
Consideration
Cash consideration	$	67,348	$	—		$	67,348
Stock consideration	61,878		—			61,878
Fair value of total consideration transferred	$	129,226	$	—		$	129,226
Assets acquired
Cash	$	34,518				$	34,518
Investment securities available-for-sale	174,851					174,851
Bank owned life insurance	10,693					10,693
Federal Home Loan Bank stock	4,428					4,428
Loans	657,179		1,719			658,898
Premises and equipment	25,316		(6,494		)	18,822
Core deposit intangibles	10,369					10,369
Other real estate owned	3,364					3,364
Other assets	6,596		1,600			8,196
Total assets acquired	927,314		(3,175		)	924,139
Liabilities assumed
Deposits	735,526					735,526
FHLB advances	20,775					20,775
Other borrowings	75,783					75,783
Other liabilities	7,066					7,066
Total liabilities assumed	839,150		—			839,150
Net identifiable assets	88,164		(3,175		)	84,989
Goodwill	$	41,062	$	3,175		$	44,237

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The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Corporation believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to guidance relating to purchase credit impaired loans, which have shown evidence of credit deterioration since origination.

The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2018. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on deposits acquired, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates.

	Year ended December 31,
(Dollar amounts in thousands, except per share data)	2019		2018
Net interest income	$	147,581	$	145,136
Net income	$	51,088	$	52,252
Basic and diluted earnings per share	$	3.97	$	4.26

FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition.

Purchase credit impaired loans purchased during the year ended December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

(Dollar amount in thousands)	As Initially Reported		Measurement Period Adjustments			As Adjusted
Contractually required payments receivable of loans purchased during the year:
Commercial	$	16,530	$	(3,523	)	$	13,007
Consumer	391		(296		)	95
	$	16,921	$	(3,819	)	$	13,102
Fair value of acquired loans at acquisition	$	8,870	$	(1,857	)	$	7,013

The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at March 31, 2020 and 2019 are shown in the following tables:

						2020
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	7,269		$	—	$	7,269
Discount accretion	—			—		—
Disposals	(922		)	—		(922		)
ASC 310-30 Loans, March 31,	$	6,347		$	—	$	6,347

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						2019
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	1,530		$	—	$	1,530
Discount accretion	—			—		—
Disposals	(36		)	—		(36		)
ASC 310-30 Loans, March 31,	$	1,494		$	—	$	1,494

10. Accumulated Other Comprehensive Income

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019. 

	Unrealized
	gains and			2020
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	14,893		$	(22,394	)	$	(7,501	)
Change in other comprehensive income (loss) before reclassification	13,244			—			13,244
Amounts reclassified from accumulated other comprehensive income	(146		)	404			258
Net current period other comprehensive income (loss)	13,098			404			13,502
Ending balance, March 31,	$	27,991		$	(21,990	)	$	6,001

	Unrealized
	gains and			2019
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(6,105	)	$	(17,349	)	$	(23,454	)
Change in other comprehensive income (loss) before reclassification	10,221			—			10,221
Amounts reclassified from accumulated other comprehensive income	3			303			306
Net current period other comprehensive income (loss)	10,224			303			10,527
Ending balance, March 31,	$	4,119		$	(17,046	)	$	(12,927	)

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	Balance at			Current Period			Balance at
(Dollar amounts in thousands)	1/1/2020			Change			3/31/2020
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	12,178		$	13,388		$	25,566
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,715			(290		)	2,425
Total unrealized loss on securities available-for-sale	$	14,893		$	13,098		$	27,991
Unrealized gain (loss) on retirement plans	(22,394		)	404			(21,990		)
TOTAL	$	(7,501	)	$	13,502		$	6,001

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	1/1/2019			Change		3/31/2019
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(8,446	)	$	10,166	$	1,720
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,341			58		2,399
Total unrealized gain (loss) on securities available-for-sale	$	(6,105	)	$	10,224	$	4,119
Unrealized loss on retirement plans	(17,349		)	303		(17,046		)
TOTAL	$	(23,454	)	$	10,527	$	(12,927	)

	Three Months Ended March 31, 2020
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	194		Net securities gains (losses)
on available-for-sale	(48		)	Income tax expense
securities	$	146		Net of tax
Amortization of	$	(492	)	(a) Salary and benefits
retirement plan items	88			Income tax expense
	$	(404	)	Net of tax
Total reclassifications for the period	$	(258	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).

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	Three Months Ended March 31, 2019
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	(4	)	Net securities gains (losses)
on available-for-sale	1			Income tax expense
securities	$	(3	)	Net of tax
Amortization of	$	(389	)	(a) Salary and benefits
retirement plan items	86			Income tax expense
	$	(303	)	Net of tax
Total reclassifications for the period	$	(306	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details). 

34

11. Leases

The Corporation leases certain branches under operating leases. At March 31, 2020, the Corporation had lease liabilities totaling $5,845,000 and right-of-use assets totaling $5,831,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. For the three months ended March 31, 2020, the weighted average remaining lease term for operating leases was 11.4 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.92%.

The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation's lease agreements often include one or more options to renew at the Corporation's discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used.

The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

Lease costs were as follows:

(Dollar amounts in thousands)	Three Months Ended March 31, 2020
Operating lease cost	$	250
Short-term lease cost	27
Variable lease cost	7
Total lease cost	$	284
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities	213
Right-of-use assets obtained in exchange for new operating lease liabilities	6,643

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2020 were as follows:

(Dollar amounts in thousands)		March 31, 2020
Twelve Months Ended March 31,
	2021	$	786
	2022	763
	2023	763
	2024	683
	2025	636
Thereafter		3,268
Total Future Minimum Lease Payments		6,899
Amounts Representing Interest		(1,054		)
Present Value of Net Future Minimum Lease Payments		$	5,845

35

ITEMS 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations

and Quantitative and Qualitative Disclosures About Market Risk

The purpose of this discussion is to point out key factors in the Corporation’s recent performance compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s financial statements for 2019 in the 10-K filed for the fiscal year ended December 31, 2019.

This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Risks related to COVID-19 include the disruption of local, regional, national and global economic activity caused by infectious disease outbreaks, including the recent outbreak of coronavirus, or COVID-19, and the significant impact that such outbreak has had and may have on our growth, operations, earnings and asset quality; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally, and specifically resulting from the economic dislocation caused by the COVID-19 pandemic; inaccuracy of the assumptions and estimates that the management of our Corporation makes in establishing reserves for probable loan losses and other estimates generally, and specifically as a result of the effect of the COVID-19 pandemic; and an increase in the rate of personal or commercial customers' bankruptcies generally, and specifically as a result of the COVID-19 pandemic. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2019, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.

Critical Accounting Policies

Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for loan losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the 2019 Form 10-K.

Summary of Operating Results

Net income for the three months ended March 31, 2020 was $12.2 million, compared to $9.7 million for the same period of 2019. Basic earnings per share increased to $0.89 for the first quarter of 2020 compared to $0.79 for the same period in 2019. Return on Assets and Return on Equity were 1.21% and 8.55% respectively, for the three months ended March 31, 2020 compared to 1.29% and 8.59% for the three months ended March 31, 2019. These quarterly comparisons and the ones following include the Corporation's acquisition of HopFed Bancorp, Hopkinsville, Kentucky on July 27, 2019. Total assets acquired were $927 million, including $675 million in loans. The acquisition also included $736 millions for deposits.

In March 2020, the outbreak of the Coronavirus Disease 2019 (COVID-19) was recognized as a pandemic by the World Health Organization. The spread of COVID-19 has caused economic and social disruption resulting in unprecedented uncertainty, volatility and disruption in financial markets, and has placed significant health, economic and other major pressures throughout the communities we serve, the United States and globally. While some industries have been impacted more severely than others, all businesses have been impacted to some degree. This disruption has resulted in the shuttering of businesses across the country, significant job loss, material decreases in oil and gas prices and in business valuations, changes in consumer behavior related to pandemic fears, and aggressive measures by the federal government.

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On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market.

The primary components of income and expense affecting net income are discussed in the following analysis.

Net Interest Income

 The Corporation's primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds. Net interest income increased $6.9 million in the three months ended March 31, 2020 to $36.4 million from $29.4 million in the same period in 2019. The net interest margin for the three months ended March 31, 2020 is 4.13% compared to 4.31% for the same period of 2019, a 4.18% decrease.

Non-Interest Income

 Non-interest income for the three months ended March 31, 2020 was $9.1 million compared to $7.6 million for the same period of 2019.

Non-Interest Expenses

The Corporation’s non-interest expense for the quarter ended March 31, 2020 was $27.6 million compared to $23.7 million for the same period in 2019.

Allowance for Loan Losses

The Corporation’s provision for loan losses increased to $2.7 million for first quarter of 2020 as compared to $1.5 million for the same period of 2019. The Corporation established a $1.0 million allowance for loan and lease losses in the first quarter of 2020 directly related to the initial estimate of losses resulting from the COVID-19 pandemic. Also, as provided by the Coronavirus Aid Relief and Economic Security Act, the Corporation elected to delay the implementation of the Current Expected Credit Loss accounting standard. Net charge offs for the first quarter of 2020 were $1.57 million compared to $496 thousand for the same period of 2019. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of historical loss experience, non-performing loans trends, and probable incurred losses on identified problem loans, management believes the allowance is adequate with the adjustments made for the estimates relating to the COVID-19 pandemic.

Income Tax Expense

The Corporation’s effective income tax rate for the first three months of 2020 was 19.87% compared to 18.63% for the same period in 2019.

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Non-performing Loans

Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, (2) loans which have been renegotiated to provide for a reduction or deferral of interest or principal because of a deterioration in the financial position of the borrower, and (3) loans past due ninety days or more as to principal or interest. Non-performing loans increased to $17.6 million at March 31, 2020 compared to $15.3 million at December 31, 2019. Nonperforming loans increased 9.4% compared to $16.1 million as of March 31, 2019. A summary of non-performing loans at March 31, 2020 and December 31, 2019 follows:

	(000's)
	March 31, 2020			December 31, 2019
Non-accrual loans	$	12,011		$	9,535
Accruing restructured loans	3,227			3,318
Nonaccrual restructured loans	929			876
Accruing loans past due over 90 days	1,430			1,610
	$	17,597		$	15,339
Ratio of the allowance for loan losses
as a percentage of non-performing loans	119.7		%	130.0		%

The following loan categories comprise significant components of the nonperforming non-restructured loans: 

	(000's)
	March 31, 2020		December 31, 2019
Non-accrual loans
Commercial loans	$	8,461	$	5,630
Residential loans	2,794		3,315
Consumer loans	756		590
	$	12,011	$	9,535
Past due 90 days or more
Commercial loans	$	25	$	5
Residential loans	1,286		1,383
Consumer loans	119		222
	$	1,430	$	1,610

The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In the first quarter ending March 31, 2020, 81 loans totaling $110 million were modified, related to COVID-19, that were not considered troubled debt restructurings.

Interest Rate Sensitivity and Liquidity

First Financial Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.

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Interest Rate Risk

Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. Consistency in the Corporation’s net interest income is largely dependent on the effective management of this risk.

The Asset Liability position is measured using sophisticated risk management tools, including earning simulation and market value of equity sensitivity analysis. These tools allow management to quantify and monitor both short-term and long-term exposure to interest rate risk. Simulation modeling measures the effects of changes in interest rates, changes in the shape of the yield curve and the effects of embedded options on net interest income. This measure projects earnings in the various environments over the next three years. It is important to note that measures of interest rate risk have limitations and are dependent on various assumptions. These assumptions are inherently uncertain and, as a result, the model cannot precisely predict the impact of interest rate fluctuations on net interest income. Actual results will differ from simulated results due to timing, frequency and amount of interest rate changes as well as overall market conditions. The Committee has performed a thorough analysis of these assumptions and believes them to be valid and theoretically sound. These assumptions are continuously monitored for behavioral changes.

The Corporation from time to time utilizes derivatives to manage interest rate risk. Management continuously evaluates the merits of such interest rate risk products but does not anticipate the use of such products to become a major part of the Corporation’s risk management strategy.

The table below shows the Corporation’s estimated sensitivity profile as of March 31, 2020. The change in interest rates assumes a parallel shift in interest rates of 100 and 200 basis points. Given a 100 basis point increase in rates, net interest income would increase 3.47% over the next 12 months and increase 7.20% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would decrease 1.36% over the next 12 months and decrease 3.82% over the following 12 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change. 

Basis Point	Percentage Change in Net Interest Income
Interest Rate Change	12 months	24 months	36 months
Down 100	-1.36	-3.82	-5.60
Up 100	3.47	7.20	10.83
Up 200	3.81	10.75	17.90

     Typical rate shock analysis does not reflect management’s ability to react and thereby reduce the effect of rate changes, and represents a worst-case scenario.

Liquidity Risk

 Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $10.4 million of investments that mature throughout the next 12 months. The Corporation also anticipates $199 million of principal payments from mortgage-backed securities. Given the current rate environment, the Corporation anticipates $28.1 million in securities to be called within the next 12 months. The Corporation also has unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis and several correspondent banks. With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.

Financial Condition

Comparing the first three months of 2020 to the same period in 2019, loans, net of deferred loan costs, have increased $639 million to $2.6 billion. Deposits increased 36.03% to $3.3 billion at March 31, 2020 compared to March 31, 2019. Shareholders' equity increased 25.7% or $119.0 million. This financial performance increased book value per share 12.65% to$42.42 at March 31, 2020 from $37.66 at March 31, 2019. Book value per share is calculated by dividing the total shareholders' equity by the number of shares outstanding. These comparisons include the Corporation's acquisition of HopFed Bancorp, Hopkinsville, Kentucky on July 27, 2019. Total assets acquired were $926 million, including $675 million in loans. The acquisition also included $736 million in deposits.

39

Capital Adequacy

The Federal Reserve, OCC and Federal Deposit Insurance Corporation (collectively, joint agencies) establish regulatory capital guidelines for U.S. banking organizations. Regulatory capital guidelines require that capital be measured in relation to the credit and market risks of both on- and off-balance sheet items using various risk weights. On January 1, 2015, the Basel 3 rules became effective and include transition provisions through January 1, 2019. Under Basel 3, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of Common equity tier 1 capital and additional tier 1 capital.

Common equity tier 1 capital primarily includes qualifying common shareholders’ equity, retained earnings and certain minority interests. Goodwill, disallowed intangible assets and certain disallowed deferred tax assets are excluded from Common equity tier 1 capital.

Additional tier 1 capital primarily includes qualifying non-cumulative preferred stock, trust preferred securities (Trust Securities) subject to phase-out and certain minority interests. Certain deferred tax assets are also excluded.

Tier 2 capital primarily consists of qualifying subordinated debt, a limited portion of the allowance for loan and lease losses, Trust Securities subject to phase-out and reserves for unfunded lending commitments. The Corporation’s Total capital is the sum of Tier 1 capital plus Tier 2 capital.

To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of 8.50 percent and a Total capital ratio of 10.50 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. BHCs must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank. 

The fully phased in capital conservation buffer set the minimum ratios for common equity Tier 1 capital at 7%, the Tier 1 capital at 8.5% and the total capital at 10.5%. Currently the Corporation exceeds all of these minimums.

	March 31, 2020		December 31, 2019		To Be Well Capitalized
Common equity tier 1 capital
Corporation	16.19	%	15.51	%	N/A
First Financial Bank	15.98	%	15.40	%	6.50	%
Total risk-based capital
Corporation	16.89	%	16.16	%	N/A
First Financial Bank	16.54	%	15.91	%	10.00	%
Tier I risk-based capital
Corporation	16.19	%	15.51	%	N/A
First Financial Bank	15.98	%	15.40	%	8.00	%
Tier I leverage capital
Corporation	12.38	%	12.04	%	N/A
First Financial Bank	12.11	%	11.93	%	5.00	%

40

ITEM 4. Controls and Procedures

First Financial Corporation’s management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of March 31, 2020, an evaluation was performed under the supervision and with the participation of management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures. Based on that evaluation, management, including the principal executive officer and principal financial officer, concluded that the Corporation’s disclosure controls and procedures as of March 31, 2020 were effective in ensuring material information required to be disclosed in this Quarterly Report on Form 10-Q was recorded, processed, summarized, and reported on a timely basis. Additionally, there was no change in the Corporation's internal control over financial reporting that occurred during the quarter ended March 31, 2020 that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

41

PART II – Other Information

ITEM 1. Legal Proceedings.

There are no material pending legal proceedings, other than routine litigation incidental to the business of the Corporation or its subsidiaries, to which the Corporation or any of the subsidiaries is a party to or of which any of their respective property is subject. Further, there is no material legal proceeding in which any director, officer, principal shareholder, or affiliate of the Corporation or any of its subsidiaries, or any associate of such director, officer, principal shareholder or affiliate is a party, or has a material interest, adverse to the Corporation or any of its subsidiaries.

ITEM 1A. Risk Factors.

There have been no material changes in the risk factors from those disclosed in the Corporation’s 2019 Form 10-K filed for December 31, 2019. 

In addition to the risk factors disclosed in these reports and registration statements, you should note the following additional risk factor:

The recent global coronavirus pandemic is likely to impact the financial condition and earnings prospects of the Corporation.

In December 2019, a novel strain of coronavirus, COVID-19, was reported in Wuhan, China. The coronavirus has since spread rapidly to many other countries, including the United States, and the World Health Organization formally declared the coronavirus outbreak a pandemic in March 2020. In response, federal and many state governments have implemented “stay at home” orders restricting the operations of businesses and the activities of individuals. These orders and other effects of the coronavirus pandemic have had significant and widespread effects on the macroeconomic environment, leading to lower interest rates, depressed market valuations, heightened unemployment, heightened volatility in the financial, commodities and other markets, and significant disruption in banking and other financial activity in the areas in which the Corporation operates. The pandemic has also had a significant economic impact on a broad range of industries in which the customers of the Corporation operate. If the effects of the outbreak are prolonged or result in a lengthy recession, the risk factors set forth in the Corporation's Form 10-K could be exacerbated.

The coronavirus pandemic has created heightened credit risk. The financial performance of the Corporation is dependent upon the ability of borrowers to repay their loans and the value of the collateral supporting loans. The outbreak has caused and is likely to cause significant disruption in the business of our customers. Continued unfavorable market conditions and uncertainty due to the coronavirus pandemic may result in a deterioration in the credit quality of borrowers, an increase in the number of loan delinquencies, defaults and charge-offs, additional provisions for loan losses, adverse asset values of the collateral securing loans and an overall material adverse effect on the quality of the loan portfolio of the Corporation. Various state governments and federal agencies are requiring lenders to provide forbearance and other relief to borrowers. These regulatory programs and governmental policy, including the CARES Act Paycheck Protection Program (PPP) in which the Corporation is participating, may impact the Corporation’s ability to resolve credit delinquencies as well as create heightened litigation risk and risk of holding PPP loans at unfavorable interest rates.

In addition, following the coronavirus outbreak, market interest rates have declined significantly to historic lows. The reductions in interest rates, and continued fluctuations in the interest rate environment as a result of changes in monetary policies of the Federal Reserve Board, including in connection with efforts to address the economic fallout from the coronavirus outbreak, could have significant adverse effects on the yields received by the Corporation on its earning assets and otherwise compress the Corporation’s net interest margin which is an important component of the Corporation’s earnings. Continued volatility in interest rates could have a significant adverse effect on the Corporation’s earnings, financial condition and results of operations.

The spread of the coronavirus has caused the Corporation to change its business operations, including adopting a “drive thru banking” model at branch facilities and implementation of a work from home model for non-branch personnel. These changes may have detrimental impacts on the Corporation’s business due to reduced effectiveness of operations, unavailability of personnel, and increased cybersecurity risks related to the use of remote technology. The change in business operations and continued market uncertainty could also have a detrimental effect on the Corporation’s relationship with its customers as well as reduce demand for loans and other products and services offered by the Corporation upon which it relies to drive growth.

42

The extent to which the coronavirus pandemic impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus pandemic and the actions required to contain and treat it, reactions by companies, clients, investors, governmental entities and financial, commodities and other markets to such actions, and the effect of the pandemic on short- and long-term general economic conditions, among other factors. There can be no assurance that efforts by the Corporation to address the adverse impacts of the coronavirus will be effective. If the significant effects of the outbreak are prolonged and if the Corporation is unable to recover from this business disruption on a timely basis, the Corporation’s business, financial condition and results of operations may be significantly adversely affected.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a) None.

(b) Not applicable.

(c) Purchases of Equity Securities

The Corporation periodically acquires shares of its common stock directly from shareholders in individually negotiated transactions. On February 3, 2016 First Financial Corporation issued a press release announcing that its Board of Directors has authorized a stock repurchase program pursuant to which up to 5% of the Corporations outstanding shares of common stock, or approximately 637,500 shares may be repurchased.

Following is certain information regarding shares of common stock purchased by the Corporation during the quarter covered by this report.

			(c)
			Total Number Of Shares
			Purchased As Part Of	(c) Maximum
	(a) Total Number Of	(b) Average Price	Publicly Announced Plans	Number of Shares That May Yet
	Shares Purchased	Paid Per Share	Or Programs *	Be Purchased *
January 1-31, 2020	—	—	N/A	N/A
February 1-29, 2020	—	—	—	—
March 1-31, 2020	39,266	34.92	39,266	32,616
Total	39,266	34.92	39,266	32,616

ITEM 3. Defaults upon Senior Securities.

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information.

Not applicable.

43

ITEM 6. Exhibits.

Exhibit No.:	Description of Exhibit:
3.1	Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
3.2	Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(ii) of the Corporation’s Form 8-K filed on August 24, 2012.
3.3	Resolution to Amend Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(iii) of the Corporation’s Form 8-K filed on April 13, 2020.
10.1*	Employment Agreement for Norman L. Lowery, dated and effective July 1, 2019, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on April 3, 2019.
10.2*	2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
10.5*	2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed on September 4, 2007.
10.6*	2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007.
10.7*	2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007.
10.9*	First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of the Corporation’s Form 10-K filed March 15, 2011.
10.10*	First Financial Corporation 2011 Short-Term Incentive Compensation Plan incorporated by reference to Exhibit 10.10 of the Corporation’s Form 10-K filed March 15, 2011.
10.11*	First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.11 of the Corporation’s Form 10-Q for the quarter ended March 31, 2011 filed on May 9, 2011.
10.12*	Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.12 of the Corporation's Form 10-Q for the quarter ended March 31, 2012 filed on May 10, 2012.
10.13*	Employment Agreement for Norman D. Lowery, effective January 1, 2020, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed April 2, 2020.
10.14*	Employment Agreement for Rodger A. McHargue, effective January 1, 2020, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed April 2, 2020.
10.15*	Employment Agreement for Steven H. Holliday, effective January 1, 2020, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed April 2, 2020.
10.16*	Employment Agreement for Karen L. Stinson-Milienu, effective January 1, 2020, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed April 2, 2020.
31.1	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 by Principal Executive Officer, dated May 7, 2020.
31.2	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 by Principal Financial Officer, dated May 7, 2020.
32.1	Certification, dated May 6, 2020, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended March 31, 2020.
101.1	Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended March 31, 2020, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**.

*Management contract or compensatory plan or arrangement.

**Furnished, not filed, for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

44

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		FIRST FINANCIAL CORPORATION
		(Registrant)
Date:	May 7, 2020	By     /s/ Norman L. Lowery
		Norman L. Lowery, Vice Chairman, President and CEO
		(Principal Executive Officer)
Date:	May 7, 2020	By     /s/ Rodger A. McHargue
		Rodger A. McHargue, Treasurer and CFO
		(Principal Financial Officer)

45

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Norman L. Lowery, certify that:

1		I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;
2		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4		The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5		The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: May 7, 2020

By   /s/ Norman L. Lowery

Norman L. Lowery,

Vice Chairman, President and CEO

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Rodger A. McHargue, certify that:

1		I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;
2		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4		The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5		The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: May 7, 2020

By   /s/ Rodger A. McHargue

Rodger A. McHargue

Treasurer and CFO

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Sarbanes-Oxley Act of 2002, Section 906

Certification of Principal Executive and Principal Financial Officers

In connection with the Quarterly Report on Form 10-Q of First Financial Corporation (the “Company”) for the Quarterly period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Norman L. Lowery , as the Chief Executive Officer of the Company, and Rodger A. McHargue, as the Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.     This Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 7, 2020	By    /s/ Norman L. Lowery
	Norman L. Lowery, Vice Chairman, President & CEO
	(Principal Executive Officer)
May 7, 2020	By  /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer & CFO
	(Principal Financial Officer)

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 211,034	$ 127,426
Federal funds sold	1	7,500
Securities available-for-sale	932,041	926,717
Financing Receivable, before Allowance for Credit Loss, Current	1,567,340	1,584,447
Loans:
Residential	663,060	682,077
Consumer	387,980	386,006
Loans, gross	2,618,380	2,652,530
Less: Unearned Income	4,257	3,860
Less: Allowance for loan losses	(21,063)	(19,943)
Loans, Net	2,601,574	2,636,447
Restricted Investments	15,400	15,394
Accrued interest receivable	17,098	18,523
Premises and equipment, net	63,140	62,576
Bank-owned life insurance	94,633	94,251
Goodwill	78,592	78,592
Other intangible assets	10,236	10,643
Other real estate owned	3,894	3,625
Other assets	34,771	41,556
TOTAL ASSETS	4,062,414	4,023,250
Deposits:
Non-interest-bearing	531,758	547,189
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	118,162	126,738
Other interest-bearing deposits	2,641,311	2,601,430
Total Deposits	3,291,231	3,275,357
Federal Funds Purchased and Securities Sold under Agreements to Repurchase	83,784	80,119
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	27,494	30,973
Other liabilities	78,134	79,193
TOTAL LIABILITIES	3,480,643	3,465,642
Shareholders' equity
Common stock, $.125 stated value per share; Authorized shares-40,000,000 Issued shares-16,075,154 in 2020 and 16,055,466 in 2019 Outstanding shares-13,714,154 in 2020 and 13,741,825 in 2019	2,005	2,005
Additional paid-in capital	139,898	139,694
Retained earnings	504,236	492,055
Accumulated other comprehensive income (loss)	6,001	(7,501)
Less: Treasury shares at cost-2,360,630 in 2020 and 2,313,641 in 2019	(70,369)	(68,645)
TOTAL SHAREHOLDERS' EQUITY	581,771	557,608
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 4,062,414	$ 4,023,250

XML

Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	March 31, 2020
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	101,504		$	—	$	101,504
Mortgage Backed Securities-residential	—		244,856			—		244,856
Mortgage Backed Securities-commercial	—		22,689			—		22,689
Collateralized mortgage obligations	—		284,366			—		284,366
State and municipal	—		269,894			2,235		272,129
Municipal taxable	—		726			—		726
U.S. Treasury	—		2,538			—		2,538
Collateralized debt obligations	—		—			3,233		3,233
TOTAL	$	—	$	926,573		$	5,468	$	932,041
Derivative Assets			2,742
Derivative Liabilities			(2,742		)

	December 31, 2019
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	103,633		$	—	$	103,633
Mortgage Backed Securities-residential	—		243,382			—		243,382
Mortgage Backed Securities-commercial	—		22,104			—		22,104
Collateralized mortgage obligations	—		281,311			—		281,311
State and municipal	—		261,869			2,565		264,434
Municipal taxable	—		730			—		730
U.S. Treasury	—		7,504			—		7,504
Collateralized debt obligations	—		—			3,619		3,619
TOTAL	$	—	$	920,533		$	6,184	$	926,717
Derivative Assets			828
Derivative Liabilities			(828		)

Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2020 and the year ended December 31, 2019. 

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31, 2020
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	2,565		$	3,619		$	6,184
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			(386		)	(386		)
Transfers	—			—			—
Settlements	(330		)	—			(330		)
Ending balance, March 31	$	2,235		$	3,233		$	5,468

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2019
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	3,135		$	3,258		$	6,393
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			498			498
Purchases	—			—			—
Settlements	(570		)	(137		)	(707		)
Ending balance, December 31	$	2,565		$	3,619		$	6,184

Quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at March 31, 2020.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,235	Discounted cash flow	Discount rate Probability of default	3.09%-4.44% 0%
Other real estate	$	3,894	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	99	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2019.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,565	Discounted cash flow	Discount rate Probability of default	2.87%-4.44% 0%
Other real estate	$	3,625	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	100		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Schedule of loans identified as impaired by class of loans

The following tables presents loans identified as impaired by class of loans, and carried at fair value on a non-recurring basis, as of March 31, 2020 and December 31, 2019, which are all considered Level 3.

	March 31, 2020
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	141	$	42	$	99
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	141	$	42	$	99

	December 31, 2019
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	148	$	48	$	100
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	148	$	48	$	100

Schedule of carrying amount and estimated fair value of financial instruments

The fair value of off-balance sheet items is not considered material.

	March 31, 2020
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	211,034		$	31,450	$	179,584		$	—	$	211,034
Federal funds sold	1			—		1			—		1
Securities available-for-sale	932,041			—		926,573			5,468		932,041
Restricted stock	15,400			n/a		n/a			n/a		n/a
Loans, net	2,601,574			—		—			2,703,088		2,703,088
Accrued interest receivable	17,098			—		5,000			12,098		17,098
Deposits	(3,291,231		)	—		(3,302,047		)	—		(3,302,047		)
Short-term borrowings	(83,784		)	—		(83,784		)	—		(83,784		)
Other borrowings	(27,494		)	—		(27,938		)	—		(27,938		)
Accrued interest payable	(1,481		)	—		(1,481		)	—		(1,481		)

	December 31, 2019
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	127,426		$	26,275	$	101,151		$	—	$	127,426
Federal funds sold	7,500			—		7,500			—		7,500
Securities available-for-sale	926,717			—		920,533			6,184		926,717
Restricted stock	15,394			n/a		n/a			n/a		n/a
Loans, net	2,636,447			—		—			2,648,692		2,648,692
Accrued interest receivable	18,523			—		3,583			14,940		18,523
Deposits	(3,275,357		)	—		(3,278,099		)	—		(3,278,099		)
Short-term borrowings	(80,119		)	—		(80,119		)	—		(80,119		)
Other borrowings	(30,973		)	—		(31,143		)	—		(31,143		)
Accrued interest payable	(1,739		)	—		(1,739		)	—		(1,739		)

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Treasury stock purchase (in shares)	46,989	7,866
Cash Dividends (in dollars per share)	$ 0	$ 0

XML

Fair Value

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity and certain investments in state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. As described previously, management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	March 31, 2020
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	101,504		$	—	$	101,504
Mortgage Backed Securities-residential	—		244,856			—		244,856
Mortgage Backed Securities-commercial	—		22,689			—		22,689
Collateralized mortgage obligations	—		284,366			—		284,366
State and municipal	—		269,894			2,235		272,129
Municipal taxable	—		726			—		726
U.S. Treasury	—		2,538			—		2,538
Collateralized debt obligations	—		—			3,233		3,233
TOTAL	$	—	$	926,573		$	5,468	$	932,041
Derivative Assets			2,742
Derivative Liabilities			(2,742		)

	December 31, 2019
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	103,633		$	—	$	103,633
Mortgage Backed Securities-residential	—		243,382			—		243,382
Mortgage Backed Securities-commercial	—		22,104			—		22,104
Collateralized mortgage obligations	—		281,311			—		281,311
State and municipal	—		261,869			2,565		264,434
Municipal taxable	—		730			—		730
U.S. Treasury	—		7,504			—		7,504
Collateralized debt obligations	—		—			3,619		3,619
TOTAL	$	—	$	920,533		$	6,184	$	926,717
Derivative Assets			828
Derivative Liabilities			(828		)

There were no transfers between Level 1 and Level 2 during 2020 and 2019.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2020 and the year ended December 31, 2019. 

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31, 2020
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	2,565		$	3,619		$	6,184
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			(386		)	(386		)
Transfers	—			—			—
Settlements	(330		)	—			(330		)
Ending balance, March 31	$	2,235		$	3,233		$	5,468

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2019
(Dollar amounts in thousands)	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	3,135		$	3,258		$	6,393
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			498			498
Purchases	—			—			—
Settlements	(570		)	(137		)	(707		)
Ending balance, December 31	$	2,565		$	3,619		$	6,184

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at March 31, 2020.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,235	Discounted cash flow	Discount rate Probability of default	3.09%-4.44% 0%
Other real estate	$	3,894	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	99	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2019.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	2,565	Discounted cash flow	Discount rate Probability of default	2.87%-4.44% 0%
Other real estate	$	3,625	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	100		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Impaired loans disclosed in footnote 2, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $99 thousand, after a valuation allowance of $42 thousand at March 31, 2020 and at a fair value of $100 thousand, net of a valuation allowance of $48 thousand at December 31, 2019. The impact to the provision for loan losses for the three months ended March 31, 2020 and for the twelve months ended December 31, 2019 was a $6 thousand decrease, and a $689 thousand decrease, respectively. Other real estate owned is valued at Level 3. Other real estate owned at March 31, 2020 with a value of $3.9 million was reduced $50 thousand for fair value adjustment. At March 31, 2020 other real estate owned was comprised of $3.5 million from commercial loans and $411 thousand from residential loans. Other real estate owned at December 31, 2019 with a value of $3.6 million was reduced $64 thousand for fair value adjustment. At December 31, 2019 other real estate owned was comprised of $3.5 million from commercial loans and $142 thousand from residential loans.

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties.

The following tables presents loans identified as impaired by class of loans, and carried at fair value on a non-recurring basis, as of March 31, 2020 and December 31, 2019, which are all considered Level 3.

	March 31, 2020
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	141	$	42	$	99
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	141	$	42	$	99

	December 31, 2019
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	148	$	48	$	100
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	148	$	48	$	100

The carrying amounts and estimated fair value of financial instruments at March 31, 2020 and December 31, 2019, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, non-impaired loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of impaired loans was described previously. Loan fair value estimates represent an exit price. Fair values of loans held for sale are based on market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	March 31, 2020
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	211,034		$	31,450	$	179,584		$	—	$	211,034
Federal funds sold	1			—		1			—		1
Securities available-for-sale	932,041			—		926,573			5,468		932,041
Restricted stock	15,400			n/a		n/a			n/a		n/a
Loans, net	2,601,574			—		—			2,703,088		2,703,088
Accrued interest receivable	17,098			—		5,000			12,098		17,098
Deposits	(3,291,231		)	—		(3,302,047		)	—		(3,302,047		)
Short-term borrowings	(83,784		)	—		(83,784		)	—		(83,784		)
Other borrowings	(27,494		)	—		(27,938		)	—		(27,938		)
Accrued interest payable	(1,481		)	—		(1,481		)	—		(1,481		)

	December 31, 2019
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	127,426		$	26,275	$	101,151		$	—	$	127,426
Federal funds sold	7,500			—		7,500			—		7,500
Securities available-for-sale	926,717			—		920,533			6,184		926,717
Restricted stock	15,394			n/a		n/a			n/a		n/a
Loans, net	2,636,447			—		—			2,648,692		2,648,692
Accrued interest receivable	18,523			—		3,583			14,940		18,523
Deposits	(3,275,357		)	—		(3,278,099		)	—		(3,278,099		)
Short-term borrowings	(80,119		)	—		(80,119		)	—		(80,119		)
Other borrowings	(30,973		)	—		(31,143		)	—		(31,143		)
Accrued interest payable	(1,739		)	—		(1,739		)	—		(1,739		)

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Acquisitions and FDIC Indemnification Asset

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions and FDIC Indemnification Asset

Acquisitions

On July 27, 2019, the Corporation completed its acquisition of HopFed Bancorp, Inc. and its banking subsidiary, Heritage Bank. Therefore, the results of HopFed have been included in the results of operations beginning on July 27, 2019. Pursuant to the terms of the merger agreement, each issued and outstanding share of HopFed common stock, $0.01 par value per share, was converted into the right to receive, at the stockholder's election, either (or a combination of) 0.444 shares of Corporation common stock, without par value, or $21.00 in cash, subject to proration provisions specified in the merger agreement that provide for an aggregate split of 50% of shares of HopFed Common Stock being exchanged for Corporation Common Stock and 50% for cash, with cash to be paid in lieu of fractional shares. Each outstanding share of Corporation common stock remained outstanding and was unaffected by the merger. Acquisition-related costs of $3.3 million are included in the Corporation's income statement for the year ended December 31, 2019.

Goodwill of $44.2 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.

(Dollar amounts in thousands)	As Initially Reported		Measurement Period Adjustments			As Adjusted
Consideration
Cash consideration	$	67,348	$	—		$	67,348
Stock consideration	61,878		—			61,878
Fair value of total consideration transferred	$	129,226	$	—		$	129,226
Assets acquired
Cash	$	34,518				$	34,518
Investment securities available-for-sale	174,851					174,851
Bank owned life insurance	10,693					10,693
Federal Home Loan Bank stock	4,428					4,428
Loans	657,179		1,719			658,898
Premises and equipment	25,316		(6,494		)	18,822
Core deposit intangibles	10,369					10,369
Other real estate owned	3,364					3,364
Other assets	6,596		1,600			8,196
Total assets acquired	927,314		(3,175		)	924,139
Liabilities assumed
Deposits	735,526					735,526
FHLB advances	20,775					20,775
Other borrowings	75,783					75,783
Other liabilities	7,066					7,066
Total liabilities assumed	839,150		—			839,150
Net identifiable assets	88,164		(3,175		)	84,989
Goodwill	$	41,062	$	3,175		$	44,237

The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Corporation believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to guidance relating to purchase credit impaired loans, which have shown evidence of credit deterioration since origination.

The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2018. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on deposits acquired, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates.

	Year ended December 31,
(Dollar amounts in thousands, except per share data)	2019		2018
Net interest income	$	147,581	$	145,136
Net income	$	51,088	$	52,252
Basic and diluted earnings per share	$	3.97	$	4.26

FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition.

Purchase credit impaired loans purchased during the year ended December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

(Dollar amount in thousands)	As Initially Reported		Measurement Period Adjustments			As Adjusted
Contractually required payments receivable of loans purchased during the year:
Commercial	$	16,530	$	(3,523	)	$	13,007
Consumer	391		(296		)	95
	$	16,921	$	(3,819	)	$	13,102
Fair value of acquired loans at acquisition	$	8,870	$	(1,857	)	$	7,013

The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at March 31, 2020 and 2019 are shown in the following tables:

						2020
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	7,269		$	—	$	7,269
Discount accretion	—			—		—
Disposals	(922		)	—		(922		)
ASC 310-30 Loans, March 31,	$	6,347		$	—	$	6,347

						2019
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	1,530		$	—	$	1,530
Discount accretion	—			—		—
Disposals	(36		)	—		(36		)
ASC 310-30 Loans, March 31,	$	1,494		$	—	$	1,494

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Securities (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Rollforward of the credit losses recognized in earnings
Beginning balance	$ 2,974	$ 2,974
Increases to the amount related to the credit loss for which other-than-temporary was previously recognized	0	0
Reductions for increases in cash flows collected	0	0
Amounts realized for securities sold during the period	0	0
Ending balance	$ 2,974	$ 2,974

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Allowance for Loan Losses (Details Textual) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Allowance for loan losses
Fair value	$ 9,731,000	$ 7,113,000
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk	100,000
Commercial & Industrial
Allowance for loan losses
Fair value	99,000	100,000
Farmland
Allowance for loan losses
Fair value	0	0
Non Farm, Non Residential
Allowance for loan losses
Fair value	0	0
Agriculture
Allowance for loan losses
Fair value	0
All Other Commercial
Allowance for loan losses
Fair value	0	0
First Liens
Allowance for loan losses
Fair value	0	0
Home Equity
Allowance for loan losses
Fair value	0	0
Junior Liens
Allowance for loan losses
Fair value	0	0
Multifamily
Allowance for loan losses
Fair value	0	0
All Other Residential
Allowance for loan losses
Fair value	0	0
Motor Vehicle
Allowance for loan losses
Fair value	0	0
All Other Consumer
Allowance for loan losses
Fair value	0	0
Nonperforming Financing Receivable [Member]
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	1,490,000	1,662,000
Nonaccrual	12,011,000	9,546,000
Nonperforming Financing Receivable [Member] | Commercial & Industrial
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	21,000	0
Nonaccrual	2,882,000	2,191,000
Nonperforming Financing Receivable [Member] | Farmland
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	6,000	5,000
Nonaccrual	1,534,000	2,410,000
Nonperforming Financing Receivable [Member] | Non Farm, Non Residential
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	3,980,000	441,000
Nonperforming Financing Receivable [Member] | Agriculture
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	3,000	485,000
Nonperforming Financing Receivable [Member] | All Other Commercial
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	62,000	114,000
Nonperforming Financing Receivable [Member] | First Liens
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	1,138,000	625,000
Nonaccrual	2,604,000	2,876,000
Nonperforming Financing Receivable [Member] | Home Equity
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	136,000	12,000
Nonaccrual	43,000	61,000
Nonperforming Financing Receivable [Member] | Junior Liens
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	21,000	51,000
Nonaccrual	99,000	175,000
Nonperforming Financing Receivable [Member] | Multifamily
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | All Other Residential
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	41,000	738,000
Nonaccrual	48,000	203,000
Nonperforming Financing Receivable [Member] | Motor Vehicle
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	115,000	227,000
Nonaccrual	233,000	138,000
Nonperforming Financing Receivable [Member] | All Other Consumer
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing	12,000	4,000
Nonaccrual	$ 523,000	$ 452,000

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019. 

	Unrealized
	gains and			2020
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	14,893		$	(22,394	)	$	(7,501	)
Change in other comprehensive income (loss) before reclassification	13,244			—			13,244
Amounts reclassified from accumulated other comprehensive income	(146		)	404			258
Net current period other comprehensive income (loss)	13,098			404			13,502
Ending balance, March 31,	$	27,991		$	(21,990	)	$	6,001

	Unrealized
	gains and			2019
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(6,105	)	$	(17,349	)	$	(23,454	)
Change in other comprehensive income (loss) before reclassification	10,221			—			10,221
Amounts reclassified from accumulated other comprehensive income	3			303			306
Net current period other comprehensive income (loss)	10,224			303			10,527
Ending balance, March 31,	$	4,119		$	(17,046	)	$	(12,927	)

Schedule Of Accumulated Other Comprehensive Income Loss Other Than Temporary Impairment

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	1/1/2019			Change		3/31/2019
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(8,446	)	$	10,166	$	1,720
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,341			58		2,399
Total unrealized gain (loss) on securities available-for-sale	$	(6,105	)	$	10,224	$	4,119
Unrealized loss on retirement plans	(17,349		)	303		(17,046		)
TOTAL	$	(23,454	)	$	10,527	$	(12,927	)

Accumulated Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent

	Three Months Ended March 31, 2020
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	194		Net securities gains (losses)
on available-for-sale	(48		)	Income tax expense
securities	$	146		Net of tax
Amortization of	$	(492	)	(a) Salary and benefits
retirement plan items	88			Income tax expense
	$	(404	)	Net of tax
Total reclassifications for the period	$	(258	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).

	Three Months Ended March 31, 2019
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	(4	)	Net securities gains (losses)
on available-for-sale	1			Income tax expense
securities	$	(3	)	Net of tax
Amortization of	$	(389	)	(a) Salary and benefits
retirement plan items	86			Income tax expense
	$	(303	)	Net of tax
Total reclassifications for the period	$	(306	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).

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Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Unpaid Principal Balance
TOTAL	$ 10,261		$ 7,643
Recorded Investment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	99		100
Fair value	9,731		7,113
Allowance For Loan Losses Allocated
TOTAL	42		48
Average Recorded Investment
TOTAL	8,424	$ 11,831	8,693
Interest Income Recognized
TOTAL	0	0	0
Cash Basis Interest Income Recognized
TOTAL	0	0	0
Commercial & Industrial
Unpaid Principal Balance
With no related allowance recorded:	1,679		1,519
With an allowance recorded:	141		148
Recorded Investment
With no related allowance recorded:	1,149		989
Impaired Financing Receivable, with Related Allowance, Recorded Investment	141		148
Fair value	99		100
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	42		48
Average Recorded Investment
With no related allowance recorded:	1,069	788	848
With an allowance recorded:	145	488	1,108
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Farmland
Unpaid Principal Balance
With no related allowance recorded:	1,324		1,997
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	1,324		1,997
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	1,661	930	1,999
With an allowance recorded:	0	3,041	84
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Non Farm, Non Residential
Unpaid Principal Balance
With no related allowance recorded:	3,512		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	3,512		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	1,756	2,442	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Agriculture
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	116	0
With an allowance recorded:	0	537	138
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
All Other Commercial
Unpaid Principal Balance
With no related allowance recorded:	26		27
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	26		27
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	27	1,218	461
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
First Liens
Unpaid Principal Balance
With no related allowance recorded:	3,579		3,952
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	3,579		3,952
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	3,766	2,032	4,055
With an allowance recorded:	0	221	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Home Equity
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Junior Liens
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	18	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Multifamily
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
All Other Residential
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Motor Vehicle
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
All Other Consumer
Unpaid Principal Balance
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Recorded Investment
With no related allowance recorded:	0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0
Fair value	0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0
With an allowance recorded:	0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0
With an allowance recorded:	$ 0	$ 0	$ 0

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Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 3,700
Post-Retirement Health Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 251
Service cost	$ 10	$ 9
Interest cost	31	36
Expected return on plan assets	0	0
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	0
Net amortization of net (gain) loss	0	(4)
Net Periodic Benefit Cost	41	41
Defined Benefit Plan, Plan Assets, Contributions by Employer	60
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	325	304
Interest cost	779	866
Expected return on plan assets	(1,050)	(896)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	0
Net amortization of net (gain) loss	492	389
Net Periodic Benefit Cost	546	$ 663
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 435

XML

Fair Value (Details 4) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying amount and estimated fair value of financial instruments
Fair value	$ 9,731	$ 7,113
Securities available-for-sale	932,041	926,717
Restricted Investments	15,400	15,394
Accrued interest receivable	17,098	18,523
Deposits	(3,291,231)	(3,275,357)
Fair Value, Inputs, Level 1 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	31,450	26,275
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0
Securities available-for-sale	0	0
Loans Receivable, Fair Value Disclosure	0	0
Accrued interest receivable	0	0
Deposits	0	0
Short-term borrowings	0	0
Accrued interest payable	0	0
Fair Value, Inputs, Level 2 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	179,584	101,151
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	1
Securities available-for-sale	926,573	920,533
Loans Receivable, Fair Value Disclosure	0	0
Accrued interest receivable	5,000	3,583
Deposits	(3,302,047)	(3,278,099)
Short-term borrowings	(83,784)	(80,119)
Accrued interest payable	(1,481)	(1,739)
Fair Value, Inputs, Level 3 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0
Securities available-for-sale	5,468	6,184
Loans Receivable, Fair Value Disclosure	2,703,088	2,648,692
Accrued interest receivable	12,098	14,940
Deposits	0	0
Short-term borrowings	0	0
Accrued interest payable	0	0
Reported Value Measurement [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	211,034	127,426
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	1
Securities available-for-sale	932,041	926,717
Restricted Investments	15,400	15,394
Loans Receivable, Fair Value Disclosure	2,601,574	2,636,447
Accrued interest receivable	17,098	18,523
Deposits	(3,291,231)	(3,275,357)
Short-term borrowings	(83,784)	(80,119)
Accrued interest payable	(1,481)	(1,739)
Estimate of Fair Value Measurement [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	211,034	127,426
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	1
Securities available-for-sale	932,041	926,717
Loans Receivable, Fair Value Disclosure	2,703,088	2,648,692
Accrued interest receivable	17,098	18,523
Deposits	(3,302,047)	(3,278,099)
Short-term borrowings	(83,784)	(80,119)
Accrued interest payable	$ (1,481)	$ (1,739)

XML

Acquisitions and FDIC Indemnification Asset (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of carrying amount of covered assets

						2020
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	7,269		$	—	$	7,269
Discount accretion	—			—		—
Disposals	(922		)	—		(922		)
ASC 310-30 Loans, March 31,	$	6,347		$	—	$	6,347

						2019
(Dollar amounts in thousands)	Commercial			Consumer		Total
Beginning balance, January 1,	$	1,530		$	—	$	1,530
Discount accretion	—			—		—
Disposals	(36		)	—		(36		)
ASC 310-30 Loans, March 31,	$	1,494		$	—	$	1,494

XML

Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Ending Balance Attributable to Loans
Individually evaluated for impairment	$ 42	$ 48
Collectively evaluated for impairment	21,021	19,895
Ending Balance	21,063	19,943	$ 20,960	$ 20,436
Loans
Individually evaluated for impairment	9,731	7,113
Collectively evaluated for impairment	2,614,336	2,651,893
Total	2,630,616	2,666,442
Commercial Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	42	48
Collectively evaluated for impairment	9,281	8,897
Ending Balance	9,323	8,945	9,239	9,848
Loans
Individually evaluated for impairment	6,152	3,161
Collectively evaluated for impairment	1,563,334	1,584,169
Total	1,576,035	1,594,766
Residential Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,452	1,302
Ending Balance	1,452	1,302	1,492	1,313
Loans
Individually evaluated for impairment	3,579	3,952
Collectively evaluated for impairment	661,353	680,069
Total	664,932	684,021
Consumer Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	8,757	8,304
Ending Balance	8,757	8,304	7,562	7,481
Loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	389,649	387,655
Total	389,649	387,655
Unallocated
Ending Balance Attributable to Loans
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,531	1,392
Ending Balance	1,531	1,392	$ 2,667	$ 1,794
Financial Asset Acquired with Credit Deterioration [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Loss	0	0
Loans
Financing Receivable, after Allowance for Credit Loss	6,549	7,436
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Loss	0	0
Loans
Financing Receivable, after Allowance for Credit Loss	6,549	7,436
Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Loss	0	0
Loans
Financing Receivable, after Allowance for Credit Loss	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Loss	0	0
Loans
Financing Receivable, after Allowance for Credit Loss	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Unallocated
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Loss	$ 0	$ 0

XML

Components of Net Periodic Benefit Cost (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 3,700
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year			736
Defined Contribution Plan Employer Accrued Discretionary Contribution Amount	$ 412	$ 390
Post Retirement Health Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 251
Defined Benefit Plan, Plan Assets, Contributions by Employer	60
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 435

XML

Fair Value (Details Textual) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Valuation allowance for impaired loans	$ 42	$ 48
Provision for impaired loan losses		(689)
Other real estate owned	3,894	3,625
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	99	100
Valuation allowance for impaired loans	$ 42	$ 48
Fair Value Measurements Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Other Real Estate [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate, other deductions	$ 50	$ 64
Other Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3,894	3,625
Other real estate owned	$ 3,900	$ 3,600
Fair Value Measurements Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 2,235	$ 2,565
Fair Value Measurements Unobservable Inputs	Discount rate Probability of default	Discount rate Probability of default
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 3,500	$ 3,500
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 411	$ 142
Measurement Input, Discount Rate [Member] | Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.00
Measurement Input, Discount Rate [Member] | Minimum [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input	0.0000	0.0000
Measurement Input, Discount Rate [Member] | Minimum [Member] | Other Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.0500	0.0500
Measurement Input, Discount Rate [Member] | Minimum [Member] | State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
State and Municipal Obligations, measurement input	0.0305	0.0305
Measurement Input, Discount Rate [Member] | Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.50
Measurement Input, Discount Rate [Member] | Maximum [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, measurement input	0.5000	0.5000
Measurement Input, Discount Rate [Member] | Maximum [Member] | Other Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Real Estate, measurement input	0.2000	0.2000
Measurement Input, Discount Rate [Member] | Maximum [Member] | State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
State and Municipal Obligations, measurement input	0.0550	0.0550

XML

Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net securities gains (losses)	$ 194	$ (4)
Income tax expense	(3,020)	(2,217)
Unrealized gain (loss) on securities, net of tax	12,181	9,682
Change in funded status of post retirement benefits	404	303
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Unrealized gain (loss) on securities, net of tax	(258)	(306)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net securities gains (losses)	194	(4)
Income tax expense	(48)	1
Unrealized gain (loss) on securities, net of tax	146	(3)
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income tax expense	88	86
Unrealized gain (loss) on securities, net of tax	(404)	(303)
Change in funded status of post retirement benefits	$ (492)	$ (389)

XML

Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

	March 31, 2020
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	98,780	$	2,762	$	(38	)	$	101,504
Mortgage Backed Securities - residential	235,774		9,082		—			244,856
Mortgage Backed Securities - commercial	21,891		798		—			22,689
Collateralized mortgage obligations	276,125		8,461		(220		)	284,366
State and municipal obligations	259,907		12,410		(188		)	272,129
Municipal taxable	725		1		—			726
U.S. Treasury	2,501		37		—			2,538
Collateralized debt obligations	—		3,233		—			3,233
TOTAL	$	895,703	$	36,784	$	(446	)	$	932,041

	December 31, 2019
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	102,490	$	1,293	$	(150	)	$	103,633
Mortgage Backed Securities-residential	240,753		2,979		(350		)	243,382
Mortgage Backed Securities-commercial	22,036		73		(5		)	22,104
Collateralized mortgage obligations	280,797		1,735		(1,221		)	281,311
State and municipal obligations	253,277		11,265		(108		)	264,434
Municipal taxable	728		2		—			730
U.S. Treasury	7,494		10		—			7,504
Collateralized debt obligations	—		3,619		—			3,619
TOTAL	$	907,575	$	20,976	$	(1,834	)	$	926,717

Contractual maturities of debt securities at March 31, 2020 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	10,297	$	10,359
Due after one but within five years	57,759		59,055
Due after five but within ten years	43,921		45,180
Due after ten years	249,936		265,536
	361,913		380,130
Mortgage-backed securities and collateralized mortgage obligations	533,790		551,911
TOTAL	$	895,703	$	932,041

There were $244 thousand in gross gains and $50 thousand in losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2020. For the three months ended March 31, 2019 there were $2 thousand in gross gains and $6 thousand in losses on sales of investment securities.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2020 and December 31, 2019. 

	March 31, 2020
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	3,756	$	(38	)	$	—	$	—		$	3,756	$	(38	)
Mortgage Backed Securities - Residential	$	—	$	—		$	—	$	—		$	—	$	—
Collateralized mortgage obligations	9,178		(220		)	—		—			9,178		(220		)
State and municipal obligations	8,587		(131		)	464		(57		)	9,051		(188		)
U.S. Treasury	—		—			—		—			—		—
Total temporarily impaired securities	$	21,521	$	(389	)	$	464	$	(57	)	$	21,985	$	(446	)

	December 31, 2019
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
US Government Agencies	$	29,183	$	(150	)	$	—	$	—		$	29,183	$	(150	)
Mortgage Backed Securities - Residential	$	55,665	$	(243	)	$	18,724	$	(107	)	$	74,389	$	(350	)
Mortgage Backed Securities - Commercial	4,391		(5		)	—		—			4,391		(5		)
Collateralized mortgage obligations	33,398		(314		)	61,781		(907		)	95,179		(1,221		)
State and municipal obligations	8,996		(61		)	461		(47		)	9,457		(108		)
Total temporarily impaired securities	$	131,633	$	(773	)	$	80,966	$	(1,061	)	$	212,599	$	(1,834	)

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.

When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $446 thousand as of March 31, 2020 and $1.8 million as of December 31, 2019. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

There is one remaining collateralized debt obligations security with previously recorded OTTI but there was no additional OTTI recorded in 2020 or 2019. During the quarter ended June 30, 2018, an obligation was called, resulting in the elimination of the OTTI associated with that obligation. A recovery of previously recorded OTTI of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2020 and 2019:

	Three Months Ended March 31,
(Dollar amounts in thousands)	2020		2019
Beginning balance	$	2,974	$	2,974
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—
Reductions for increases in cash flows collected	—		—
Reductions for securities called during the period	—		—
Ending balance	$	2,974	$	2,974

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New accounting standards

3 Months Ended

Mar. 31, 2020

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New accounting standards

New accounting standards

Accounting Pronouncements Adopted:

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. ASU No. 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019, applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Corporation adopted ASU 2017-04 on January 1, 2020. There was not a significant impact to accounting and disclosures.

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. The Corporation adopted ASU 2018-13 on January 1, 2020. As ASU No. 2018-13 only revises disclosure requirements, it did not have a material impact on the Corporation’s financial statements.

In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. The Corporation adopted ASU 2018-15 on January 1, 2020. ASU 2018-15 did not have a material impact on the Corporation’s financial statements.

Recent Accounting Pronouncements:

In June 2016 ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial

Instruments (ASU 2016-13), was issued and requires entities to use a current expected credit loss ("CECL") model which is a

new impairment model based on expected losses rather than incurred losses. Under this model an entity would recognize an

impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from

financial assets measured at amortized cost. The entity's estimate would consider relevant information about past events,

current conditions, and reasonable and supportable forecasts, which will result in recognition of lifetime expected credit losses

upon loan origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019,

with early adoption permitted for annual reporting periods beginning after December 15, 2018.

The Corporation formed a cross-functional internal management committee and engaged a third party vendor to assist with the

transition to the guidance set forth in this update. The new allowance model implemented by the Corporation estimates credit

losses over the expected life of the portfolio and includes a qualitative framework to account for the drivers of losses that are

not captured by the quantitative model. The results continue to be utilized to refine our models and estimation techniques.

Documentation of new methodologies and internal controls that will be implemented as part of CECL as well as model

validation is also being finalized. While the committee continues to analyze and modify calculations, the Corporation currently

expects the adoption of ASU 2016-13 will result in an increase in allowance for loan losses amount at January 1, 2020 in the

range of $15 million to $25 million. The allowance for credit losses also increased due to the requirement to record an

allowance on acquired loan portfolios, previously recorded at fair value. Once finalized, the cumulative effect adjustment, as a

result of the adoption of this guidance, was originally to be recorded on January 1, 2020, net of tax, as an adjustment to retained earnings. This estimate is subject to change as key assumptions are refined and model validations are finalized.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by the President of the United States that included an option for entities to delay the implementation of ASU 2016-13 until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020. Due to the uncertainty on the economy and unemployment from COVID-19, the Corporation has determined to delay its implementation of ASU 2016-13 and has calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASU 2016-13.

In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a material impact on the Corporation’s financial statements.

In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” These amendments remove specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences where there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. It also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacts changes in tax laws in interim periods. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Corporation is assessing ASU 2019-12 and its impact on its accounting and disclosure.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Common stock, stated value per share	$ 0.125	$ 0.125
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, Issued shares	16,075,154	16,055,466
Common stock, Outstanding shares	13,714,524	13,741,825
Treasury, shares	2,360,630	2,313,641

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Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Amortized cost and fair value of investments classified as available-for-sale

	March 31, 2020
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	98,780	$	2,762	$	(38	)	$	101,504
Mortgage Backed Securities - residential	235,774		9,082		—			244,856
Mortgage Backed Securities - commercial	21,891		798		—			22,689
Collateralized mortgage obligations	276,125		8,461		(220		)	284,366
State and municipal obligations	259,907		12,410		(188		)	272,129
Municipal taxable	725		1		—			726
U.S. Treasury	2,501		37		—			2,538
Collateralized debt obligations	—		3,233		—			3,233
TOTAL	$	895,703	$	36,784	$	(446	)	$	932,041

	December 31, 2019
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	102,490	$	1,293	$	(150	)	$	103,633
Mortgage Backed Securities-residential	240,753		2,979		(350		)	243,382
Mortgage Backed Securities-commercial	22,036		73		(5		)	22,104
Collateralized mortgage obligations	280,797		1,735		(1,221		)	281,311
State and municipal obligations	253,277		11,265		(108		)	264,434
Municipal taxable	728		2		—			730
U.S. Treasury	7,494		10		—			7,504
Collateralized debt obligations	—		3,619		—			3,619
TOTAL	$	907,575	$	20,976	$	(1,834	)	$	926,717

Schedule of contractual maturities of debt securities

Contractual maturities of debt securities at March 31, 2020 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	10,297	$	10,359
Due after one but within five years	57,759		59,055
Due after five but within ten years	43,921		45,180
Due after ten years	249,936		265,536
	361,913		380,130
Mortgage-backed securities and collateralized mortgage obligations	533,790		551,911
TOTAL	$	895,703	$	932,041

Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2020 and December 31, 2019. 

	March 31, 2020
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	3,756	$	(38	)	$	—	$	—		$	3,756	$	(38	)
Mortgage Backed Securities - Residential	$	—	$	—		$	—	$	—		$	—	$	—
Collateralized mortgage obligations	9,178		(220		)	—		—			9,178		(220		)
State and municipal obligations	8,587		(131		)	464		(57		)	9,051		(188		)
U.S. Treasury	—		—			—		—			—		—
Total temporarily impaired securities	$	21,521	$	(389	)	$	464	$	(57	)	$	21,985	$	(446	)

	December 31, 2019
	Less Than 12 Months					More Than 12 Months					Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
US Government Agencies	$	29,183	$	(150	)	$	—	$	—		$	29,183	$	(150	)
Mortgage Backed Securities - Residential	$	55,665	$	(243	)	$	18,724	$	(107	)	$	74,389	$	(350	)
Mortgage Backed Securities - Commercial	4,391		(5		)	—		—			4,391		(5		)
Collateralized mortgage obligations	33,398		(314		)	61,781		(907		)	95,179		(1,221		)
State and municipal obligations	8,996		(61		)	461		(47		)	9,457		(108		)
Total temporarily impaired securities	$	131,633	$	(773	)	$	80,966	$	(1,061	)	$	212,599	$	(1,834	)

Rollforward of the credit losses recognized in earnings

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2020 and 2019:

	Three Months Ended March 31,
(Dollar amounts in thousands)	2020		2019
Beginning balance	$	2,974	$	2,974
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—
Reductions for increases in cash flows collected	—		—
Reductions for securities called during the period	—		—
Ending balance	$	2,974	$	2,974

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 12,181	$ 9,682
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	1,462	900
Provision for loan losses	2,690	1,470
Securities (gains) losses	(194)	4
(Gain) loss on sale of other real estate	23	8
Recovery of security for previously written off OTTI	0	0
Restricted stock compensation	204	201
Depreciation and amortization	1,400	1,000
Other, net	8,611	1,185
NET CASH FROM OPERATING ACTIVITIES	25,679	14,030
CASH FLOWS FROM INVESTING ACTIVITIES:
Calls, maturities and principal reductions on securities available-for-sale	46,517	27,321
Purchases of securities available-for-sale	(63,516)	(16,214)
Increase (Decrease) in Federal Funds Sold	7,499	(2,000)
Loans made to customers, net of repayment	33,764	(30,828)
Proceeds from Sale of Restricted Investments	0	0
Payments to Acquire Restricted Investments	(6)	(22)
Proceeds from sales of other real estate owned	44	13
Additions to premises and equipment	(1,557)	(309)
NET CASH FROM INVESTING ACTIVITIES	50,349	(22,039)
Payments to Acquire Businesses, Net of Cash Acquired	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	16,281	(17,171)
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase	3,665	(13,008)
Maturities of other borrowings	(5,000)	(92,000)
Proceeds from FHLBank Borrowings, Financing Activities	1,500	117,000
Purchase of treasury stock	(1,724)	(315)
Dividends paid	(7,142)	(6,258)
Net Cash Provided by (Used in) Financing Activities	7,580	(11,752)
NET CHANGE IN CASH AND CASH EQUIVALENTS	83,608	(19,761)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	127,426	74,388
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 211,034	$ 54,627

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Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Realized Gain	$ 244	$ 2
Gross unrealized losses	446		$ 1,834
Cumulative OTTI charges	2,974	$ 2,974	2,974	$ 2,974
Amortized Cost	895,703		907,575
Securities available-for-sale	$ 932,041		$ 926,717
Minimum [Member]
Debt Securities, Available-for-sale [Line Items]
Basis point spread on variable rate	1.60%
Maximum [Member]
Debt Securities, Available-for-sale [Line Items]
Basis point spread on variable rate	1.80%

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Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	$ 895,703	$ 907,575
Unrealized Gains	(36,784)	(20,976)
Unrealized Losses	(446)	(1,834)
Securities available-for-sale	932,041	926,717
US Government Agencies Debt Securities [Member]
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	98,780	102,490
Unrealized Gains	(2,762)	(1,293)
Unrealized Losses	(38)	(150)
Securities available-for-sale	101,504	103,633
Mortgage Backed Securities - Residential
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	235,774	240,753
Unrealized Gains	(9,082)	(2,979)
Unrealized Losses	0	(350)
Securities available-for-sale	244,856	243,382
Mortgage Backed Securities - Commercial
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	21,891
Unrealized Gains	(798)
Unrealized Losses	0
Securities available-for-sale	22,689	22,104
Collateralized Mortgage Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	276,125	280,797
Unrealized Gains	(8,461)	(1,735)
Unrealized Losses	(220)	(1,221)
Securities available-for-sale	284,366	281,311
State and Municipal Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	259,907	253,277
Unrealized Gains	(12,410)	(11,265)
Unrealized Losses	(188)	(108)
Securities available-for-sale	272,129	264,434
Collateralized Debt Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	0	0
Unrealized Gains	(3,233)	(3,619)
Unrealized Losses	0	0
Securities available-for-sale	$ 3,233	$ 3,619

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Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Aging of recorded investment in loans by past due category and class of loans
Fair value	$ 9,731	$ 7,113
Financing Receivable, Troubled Debt Restructuring	4,156	4,194	$ 4,774	$ 4,806
Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Fair value	99	100
Farmland
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Agriculture
Aging of recorded investment in loans by past due category and class of loans
Fair value	0
All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
First Liens
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Home Equity
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Multifamily
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Fair value	0	0
Nonperforming Financing Receivable [Member]
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	1,490	1,662
Nonaccrual	12,011	9,546
Financing Receivable, Troubled Debt Restructuring	3,233	3,340
Financing Receivable, Modifications, Nonaccrual	937	875
Nonperforming Financing Receivable [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	21	0
Nonaccrual	2,882	2,191
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	4	11
Nonperforming Financing Receivable [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	6	5
Nonaccrual	1,534	2,410
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	3,980	441
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	3	485
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	62	114
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	1,138	625
Nonaccrual	2,604	2,876
Financing Receivable, Troubled Debt Restructuring	2,960	3,007
Financing Receivable, Modifications, Nonaccrual	401	396
Nonperforming Financing Receivable [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	136	12
Nonaccrual	43	61
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	21	51
Nonaccrual	99	175
Financing Receivable, Troubled Debt Restructuring	83	94
Financing Receivable, Modifications, Nonaccrual	8	9
Nonperforming Financing Receivable [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0	0
Nonaccrual	0	0
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	41	738
Nonaccrual	48	203
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	0	0
Nonperforming Financing Receivable [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	115	227
Nonaccrual	233	138
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, Modifications, Nonaccrual	14	15
Nonperforming Financing Receivable [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	12	4
Nonaccrual	523	452
Financing Receivable, Troubled Debt Restructuring	190	239
Financing Receivable, Modifications, Nonaccrual	$ 510	$ 444

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Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2020

Short-term Debt [Abstract]

Schedule of short-term borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	March 31, 2020		December 31, 2019
Federal Funds Purchased	$	2,150	$	900
Repurchase Agreements	81,634		79,219
	$	83,784	$	80,119

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Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) segment shares	Mar. 31, 2019 USD ($) shares
Accounting Policies [Abstract]
Number of Reportable Segments | segment	1
Vesting period	3 years
Incremental vesting rights for first year (as a percent)	33.00%
Incremental vesting rights for second year (as a percent)	33.00%
Incremental vesting rights for third year (as a percent)	34.00%
Number of shares awarded | shares	19,688	19,783
Grant date value | $	$ 837	$ 841

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Short-Term Borrowings Short-Term Borrowings (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 81,634	$ 79,219
Maturity Overnight [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	75,739	69,709
Maturity up to 30 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	90	1,927
Maturity 30 to 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	65	6,552
Maturity over 90 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 5,740	$ 1,031

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Fair Value (Details 3) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans identified as impaired by class of loans
Carrying Value	$ 141	$ 148
Allowance for Loan Losses Allocated	42	48
Fair value	9,731	7,113
Impaired Financing Receivable, with Related Allowance, Recorded Investment	99	100
Commercial & Industrial
Loans identified as impaired by class of loans
Carrying Value	141	148
Allowance for Loan Losses Allocated	42	48
Fair value	99	100
Impaired Financing Receivable, with Related Allowance, Recorded Investment	141	148
Farmland
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Non Farm, Non Residential
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Agriculture
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Commercial
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
First Liens
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Home Equity
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Junior Liens
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Multifamily
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Residential
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Motor Vehicle
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Consumer
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 0	$ 0

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Acquisitions and FDIC Indemnification Asset (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Assets	$ 4,062,414,000	$ 4,023,250,000
Goodwill	78,592,000	78,592,000
Loans and Leases Receivable, Net of Loans with Deteriorated Credit Quality, Covered	2,800,000	$ 3,200,000
First National Bank Of Danville [Member]
Business Acquisition [Line Items]
Reimbursements from the FDIC	19,400,000
Business Aquisition, Loss Sharing Agreement Losses On Assets Threshold	$ 29,000,000
Business Acquisition Loss Sharing Agreement Losses In Excess Of Threshold To Be Reimbursed Percentage	95.00%
Business Acquisition, Loss Sharing Agreement Losses Up To Threshold To Be Reimbursed Percentage	80.00%

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 13,502	$ 10,527
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	13,244	10,221
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	258	306
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	13,502	10,527
TOTAL Balance	(7,501)	(23,454)
TOTAL Balance	6,001	(12,927)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	13,098	10,224
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	13,244	10,221
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	(146)	3
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	13,098	10,224
TOTAL Balance	14,893	(6,105)
TOTAL Balance	27,991	4,119
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	404	303
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	0	0
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	404	303
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	404	303
TOTAL Balance	(22,394)	(17,349)
TOTAL Balance	$ (21,990)	$ (17,046)

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Securities (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 10,297
Less Than 12 Months
Fair Value	21,521	$ 131,633
Unrealized Losses	(389)	(773)
More Than 12 Months
Fair Value	464	80,966
Unrealized Losses	(57)	(1,061)
Total
Fair Value	21,985	212,599
Unrealized Losses	(446)	(1,834)
US Government Agencies Debt Securities [Member]
Less Than 12 Months
Fair Value	3,756	29,183
Unrealized Losses	(38)	(150)
More Than 12 Months
Fair Value	0	0
Unrealized Losses	0	0
Total
Fair Value	3,756	29,183
Unrealized Losses	(38)	(150)
Mortgage Backed Securities - Residential
Less Than 12 Months
Fair Value	0	55,665
Unrealized Losses	0	(243)
More Than 12 Months
Fair Value	0	18,724
Unrealized Losses	0	(107)
Total
Fair Value	0	74,389
Unrealized Losses	0	(350)
Collateralized Mortgage Obligations
Less Than 12 Months
Fair Value	9,178	33,398
Unrealized Losses	(220)	(314)
More Than 12 Months
Fair Value	0	61,781
Unrealized Losses	0	(907)
Total
Fair Value	9,178	95,179
Unrealized Losses	(220)	(1,221)
State and Municipal Obligations
Less Than 12 Months
Fair Value	8,587	8,996
Unrealized Losses	(131)	(61)
More Than 12 Months
Fair Value	464	461
Unrealized Losses	(57)	(47)
Total
Fair Value	9,051	9,457
Unrealized Losses	$ (188)	$ (108)

XML

Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	$ 2,630,616	$ 2,666,442
Financing Receivable, Past Due	32,939	31,590
Financing Receivable, Not Past Due	2,597,677	2,634,852
Total loans	2,618,380	2,652,530
Loans not rated	2,618,380
Commercial & Industrial
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	617,688	599,955
Financing Receivable, Past Due	7,923	5,030
Financing Receivable, Not Past Due	609,765	594,925
Total loans	615,918	597,709
Farmland
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	134,779	139,951
Financing Receivable, Past Due	1,532	2,221
Financing Receivable, Not Past Due	133,247	137,730
Total loans	133,004	137,275
Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	384,883	402,707
Financing Receivable, Past Due	4,893	3,853
Financing Receivable, Not Past Due	379,990	398,854
Total loans	383,958	401,775
Agriculture
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	144,785	163,199
Financing Receivable, Past Due	6	405
Financing Receivable, Not Past Due	144,779	162,794
Total loans	141,704	160,126
All Other Commercial
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	293,900	288,954
Financing Receivable, Past Due	972	109
Financing Receivable, Not Past Due	292,928	288,845
Total loans	292,756	287,562
First Liens
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	374,751	385,126
Financing Receivable, Past Due	8,813	9,202
Financing Receivable, Not Past Due	365,938	375,924
Total loans	373,578	383,912
Home Equity
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	68,568	71,034
Financing Receivable, Past Due	361	221
Financing Receivable, Not Past Due	68,207	70,813
Total loans	68,379	70,842
Junior Liens
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	55,565	55,097
Financing Receivable, Past Due	412	564
Financing Receivable, Not Past Due	55,153	54,533
Total loans	55,439	54,974
Multifamily
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	144,813	148,282
Financing Receivable, Past Due	1,621	0
Financing Receivable, Not Past Due	143,192	148,282
Total loans	144,489	147,943
All Other Residential
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	21,235	24,482
Financing Receivable, Past Due	110	1,972
Financing Receivable, Not Past Due	21,125	22,510
Total loans	21,175	24,406
Motor Vehicle
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	359,253	355,691
Financing Receivable, Past Due	5,948	7,741
Financing Receivable, Not Past Due	353,305	347,950
Total loans	357,729	354,198
All Other Consumer
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	30,396	31,964
Financing Receivable, Past Due	348	272
Financing Receivable, Not Past Due	30,048	31,692
Total loans	30,251	31,808
Pass
Analysis of risk category of loans by class of loans
Total loans	1,718,129	1,821,763
Pass | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	568,957	549,341
Pass | Farmland
Analysis of risk category of loans by class of loans
Total loans	115,976	119,858
Pass | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	366,697	381,404
Pass | Agriculture
Analysis of risk category of loans by class of loans
Total loans	118,014	127,144
Pass | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	288,600	283,266
Pass | First Liens
Analysis of risk category of loans by class of loans
Total loans	103,047	174,338
Pass | Home Equity
Analysis of risk category of loans by class of loans
Total loans	2,466	18,417
Pass | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	2,189	2,839
Pass | Multifamily
Analysis of risk category of loans by class of loans
Total loans	143,064	146,497
Pass | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	8,255	12,624
Pass | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	495	2,880
Pass | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	369	3,155
Special Mention
Analysis of risk category of loans by class of loans
Total loans	38,774	41,100
Special Mention | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	16,870	19,253
Special Mention | Farmland
Analysis of risk category of loans by class of loans
Total loans	9,213	8,673
Special Mention | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	4,427	4,424
Special Mention | Agriculture
Analysis of risk category of loans by class of loans
Total loans	3,999	4,507
Special Mention | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	3,095	3,141
Special Mention | First Liens
Analysis of risk category of loans by class of loans
Total loans	1,026	926
Special Mention | Home Equity
Analysis of risk category of loans by class of loans
Total loans	0	0
Special Mention | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	34	64
Special Mention | Multifamily
Analysis of risk category of loans by class of loans
Total loans	110	112
Special Mention | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Special Mention | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	0	0
Special Mention | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	0	0
Substandard
Analysis of risk category of loans by class of loans
Total loans	69,271	82,662
Substandard | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	22,758	26,349
Substandard | Farmland
Analysis of risk category of loans by class of loans
Total loans	7,753	8,644
Substandard | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	12,149	12,269
Substandard | Agriculture
Analysis of risk category of loans by class of loans
Total loans	19,193	27,490
Substandard | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	1,025	1,120
Substandard | First Liens
Analysis of risk category of loans by class of loans
Total loans	4,089	4,382
Substandard | Home Equity
Analysis of risk category of loans by class of loans
Total loans	170	134
Substandard | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	171	178
Substandard | Multifamily
Analysis of risk category of loans by class of loans
Total loans	1,315	1,315
Substandard | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	52	205
Substandard | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	546	538
Substandard | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	50	38
Doubtful
Analysis of risk category of loans by class of loans
Total loans	0	92
Doubtful | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	0	5
Doubtful | Farmland
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Agriculture
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | First Liens
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Home Equity
Analysis of risk category of loans by class of loans
Total loans	0	11
Doubtful | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	0	76
Doubtful | Multifamily
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	0	0
Not Rated
Analysis of risk category of loans by class of loans
Total loans	792,206	706,913
Not Rated | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	7,333	2,761
Not Rated | Farmland
Analysis of risk category of loans by class of loans
Total loans	62	100
Not Rated | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	685	3,678
Not Rated | Agriculture
Analysis of risk category of loans by class of loans
Total loans	498	985
Not Rated | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	36	35
Not Rated | First Liens
Analysis of risk category of loans by class of loans
Total loans	265,416	204,266
Not Rated | Home Equity
Analysis of risk category of loans by class of loans
Total loans	65,743	52,280
Not Rated | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	53,045	51,817
Not Rated | Multifamily
Analysis of risk category of loans by class of loans
Total loans	0	19
Not Rated | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	12,868	11,577
Not Rated | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	356,688	350,780
Not Rated | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	$ 29,832	$ 28,615

XML

Fair Value (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair value measurement using significant unobservable input
Securities available-for-sale	$ 932,041	$ 926,717
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	6,184	6,393
Total realized/unrealized gains or losses - Included in earnings	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	(386)	498
Transfers	0
Purchases		0
Settlements	(330)	(707)
Ending balance	5,468	6,184
US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	101,504	103,633
State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	272,129	264,434
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	2,565	3,135
Total realized/unrealized gains or losses - Included in earnings	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	0	0
Transfers	0
Purchases		0
Settlements	(330)	(570)
Ending balance	2,235	2,565
Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	3,233	3,619
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	3,619	3,258
Total realized/unrealized gains or losses - Included in earnings	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	(386)	498
Transfers	0
Purchases		0
Settlements	0	(137)
Ending balance	3,233	3,619
Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	244,856	243,382
Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	22,689	22,104
Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	284,366	281,311
Fair Value, Inputs, Level 3 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	5,468	6,184
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	2,235	2,565
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	3,233	3,619
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	926,573	920,533
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Derivative Assets	2,742	828
Derivative Liability	2,742	828
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	101,504	103,633
Fair Value, Inputs, Level 2 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	269,894	261,869
Fair Value, Inputs, Level 2 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	244,856	243,382
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	22,689	22,104
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	$ 284,366	$ 281,311

XML

Short-Term Borrowings

3 Months Ended

Mar. 31, 2020

Short-term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	March 31, 2020		December 31, 2019
Federal Funds Purchased	$	2,150	$	900
Repurchase Agreements	81,634		79,219
	$	83,784	$	80,119

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

Collateral pledged to repurchase agreements by remaining maturity are as follows:

	March 31, 2020
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	75,739	$	90	$	65	$	5,740	$	81,634

	December 31, 2019
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	69,709	$	1,927	$	6,552	$	1,031	$	79,219

XML

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables summarize the changes, net of tax, within each classification of accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019. 

	Unrealized
	gains and			2020
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	14,893		$	(22,394	)	$	(7,501	)
Change in other comprehensive income (loss) before reclassification	13,244			—			13,244
Amounts reclassified from accumulated other comprehensive income	(146		)	404			258
Net current period other comprehensive income (loss)	13,098			404			13,502
Ending balance, March 31,	$	27,991		$	(21,990	)	$	6,001

	Unrealized
	gains and			2019
	(Losses) on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(6,105	)	$	(17,349	)	$	(23,454	)
Change in other comprehensive income (loss) before reclassification	10,221			—			10,221
Amounts reclassified from accumulated other comprehensive income	3			303			306
Net current period other comprehensive income (loss)	10,224			303			10,527
Ending balance, March 31,	$	4,119		$	(17,046	)	$	(12,927	)

	Balance at			Current Period			Balance at
(Dollar amounts in thousands)	1/1/2020			Change			3/31/2020
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	12,178		$	13,388		$	25,566
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,715			(290		)	2,425
Total unrealized loss on securities available-for-sale	$	14,893		$	13,098		$	27,991
Unrealized gain (loss) on retirement plans	(22,394		)	404			(21,990		)
TOTAL	$	(7,501	)	$	13,502		$	6,001

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	1/1/2019			Change		3/31/2019
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(8,446	)	$	10,166	$	1,720
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,341			58		2,399
Total unrealized gain (loss) on securities available-for-sale	$	(6,105	)	$	10,224	$	4,119
Unrealized loss on retirement plans	(17,349		)	303		(17,046		)
TOTAL	$	(23,454	)	$	10,527	$	(12,927	)

	Three Months Ended March 31, 2020
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	194		Net securities gains (losses)
on available-for-sale	(48		)	Income tax expense
securities	$	146		Net of tax
Amortization of	$	(492	)	(a) Salary and benefits
retirement plan items	88			Income tax expense
	$	(404	)	Net of tax
Total reclassifications for the period	$	(258	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details).

	Three Months Ended March 31, 2019
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	(4	)	Net securities gains (losses)
on available-for-sale	1			Income tax expense
securities	$	(3	)	Net of tax
Amortization of	$	(389	)	(a) Salary and benefits
retirement plan items	86			Income tax expense
	$	(303	)	Net of tax
Total reclassifications for the period	$	(306	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 6 for additional details). 

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2020

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended March 31. 

Allowance for Loan Losses:	March 31, 2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	8,945		$	1,302		$	8,304		$	1,392	$	19,943
Provision for loan losses	520			251			1,780			139		2,690
Loans charged -off	(533		)	(257		)	(2,114		)	—		(2,904		)
Recoveries	391			156			787			—		1,334
Ending Balance	$	9,323		$	1,452		$	8,757		$	1,531	$	21,063

Allowance for Loan Losses:	March 31, 2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	9,848		$	1,313		$	7,481		$	1,794	$	20,436
Provision for loan losses	(640		)	296			941			873		1,470
Loans charged -off	(256		)	(302		)	(1,551		)	—		(2,109		)
Recoveries	287			185			691			—		1,163
Ending Balance	$	9,239		$	1,492		$	7,562		$	2,667	$	20,960

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at March 31, 2020 and December 31, 2019. 

Allowance for Loan Losses	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	42	$	—	$	—	$	—	$	42
Collectively evaluated for impairment	9,281		1,452		8,757		1,531		21,021
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,323	$	1,452	$	8,757	$	1,531	$	21,063

Loans:	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	6,152	$	3,579	$	—	$	9,731
Collectively evaluated for impairment	1,563,334		661,353		389,649		2,614,336
Acquired with deteriorated credit quality	6,549		—		—		6,549
Ending Balance	$	1,576,035	$	664,932	$	389,649	$	2,630,616

Allowance for Loan Losses:	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	48		—		—		—		48
Collectively evaluated for impairment	8,897		1,302		8,304		1,392		19,895
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	8,945	$	1,302	$	8,304	$	1,392	$	19,943

Loans	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	3,161		3,952		—		7,113
Collectively evaluated for impairment	1,584,169		680,069		387,655		2,651,893
Acquired with deteriorated credit quality	7,436		—		—		7,436
Ending Balance	$	1,594,766	$	684,021	$	387,655	$	2,666,442

The following tables present loans individually evaluated for impairment by class of loans. 

					March 31, 2020
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,679	$	1,149	$	—	$	1,069	$	—	$	—
Farmland	1,324		1,324		—		1,661		—		—
Non Farm, Non Residential	3,512		3,512		—		1,756		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	26		26		—		27		—		—
Residential
First Liens	3,579		3,579		—		3,766		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	141		141		42		145		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,261	$	9,731	$	42	$	8,424	$	—	$	—

					December 31, 2019
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,519	$	989	$	—	$	848	$	—	$	—
Farmland	1,997		1,997		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	27		27		—		461		—		—
Residential
First Liens	3,952		3,952		—		4,055		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	148		148		48		1,108		—		—
Farmland	—		—		—		84		—		—
Non Farm, Non Residential	—		—		—		—				—
Agriculture	—		—		—		138		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,643	$	7,113	$	48	$	8,693	$	—	$	—

	Three Months Ended   March 31, 2020
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,069	$	—	$	—
Farmland	1,661		—		—
Non Farm, Non Residential	1,756		—		—
Agriculture	—		—		—
All Other Commercial	27		—		—
Residential
First Liens	3,766		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	145		—		—
Farmland	—		—		—
Non Farm, Non Residential	—		—		—
Agriculture	—		—		—
All Other Commercial	—		—		—
Residential
First Liens	—		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	8,424	$	—	$	—

	Three Months Ended   March 31, 2019
	Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	788	$	—	$	—
Farmland	930		—		—
Non Farm, Non Residential	2,442		—		—
Agriculture	116		—		—
All Other Commercial	1,218		—		—
Residential
First Liens	2,032		—		—
Home Equity	—		—		—
Junior Liens	18		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	488		—		—
Farmland	3,041		—		—
Non Farm, Non Residential	—		—		—
Agriculture	537		—		—
All Other Commercial	—		—		—
Residential
First Liens	221		—		—
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	11,831	$	—	$	—

The tables below presents the recorded investment in non-performing loans.

	March 31, 2020
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	21	$	—	$	4	$	2,882
Farmland	6		—		—		1,534
Non Farm, Non Residential	—		—		—		3,980
Agriculture	—		—		—		3
All Other Commercial	—		—		—		62
Residential
First Liens	1,138		2,960		401		2,604
Home Equity	136		—		—		43
Junior Liens	21		83		8		99
Multifamily	—		—		—		—
All Other Residential	41		—		—		48
Consumer
Motor Vehicle	115		—		14		233
All Other Consumer	12		190		510		523
TOTAL	$	1,490	$	3,233	$	937	$	12,011

	December 31, 2019
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	—	$	11	$	2,191
Farmland	5		—		—		2,410
Non Farm, Non Residential	—		—		—		441
Agriculture	—		—		—		485
All Other Commercial	—		—		—		114
Residential
First Liens	625		3,007		396		2,876
Home Equity	12		—		—		61
Junior Liens	51		94		9		175
Multifamily	—		—		—		—
All Other Residential	738		—		—		203
Consumer
Motor Vehicle	227		—		15		138
All Other Consumer	4		239		444		452
TOTAL	$	1,662	$	3,340	$	875	$	9,546

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	March 31, 2020
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	3,593	$	2,695	$	1,635	$	7,923	$	609,765	$	617,688
Farmland	115		—		1,417		1,532		133,247		134,779
Non Farm, Non Residential	4,842		7		44		4,893		379,990		384,883
Agriculture	—		6		—		6		144,779		144,785
All Other Commercial	929		—		43		972		292,928		293,900
Residential
First Liens	6,972		344		1,497		8,813		365,938		374,751
Home Equity	181		23		157		361		68,207		68,568
Junior Liens	379		4		29		412		55,153		55,565
Multifamily	1,621		—		—		1,621		143,192		144,813
All Other Residential	69		—		41		110		21,125		21,235
Consumer
Motor Vehicle	5,215		534		199		5,948		353,305		359,253
All Other Consumer	319		15		14		348		30,048		30,396
TOTAL	$	24,235	$	3,628	$	5,076	$	32,939	$	2,597,677	$	2,630,616

	December 31, 2019
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	2,885	$	766	$	1,379	$	5,030	$	594,925	$	599,955
Farmland	132		—		2,089		2,221		137,730		139,951
Non Farm, Non Residential	3,749		104		—		3,853		398,854		402,707
Agriculture	277		128		—		405		162,794		163,199
All Other Commercial	—		—		109		109		288,845		288,954
Residential
First Liens	6,452		1,292		1,458		9,202		375,924		385,126
Home Equity	124		63		34		221		70,813		71,034
Junior Liens	384		43		137		564		54,533		55,097
Multifamily	—		—		—		—		148,282		148,282
All Other Residential	1,082		—		890		1,972		22,510		24,482
Consumer
Motor Vehicle	6,488		983		270		7,741		347,950		355,691
All Other Consumer	228		42		2		272		31,692		31,964
TOTAL	$	21,801	$	3,421	$	6,368	$	31,590	$	2,634,852	$	2,666,442

During the three months ended March 31, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.

				2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	11		$	3,485		$	698		$	4,194
Added	—			60			94			154
Charged Off	—			(6		)	(35		)	(41		)
Payments	(7		)	(101		)	(43		)	(151		)
March 31,	$	4		$	3,438		$	714		$	4,156

			2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	145		4,043		618		4,806
Added	—		122		71		193
Charged Off	—		(16	)	(16	)	(32	)
Payments	(9	)	(130	)	(54	)	(193	)
March 31,	136		4,019		619		4,774

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2020 or 2019 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three months ended March 31, 2020 and 2019 did not result in any material charge-offs or additional provision expense.

The Corporation has no allocations of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2020 and 2019. The Corporation has not committed to lend additional amounts as of March 31, 2020 and 2019 to customers with outstanding loans that are classified as troubled debt restructurings. None of the charge-offs during the three months ended March 31, 2020 and 2019 were of restructurings that had occurred in the previous 12 months.

The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In the first quarter ending March 31, 2020, 81 loans totaling $110 million were modified, related to COVID-19, that were not considered troubled debt restructurings.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

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

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	March 31, 2020
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	568,957	$	16,870	$	22,758	$	—	$	7,333	$	615,918
Farmland	115,976		9,213		7,753		—		62		133,004
Non Farm, Non Residential	366,697		4,427		12,149		—		685		383,958
Agriculture	118,014		3,999		19,193		—		498		141,704
All Other Commercial	288,600		3,095		1,025		—		36		292,756
Residential
First Liens	103,047		1,026		4,089		—		265,416		373,578
Home Equity	2,466		—		170		—		65,743		68,379
Junior Liens	2,189		34		171		—		53,045		55,439
Multifamily	143,064		110		1,315		—		—		144,489
All Other Residential	8,255		—		52		—		12,868		21,175
Consumer
Motor Vehicle	495		—		546		—		356,688		357,729
All Other Consumer	369		—		50		—		29,832		30,251
TOTAL	$	1,718,129	$	38,774	$	69,271	$	—	$	792,206	$	2,618,380

	December 31, 2019
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	549,341	$	19,253	$	26,349	$	5	$	2,761	$	597,709
Farmland	119,858		8,673		8,644		—		100		137,275
Non Farm, Non Residential	381,404		4,424		12,269		—		3,678		401,775
Agriculture	127,144		4,507		27,490		—		985		160,126
All Other Commercial	283,266		3,141		1,120		—		35		287,562
Residential
First Liens	174,338		926		4,382		—		204,266		383,912
Home Equity	18,417		—		134		11		52,280		70,842
Junior Liens	2,839		64		178		76		51,817		54,974
Multifamily	146,497		112		1,315		—		19		147,943
All Other Residential	12,624		—		205		—		11,577		24,406
Consumer
Motor Vehicle	2,880		—		538		—		350,780		354,198
All Other Consumer	3,155		—		38		—		28,615		31,808
TOTAL	$	1,821,763	$	41,100	$	82,662	$	92	$	706,913	$	2,652,530

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document Information [Line Items]
Entity Registrant Name	FIRST FINANCIAL CORP /IN/
Entity Central Index Key	0000714562
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		13,714,524

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income/(Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2018	$ 442,701	$ 1,824	$ 76,774	$ 456,716	$ (23,454)	$ (69,159)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,682	0	0	9,682	0	0
Other comprehensive income (loss)	10,527	0	0	0	10,527	0
Omnibus Equity Incentive Plan	201	1	200	0	0	0
Payments for Repurchase of Common Stock	(315)		0	0	0
Dividends, Common Stock, Cash	0	0	0	0	0	0
Balance at Mar. 31, 2019	462,796	1,825	76,974	466,398	(12,927)	(69,474)
Balance at Dec. 31, 2019	557,608	2,005	139,694	492,055	(7,501)	(68,645)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,181	0	0	12,181	0	0
Other comprehensive income (loss)	13,502	0	0	0	13,502	0
Omnibus Equity Incentive Plan	204	0	204	0	0	0
Payments for Repurchase of Common Stock	(1,724)		0	0	0
Dividends, Common Stock, Cash	0	0	0	0	0	0
Balance at Mar. 31, 2020	$ 581,771	$ 2,005	$ 139,898	$ 504,236	$ 6,001	$ (70,369)

XML

Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Footnote	$ 13,502
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	13,244	$ 10,221
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	13,502	10,527
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	258	306
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	6,001	(12,927)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	13,502	10,527
TOTAL Balance	(7,501)	(23,454)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	13,244	10,221
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	13,098	10,224
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	(146)	3
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	27,991	4,119
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	13,098	10,224
TOTAL Balance	14,893	(6,105)
Unrealized gains losses on securities available-for-sale with other than temporary impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	2,425	2,399
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(290)	58
TOTAL Balance	2,715	2,341
Unrealized gains losses on securities available-for-sale without other than temporary impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	25,566	1,720
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	13,388	10,166
TOTAL Balance	12,178	(8,446)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	0	0
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	404	303
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	404	303
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	(21,990)	(17,046)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	404	303
TOTAL Balance	$ (22,394)	$ (17,349)

XML

Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair value measurement
Securities available-for-sale	$ 932,041	$ 926,717
US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	101,504	103,633
Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	244,856	243,382
Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	22,689	22,104
Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	284,366	281,311
State and Municipal Obligations
Fair value measurement
Securities available-for-sale	272,129	264,434
Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	3,233	3,619
Fair Value, Inputs, Level 1 [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair value measurement
Securities available-for-sale	926,573	920,533
Derivative Assets	2,742	828
Derivative Liability	(2,742)	(828)
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	101,504	103,633
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	244,856	243,382
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	22,689	22,104
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	284,366	281,311
Fair Value, Inputs, Level 2 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	269,894	261,869
Fair Value, Inputs, Level 2 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member]
Fair value measurement
Securities available-for-sale	5,468	6,184
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	2,235	2,565
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	$ 3,233	$ 3,619

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Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 10,297
Due after one but within five years	57,759
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	43,921
Due after ten years	249,936
Total of securities having specified maturity period	361,913
TOTAL	895,703	$ 907,575
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost	533,790
Fair Value
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	10,359
Due after one but within five years	59,055
Due after five but within ten years	45,180
Due after ten years	265,536
Total of securities having specified maturities period	380,130
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	551,911
Securities available-for-sale	$ 932,041	$ 926,717

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Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	$ 32,939	$ 31,590
Financing Receivable, Not Past Due	2,597,677	2,634,852
Total	2,630,616	2,666,442
Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	7,923	5,030
Financing Receivable, Not Past Due	609,765	594,925
Total	617,688	599,955
Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,532	2,221
Financing Receivable, Not Past Due	133,247	137,730
Total	134,779	139,951
Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	4,893	3,853
Financing Receivable, Not Past Due	379,990	398,854
Total	384,883	402,707
Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	6	405
Financing Receivable, Not Past Due	144,779	162,794
Total	144,785	163,199
All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	972	109
Financing Receivable, Not Past Due	292,928	288,845
Total	293,900	288,954
First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	8,813	9,202
Financing Receivable, Not Past Due	365,938	375,924
Total	374,751	385,126
Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	361	221
Financing Receivable, Not Past Due	68,207	70,813
Total	68,568	71,034
Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	412	564
Financing Receivable, Not Past Due	55,153	54,533
Total	55,565	55,097
Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,621	0
Financing Receivable, Not Past Due	143,192	148,282
Total	144,813	148,282
All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	110	1,972
Financing Receivable, Not Past Due	21,125	22,510
Total	21,235	24,482
Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	5,948	7,741
Financing Receivable, Not Past Due	353,305	347,950
Total	359,253	355,691
All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	348	272
Financing Receivable, Not Past Due	30,048	31,692
Total	30,396	31,964
Financial Asset, 30 to 59 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	24,235	21,801
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	3,593	2,885
Financial Asset, 30 to 59 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	115	132
Financial Asset, 30 to 59 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	4,842	3,749
Financial Asset, 30 to 59 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	277
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	929	0
Financial Asset, 30 to 59 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	6,972	6,452
Financial Asset, 30 to 59 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	181	124
Financial Asset, 30 to 59 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	379	384
Financial Asset, 30 to 59 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,621	0
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	69	1,082
Financial Asset, 30 to 59 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	5,215	6,488
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	319	228
Financial Asset, 60 to 89 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	3,628	3,421
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	2,695	766
Financial Asset, 60 to 89 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	7	104
Financial Asset, 60 to 89 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	6	128
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	344	1,292
Financial Asset, 60 to 89 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	23	63
Financial Asset, 60 to 89 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	4	43
Financial Asset, 60 to 89 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	534	983
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	15	42
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	5,076	6,368
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,635	1,379
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,417	2,089
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	44	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	43	109
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,497	1,458
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	157	34
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	29	137
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	41	890
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	199	270
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	$ 14	$ 2

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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INTEREST INCOME:
Loans, including related fees	$ 35,034	$ 26,754
Securities:
Taxable	4,029	3,681
Tax-exempt	1,938	1,867
Other	402	314
TOTAL INTEREST INCOME	41,403	32,616
INTEREST EXPENSE:
Deposits	4,530	2,817
Short-term borrowings	267	323
Other borrowings	256	50
TOTAL INTEREST EXPENSE	5,053	3,190
NET INTEREST INCOME	36,350	29,426
Provision for loan losses	2,690	1,470
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	33,660	27,956
NON-INTEREST INCOME:
Trust and financial services	1,534	1,204
Service charges and fees on deposit accounts	2,998	2,624
Other service charges and fees	3,330	3,114
Net securities gains (losses)	194	(4)
Gain on sales of mortgage loans	698	420
Other	341	278
TOTAL NON-INTEREST INCOME	9,095	7,636
NON-INTEREST EXPENSE:
Salaries and employee benefits	15,972	12,755
Occupancy expense	1,929	1,815
Equipment expense	2,461	1,817
FDIC Expense	(230)	140
Other	7,422	7,166
TOTAL NON-INTEREST EXPENSE	27,554	23,693
INCOME BEFORE INCOME TAXES	15,201	11,899
Income tax expense	3,020	2,217
NET INCOME	12,181	9,682
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/losses on securities, net of reclassifications	13,098	10,224
Change in funded status of post retirement benefits	404	303
COMPREHENSIVE INCOME (LOSS)	$ 25,683	$ 20,209
PER SHARE DATA
Basic and Diluted Earnings per Share (in dollars per share)	$ 0.89	$ 0.79
Weighted average number of shares outstanding (in thousands)	13,740	12,282

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Components of Net Periodic Benefit Cost

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

	Three Months Ended March 31,
	(000's)
	Pension Benefits						Post-Retirement Health Benefits
	2020			2019			2020		2019
Service cost	$	325		$	304		$	10	$	9
Interest cost	779			866			31		36
Expected return on plan assets	(1,050		)	(896		)	—		—
Net amortization of prior service cost	—			—			—		—
Net amortization of net (gain) loss	492			389			—		(4		)
Net Periodic Benefit Cost	$	546		$	663		$	41	$	41

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2019 that it expected to contribute $3.7 million and $736 thousand respectively to its Pension Plan and ESOP and $251 thousand to the Post Retirement Health Benefits Plan in 2020. Contributions of $435 thousand have been made to the Pension Plan thus far in 2020. Contributions of $60 thousand have been made through the first three months of 2020 for the Post Retirement Health Benefits plan. No contributions have been made in 2020 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first three months of 2020 and 2019 there has been $412 thousand and $390 thousand of expense accrued for potential contributions to these alternative retirement benefit options.

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Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2020

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Schedule of allowances for loan losses by portfolio segment

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended March 31. 

Allowance for Loan Losses:	March 31, 2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	8,945		$	1,302		$	8,304		$	1,392	$	19,943
Provision for loan losses	520			251			1,780			139		2,690
Loans charged -off	(533		)	(257		)	(2,114		)	—		(2,904		)
Recoveries	391			156			787			—		1,334
Ending Balance	$	9,323		$	1,452		$	8,757		$	1,531	$	21,063

Allowance for Loan Losses:	March 31, 2019
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated		Total
Beginning balance	$	9,848		$	1,313		$	7,481		$	1,794	$	20,436
Provision for loan losses	(640		)	296			941			873		1,470
Loans charged -off	(256		)	(302		)	(1,551		)	—		(2,109		)
Recoveries	287			185			691			—		1,163
Ending Balance	$	9,239		$	1,492		$	7,562		$	2,667	$	20,960

Allocation of the allowance for loan losses by portfolio segment based on the impairment method

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at March 31, 2020 and December 31, 2019. 

Allowance for Loan Losses	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	42	$	—	$	—	$	—	$	42
Collectively evaluated for impairment	9,281		1,452		8,757		1,531		21,021
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	9,323	$	1,452	$	8,757	$	1,531	$	21,063

Loans:	March 31, 2020
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	6,152	$	3,579	$	—	$	9,731
Collectively evaluated for impairment	1,563,334		661,353		389,649		2,614,336
Acquired with deteriorated credit quality	6,549		—		—		6,549
Ending Balance	$	1,576,035	$	664,932	$	389,649	$	2,630,616

Allowance for Loan Losses:	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	48		—		—		—		48
Collectively evaluated for impairment	8,897		1,302		8,304		1,392		19,895
Acquired with deteriorated credit quality	—		—		—		—		—
Ending Balance	$	8,945	$	1,302	$	8,304	$	1,392	$	19,943

Loans	December 31, 2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	3,161		3,952		—		7,113
Collectively evaluated for impairment	1,584,169		680,069		387,655		2,651,893
Acquired with deteriorated credit quality	7,436		—		—		7,436
Ending Balance	$	1,594,766	$	684,021	$	387,655	$	2,666,442

Schedule of loans individually evaluated for impairment by class of loans

The following tables present loans individually evaluated for impairment by class of loans. 

					March 31, 2020
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,679	$	1,149	$	—	$	1,069	$	—	$	—
Farmland	1,324		1,324		—		1,661		—		—
Non Farm, Non Residential	3,512		3,512		—		1,756		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	26		26		—		27		—		—
Residential
First Liens	3,579		3,579		—		3,766		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	141		141		42		145		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,261	$	9,731	$	42	$	8,424	$	—	$	—

					December 31, 2019
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,519	$	989	$	—	$	848	$	—	$	—
Farmland	1,997		1,997		—		1,999		—		—
Non Farm, Non Residential	—		—		—		—		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	27		27		—		461		—		—
Residential
First Liens	3,952		3,952		—		4,055		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	148		148		48		1,108		—		—
Farmland	—		—		—		84		—		—
Non Farm, Non Residential	—		—		—		—				—
Agriculture	—		—		—		138		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	—		—		—		—		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	7,643	$	7,113	$	48	$	8,693	$	—	$	—

Schedule of non-performing loans

The tables below presents the recorded investment in non-performing loans.

	March 31, 2020
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	21	$	—	$	4	$	2,882
Farmland	6		—		—		1,534
Non Farm, Non Residential	—		—		—		3,980
Agriculture	—		—		—		3
All Other Commercial	—		—		—		62
Residential
First Liens	1,138		2,960		401		2,604
Home Equity	136		—		—		43
Junior Liens	21		83		8		99
Multifamily	—		—		—		—
All Other Residential	41		—		—		48
Consumer
Motor Vehicle	115		—		14		233
All Other Consumer	12		190		510		523
TOTAL	$	1,490	$	3,233	$	937	$	12,011

	December 31, 2019
	Loans Past Due Over 90 Days Still		Troubled Debt Restructured				Nonaccrual Excluding
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		TDR
Commercial
Commercial & Industrial	$	—	$	—	$	11	$	2,191
Farmland	5		—		—		2,410
Non Farm, Non Residential	—		—		—		441
Agriculture	—		—		—		485
All Other Commercial	—		—		—		114
Residential
First Liens	625		3,007		396		2,876
Home Equity	12		—		—		61
Junior Liens	51		94		9		175
Multifamily	—		—		—		—
All Other Residential	738		—		—		203
Consumer
Motor Vehicle	227		—		15		138
All Other Consumer	4		239		444		452
TOTAL	$	1,662	$	3,340	$	875	$	9,546

Troubled Debt Restructurings on Financing Receivables

During the three months ended March 31, 2020 and 2019, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDRs.

				2020
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Total
January 1,	$	11		$	3,485		$	698		$	4,194
Added	—			60			94			154
Charged Off	—			(6		)	(35		)	(41		)
Payments	(7		)	(101		)	(43		)	(151		)
March 31,	$	4		$	3,438		$	714		$	4,156

			2019
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	145		4,043		618		4,806
Added	—		122		71		193
Charged Off	—		(16	)	(16	)	(32	)
Payments	(9	)	(130	)	(54	)	(193	)
March 31,	136		4,019		619		4,774

Aging of recorded investment in loans by past due category and class of loans

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	March 31, 2020
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	3,593	$	2,695	$	1,635	$	7,923	$	609,765	$	617,688
Farmland	115		—		1,417		1,532		133,247		134,779
Non Farm, Non Residential	4,842		7		44		4,893		379,990		384,883
Agriculture	—		6		—		6		144,779		144,785
All Other Commercial	929		—		43		972		292,928		293,900
Residential
First Liens	6,972		344		1,497		8,813		365,938		374,751
Home Equity	181		23		157		361		68,207		68,568
Junior Liens	379		4		29		412		55,153		55,565
Multifamily	1,621		—		—		1,621		143,192		144,813
All Other Residential	69		—		41		110		21,125		21,235
Consumer
Motor Vehicle	5,215		534		199		5,948		353,305		359,253
All Other Consumer	319		15		14		348		30,048		30,396
TOTAL	$	24,235	$	3,628	$	5,076	$	32,939	$	2,597,677	$	2,630,616

	December 31, 2019
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	2,885	$	766	$	1,379	$	5,030	$	594,925	$	599,955
Farmland	132		—		2,089		2,221		137,730		139,951
Non Farm, Non Residential	3,749		104		—		3,853		398,854		402,707
Agriculture	277		128		—		405		162,794		163,199
All Other Commercial	—		—		109		109		288,845		288,954
Residential
First Liens	6,452		1,292		1,458		9,202		375,924		385,126
Home Equity	124		63		34		221		70,813		71,034
Junior Liens	384		43		137		564		54,533		55,097
Multifamily	—		—		—		—		148,282		148,282
All Other Residential	1,082		—		890		1,972		22,510		24,482
Consumer
Motor Vehicle	6,488		983		270		7,741		347,950		355,691
All Other Consumer	228		42		2		272		31,692		31,964
TOTAL	$	21,801	$	3,421	$	6,368	$	31,590	$	2,634,852	$	2,666,442

Analysis of risk category of loans by class of loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either those with an outstanding balance less than $100 thousand or are included in groups of homogeneous loans. As of March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	March 31, 2020
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	568,957	$	16,870	$	22,758	$	—	$	7,333	$	615,918
Farmland	115,976		9,213		7,753		—		62		133,004
Non Farm, Non Residential	366,697		4,427		12,149		—		685		383,958
Agriculture	118,014		3,999		19,193		—		498		141,704
All Other Commercial	288,600		3,095		1,025		—		36		292,756
Residential
First Liens	103,047		1,026		4,089		—		265,416		373,578
Home Equity	2,466		—		170		—		65,743		68,379
Junior Liens	2,189		34		171		—		53,045		55,439
Multifamily	143,064		110		1,315		—		—		144,489
All Other Residential	8,255		—		52		—		12,868		21,175
Consumer
Motor Vehicle	495		—		546		—		356,688		357,729
All Other Consumer	369		—		50		—		29,832		30,251
TOTAL	$	1,718,129	$	38,774	$	69,271	$	—	$	792,206	$	2,618,380

	December 31, 2019
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	549,341	$	19,253	$	26,349	$	5	$	2,761	$	597,709
Farmland	119,858		8,673		8,644		—		100		137,275
Non Farm, Non Residential	381,404		4,424		12,269		—		3,678		401,775
Agriculture	127,144		4,507		27,490		—		985		160,126
All Other Commercial	283,266		3,141		1,120		—		35		287,562
Residential
First Liens	174,338		926		4,382		—		204,266		383,912
Home Equity	18,417		—		134		11		52,280		70,842
Junior Liens	2,839		64		178		76		51,817		54,974
Multifamily	146,497		112		1,315		—		19		147,943
All Other Residential	12,624		—		205		—		11,577		24,406
Consumer
Motor Vehicle	2,880		—		538		—		350,780		354,198
All Other Consumer	3,155		—		38		—		28,615		31,808
TOTAL	$	1,821,763	$	41,100	$	82,662	$	92	$	706,913	$	2,652,530

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board, and other federal banking agencies may or are required to implement. Further, in response to the COVID-19 outbreak, the Federal Reserve Board has implemented or announced a number of facilities to provide emergency liquidity to various segments of the U.S. economy and financial market.

 The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. For the three months ended 2020 and 2019, 19,688 and 19,783 shares were awarded, respectively. These shares had a grant date value of $837 thousand and $841 thousand for 2020 and 2019, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

The extent to which the COVID-19 pandemic impacts the Corporation’s business, liquidity, asset valuations, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Moreover, the effects of the COVID-19 pandemic may have a material adverse effect on all or a combination of valuation impairments on the Corporation's intangible assets, investments, loans, or deferred tax assets.

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Components of Net Periodic Benefit Cost (Tables)

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

	Three Months Ended March 31,
	(000's)
	Pension Benefits						Post-Retirement Health Benefits
	2020			2019			2020		2019
Service cost	$	325		$	304		$	10	$	9
Interest cost	779			866			31		36
Expected return on plan assets	(1,050		)	(896		)	—		—
Net amortization of prior service cost	—			—			—		—
Net amortization of net (gain) loss	492			389			—		(4		)
Net Periodic Benefit Cost	$	546		$	663		$	41	$	41

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Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020		Mar. 31, 2019
Allowance for Loan Losses:
Beginning balance	$ 19,943		$ 20,436
Provision for loan losses	2,690	[1]	1,470	[2]
Loans charged off	(2,904)		(2,109)
Recoveries	1,334		1,163
Ending Balance	21,063		20,960
Commercial Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	8,945		9,848
Provision for loan losses	520	[1]	(640)	[2]
Loans charged off	(533)		(256)
Recoveries	391		287
Ending Balance	9,323		9,239
Residential Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	1,302		1,313
Provision for loan losses	251	[1]	296	[2]
Loans charged off	(257)		(302)
Recoveries	156		185
Ending Balance	1,452		1,492
Consumer Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	8,304		7,481
Provision for loan losses	1,780	[1]	941	[2]
Loans charged off	(2,114)		(1,551)
Recoveries	787		691
Ending Balance	8,757		7,562
Unallocated
Allowance for Loan Losses:
Beginning balance	1,392		1,794
Provision for loan losses	139	[1]	873	[2]
Loans charged off	0		0
Recoveries	0		0
Ending Balance	$ 1,531		$ 2,667

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[2] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjU1NGVkMDM0ZTZjZjQyYTVhN2M0ZTliNWZhZGQxMWVlfFRleHRTZWxlY3Rpb246OUE5REM0QkNGMERDMzM2NEVCRkIxMkQ4Mzc3MzNDOTEM}

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Allowance for Loan Losses Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable, Troubled Debt Restructuring [Line Items]
Beginning Balance	$ 4,194	$ 4,806
Added	154	193
Charged Off	(41)	(32)
Payments	(151)	(193)
Ending Balance	4,156	4,774
Commercial Portfolio Segment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Beginning Balance	11	145
Added	0	0
Charged Off	0	0
Payments	(7)	(9)
Ending Balance	4	136
Residential Portfolio Segment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Beginning Balance	3,485	4,043
Added	60	122
Charged Off	(6)	(16)
Payments	(101)	(130)
Ending Balance	3,438	4,019
Consumer Portfolio Segment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Beginning Balance	698	618
Added	94	71
Charged Off	(35)	(16)
Payments	(43)	(54)
Ending Balance	$ 714	$ 619

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Acquisitions and FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered			$ 7,269	$ 1,530
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	$ 0	$ 0
Loans and Leases Receivable, Disposals	(922)	(36)
Total Covered Assets	6,347	1,494
Consumer Loan [Member]
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered			0	0
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	0	0
Loans and Leases Receivable, Disposals	0	0
Total Covered Assets	0	0
Commercial Loan [Member]
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered			$ 7,269	$ 1,530
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	0	0
Loans and Leases Receivable, Disposals	(922)	(36)
Total Covered Assets	$ 6,347	$ 1,494

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Short-Term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Short-term Debt [Abstract]
Federal Funds Purchased	$ 2,150	$ 900
Securities Sold under Agreements to Repurchase	81,634	79,219
Short-term borrowings	$ 83,784	$ 80,119

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Fair Value (Details 2) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Impaired Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value	$ 99	$ 100
Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Other Real Estate
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value	$ 3,894	$ 3,625
Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
State and Municipal Obligations
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value	$ 2,235	$ 2,565
Unobservable Inputs	Discount rate Probability of default	Discount rate Probability of default