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Loans

6 Months Ended

Jun. 30, 2021

LOANS

Total net loans at June 30, 2021 and December 31, 2020 are summarized as follows:


	June 30, 2021		Percentage of Total		December 31, 2020		Percentage of Total
Farmland	$	20,737	0.6	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	425,444		12.3	%	407,924		12.1	%
Agricultural production and other loans to farmers	2,411		0.1	%	2,664		0.1	%
Commercial and Industrial	687,333		19.8	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	131,862		3.8	%	132,818		3.9	%
Other loans	13,404		0.4	%	11,961		0.4	%
Other construction loans and all land development and other land loans	240,957		6.9	%	205,734		6.1	%
Multifamily (5 or more) residential properties	231,417		6.7	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	628,669		18.1	%	640,945		19.0	%
1-4 Family Construction	34,394		1.0	%	27,768		0.8	%
Home equity lines of credit	104,897		3.0	%	109,444		3.2	%
Residential Mortgages secured by first liens	795,738		22.9	%	777,030		23.0	%
Residential Mortgages secured by junior liens	55,177		1.6	%	53,726		1.6	%
Other revolving credit plans	24,691		0.7	%	25,507		0.8	%
Automobile	22,924		0.7	%	25,344		0.8	%
Other consumer	41,103		1.2	%	42,792		1.3	%
Credit cards	8,453		0.2	%	8,115		0.2	%
Overdrafts	234		0.0	%	336		0.0	%
Total loans	$	3,469,845	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(36,908)				(34,340)
Loans, net	$	3,432,937			$	3,337,449

Net deferred loan origination fees (costs) included in the above loan table	$	10,514			$	8,789

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, and western New York. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors.

As a result of the adoption of ASC 326 effective January 1, 2020, there is a lack of comparability in both the allowance and provisions for credit losses for the periods presented. Beginning with the quarter ended December 31, 2020, the Corporation adopted ASC 326 and subsequent results are presented using the current expected credit losses (“CECL”) methodology. Prior to the quarter ended December 31, 2020, the results were reported in accordance with the incurred loss methodology and have not been restated.

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


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	224	$	0	$	0	$	(100)	$	124
Owner-occupied, nonfarm nonresidential properties	2,935		0		3		(58)		2,880
Agricultural production and other loans to farmers	28		0		0		(16)		12
Commercial and Industrial	6,479		(14)		15		832		7,312
Obligations (other than securities and leases) of states and political subdivisions	1,715		(250)		0		860		2,325
Other loans	73		0		0		44		117
Other construction loans and all land development and other land loans	2,006		0		0		358		2,364
Multifamily (5 or more) residential properties	2,754		0		0		(440)		2,314
Non-owner occupied, nonfarm nonresidential properties	11,326		0		0		(1,164)		10,162
1-4 Family Construction	67		0		0		43		110
Home equity lines of credit	843		0		2		184		1,029
Residential Mortgages secured by first liens	3,550		(42)		1		889		4,398
Residential Mortgages secured by junior liens	224		0		0		184		408
Other revolving credit plans	527		(17)		3		(54)		459
Automobile	182		0		3		56		241
Other consumer	2,374		(246)		47		227		2,402
Credit cards	65		(39)		3		39		68
Overdrafts	183		(107)		24		83		183
Total loans	$	35,555	$	(715)	$	101	$	1,967	$	36,908

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


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	(97)	$	124
Owner-occupied, nonfarm nonresidential properties	3,700		(531)		5		(294)		2,880
Agricultural production and other loans to farmers	24		0		0		(12)		12
Commercial and Industrial	6,233		(70)		20		1,129		7,312
Obligations (other than securities and leases) of states and political subdivisions	998		(250)		0		1,577		2,325
Other loans	68		0		0		49		117
Other construction loans and all land development and other land loans	1,956		0		0		408		2,364
Multifamily (5 or more) residential properties	2,724		0		0		(410)		2,314
Non-owner occupied, nonfarm nonresidential properties	8,658		0		0		1,504		10,162
1-4 Family Construction	82		0		0		28		110
Home equity lines of credit	985		0		2		42		1,029
Residential Mortgages secured by first liens	4,539		(70)		32		(103)		4,398
Residential Mortgages secured by junior liens	241		0		0		167		408
Other revolving credit plans	507		(23)		5		(30)		459
Automobile	132		(5)		3		111		241
Other consumer	2,962		(561)		95		(94)		2,402
Credit cards	66		(72)		11		63		68
Overdrafts	244		(191)		79		51		183
Total loans	$	34,340	$	(1,773)	$	252	$	4,089	$	36,908

The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. For the three and six months ended June 30, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, coupled with quantitative and qualitative analysis, the impact of net charge-offs and continued uncertainty within the economic environment.

Transactions in the allowance for loan losses for the three months ended June 30, 2020 were as follows:


	Commercial, Industrial and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, April 1, 2020	$	10,532	$	7,492	$	1,458	$	2,138	$	112	$	183	$	21,915
Charge-offs	(2,623)		0		(19)		(413)		(41)		(95)		(3,191)
Recoveries	7		2		0		38		10		68		125
Provision for loan losses	1,886		2,134		1,237		377		33		13		5,680
Allowance for loan losses, June 30, 2020	$	9,802	$	9,628	$	2,676	$	2,140	$	114	$	169	$	24,529

Transactions in the allowance for loan losses for the six months ended June 30, 2020 were as follows:


	Commercial, Industrial and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2020	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473
Charge-offs	(2,648)		0		(162)		(1,005)		(72)		(214)		(4,101)
Recoveries	25		174		3		81		11		104		398
Provision for loan losses	4,138		2,502		1,336		653		91		39		8,759
Allowance for loan losses, June 30, 2020	$	9,802	$	9,628	$	2,676	$	2,140	$	114	$	169	$	24,529

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been recorded as charge-offs.


	Three months ended June 30, 2020						Six months ended June 30, 2020
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial and agricultural	$	2,052	$	28	$	28	$	3,532	$	45	$	45
Commercial mortgage	$	4,330	$	4	$	4	4,330		41		41
Residential real estate	$	461	$	0	$	0	462		5		5
With no related allowance recorded:
Commercial, industrial and agricultural	$	7,367	$	49	$	49	7,196		91		91
Commercial mortgage	$	14,684	$	66	$	66	11,293		224		224
Residential real estate	$	114	$	2	$	2	38		2		2
Total	$	29,008	$	149	$	149	$	26,851	$	408	$	408

The following tables presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2021 and December 31, 2020, respectively:


	June 30, 2021
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	1,817	$	606	$	0
Owner-occupied, nonfarm nonresidential properties	1,501		1,397		0

Commercial and Industrial	6,318		1,302		141
Obligations (other than securities and leases) of states and political subdivisions	430		430		0

Other construction loans and all land development and other land loans	1,905		77		0
Multifamily (5 or more) residential properties	1,181		5		0
Non-owner occupied, nonfarm nonresidential properties	14,352		11,946		312

Home equity lines of credit	850		850		0
Residential Mortgages secured by first liens	3,273		3,273		154
Residential Mortgages secured by junior liens	182		182		0
Other revolving credit plans	9		9		0
Automobile	51		51		0
Other consumer	430		430		0
Credit cards	0		0		4

Total loans	$	32,299	$	20,558	$	611


	December 31, 2020
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	1,844	$	633	$	0
Owner-occupied, nonfarm nonresidential properties	1,781		967		0

Commercial and Industrial	6,657		959		0


Other construction loans and all land development and other land loans	2,349		77		0
Multifamily (5 or more) residential properties	288		0		0
Non-owner occupied, nonfarm nonresidential properties	11,932		9,466		0

Home equity lines of credit	685		685		0
Residential Mortgages secured by first liens	4,175		3,495		283
Residential Mortgages secured by junior liens	114		114		0
Other revolving credit plans	6		6		0
Automobile	32		32		0
Other consumer	496		496		8
Credit cards	0		0		34

Total loans	$	30,359	$	16,930	$	325

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

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2021:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	1,768	$	0
Owner-occupied, nonfarm nonresidential properties	247		17

Commercial and Industrial	347		2,197
Obligations (other than securities and leases) of states and political subdivisions	430		0

Other construction loans and all land development and other land loans	1,828		0
Multifamily (5 or more) residential properties	972		0
Non-owner occupied, nonfarm nonresidential properties	3,442		0


Residential Mortgages secured by first liens	445		0






Total loans	$	9,479	$	2,214

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2020:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	1,793	$	0
Owner-occupied, nonfarm nonresidential properties	285		587

Commercial and Industrial	594		5,600


Other construction loans and all land development and other land loans	2,272		0
Multifamily (5 or more) residential properties	288		0
Non-owner occupied, nonfarm nonresidential properties	9,072		880


Residential Mortgages secured by first liens	1,135		0






Total loans	$	15,439	$	7,067

The following table presents the aging of the amortized cost basis in past-due loans as of June 30, 2021 by class of loans:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Farmland	$	0	$	0	$	1,211	$	1,211	$	19,526	$	20,737
Owner-occupied, nonfarm nonresidential properties	99		53		961		1,113		424,331		425,444
Agricultural production and other loans to farmers	0		0		0		0		2,411		2,411
Commercial and Industrial	252		272		1,275		1,799		685,534		687,333
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		131,862		131,862
Other loans	0		0		0		0		13,404		13,404
Other construction loans and all land development and other land loans	0		0		1,467		1,467		239,490		240,957
Multifamily (5 or more) residential properties	0		0		209		209		231,208		231,417
Non-owner occupied, nonfarm nonresidential properties	112		203		10,543		10,858		617,811		628,669
1-4 Family Construction	6		0		0		6		34,388		34,394
Home equity lines of credit	320		87		254		661		104,236		104,897
Residential Mortgages secured by first liens	2,221		544		1,050		3,815		791,923		795,738
Residential Mortgages secured by junior liens	73		91		8		172		55,005		55,177
Other revolving credit plans	16		17		5		38		24,653		24,691
Automobile	5		6		50		61		22,863		22,924
Other consumer	250		136		162		548		40,555		41,103
Credit cards	79		35		4		118		8,335		8,453
Overdrafts	0		0		0		0		234		234
Total loans	$	3,433	$	1,444	$	17,199	$	22,076	$	3,447,769	$	3,469,845

The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2020 by class of loans:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Farmland	$	195	$	0	$	1,211	$	1,406	$	21,910	$	23,316
Owner-occupied, nonfarm nonresidential properties	10		885		732		1,627		406,297		407,924
Agricultural production and other loans to farmers	0		0		0		0		2,664		2,664
Commercial and Industrial	476		335		3,887		4,698		658,852		663,550
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		132,818		132,818
Other loans	0		0		0		0		11,961		11,961
Other construction loans and all land development and other land loans	0		0		1,917		1,917		203,817		205,734
Multifamily (5 or more) residential properties	0		0		0		0		212,815		212,815
Non-owner occupied, nonfarm nonresidential properties	314		156		10,184		10,654		630,291		640,945
1-4 Family Construction	0		0		0		0		27,768		27,768
Home equity lines of credit	166		235		486		887		108,557		109,444
Residential Mortgages secured by first liens	2,834		629		1,911		5,374		771,656		777,030
Residential Mortgages secured by junior liens	8		0		66		74		53,652		53,726
Other revolving credit plans	36		19		0		55		25,452		25,507
Automobile	73		0		9		82		25,262		25,344
Other consumer	246		132		245		623		42,169		42,792
Credit cards	72		39		34		145		7,970		8,115
Overdrafts	0		0		0		0		336		336
Total loans	$	4,430	$	2,430	$	20,682	$	27,542	$	3,344,247	$	3,371,789

Troubled Debt Restructurings

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring.

As of June 30, 2021 and December 31, 2020, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan; or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. The Corporation had an amortized cost in troubled debt restructurings of $16,969 and $15,088 as of June 30, 2021 and December 31, 2020, respectively. The Corporation has allocated $1,746 and $779 of allowance for those loans as of June 30, 2021 and December 31, 2020, respectively.

The following table presents loans modified as TDRs during the three months ended June 30, 2021:


	Three Months Ended June 30, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment



Commercial and Industrial	1	$	578	$	578














Total loans	1	$	578	$	578

The following table presents loans modified as TDRs during the six months ended June 30, 2021:


	Six Months Ended June 30, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment



Commercial and Industrial	1	$	578	$	578



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









Total loans	3	$	2,899	$	2,899

There were nine loans modified as troubled debt restructurings during the three and six months ended June 30, 2020.


	Three and six months ended June 30, 2020
	Number of Loans	Pre-Modification Outstanding Recorded Investment Balance		Post-Modification Outstanding Recorded Investment Reserve
Commercial, industrial and agricultural	8	$	1,593	$	1,593

Residential real estate	1	116		116


Total	9	$	1,709	$	1,709

The troubled debt restructurings described above increased the allowance for credit losses by an immaterial amount for the three and six months ended June 30, 2021 and 2020, respectively.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the three and six months months ended June 30, 2021 and June 30, 2020. There were no principal balances forgiven in connection with the loan restructurings.

Generally, nonperforming troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Credit Quality Indicators

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually to classify the loans as to credit risk.

The Corporation uses the following definitions for risk ratings:

Special Mention: 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 Corporation’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

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

The following tables represent the Corporation's credit risk profile by risk rating. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans.


	June 30, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
Farmland	$	17,406	$	1,514	$	1,817	$	0	$	20,737
Owner-occupied, nonfarm nonresidential properties	412,406		2,563		10,475		0		425,444
Agricultural production and other loans to farmers	2,411		0		0		0		2,411
Commercial and Industrial	660,505		11,682		15,146		0		687,333
Obligations (other than securities and leases) of states and political subdivisions	131,031		0		831		0		131,862
Other loans	13,404		0		0		0		13,404
Other construction loans and all land development and other land loans	234,533		4,957		1,467		0		240,957
Multifamily (5 or more) residential properties	230,235		0		1,182		0		231,417
Non-owner occupied, nonfarm nonresidential properties	581,865		11,610		35,194		0		628,669









Total loans	$	2,283,796	$	32,326	$	66,112	$	0	$	2,382,234


	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
Farmland	$	20,316	$	1,156	$	1,844	$	0	$	23,316
Owner-occupied, nonfarm nonresidential properties	391,899		2,826		13,199		0		407,924
Agricultural production and other loans to farmers	2,664		0		0		0		2,664
Commercial and Industrial	637,071		11,368		15,111		0		663,550
Obligations (other than securities and leases) of states and political subdivisions	132,110		0		708		0		132,818
Other loans	11,961		0		0		0		11,961
Other construction loans and all land development and other land loans	198,206		5,611		1,917		0		205,734
Multifamily (5 or more) residential properties	211,563		0		1,252		0		212,815
Non-owner occupied, nonfarm nonresidential properties	594,603		12,496		33,846		0		640,945









Total loans	$	2,200,393	$	33,457	$	67,877	$	0	$	2,301,727

The following tables detail the amortized cost of loans, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2021. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	3,923	$	1,751	$	3,310	$	3,662	$	592	$	3,761	$	407	$	0	$	17,406
Special mention	0		0		0		0		394		1,120		0		0		1,514
Substandard	0		0		0		0		49		1,768		0		0		1,817
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	3,923	$	1,751	$	3,310	$	3,662	$	1,035	$	6,649	$	407	$	0	$	20,737
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	77,959	$	91,385	$	82,593	$	44,966	$	46,002	$	61,044	$	8,457	$	0	$	412,406
Special mention	0		0		819		57		143		1,399		145		0		2,563
Substandard	530		975		2,329		654		362		5,438		187		0		10,475
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	78,489	$	92,360	$	85,741	$	45,677	$	46,507	$	67,881	$	8,789	$	0	$	425,444
Agricultural production and other loans to farmers
Risk rating
Pass	$	911	$	149	$	87	$	298	$	0	$	11	$	955	$	0	$	2,411
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	911	$	149	$	87	$	298	$	0	$	11	$	955	$	0	$	2,411
Commercial and Industrial
Risk rating
Pass	$	251,172	$	131,978	$	43,080	$	25,456	$	21,701	$	19,158	$	167,960	$	0	$	660,505
Special mention	0		313		929		3,502		199		898		5,841		0		11,682
Substandard	642		829		1,930		498		111		5,529		5,607		0		15,146
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	251,814	$	133,120	$	45,939	$	29,456	$	22,011	$	25,585	$	179,408	$	0	$	687,333
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	12,158	$	17,096	$	11,610	$	22,676	$	20,495	$	38,153	$	8,843	$	0	$	131,031
Special mention	0		0		0		0		0		0		0		0		0
Substandard	401		430		0		0		0		0		0		0		831
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	12,559	$	17,526	$	11,610	$	22,676	$	20,495	$	38,153	$	8,843	$	0	$	131,862
Other loans
Risk rating
Pass	$	261	$	7,691	$	644	$	346	$	0	$	0	$	4,462	$	0	$	13,404
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	261	$	7,691	$	644	$	346	$	0	$	0	$	4,462	$	0	$	13,404


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Other construction loans and all land development and other land loans
Risk rating
Pass	$	37,942	$	136,277	$	43,083	$	11,319	$	912	$	1,456	$	3,544	$	0	$	234,533
Special mention	1,492		0		661		29		2,775		0		0		0		4,957
Substandard	0		0		0		0		0		1,390		77		0		1,467
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	39,434	$	136,277	$	43,744	$	11,348	$	3,687	$	2,846	$	3,621	$	0	$	240,957
Multifamily (5 or more) residential properties
Risk rating
Pass	$	59,150	$	69,019	$	33,183	$	10,540	$	38,712	$	17,327	$	2,304	$	0	$	230,235
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		6		703		269		204		0		0		0		1,182
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	59,150	$	69,025	$	33,886	$	10,809	$	38,916	$	17,327	$	2,304	$	0	$	231,417
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	82,669	$	125,257	$	102,674	$	69,173	$	48,773	$	142,211	$	11,108	$	0	$	581,865
Special mention	0		83		750		1,177		3,627		5,523		450		0		11,610
Substandard	841		0		12,689		1,672		7,521		11,877		594		0		35,194
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	83,510	$	125,340	$	116,113	$	72,022	$	59,921	$	159,611	$	12,152	$	0	$	628,669

The following tables detail the amortized cost of loans, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2020. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	1,617	$	4,448	$	3,767	$	3,648	$	894	$	5,280	$	662	$	0	$	20,316
Special mention	1,156		0		0		0		0		0		0		0		1,156
Substandard	0		0		0		51		582		1,211		0		0		1,844
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	2,773	$	4,448	$	3,767	$	3,699	$	1,476	$	6,491	$	662	$	0	$	23,316
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	86,694	$	109,228	$	52,818	$	56,948	$	26,119	$	50,839	$	9,253	$	0	$	391,899
Special mention	0		452		74		541		318		1,310		131		0		2,826
Substandard	1,021		2,449		2,438		938		3,675		2,430		248		0		13,199
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	87,715	$	112,129	$	55,330	$	58,427	$	30,112	$	54,579	$	9,632	$	0	$	407,924
Agricultural production and other loans to farmers
Risk rating
Pass	$	267	$	155	$	601	$	0	$	54	$	0	$	1,587	$	0	$	2,664
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	267	$	155	$	601	$	0	$	54	$	0	$	1,587	$	0	$	2,664
Commercial and Industrial
Risk rating
Pass	$	318,323	$	54,620	$	46,854	$	32,426	$	7,197	$	7,265	$	170,386	$	0	$	637,071
Special mention	127		1,017		3,489		712		300		1,033		4,690		0		11,368
Substandard	801		1,916		1,212		112		37		4,858		6,175		0		15,111
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	319,251	$	57,553	$	51,555	$	33,250	$	7,534	$	13,156	$	181,251	$	0	$	663,550
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	10,722	$	12,279	$	35,176	$	20,891	$	19,365	$	24,789	$	8,888	$	0	$	132,110
Special mention	0		0		0		0		0		0		0		0		0
Substandard	708		0		0		0		0		0		0		0		708
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	11,430	$	12,279	$	35,176	$	20,891	$	19,365	$	24,789	$	8,888	$	0	$	132,818
Other loans
Risk rating
Pass	$	7,268	$	1,237	$	386	$	0	$	0	$	0	$	3,070	$	0	$	11,961
Special mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	7,268	$	1,237	$	386	$	0	$	0	$	0	$	3,070	$	0	$	11,961


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Other construction loans and all land development and other land loans
Risk rating
Pass	$	119,380	$	52,078	$	19,977	$	2,300	$	28	$	1,895	$	2,548	$	0	$	198,206
Special mention	1,417		672		29		3,303		0		190		0		0		5,611
Substandard	0		0		0		0		0		1,840		77		0		1,917
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	120,797	$	52,750	$	20,006	$	5,603	$	28	$	3,925	$	2,625	$	0	$	205,734
Multifamily (5 or more) residential properties
Risk rating
Pass	$	73,572	$	39,633	$	26,230	$	49,178	$	4,086	$	16,957	$	1,907	$	0	$	211,563
Special mention	0		0		0		0		0		0		0		0		0
Substandard	6		753		288		205		0		0		0		0		1,252
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	73,578	$	40,386	$	26,518	$	49,383	$	4,086	$	16,957	$	1,907	$	0	$	212,815
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	161,045	$	127,518	$	89,520	$	55,966	$	44,959	$	105,962	$	9,633	$	0	$	594,603
Special mention	99		895		2,111		3,969		835		4,137		450		0		12,496
Substandard	0		12,325		326		7,584		722		12,289		600		0		33,846
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	161,144	$	140,738	$	91,957	$	67,519	$	46,516	$	122,388	$	10,683	$	0	$	640,945

The Corporation considers the performance of the loan portfolio and its impact on the allowance for credit losses. For 1-4 family construction, home equity lines of credit, residential mortgages secured by first liens, residential mortgages secured by junior liens, automobile, credit cards, other revolving credit plans and other consumer segments, the Corporation evaluates credit quality based on the performance status the loan, which was previously presented, and by payment activity. Nonperforming loans include loans on nonaccrual status and loans past due over 89 days and still accruing interest.


	June 30, 2021						December 31, 2020
	Performing		Nonperforming		Total		Performing		Nonperforming		Total









1-4 Family Construction	$	34,394	$	0	$	34,394	$	27,768	$	0	$	27,768
Home equity lines of credit	104,047		850		104,897		108,759		685		109,444
Residential Mortgages secured by first liens	792,311		3,427		795,738		772,572		4,458		777,030
Residential Mortgages secured by junior liens	54,995		182		55,177		53,612		114		53,726
Other revolving credit plans	24,682		9		24,691		25,501		6		25,507
Automobile	22,873		51		22,924		25,312		32		25,344
Other consumer	40,673		430		41,103		42,288		504		42,792


Total loans	$	1,073,975	$	4,949	$	1,078,924	$	1,055,812	$	5,799	$	1,061,611

The following tables detail the amortized cost of loans, by year of origination (for term loans) and by payment activity within each portfolio segment as of June 30, 2021. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	13,053	$	15,467	$	5,806	$	68	$	0	$	0	$	0	$	0	$	34,394
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	13,053	$	15,467	$	5,806	$	68	$	0	$	0	$	0	$	0	$	34,394
Home equity lines of credit
Payment performance
Performing	$	5,827	$	19,165	$	10,728	$	10,767	$	7,792	$	43,928	$	5,840	$	0	$	104,047
Nonperforming	0		0		0		0		391		459		0		0		850
Total	$	5,827	$	19,165	$	10,728	$	10,767	$	8,183	$	44,387	$	5,840	$	0	$	104,897
Residential mortgages secured by first lien
Payment performance
Performing	$	130,371	$	190,117	$	119,522	$	76,305	$	83,981	$	188,543	$	3,472	$	0	$	792,311
Nonperforming	0		153		82		0		199		2,950		43		0		3,427
Total	$	130,371	$	190,270	$	119,604	$	76,305	$	84,180	$	191,493	$	3,515	$	0	$	795,738
Residential mortgages secured by junior liens
Payment performance
Performing	$	11,106	$	13,489	$	9,130	$	5,240	$	4,705	$	10,883	$	442	$	0	$	54,995
Nonperforming	0		0		0		0		91		91		0		0		182
Total	$	11,106	$	13,489	$	9,130	$	5,240	$	4,796	$	10,974	$	442	$	0	$	55,177
Other revolving credit plans
Payment performance
Performing	$	1,259	$	3,371	$	4,383	$	2,996	$	3,177	$	9,496	$	0	$	0	$	24,682
Nonperforming	0		0		0		4		5		0		0		0		9
Total	$	1,259	$	3,371	$	4,383	$	3,000	$	3,182	$	9,496	$	0	$	0	$	24,691
Automobile
Payment performance
Performing	$	3,715	$	7,311	$	6,475	$	3,380	$	1,044	$	948	$	0	$	0	$	22,873
Nonperforming	0		0		45		0		5		1		0		0		51
Total	$	3,715	$	7,311	$	6,520	$	3,380	$	1,049	$	949	$	0	$	0	$	22,924
Other consumer
Payment performance
Performing	$	12,195	$	17,071	$	7,190	$	2,185	$	483	$	1,549	$	0	$	0	$	40,673
Nonperforming	2		173		125		48		14		68		0		0		430
Total	$	12,197	$	17,244	$	7,315	$	2,233	$	497	$	1,617	$	0	$	0	$	41,103

The following tables detail the amortized cost of loans, by year of origination (for term loans) and by payment activity within each portfolio segment as of December 31, 2020. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	16,081	$	11,547	$	140	$	0	$	0	$	0	$	0	$	0	$	27,768
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	16,081	$	11,547	$	140	$	0	$	0	$	0	$	0	$	0	$	27,768
Home equity lines of credit
Payment performance
Performing	$	19,764	$	12,823	$	12,842	$	8,793	$	8,182	$	42,514	$	3,841	$	0	$	108,759
Nonperforming	0		0		0		302		33		350		0		0		685
Total	$	19,764	$	12,823	$	12,842	$	9,095	$	8,215	$	42,864	$	3,841	$	0	$	109,444
Residential mortgages secured by first lien
Payment performance
Performing	$	211,910	$	136,181	$	93,588	$	99,520	$	62,312	$	163,556	$	5,505	$	0	$	772,572
Nonperforming	0		84		887		143		61		3,261		22		0		4,458
Total	$	211,910	$	136,265	$	94,475	$	99,663	$	62,373	$	166,817	$	5,527	$	0	$	777,030
Residential mortgages secured by junior liens
Payment performance
Performing	$	14,552	$	12,255	$	7,031	$	5,660	$	3,347	$	10,389	$	378	$	0	$	53,612
Nonperforming	0		0		0		0		19		95		0		0		114
Total	$	14,552	$	12,255	$	7,031	$	5,660	$	3,366	$	10,484	$	378	$	0	$	53,726
Other revolving credit plans
Payment performance
Performing	$	4,088	$	4,516	$	3,320	$	3,149	$	1,301	$	9,127	$	0	$	0	$	25,501
Nonperforming	0		0		4		0		0		2		0		0		6
Total	$	4,088	$	4,516	$	3,324	$	3,149	$	1,301	$	9,129	$	0	$	0	$	25,507
Automobile
Payment performance
Performing	$	8,965	$	8,595	$	4,652	$	1,635	$	764	$	701	$	0	$	0	$	25,312
Nonperforming	0		4		0		6		0		22		0		0		32
Total	$	8,965	$	8,599	$	4,652	$	1,641	$	764	$	723	$	0	$	0	$	25,344
Other consumer
Payment performance
Performing	$	24,857	$	11,183	$	3,579	$	796	$	218	$	1,655	$	0	$	0	$	42,288
Nonperforming	82		264		75		13		0		70		0		0		504
Total	$	24,939	$	11,447	$	3,654	$	809	$	218	$	1,725	$	0	$	0	$	42,792


	June 30, 2021		December 31, 2020

Credit card
Payment performance
Performing	$	8,449	$	8,081
Nonperforming	4		34
Total	$	8,453	$	8,115

Purchased Credit Deteriorated Loans

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


	July 17, 2020
Purchase price of loans at acquisition	$	21,768
Allowance for credit losses at acquisition	980
Non-credit discount / (premium) at acquisition	1,063
Par value of acquired loans at acquisition	$	23,811

The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”) are considered to be subprime loans. Holiday is a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio.

Holiday’s loan portfolio, included in other consumer loans above, is summarized as follows at June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
Gross other consumer	$	26,590	$	27,998
Less: other consumer unearned discounts	(4,981)		(5,181)
Total automobile and other consumer loans, net of unearned discounts	$	21,609	$	22,817