10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

F O R M 10-K

☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2021

or 

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number 001-39472

CNB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania	25-1450605
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1 South Second Street

P.O. Box 42

Clearfield, Pennsylvania 16830

(Address of principal executive office)

Registrant’s telephone number, including area code (814) 765-9621

Securities registered pursuant to Section 12(b) of the Act:
Title of Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	CCNE	The NASDAQ Stock Market LLC
Depositary Shares (each representing a 1/40th interest in a share of 7.125% Series A Non-Cumulative, perpetual preferred stock)	CCNEP	The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12 (g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐  Yes  ☒  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐  Yes  ☒  No

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 shorter 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  ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). ☒  Yes  ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☒
Non-accelerated filer	☐	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 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes  ☒  No

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, based on the last sales price quoted on the Nasdaq Global Select Market on June 30, 2021, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately: $362,508,707

The number of shares outstanding of the registrant’s common stock as of March 1, 2022: 16,910,921 shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement for the 2021 Annual Meeting of Stockholders to be held on April 19, 2022 are incorporated by reference into Part III of this report.

TABLE OF CONTENTS

		Page Number
PART I.
ITEM 1.	Business	1
ITEM 1A.	Risk Factors	11
ITEM 1B.	Unresolved Staff Comments	22
ITEM 2.	Properties	22
ITEM 3.	Legal Proceedings	22
ITEM 4.	Mine Safety Disclosures	22
PART II.
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
ITEM 6.	Reserved	24
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
ITEM 7A.	Quantitative and Qualitative Disclosures about Market Risk	49
ITEM 8.	Financial Statements and Supplementary Data	50
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	118
ITEM 9A.	Controls and Procedures	118
ITEM 9B.	Other Information	118
ITEM 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	118
PART III.
ITEM 10.	Directors, Executive Officers and Corporate Governance	119
ITEM 11.	Executive Compensation	119
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	119
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	119
ITEM 14.	Principal Accountant Fees and Services	119
PART IV.
ITEM 15.	Exhibits and Financial Statement Schedules	120
ITEM 16.	Form 10-K Summary	121
SIGNATURES		122

PART I.

The disclosures set forth in this item are qualified by Item 1A. Risk Factors and the section captioned “Forward-Looking Statements and Factors that Could Affect Future Results” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report and other cautionary statements set forth elsewhere in this report.

ITEM 1.  BUSINESS

CNB Financial Corporation (the "Corporation") is a financial holding company registered under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). It was incorporated under the laws of the Commonwealth of Pennsylvania in 1983 for the purpose of engaging in the business of a financial holding company. On April 26, 1984, the Corporation acquired all of the outstanding capital stock of County National Bank, a national banking chartered institution. In December 2006, County National Bank changed its name to CNB Bank (the "Bank") and became a state bank chartered in Pennsylvania and subject to regulation by the Pennsylvania Department of Banking and Securities (the “Pennsylvania Department of Banking”) and the Federal Deposit Insurance Corporation. In October 2013, the Corporation acquired FC Banc Corp. and its subsidiary, The Farmers Citizens Bank. In July 2016, the Corporation acquired Lake National Bank, and in July 2020, the Corporation acquired Bank of Akron.

In addition to the Bank, the Corporation has four other subsidiaries. CNB Securities Corporation is incorporated in Delaware and currently maintains investments in debt and equity securities. CNB Insurance Agency, incorporated in Pennsylvania, provides for the sale of nonproprietary annuities and other insurance products. CNB Risk Management, Inc. is a Delaware-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. Holiday Financial Services Corporation ("Holiday"), incorporated in Pennsylvania, offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics.

CNB Bank

The Bank was originally chartered as a national bank in 1934 and is now a Pennsylvania-chartered bank. The CNB Bank franchise operates 18 full-service branch locations in Pennsylvania.

ERIEBANK, a division of the Bank, began operations in 2005. In July 2016, the Corporation acquired Lake National Bank, which operated two full-service branches in Mentor, Ohio, approximately 20 miles east of Cleveland, Ohio. The Bank continues to operate one of these branch locations within its ERIEBANK franchise, with the other location ceasing operations in August 2020. In January 2020, the Corporation established a loan production office ("LPO") in Cleveland, Ohio. This LPO operated within the ERIEBANK division as of December 31, 2021 and has subsequently closed. In conjunction with the closing of the LPO, the Corporation opened a full-service branch in Cleveland, Ohio. The Bank currently operates eleven full-service branch locations, a division of the Bank, with its headquarters in Erie, Pennsylvania.

In October 2013, the Corporation acquired FC Banc Corp. and its subsidiary, Farmers Citizens Bank. The Bank currently operates six full-service branch locations as FCBank, a division of the Bank, with its headquarters in Worthington, Ohio.

In 2016, the Bank received regulatory approval to conduct business in the state of New York as BankOnBuffalo, a division of the Bank. In July 2020, the Corporation acquired Bank of Akron, with its branch locations operating with BankOnBuffalo. The Bank currently operates ten branch locations and one drive-up office as BankOnBuffalo, a division of the Bank, with its headquarters in Buffalo, New York.

In 2021, the Bank received regulatory approval to conduct business in the state of Virginia as Ridge View Bank, a division of the Bank. The Bank currently operates two LPOs in Roanoke, Virginia.

The Bank had 44 full-service branch offices located in various communities in its market area at December 31, 2021, and as noted previously has subsequently opened one additional full service branch. The Bank’s primary market area includes the Pennsylvania counties of Blair, Cambria, Cameron, Centre, Clearfield, Crawford, Elk, Indiana, Jefferson, and McKean. ERIEBANK, a division of the Bank, operates in the Pennsylvania counties of Crawford, Erie, and Warren and the Ohio counties of Ashtabula, Cuyahoga, and Lake. FCBank, a division of the Bank, operates in the Ohio counties of Crawford, Richland, Ashland, Wayne, Marion, Morrow, Knox, Delaware, and Franklin. BankOnBuffalo, a division of the Bank, operates in the New York counties of Erie and Niagara. Ridge View Bank, a division of the Bank, operates in Roanoke, Virginia.

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The Bank is a full-service bank engaging in a full range of banking activities and services for individual, business, governmental and institutional customers. These activities and services principally include checking, savings, and time deposit accounts; real estate, commercial, industrial, residential and consumer loans; and a variety of other specialized financial services. The Bank’s Private Client Solutions division offers a full range of client services, including private banking and wealth and asset management.

Holiday Financial Services Corporation

In 2005, the Corporation entered the consumer discount loan and finance business, which is conducted through a wholly-owned subsidiary, Holiday. Holiday currently has nine offices within the Corporation’s market area.

Cybersecurity

Following a cybersecurity incident in the fourth quarter of 2020 that resulted in potential unauthorized access to personally identifiable information, the Corporation has continued to enhance its data security systems, technology platforms, employee education and risk management processes in an effort to underpin its business strategy. Although the Corporation’s core systems were not compromised and the Corporation has not experienced any material losses, the Corporation is committed to implementing strategies to prevent and/or mitigate future cyber attacks.

Federal regulators issued two statements regarding cybersecurity: (i) a statement indicating that financial institutions should design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institutions; and (ii) a statement indicating the expectation of a financial institution's management to maintain a sufficient business continuity planning process to ensure rapid recovery, resumption and maintenance of the financial institution's operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to: (a) enable recovery of data and business operations, (b) address rebuilding network capabilities, and (c) restore data if the financial institution or any of its critical service providers fall victim to this type of cyber-attack. If the Company does not comply with this regulatory guidance, it could be subject to various regulatory sanctions, as well as financial penalties.

Competition

The financial services industry in the Corporation’s service area continues to be extremely competitive, both among commercial banks and with other financial service providers such as consumer finance companies, thrifts, investment firms, mutual funds and credit unions. The increased competition has resulted from changes in legal and regulatory guidelines as well as from economic conditions. Mortgage banking firms, leasing companies, financial affiliates of industrial companies, brokerage firms, retirement fund management firms, and even government agencies provide additional competition for loans and other financial services. Some of the financial service providers operating in the Corporation’s market area operate on a large-scale regional or national basis and possess greater resources than those of the Corporation. The Corporation is generally competitive with all competing financial institutions in its service area with respect to interest rates paid on time and savings deposits, service charges on deposit accounts and interest rates charged on loans.

Supervision and Regulation

The Corporation is a bank holding company that has elected financial holding company status, and the Bank is a Pennsylvania state-chartered bank that is not a member of the Federal Reserve System. Accordingly, the Corporation is subject to the oversight of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and the Pennsylvania Department of Banking and is regulated under the BHC Act, and the Bank is subject to the oversight of the Pennsylvania Department of Banking and Federal Deposit Insurance Corporation ("FDIC"), as its primary federal regulator. The Corporation and the Bank are also subject to various requirements and restrictions under federal and state law, such as requirements to maintain reserves against deposits, restrictions on the types, amounts and terms and conditions of loans that may be granted, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer financial protection laws and regulations also affect the operation of the Bank and, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), the Consumer Financial Protection Bureau ("CFPB") is authorized to write rules on consumer financial products and services which could affect the operations of the Bank and Holiday. In addition to the impact of regulation, commercial banks are significantly affected by the actions of the Federal Reserve Board, including actions taken with respect to interest rates, as the Federal Reserve Board attempts to control the money supply and credit availability in the U.S. in order to influence the economy.

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The following summary sets forth certain of the material elements of the regulatory framework applicable to bank holding companies and their subsidiaries and provides certain specific information about us and our subsidiaries. It does not describe all of the provisions of the statutes, regulations and policies that are identified. To the extent that the following information describes statutory and regulatory provisions, it is qualified in its entirety by express reference to each of the particular statutory and regulatory provisions. A change in applicable statutes, regulations or regulatory policy may have a material effect on our business.

In addition to the summary below, as a result of the COVID-19 pandemic, the U.S. bank regulators issued several letters and other guidance during the course of 2020 and 2021 to bank holding companies and banks regarding expectations for supporting the community and certain related temporary regulatory changes or accommodations, including, for example, temporary relief for banks that may exceed certain regulatory asset thresholds due in large part to their participation in government programs established in response to the COVID-19 pandemic. The Corporation continues to monitor guidance and developments related to the COVID-19 pandemic.

Bank Holding Company Regulation

As a bank holding company that controls a Pennsylvania state-chartered bank, the Corporation is subject to regulation and examination by the Pennsylvania Department of Banking and the Federal Reserve Board. We are required to file with the Federal Reserve Board an annual report and such additional information as the Federal Reserve Board may require pursuant to the BHC Act, and applicable regulations. For instance, the BHC Act requires each bank holding company to obtain the approval of the Federal Reserve Board before it may acquire substantially all the assets of any bank, or before it may acquire ownership or control of any voting shares of any bank if, after such acquisition, it would own or control, directly or indirectly, more than five percent of any class of voting shares of such bank. Such a transaction may also require approval of the Pennsylvania Department of Banking.

Pursuant to provisions of the BHC Act and regulations promulgated by the Federal Reserve Board thereunder, the Corporation may only engage in, or own companies that engage in, activities deemed by the Federal Reserve Board to be permissible for bank holding companies or financial holding companies. Activities permissible for bank holding companies include those that are so closely related to banking or managing or controlling banks as to be a proper incident thereto." Activities for financial holding companies include those that are "so closely related to banking as to be a proper incident thereto" as well as certain additional activities deemed "financial in nature or incidental to such financial activity" or complementary to a financial activity and that does not pose a substantial risk to the safety and soundness of the depository institution or the financial system.

The Corporation must obtain permission from or provide notice to the Federal Reserve Board prior to engaging in most new business activities.

Regulation of CNB Bank

Federal and state banking laws and regulations govern, among other things, the scope of a bank’s business, the investments a bank may make, the reserves against deposits a bank must maintain, the loans a bank makes and collateral it takes, the activities of a bank with respect to mergers and acquisitions, the establishment of branches, management practices, and numerous other aspects of banking operations.

Source of Strength Doctrine

Under Section 616 of the Dodd-Frank Act, a bank holding company is required to serve as a source of financial strength to its subsidiary banks and may not conduct its operations in an unsafe or unsound manner. In addition, it is the Federal Reserve Board’s policy that in serving as a source of financial and managerial strength to its subsidiary banks, a bank holding company should stand ready to use available resources to provide adequate capital funds to its subsidiary banks during periods of financial stress or adversity and should maintain the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary banks. A bank holding company’s failure to meet its obligations to serve as a source of strength to its subsidiary banks will generally be considered by the Federal Reserve Board to be an unsafe and unsound banking practice, a violation of the Federal Reserve Board regulations, or both. This doctrine is commonly known as the "source of strength" doctrine.

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Identity Theft

The Securities and Exchange Commission ("SEC") and the Commodity Futures Trading Commission (together with the SEC, the "Commissions") jointly issued final rules and guidelines to require certain regulated entities to establish programs to address risks of identity theft. The rules and guidelines implement provisions of the Dodd-Frank Act. These provisions amend Section 615(e) of the Fair Credit Reporting Act and directed the Commissions to adopt rules requiring entities that are subject to the Commissions’ jurisdiction to address identity theft in two ways. First, the rules require financial institutions and creditors to develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with certain existing accounts or the opening of new accounts. The rules include guidelines to assist entities in the formulation and maintenance of programs that would satisfy the requirements of the rules. Second, the rules establish special requirements for any credit and debit card issuers that are subject to the Commissions’ jurisdiction to assess the validity of notifications of changes of address under certain circumstances.

Capital Adequacy

The Capital Rules adopted in 2013 by the Federal Reserve Board, the FDIC, and the Office of the Comptroller of the Currency generally implement the Basel Committee on Banking Supervision’s capital framework, referred to as Basel III, for strengthening international capital standards. The Capital Rules revise the definitions and components of regulatory capital, increase risk-based capital requirements, and make selected changes to the calculation of risk-weighted assets. The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities to 600% for certain equity exposures, and resulting in higher risk weights for a variety of assets.

The Capital Rules, among other things:

•revise minimum capital requirements and adjust prompt corrective action thresholds;

•revise the components of regulatory capital, including adding a new minimum common equity Tier 1 capital ratio of 4.5% of risk-weighted assets and increasing the minimum Tier 1 capital ratio requirement from 4% to 6%;

•retain the existing risk-based capital treatment for 1-4 family residential mortgage exposures;

•permit most banking organizations to retain, through a one-time permanent election, the existing capital treatment for accumulated other comprehensive income;

•implement the capital conservation buffer beginning January 1, 2016, which was phased in incrementally until it reached 2.5% of risk-weighted assets, in addition to the minimum common equity Tier 1, Tier 1 and total capital ratios, on January 1, 2019;

•require a minimum leverage ratio of 4%;

•require a total capital ratio of 8%;

•increase capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments;

•require the deduction of mortgage servicing assets and deferred tax assets that exceed 10% of common equity Tier 1 capital in each category and 15% of common equity Tier 1 capital in the aggregate; and

•remove references to credit ratings consistent with the Dodd-Frank Act and establish due diligence requirements for securitization exposures.

Compliance with the Capital Rules was required beginning January 1, 2015, for most banking organizations including the Corporation, subject to a transition period for several aspects of the final rules, including the new minimum capital ratio requirements, the capital conservation buffer, and the regulatory capital adjustments and deductions. The Corporation implemented the Capital Rules on January 1, 2015, and continues to exceed all estimated well-capitalized regulatory requirements on a fully phased-in basis.

In July 2019, the Office of the Comptroller of the Currency, the Federal Reserve Board and the FDIC adopted a final rule intended to simply the Capital Rules described above for non-advanced approaches institutions. Institutions were required to implement the simplification rule by April 1, 2020.

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In September 2019, the Office of the Comptroller of the Currency, the Federal Reserve Board and the FDIC adopted a final rule that is intended to further simplify the Capital Rules for depository institutions and their holding companies that have less than $10 billion in total consolidated assets, such as us, if such institutions meet certain qualifying criteria. This final rule became effective on January 1, 2020. Under this final rule, if we meet the qualifying criteria, including having a leverage ratio (equal to Tier 1 capital divided by average total consolidated assets) of a certain size ( greater than 9% beginning January 1, 2022), we will be eligible to opt into the community bank leverage ratio framework. If we opt into this framework, we will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the Capital Rules (as modified pursuant to the simplification rule) and will be considered to have met the well-capitalized ratio requirements for PCA purposes. To date, we have not opted in to this community bank leverage ratio framework.

Dividend Restrictions

The Corporation is a legal entity separate and distinct from the Bank. Declaration and payment of cash dividends depends upon cash dividend payments to the Corporation by the Bank, which is our primary source of revenue and cash flow. Accordingly, the right of the Corporation, and consequently the right of our creditors and shareholders, to participate in any distribution of the assets or earnings of any subsidiary is necessarily subject to the prior claims of creditors of the Bank, except to the extent that claims of the Corporation in its capacity as a creditor may be recognized.

As a Pennsylvania state-chartered bank, the Bank is subject to regulatory restrictions on the payment and amounts of dividends under the Pennsylvania Banking Code. Further, the ability of banking subsidiaries to pay dividends is also subject to their profitability, financial condition, capital expenditures and other cash flow requirements.

The payment of dividends by the Bank and the Corporation may also be affected by other factors, such as the requirement to maintain adequate capital above regulatory requirements. The federal banking agencies have indicated that paying dividends that deplete a depository institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. A depository institution may not pay any dividend if payment would cause it to become undercapitalized or if it already is undercapitalized. Moreover, the federal banking agencies have issued policy statements that provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings. Federal banking regulators have the authority to prohibit banks and bank holding companies from paying a dividend if the regulators deem such payment to be an unsafe or unsound practice.

Prompt Corrective Action and Safety and Soundness

Under applicable "prompt corrective action" ("PCA") statutes and regulations, depository institutions are placed into one of five capital categories, ranging from "well capitalized" to "critically undercapitalized." The PCA statute and regulations provide for progressively more stringent supervisory measures as an insured depository institution’s capital category declines. An institution that is not well capitalized is generally prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market. An undercapitalized depository institution must submit an acceptable restoration plan to the appropriate federal banking agency. One requisite element of such a plan is that the institution’s parent holding company must guarantee compliance by the institution with the plan, subject to certain limitations.

At December 31, 2021, the Bank qualified as "well capitalized" under applicable regulatory capital standards.

Bank holding companies and insured depository institutions may also be subject to potential enforcement actions of varying levels of severity by the federal banking agencies for unsafe or unsound practices in conducting their business, or for violation of any law, rule, regulation, condition imposed in writing by the agency, or term of a written agreement with the agency. In more serious cases, enforcement actions may include the issuance of directives to increase capital; the issuance of formal and informal agreements; the imposition of civil monetary penalties; the issuance of a cease and desist order that can be judicially enforced; the issuance of removal and prohibition orders against officers, directors, and other institution affiliated parties; the termination of the insured depository institution’s deposit insurance; the appointment of a conservator or receiver for the insured depository institution; and the enforcement of such actions through injunctions or restraining orders based upon a judicial determination that the FDIC, as receiver, would be harmed if such equitable relief was not granted.

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Community Reinvestment Act

Under the Community Reinvestment Act of 1977 ("CRA"), the FDIC is required to assess the record of all financial institutions it supervises to determine if these institutions are meeting the credit needs of the community (including low and moderate income neighborhoods) which they serve. CRA performance evaluations are based on a four-tiered rating system: Outstanding, Satisfactory, Needs to Improve and Substantial Noncompliance. CRA performance evaluations are considered in evaluating applications for such things as mergers, acquisitions and applications to open branches. The Bank received a CRA rating of "Satisfactory" at its most recent CRA exam.

Restrictions on Transactions with Affiliates and Insiders

The Bank is subject to the restrictions of Sections 23A and 23B of the Federal Reserve Act and the implementing Regulation W. The Bank's "affiliates" for purposes of these sections include, among other potential entities, the Corporation and its direct subsidiaries. Section 23A requires that loans or extensions of credit by the Bank to an affiliate, purchases by the Bank of securities issued by an affiliate, purchases by the Bank of assets from an affiliate (except as may be exempted by order or regulation), the Bank’s acceptance of securities or debt obligations issued by an affiliate as collateral for a loan or extension of the credit to a third party, the Bank’s acceptance of a guarantee or letter of credit on behalf of an affiliate, a transaction with an affiliate involving the borrowing or lending of securities to the extent the transaction causes the Bank to have credit exposure to the affiliate, and a derivative transaction with an affiliate, to the extent the Bank will have credit exposure to the affiliate (collectively, "Covered Transactions") be on terms and conditions consistent with safe and sound banking practices. Section 23A also imposes quantitative restrictions on the amount of and collateralization requirements on such transactions. Section 23B requires that all Covered Transactions and certain other transactions, including the sale of securities or other assets by the Bank to an affiliate and the payment of money or the furnishing of services by the Bank to an affiliate, be on terms comparable to those prevailing for similar transactions with nonaffiliates.

The Bank is also subject to Sections 22(g) and 22(h) of the Federal Reserve Act, and the implementation of Regulation O issued by the Federal Reserve Board. These provisions impose limitations on loans and extensions of credit by the Bank to its and its affiliates' executive officers, directors and principal shareholders and their related interests. The limitations restrict the terms and aggregate amount of such transactions. Regulation O also imposes certain recordkeeping and reporting requirements.

Deposit Insurance and Premiums

The deposits of the Bank are insured up to applicable limits per insured depositor by the FDIC. The standard maximum deposit insurance amount is $250,000 per depositor, per insured depository institution, per ownership category, in accordance with applicable FDIC regulations.

The FDIC uses a risk-based assessment system that imposes insurance premiums based on a risk matrix that takes into account the bank’s capital level and supervisory rating. The base for insurance assessments is the average consolidated total assets less tangible equity capital of a financial institution. Assessment rates are calculated using formulas that take into account the risk of the institution being assessed. The FDIC adopted a final rule effective June 26, 2020, and applied as of April 1, 2020, to mitigate the effect on deposit insurance assessments of a bank’s participation in the Paycheck Protection Program, the Paycheck Protection Program Liquidity Facility and the Money Market Mutual Fund Liquidity Facility in connection with the COVID-19 pandemic.

Financial Privacy and Data Security

The Corporation is subject to federal laws, including the Gramm-Leach-Bliley Act, and certain state laws containing consumer privacy protection provisions. These provisions limit the ability of banks and other financial institutions to disclose nonpublic information about consumers to affiliated and non-affiliated third parties and limit the reuse of certain consumer information received from non-affiliated financial institutions. These provisions require notice of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain nonpublic personal information to affiliates or non-affiliated third parties by means of opt-out or opt-in authorizations.

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The Gramm-Leach-Bliley Act requires that financial institutions implement comprehensive written information security programs that include administrative, technical, and physical safeguards to protect consumer information. Federal banking agencies have also adopted guidelines for establishing information security standards and programs to protect such information. Further, pursuant to interpretive guidance issued under the Gramm-Leach-Bliley Act and certain state laws, financial institutions are required to notify customers of security breaches that result in unauthorized access to their nonpublic personal information.

Incentive Compensation

The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, including the Corporation and the Bank, with at least $1 billion in total consolidated assets that encourage inappropriate risks by providing an executive officer, employee, director or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity. The federal banking agencies and the SEC most recently proposed such regulations in 2016, but the regulations have not yet been finalized. If the regulations are adopted in the form initially proposed, they will restrict the manner in which executive compensation is structured.

The Dodd-Frank Act also requires publicly traded companies to give stockholders a non-binding vote on executive compensation at their first annual meeting taking place six months after the date of enactment and at least every three years thereafter and on so-called "golden parachute" payments in connection with approvals of mergers and acquisitions.

USA PATRIOT Act

Under Title III of the USA PATRIOT Act, all financial institutions are required to take certain measures to identify their customers, prevent money laundering, monitor customer transactions, and report suspicious activity to U.S. law enforcement agencies. Financial institutions also are required to respond to requests for information from federal banking agencies and law enforcement agencies. Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the Gramm-Leach-Bliley Act and other privacy laws. Financial institutions that hold correspondent accounts for foreign banks or provide private banking services to foreign individuals are required to take measures to avoid dealing with certain foreign individuals or entities, including foreign banks with profiles that raise money laundering concerns, and are prohibited from dealing with foreign "shell banks" and persons from jurisdictions of particular concern. The primary federal banking agencies and the Secretary of the Treasury have adopted regulations to implement several of these provisions. All financial institutions also are required to establish internal anti-money laundering programs. The effectiveness of a financial institution in combating money laundering activities is a factor to be considered in any application submitted by the financial institution under the Bank Merger Act. The Bank has in place a Bank Secrecy Act and USA PATRIOT Act compliance program and engages in very few transactions of any kind with foreign financial institutions or foreign persons.

Office of Foreign Assets Control Regulation

The United States government has imposed economic sanctions that affect transactions with designated foreign countries, nationals, and others. These are typically known as the "OFAC" rules based on their administration by the U.S. Treasury Department Office of Foreign Assets Control. The Office of Foreign Assets Control-administered sanctions targeting countries take many different forms. Generally, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on U.S. persons engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country; and (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (property and bank deposits) cannot be paid out, withdrawn, set off, or transferred in any manner without a license from the Office of Foreign Assets Control. Failure to comply with these sanctions could have serious legal and reputational consequences.

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Other Federal Laws and Regulations

State usury and other credit laws limit the amount of interest and various other charges collected or contracted by a bank on loans. The Bank is also subject to lending limits on loans to one borrower and regulatory guidance on concentrations of credit. The Bank’s loans and other products and services are also subject to numerous federal and state consumer financial protection laws, including, but not limited to, the following:

•Truth-In-Lending Act, which governs disclosures of credit terms to consumer borrowers;

•Truth-in-Savings Act, which governs disclosures of the terms of deposit accounts to consumers;

•Home Mortgage Disclosure Act, requiring financial institutions to provide information to regulators to enable determinations as to whether financial institutions are fulfilling their obligations to meet the home lending needs of the communities they serve and not discriminating in their lending practices;

•Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, sex or other prohibited factors in extending credit;

•Real Estate Settlement Procedures Act, which imposes requirements relating to real estate settlements, including requiring lenders to disclose certain information regarding the nature and cost of real estate settlement services;

•Fair Credit Reporting Act, covering numerous areas relating to certain types of consumer information and identity theft;

•Privacy provisions of the Gramm-Leach-Bliley Act and related regulations, which require that financial institutions provide privacy policies to consumers, to allow customers to "opt out" of certain sharing of their nonpublic personal information, and to safeguard sensitive and confidential customer information;

•Electronic Funds Transfer Act, which is a consumer protection law regarding electronic fund transfers; and

•Numerous other federal and state laws and regulations, including those related to consumer protection and bank operations.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") is applicable to all companies with equity securities registered or that file reports under the Securities Exchange Act of 1934, as amended, including publicly-held financial holding companies such as the Corporation. In particular, the Sarbanes-Oxley Act establishes: (i) requirements for audit committees, including independence, expertise, and responsibilities; (ii) additional responsibilities regarding financial statements for the Chief Executive Officer and Chief Financial Officer of the reporting company; (iii) standards for auditors and regulation of audits; (iv) increased disclosure and reporting obligations for the reporting company and its directors and executive officers; and (v) new and increased civil and criminal penalties for violations of the securities laws.

Governmental Policies

Our earnings are significantly affected by the monetary and fiscal policies of governmental authorities, including the Federal Reserve Board. Among the instruments of monetary policy used by the Federal Reserve Board to implement these objectives are open-market operations in U.S. Government securities and federal funds, changes in the discount rate on member bank borrowings and changes in reserve requirements against member bank deposits. These instruments of monetary policy are used in varying combinations to influence the overall level of bank loans, investments and deposits, and the interest rates charged on loans and paid for deposits. The Federal Reserve Board frequently uses these instruments of monetary policy, especially its open-market operations and the discount rate, to influence the level of interest rates and to affect the strength of the economy, the level of inflation or the price of the dollar in foreign exchange markets. The monetary policies of the Federal Reserve Board have had a significant effect on the operating results of banking institutions in the past and are expected to continue to do so in the future. It is not possible to predict the nature of future changes in monetary and fiscal policies, or the effect which they may have on our business and earnings.

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Other Legislative Initiatives

Proposals may be introduced in the United States Congress, in the Pennsylvania Legislature, and/or by various bank regulatory authorities that could alter the powers of, and restrictions on, different types of banking organizations and which could restructure part or all of the existing regulatory framework for banks, bank and financial holding companies and other providers of financial services. Moreover, other bills may be introduced in Congress which would further regulate, deregulate or restructure the financial services industry, including proposals to substantially reform the regulatory framework. It is not possible to predict whether any such proposals will be enacted into law or, even if enacted, what effect such action may have on our business and earnings.

Human Capital

As of December 31, 2021, the Corporation had a total of 703 employees, of which 659 were full time and 44 were part time.

The Corporation respects, values and promotes the realization of an increasing diversity and inclusivity profile in our team of Board members and employees, and our customers, reflective of the communities we serve. The Corporation emphasizes relevant governance and diversity and inclusion principles in strategic planning, human capital management and leadership development (which includes recruiting and retaining employees).

Strategic Planning and Related Training

The Corporation has established a formal Strategic Plan, and the framework of the Strategic Plan establishes that principles of inclusion and diversity encompass and integrate with the other objectives of the Strategic Plan, including exceptional experiences, demonstrated leadership, adaptable technology, and long-term growth. In establishing these principles as the foundation upon which all other strategic objectives are anchored, the Corporation seeks to further develop and sustain a diverse, equitable, and inclusive culture, with sensitivity to the entirety of the Corporation’s footprint and environment in which it operates. The differences among the Corporation’s Board and employees, and its customers and community members, are respected and embraced to drive innovative products, services, and solutions that effectively meet the variety of needs among the Corporation’s diverse group of stakeholders.

To ensure that the principles are understood, implemented, and demonstrated by the Corporation’s employee team on a sustained basis, the Corporation is developing comprehensive diversity, equity, and inclusion communication processes and a training curriculum – a comprehensive program to be delivered beginning in 2022 to all employees, including internal sessions delivered by a certified diversity and inclusion trainer, supplemented by relevant external training sources. This effort will include establishing measurable goals of inclusion and diversity accountability, qualitative processes and actions for achievement of these goals, and regular quantitative assessments to measure the impact on the Corporation, its experiences, and its culture.

Inclusion and Diversity Committee

In support of its strategic diversity and inclusion efforts, and to ensure that the diverse perspectives of the entire Corporation’s employee team is considered when developing and implementing its service and operating profile, the Corporation established an Inclusion and Diversity Committee (the “Diversity Committee”) in 2018. This Diversity Committee, which meets monthly, is comprised of over 10 employee members including underrepresented minorities, females, and those who identify as LGTBQ+, with the following committee responsibilities and goals:

•Encourage an inclusive and engaged workforce culture through communications and training;

•Demonstrate sustainability, commitment and accountability by tracking inclusion and diversity efforts bank wide;

•Bring awareness to the importance of inclusion and diversity internally and externally.

The Diversity Committee’s meeting minutes, activities and recommendations are provided regularly to the Corporation’s executive management team for consideration to promote the effective integration of diversity and inclusion principles into the respective facets of our business evaluated and addressed by the Diversity Committee.

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Human Capital Management and Leadership Development

We seek to recognize the unique contribution each employee brings to the Corporation, and we are fully committed to supporting a workplace that understands, accepts and values the similarities and differences between individuals. The Corporation’s key human capital management objectives are to recruit, hire, develop and promote a deeply experienced and diverse employee team, supplemented by similarly inclusive and diversity-focused third-party vendors, that collectively translate into a strong workforce committed to fostering, promoting, and preserving the entire spectrum of our communities and culture, while successfully executing our business strategies and demonstrating our corporate values. To support these objectives, the Corporation’s Employee Experience processes and programs are designed and operated to:

•Attract and develop talented employees across the spectrum of professional experience, life experience, socio-economic background, gender, race, religion, skill set, and geographic representation;

•Prepare all members of our team for critical roles and leadership positions both now and the future, in serving as employees and valuable community members;

•Reward and support employees fairly and without discrimination based upon successful performance and through competitive pay and benefit programs;

•Enhance the Corporation’s culture through efforts to better understand, foster, promote, and preserve a culture of diversity and inclusion; and

•Evolve and invest in technology, tools, and resources to better support employees of varying skills and backgrounds at work.

Among the means we use to monitor our performance in employee diversity and inclusion management, we take recurring management and employee demographic measurements and engagement surveys, and utilize the results to identify progress made, as well as areas in need of more attention, in improving the diversity, equity, and inclusion of our leadership and workforce profile, and personnel management practices.

A critical measure is realizing increasing diversity in our senior leadership positions, as those members of the Corporation’s management have greater ability to effectuate sustained change in the composition of our team and the expanded, relevant involvement of all groups within the spectrum of our workforce and communities.

The Corporation’s senior leadership team, which is comprised of individuals with the titles of Senior Vice President, Executive Vice President, Senior Executive Vice President, Regional President, President, and CEO, opened the Year 2021 with 33 individuals, including 11 members, or 33%, who were female or members of underrepresented minority groups. As we began the Year 2022, our senior leadership team has expanded to 36 individuals, with females and members of underrepresented minority groups comprising 12, or 33%, of the team.

As a result of broadening our recruitment efforts to increase the diversity of our team, for the year ended December 31, 2021, the Corporation hired 48 individuals from groups designated as underrepresented minorities, out of 245 total hires for the entire Corporation in 2021. While 2021 saw the most minority hires made in one year by the Corporation, allowing us to realize improvement in our overall ethnic diversity workforce profile, we recognize that our efforts must continue to remain diligent and be increasingly productive, as some of our regional bank’s workforce profiles do not yet more closely parallel the overall underrepresented minority demographics of their respective communities, particularly our predominantly urban markets including Cleveland, Columbus, Buffalo, and Erie.

As part of expanding our efforts and outlets to reach more qualified underrepresented minority candidates for new or open positions in 2022 and beyond, we are broadening our outreach to new sources for identifying and recruiting talented and qualified minority candidates. This includes partnering with a local Buffalo, New York college to offer apprenticeship programs designed to provide meaningful on-the-job training, work experience and college credits towards certificates and banking degrees to minority students. Additionally, our involvement in the Ohio Bankers League Summer Banking Institute allows us to offer internships to minority college students to increase awareness of career opportunities available in the banking industry in both the Cleveland and Columbus, Ohio markets. We believe our participation in these programs will help us identify or develop similar programs and minority recruitment opportunities in other markets and communities within the Corporation’s footprint.

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Community Involvement and Social Impacts

The Corporation serves as a cornerstone institution of both financial support and community service in the markets in which we serve. We are committed to strengthening these communities through the active volunteering of our employees.

The Corporation's employees actively participate in their communities through volunteer activities in education, economic development, human and health services, and community reinvestment. Despite the continuing COVID-19 pandemic, the Corporation’s employees found innovative ways to give back to their communities. During 2021, employees donated 7,835 hours in support of more than 456 organizations, with 58% of employees actively participating. Additionally, there were approximately $700,000 in donations to community organizations and events within the communities we serve. Notably, even during the COVID-19 pandemic, the Corporation’s Martin Luther King, Jr. “Take the Day On” efforts resulted in the support of 32 community organizations and 206 volunteer hours. Employees collected donations and delivered them to local organizations in need during this national day of service, which typically serves as a bank holiday. Another example of the Corporation’s involvement in the community is a Financial Reality Fair for high school students, many of which are in low-to-moderate income households, held at the local career center. The event benefited 400 high school students from six high schools, resulted in over 200 hours of volunteer time and partnerships with six community organizations. Bank experts not only shared their real-life knowledge of budgeting, but also provided additional follow up financial education after the fair.

Available Information

The Corporation makes available free of charge on its website (www.cnbbank.bank) its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as practicable after it electronically files such material with, or furnishes it to, the Securities and Exchange Commission, the SEC. Information on the Corporation’s website is not incorporated by reference into this report.

Shareholders may obtain a copy of the Corporation’s Annual Report on Form 10-K free of charge by writing to: CNB Financial Corporation, 1 South Second Street, PO Box 42, Clearfield, PA 16830, Attn: Shareholder Relations.

The SEC maintains an internet site that contains reports, proxy statements and other information about electronic filers such as the Corporation. The site is available at http://www.sec.gov.

ITEM 1A. RISK FACTORS

The Corporation’s financial condition and results of operations are subject to various risks inherent in its business. The material risks and uncertainties that management believes affect the Corporation are described below. If any of these risks actually occur, the Corporation’s business, financial condition, liquidity, results of operations and prospects could be materially and adversely affected. The following risks together with all of the other information in this Annual Report on Form 10-K should be considered.

Economic Risks

The ongoing COVID-19 pandemic and measures intended to prevent its spread have had, and another pandemic or public health crisis in the future could have, a material adverse effect on our business, results of operations and financial condition. Such effects will depend on future developments that are highly uncertain and difficult to predict.

The COVID-19 pandemic has had and continues to have, and another pandemic or public health crisis in the future could have, repercussions across domestic and global economies and financial markets. The global impact of the COVID-19 pandemic evolved rapidly and many countries and state and local governments in the United States, including those in which we operate, reacted by instituting government restrictions, border closings, quarantines, “shelter-in-place” orders and “social distancing” guidelines that, among other things, resulted in a dramatic increase in national unemployment and a significant economic contraction in 2020. Although the United States government has taken steps to attempt to mitigate some of the more severe anticipated economic effects of the pandemic, including the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") in 2020 and ongoing relief efforts, there can be no assurance that such steps will be effective or achieve their desired results in a timely fashion.

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The COVID-19 pandemic continues to adversely impact our business, workforce, as well as the operations of our borrowers, customers and business partners. In particular, we may experience financial losses due to a number of operational factors impacting us or our borrowers, customers or business partners, including but not limited to:

•credit losses resulting from financial stress being experienced by our borrowers as a result of the outbreak and related governmental actions, particularly in the hospitality, energy and restaurant industries, but across other industries as well;

•declines in collateral values;

•third party disruptions, including outages at network providers and other suppliers;

•higher inflation and supply chain disruptions;

•increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity; and

•operational failures due to changes in our normal business practices necessitated by the outbreak and related governmental actions.

These factors may persist for a significant period of time and may continue to adversely affect our business, results of operations and financial condition even after the COVID-19 pandemic has subsided.

The COVID-19 pandemic has caused us to modify our business practices (including restricting employee travel and developing work from home and social distancing plans for our employees), and we may take further actions as may be required by government authorities or as we determine are in the best interests of our employees, customers and business partners. There is no certainty that such measures will be sufficient to mitigate the risks posed by the pandemic or will otherwise be satisfactory to government authorities.

The extent to which the COVID-19 pandemic impacts our business, results of operations and financial condition will depend on future developments, each of which is highly uncertain and difficult to predict, including, but not limited to, the scope, severity and duration of the pandemic and its impact on our customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the direct and indirect economic effects of the pandemic and containment measures, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, such as the Delta and Omicron variants, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, we may continue to experience materially adverse impacts to our business as a result of the global economic impact of the pandemic, including the availability of and access to credit, adverse impacts on our liquidity and any recession that has occurred or may occur in the future.

The ultimate impact of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the impacts on our business, our operations or the global economy as a whole. Nevertheless, any of the negative effects of the COVID-19 pandemic, including those described above, alone or in combination with others, have had and may continue to have a material adverse effect on our results of operations, financial condition and cash flows. Any of these negative impacts, alone or in combination with others, could exacerbate many of the risk factors discussed in this Part I, "Item 1A. Risk Factors".

The possibility of the economy’s return to recessionary conditions and the possibility of further turmoil or volatility in the financial markets would likely have an adverse effect on the Corporation’s business, financial position and results of operations. Volatility and uncertainty related to inflation and the effects of inflation, which may lead to increased costs for businesses and consumers and potentially contribute to poor business and economic conditions generally, may also enhance or contribute to some of the risks discussed herein. For example, higher inflation, or volatility and uncertainty related to inflation, could reduce demand for the Corporation’s products, adversely affect the creditworthiness of the Corporation’s borrowers or result in lower values for the Corporation’s investment securities and other interest-earning assets.

The Corporation continues to face risks resulting from the aftermath of the severe recession generally and the moderate pace of the current recovery. A slowing or failure of the economic recovery would likely aggravate the adverse effects of these difficult economic and market conditions on the Corporation and on others in the financial services industry. In particular, the Corporation may face the following risks in connection with the economic or market environment:

•The Corporation’s and the Bank’s ability to borrow from other financial institutions or to access the debt or equity capital markets on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.

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•The Corporation faces increased regulation of the banking and financial services industry. Compliance with such regulation may increase its costs and limit its ability to pursue business opportunities.

•Market developments may affect customer confidence levels and may cause increases in loan delinquencies and default rates, which management expects would adversely impact the Bank’s charge-offs and provision for credit losses.

•Market developments may adversely affect the Bank’s securities portfolio by causing other-than-temporary-impairments, prompting write-downs and securities losses.

•Competition in banking and financial services industry could intensify as a result of the consolidation of financial services companies in connection with current market conditions.

The Corporation may not be able to meet its cash flow needs on a timely basis at a reasonable cost, and the Corporation’s cost of funds for banking operations may significantly increase as a result of general economic conditions, interest rates and competitive pressures.

Liquidity is the ability to meet cash flow obligations as they come due and cash flow needs on a timely basis and at a reasonable cost. The liquidity of the Bank is used to make loans and to repay deposit and borrowing liabilities as they become due, or are demanded by customers and creditors. Many factors affect the Bank’s ability to meet liquidity needs, including variations in the markets served by its network of offices, its mix of assets and liabilities, reputation and standing in the marketplace, and general economic conditions.

The Bank’s primary source of funding is retail deposits, gathered throughout its network of banking offices. Periodically, the Corporation utilizes term borrowings from the Federal Home Loan Bank (the "FHLB") of Pittsburgh, of which the Bank is a member, and other lenders to meet funding obligations. The Bank’s securities and loan portfolios provide a source of contingent liquidity that could be accessed in a reasonable time period through sales.

Significant changes in general economic conditions, market interest rates, competitive pressures or otherwise, could cause the Bank’s deposits to decrease relative to overall banking operations, and it would have to rely more heavily on brokered funds and borrowings in the future, which are typically more expensive than deposits.

Management and the Corporation's Board of Directors, through the Asset-Liability Committee ("the ALCO"), monitor liquidity and the ALCO establishes and monitors acceptable liquidity ranges. The Bank actively manages its liquidity position through target ratios. Continual monitoring of these ratios, both historical and through forecasts under multiple rate scenarios, allows the Bank to employ strategies necessary to maintain adequate liquidity.

Changes in economic conditions, including consumer savings habits and availability of or access to capital, could potentially have a significant impact on the Bank’s liquidity position, which in turn could materially impact the Corporation’s financial condition, results of operations and cash flows.

Credit and Interest Rate Risks

The Bank’s allowance for credit losses may not be adequate to cover loan losses which could have a material adverse effect on the Corporation’s business, financial condition and results of operations.

A significant source of risk for the Corporation arises from the possibility that losses will be sustained because borrowers, guarantors and related parties may fail to perform in accordance with the terms of their loan agreements. Most loans originated by the Bank are secured, but some loans are unsecured based upon management’s evaluation of the creditworthiness of the borrowers. With respect to secured loans, the collateral securing the repayment of these loans principally includes a wide variety of real estate, and to a lesser extent personal property, either of which may be insufficient to cover the obligations owed under such loans.

Collateral values and the financial performance of borrowers may be adversely affected by changes in prevailing economic, environmental and other conditions, including declines in the value of real estate, changes in interest rates and debt service levels, changes in oil and gas prices, changes in monetary and fiscal policies of the federal government, widespread disease, terrorist activity, environmental contamination and other external events, which are beyond the control of the Bank. In addition, collateral appraisals that are out of date or that do not meet industry recognized standards might create the impression that a loan is adequately collateralized when in fact it is not. Although the Bank may acquire any real estate or other assets that secure defaulted loans through foreclosures or other similar remedies, the amounts owed under the defaulted loans may exceed the value of the assets acquired.

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The allowance for credit losses is subject to a formal analysis by the Credit Administration and Finance Departments of the Corporation. Following the issuance by the Financial Accounting Standards Board (“FASB”) of Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments,” the Corporation adjusted its loan allowance methodology to reflect the new standard, which requires periodic estimates of lifetime expected credit losses on financial assets and categorizes expected credit losses as allowances for credit losses under the current expected credit loss ("CECL") methodology. The Corporation measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the models utilized by the Corporation to estimate expected credit losses include a discounted cash flow ("DCF") model that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity ("WARM") model which contemplates expected losses at a pool-level, utilizing historic loss information. The Corporation's models for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts.

The Bank monitors delinquencies and losses on a monthly basis. The Bank has adopted underwriting and credit monitoring policies and procedures, including the review of borrower financial statements and collateral appraisals, which management believes are appropriate to mitigate the risk of loss by assessing the likelihood of borrower nonperformance and the value of available collateral. The Bank also manages credit risk by diversifying its loan portfolio. An ongoing independent review, subsequent to management’s review, of individual credits is performed by an independent loan review function, which reports to the Loan Committee of the Corporation’s Board of Directors.

The determination of the appropriate level of the allowance for credit losses inherently involves a high degree of subjectivity and requires the Corporation to make significant estimates of current credit risks and future trends, all of which may undergo material changes. Although management believes that the processes in place for assessing the appropriate level of the allowance for credit losses are robust, such policies and procedures have limitations, including judgment errors in management’s risk analysis, and may not prevent unexpected losses in the future. Moreover, the CECL methodology may create more volatility in the level of our allowance for credit losses from quarter to quarter as changes in the level of allowance for credit losses will be dependent upon, among other things, macroeconomic forecasts and conditions, loan portfolio volumes and credit quality. These factors could have a material adverse effect on the Corporation’s business, financial condition and results of operations.

Interest rate volatility could significantly reduce the Corporation’s profitability.

The Corporation’s earnings largely depend on the relationship between the yield on its earning assets, primarily loans and investment securities, and the cost of funds, primarily deposits and borrowings. This relationship, commonly known as the net interest margin, is susceptible to significant fluctuation and is affected by economic and competitive factors that influence the yields and rates, and the volume and mix of the Bank’s interest earning assets and interest bearing liabilities.

Interest rate risk can be defined as the sensitivity of net interest income and of the market value of financial instruments to the direction and frequency of changes in interest rates. Interest rate risk arises from the imbalance in the re-pricing, maturity and/or cash flow characteristics of assets and liabilities. The Corporation is subject to interest rate risk to the degree that its interest bearing liabilities re-price or mature more slowly or more rapidly or on a different basis than its interest earning assets. Changes in interest rates, including those due to federal monetary policy, will affect the levels of income and expense recorded on a large portion of the Bank’s assets and liabilities, and fluctuations in interest rates will impact the market value of all interest sensitive assets. Significant fluctuations in interest rates could have a material adverse impact on the Corporation’s business, financial condition, results of operations, or liquidity.

The Bank’s interest rate risk measurement and management techniques incorporate the re-pricing and cash flow attributes of its balance sheet and off-balance sheet instruments as they relate to current and potential changes in interest rates. The level of interest rate risk, measured in terms of the potential future effect on earnings, is determined through the use of static gap analysis and earnings simulation modeling under multiple interest rate scenarios. Management’s objectives are to measure, monitor and develop strategies in response to the interest rate risk profile inherent in the Bank’s balance sheet in order to preserve the sensitivity of net interest income to actual or potential changes in interest rates. For further information on risk relating to interest rates, refer to Part I, Item 7a, "Quantitative and Qualitative Disclosures about Market Risk," herein.

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The Corporation’s investment securities portfolio is subject to credit risk, market risk, and liquidity risk, and declines in value in its investment securities portfolio may require it to record other-than-temporary impairment charges that could have a material adverse effect on its results of operations and financial condition.

The Corporation’s investment securities portfolio has risks beyond its control that can significantly influence the portfolio’s fair value. These factors include, but are not limited to, rating agency downgrades of the securities, defaults of the issuers of the securities, lack of market pricing of the securities, and continued instability in the credit markets. Recent lack of market activity with respect to certain of the securities has, in certain circumstances, required the Corporation to base its fair market valuation on unobservable inputs. The Corporation has engaged valuation experts to price these certain securities using proprietary models, which incorporate assumptions that market participants would use in pricing the securities, including bid/ask spreads and liquidity and credit premiums. Any change in current accounting principles or interpretations of these principles could impact the Corporation’s assessment of fair value and thus its determination of other-than-temporary impairment of the securities in its investment securities portfolio.

The Bank may be required to record other-than-temporary impairment charges on its investment securities if they suffer declines in value that are considered other-than-temporary. Numerous factors, including collateral deterioration underlying certain private label mortgage-backed securities, lack of liquidity for re-sales of certain investment securities, absence of reliable pricing information for certain investment securities, adverse changes in business climate, adverse actions by regulators, or unanticipated changes in the competitive environment could negatively affect the Bank’s securities portfolio in future periods. An other-than-temporary impairment charge could have a material adverse effect on the Corporation’s results of operations and financial condition.

A substantial decline in the value of the Bank’s FHLB common stock may adversely affect the Corporation’s results of operations, liquidity and financial condition.

As a requirement of membership in the FHLB of Pittsburgh, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. Borrowings from the FHLB represent the Bank’s primary source of short-term and long-term wholesale funding.

In an extreme situation, it is possible that the capitalization of an FHLB, including the FHLB of Pittsburgh, could be substantially diminished or reduced to zero. Consequently, given that there is no trading market for the Bank’s FHLB common stock, the Corporation’s management believes that there is a risk that the Corporation’s investment could be deemed impaired at some time in the future. If this occurs, it may adversely affect the Corporation’s results of operations and financial condition.

If the capitalization of the FHLB of Pittsburgh is substantially diminished, the Bank’s liquidity may be adversely impacted if it is not able to obtain alternative sources of funding.

There are 11 FHLB banks, including the FHLB of Pittsburgh, in the FHLB system. The 11 FHLB banks are jointly liable for the consolidated obligations of the FHLB system. To the extent that one FHLB bank cannot meet its obligations to pay its share of the system’s debt, other FHLB banks can be called upon to make the payment. The Corporation cannot assure you, however, that the FHLB system will be able to meet these obligations.

The Bank could be held responsible for environmental liabilities relating to properties acquired through foreclosure, resulting in significant financial loss.

In the event the Bank forecloses on a defaulted commercial or residential mortgage loan to recover its investment, it may be subject to environmental liabilities in connection with the underlying real property, which could significantly exceed the value of the real property. Although the Bank exercises due diligence to discover potential environmental liabilities prior to acquiring any property through foreclosure, hazardous substances or wastes, contaminants, pollutants, or their sources may be discovered on properties during its ownership or after a sale to a third party. The Corporation cannot assure you that the Bank would not incur full recourse liability for the entire cost of any removal and cleanup on an acquired property, that the cost of removal and cleanup would not exceed the value of the property, or that the Bank could recover any of the costs from any third party. Losses arising from environmental liabilities could have a material adverse impact on the Corporation’s business, financial condition, results of operations, or liquidity.

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Replacement of the LIBOR benchmark interest rate could adversely affect our business, financial condition, and results of operations.

In 2017, the United Kingdom’s Financial Conduct Authority ("FCA"), which regulates the London Interbank Offered Rate ("LIBOR"), announced that the FCA intends to stop persuading or compelling banks to submit the rates required to calculate LIBOR after 2021. As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee ("ARRC"), which identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative to LIBOR in derivatives and other financial contracts. The U.S. bank regulators issued a Statement on LIBOR Transition on November 30, 2020 encouraging banks to transition away from U.S. Dollar (USD) LIBOR as soon as practicable and in any event by December 31, 2021 for new contracts. LIBOR is currently anticipated to be fully phased out by June 30, 2023. We are not able to predict with certainty when LIBOR will cease to be available or when there will be sufficient liquidity in the SOFR markets. Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If such an increase or decrease were to occur, our interest payments that are higher or lower than if LIBOR were to remain available in its current form.

We have a number of loans, derivative contracts, borrowings and other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The transition from LIBOR, or any changes or reforms to the determination or supervision of LIBOR, could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us, could create considerable costs and additional risk and could have an adverse impact on our overall financial condition or results of operations. Since proposed alternative rates (including SOFR) are calculated differently, payments under contracts referencing new rates will differ from those referencing LIBOR. The transition will change our market risk profiles, requiring changes to risk and pricing models, valuation tools, product design and hedging strategies. Furthermore, failure to adequately manage this transition process with our customers could adversely impact our reputation. Although we are currently unable to assess what the ultimate impact of the transition from LIBOR will be, failure to adequately manage the transition could have a material adverse effect on our business, financial condition and results of operations.

Risks Related to an Investment in the Corporation’s Securities

Some provisions contained in the Corporation’s articles of incorporation and its bylaws and under Pennsylvania law could deter a takeover attempt or delay changes in control or management of the Corporation.

Certain anti-takeover provisions of the Pennsylvania Business Corporation Law of 1988, as amended, apply to Pennsylvania registered corporations (e.g., publicly traded companies) including, but not limited to, those relating to (1) control share acquisitions, (2) disgorgement of profits by certain controlling persons, (3) business combination transactions with interested shareholders, and (4) the rights of shareholders to demand fair value for their stock following a control transaction. Pennsylvania law permits corporations to opt-out of these anti-takeover provisions, but the Corporation has not done so. Such provisions could have the effect of deterring takeovers or delaying changes in control or management of the Corporation. Additionally, such provisions could limit the price that some investors might be willing to pay in the future for shares of the Corporation’s common stock.

For example, the Corporation’s amended and restated articles of incorporation require the affirmative vote of 66% of the outstanding shares entitled to vote to effect a business combination. In addition, the Corporation’s amended and restated articles of incorporation, subject to the limitations prescribed in such articles and subject to limitations prescribed by Pennsylvania law, authorize the Corporation’s Board of Directors, from time to time by resolution and without further shareholder action, to provide for the issuance of shares of preferred stock, in one or more series, and to fix the designation, powers, preferences and other rights of the shares and to fix the qualifications, limitations and restrictions thereof. As a result of its broad discretion with respect to the creation and issuance of preferred stock without shareholder approval, the Corporation's Board of Directors could adversely affect the voting power and other rights of the holders of common stock and, by issuing shares of preferred stock with certain voting, conversion and/or redemption rights, could discourage any attempt to obtain control of the Corporation.

The Corporation’s bylaws, as amended and restated, provide for the division of the Corporation’s Board of Directors into three classes of directors, with each serving staggered terms. In addition, any amendment to the Corporation’s bylaws must be approved by the affirmative vote of a majority of the votes cast by all shareholders entitled to vote thereon and, if any shareholders are entitled to vote thereon as a class, upon receiving the affirmative vote of a majority of the votes cast by the shareholders entitled to vote as a class.

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Any of the foregoing provisions may have the effect of deterring takeovers or delaying changes in control or management of the Corporation.

The price of the Corporation’s common stock may fluctuate significantly, and this may make it difficult for you to resell shares of common stock owned by you at times or at prices you find attractive.

The price of the Corporation’s common stock on the Global Select Market of The NASDAQ Stock Market LLC ("NASDAQ") constantly changes. The Corporation expects that the market price of its common stock will continue to fluctuate, and the Corporation cannot give you any assurances regarding any trends in the market prices for its common stock.

The Corporation’s stock price may fluctuate as a result of a variety of factors, many of which are beyond its control. These factors include the Corporation’s:

•past and future dividend practice;

•financial condition, performance, creditworthiness and prospects;

•quarterly variations in the Corporation’s operating results or the quality of the Corporation’s assets;

•operating results that vary from the expectations of management, securities analysts and investors;

•changes in expectations as to the Corporation’s future financial performance;

•announcements of innovations, new products, strategic developments, significant contracts, acquisitions and other material events by the Corporation or its competitors;

•the operating and securities price performance of other companies that investors believe are comparable to the Corporation;

•future sales of the Corporation’s equity or equity-related securities;

•the credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally; and

•instability in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility, budget deficits or sovereign debt level concerns and other geopolitical, regulatory or judicial events.

The Corporation’s ability to pay dividends is limited by law and regulations.

The future declaration of dividends by the Corporation’s Board of Directors will depend on a number of factors, including capital requirements, regulatory limitations, the Corporation’s operating results and financial condition and general economic conditions. As a bank holding company, the Corporation’s principal assets and sources of income are derived from the Bank and, as a result, the Corporation’s ability to pay dividends depends primarily on the receipt of dividends from the Bank. Dividend payments from the Bank are subject to legal and regulatory limitations, generally based on retained earnings, imposed by bank regulatory agencies. The ability of the Bank to pay dividends is also subject to financial condition, regulatory capital requirements, capital expenditures and other cash flow requirements. The Corporation cannot assure you that the Bank will be able to pay dividends to the Corporation in the future. If the Corporation were unable to receive dividends from the Bank, it would materially and adversely affects the Corporation’s liquidity and its ability to service its debt, pay its other obligations, or pay cash dividends on its common stock. The Corporation may decide to limit the payment of dividends to its stockholders even when the Corporation has the legal ability to pay them in order to retain earnings for use in the Corporation’s business.

Operational and Strategic Risks

The Bank’s loans are principally concentrated in certain areas of Pennsylvania, Ohio and New York, and adverse economic conditions in those markets could adversely affect the Corporation’s business, financial condition and results of operations.

The Corporation’s success is dependent to a significant extent upon general economic conditions in the United States and, in particular, the local economies in central and northwest Pennsylvania, central and northeast Ohio, and western New York - the primary markets served by the Bank. The Bank is particularly exposed to real estate and economic factors in these geographic areas, as most of its loan portfolio is concentrated among borrowers in these markets. Furthermore, because a substantial portion of the Bank’s loan portfolio is secured by real estate in these areas, the value of the associated collateral is also subject to regional real estate market conditions.

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The Bank is not immune to negative consequences arising from overall economic weakness and, in particular, a sharp downturn in the local real estate markets served by the Bank. While the Bank’s loan portfolio has not shown significant signs of credit quality deterioration despite continued challenges in the U.S. economy, we cannot assure you that no deterioration will occur. An economic recession in the markets served by the Bank, and the nation as a whole, could negatively impact household and corporate incomes. This impact could lead to decreased loan demand and increase the number of borrowers who fail to pay the Bank interest or principal on their loans, and accordingly, could have a material adverse effect on the Corporation’s business, financial condition, results of operations, or liquidity.

Severe weather, flooding and other effects of climate change and other natural disasters, such as earthquakes, could adversely affect our financial condition, results of operations or liquidity.

Our branch locations and our customers’ properties may be adversely impacted by flooding, wildfires, high winds and other effects of severe weather conditions that may be caused or exacerbated by climate change. These events can force property closures, result in property damage and/or result in delays in expansion, development or renovation of our properties and those of our customers. Even if these events do not directly impact our properties or our customers’ properties, they may impact us and our customers through increased insurance, energy or other costs. In addition, changes in laws or regulations, including federal, state or city laws, relating to climate change could result in increased capital expenditures to improve the energy efficiency of our branch locations and/or our customers’ properties.

The preparation of the Corporation’s financial statements requires the use of estimates that could significantly vary from actual results, which could have a material adverse effect on the Corporation’s business, financial condition, results of operations or liquidity.

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make significant estimates that affect the financial statements. For example, one of these significant estimates is the allowance for credit losses. Due to the inherent nature of estimates, the Corporation cannot provide absolute assurance that it will not significantly increase the allowance for credit losses and/or sustain credit losses that are significantly higher than the provided allowance, which could have a material adverse effect on the Corporation’s business, financial condition, results of operations or liquidity.

The Corporation’s financial results may be subject to the impact of changes in accounting standards or interpretation in new or existing standards.

From time to time the Financial Accounting Standards Board ("FASB"), and the SEC change accounting regulations and reporting standards that govern the preparation of the Corporation’s financial statements. In addition, the FASB, SEC, and bank regulators may revise their previous interpretations regarding existing accounting regulations and the application of these accounting standards. These revisions in their interpretations are out of the Corporation’s control and may have a material impact on its financial statements.

The Corporation depends on the accuracy and completeness of information about customers and counterparties.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we rely on information furnished to us by or on behalf of customers and counterparties, including financial statements and other financial information. We also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to clients, we may assume that a customer's audited financial statements conform to GAAP and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. Our earnings are significantly affected by our ability to properly originate, underwrite and service loans. Our financial condition, results of operations and capital could be negatively impacted to the extent we incorrectly assess the creditworthiness of our borrowers, fail to detect or respond to deterioration in asset quality in a timely manner, or rely on financial statements that do not comply with GAAP or are materially misleading.

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The risks presented by acquisitions could adversely affect our financial condition and results of operations.

Any acquisitions will be accompanied by the risks commonly encountered in acquisitions including, among other things: our ability to realize anticipated cost savings and avoid unanticipated costs relating to the merger, the difficulty of integrating operations and personnel, the potential disruption of our or the acquired company’s ongoing business, the inability of our management to maximize our financial and strategic position, the inability to maintain uniform standards, controls, procedures and policies, and the impairment of relationships with the acquired company’s employees and customers as a result of changes in ownership and management. These risks may prevent the Corporation from fully realizing the anticipated benefits of an acquisition or cause the realization of such benefits to take longer than expected.

Strong competition within the Corporation’s markets and technological change may have a material adverse impact on its profitability.

The Corporation competes with an ever-increasing array of financial service providers. As noted above, as a financial holding company and state-chartered financial institution, respectively, the Corporation and the Bank are subject to extensive regulation and supervision, including, in many cases, regulations that limit the type and scope of activities. The non-bank financial service providers that compete with the Corporation and the Bank may not be subject to such extensive regulation, supervision, and tax burden. Competition from nationwide banks, as well as local institutions, is strong in the Corporation’s markets.

The financial services industry is undergoing rapid technological change and technological advances are likely to intensify competition. In addition to improving customer services, effective use of technology increases efficiency and enables financial institutions to reduce costs. Accordingly, the Corporation’s future success will depend in part on its ability to address customer needs by using technology. The Corporation cannot assure you that it will be able to successfully take advantage of technological changes or advances or develop and market new technology driven products and services to its customers. Failure to keep pace with technological change affecting the financial services industry could have a material adverse effect on the Corporation's financial condition, results of operations or liquidity.

Many regional, national and international competitors have far greater assets and capitalization than the Corporation has and greater resources to invest in technology and access to capital markets and can consequently offer a broader array of financial services than it can. We cannot assure you that we will continue to be able to compete effectively with other financial institutions in the future. Developments increasing the nature or level of competition could have a material adverse effect on the Corporation’s business, financial condition, results of operations, or liquidity. For further information on competition, refer to Part I, Item 1, "Competition," herein.

The unsoundness of other financial institutions with which the Corporation does business could adversely affect the Corporation’s business, financial condition or results of operations.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial institutions are interrelated as a result of trading, clearing, counterparty, investment or other relationships. The Corporation routinely executes transactions with counterparties in the financial services industry such as commercial banks, brokers and dealers, investment banks and other institutional clients for a range of transactions including loan participations, derivatives and hedging transactions. In addition, the Corporation invests in securities or loans originated or issued by financial institutions or supported by the loans they originate. As a result, defaults by, or even rumors or questions about, one or more financial institutions, or the financial industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or other institutions. Many of these transactions expose the Corporation to credit or investment risk in the event of default by the Corporation’s counterparty. In addition, the Corporation’s credit risk may be exacerbated if the collateral it holds cannot be realized or is liquidated at prices not sufficient to recover the full amount of the loan or other exposure to the Corporation. The Corporation could incur losses to its securities portfolio as a result of these issues. These types of losses may have a material adverse effect on the Corporation’s business, financial condition or results of operation.

19

The Corporation’s operations may be adversely affected if its external vendors do not perform as expected or if its access to third-party services is interrupted.

The Corporation relies on certain external vendors to provide products and services necessary to maintain the day-to-day operations of the Corporation. Some of the products and services provided by vendors include key components of our business infrastructure including data processing and storage and internet connections and network access, among other products and services. Accordingly, the Corporation’s operations are exposed to the risk that these vendors will not perform in accordance with the contracted arrangements or under service level agreements. The failure of an external vendor to perform in accordance with the contracted arrangements or under service level agreements, because of changes in the vendor’s organizational structure, financial condition, support for existing products and services or strategic focus or for any other reason, could disrupt the Corporation’s operations. If we are unable to find alternative sources for our vendors’ services and products quickly and cost-effectively, the failures of our vendors could have a material adverse impact on the Corporation’s business and, in turn, the Corporation’s financial condition and results of operations.

Additionally, our information technology and telecommunications systems interface with and depend on third-party systems, and we could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If sustained or repeated, a system failure or service denial could result in a deterioration of our ability to process new and renewal loans, gather deposits and provide customer service, compromise our ability to operate effectively, damage our reputation, result in a loss of customer business and subject us to additional regulatory scrutiny and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.

A failure in or breach of the Corporation’s or any of its subsidiaries’ operational or security systems or infrastructure, or those of third party vendors and other service providers, including as a result of cyber attacks, could disrupt the Corporation’s or any of its subsidiaries’ businesses, result in the unauthorized disclosure or misuse of confidential or proprietary information, damage its reputation, increase its costs, or cause losses.

The Corporation, primarily through the Bank, depends on its ability to continuously process, record and monitor a large number of customer transactions. The Corporation also collects and processes regulated personal date of employees and customer, public and regulatory expectations regarding operational and information security have increased over time. Accordingly, its and its subsidiaries’ operational systems and infrastructure must continue to be safeguarded and monitored for potential failures, vulnerabilities, disruptions and breakdowns. Although the Corporation has business continuity plans and other safeguards in place, disruptions or failures in the physical infrastructure or operating systems that support its businesses and customers, or cyber attacks or security breaches of the networks, systems or devices on which employees' or customers’ personal information is stored and that customers use to access the Corporation’s and its subsidiaries products and services could result in customer attrition, regulatory fines, penalties or intervention, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs, any of which could materially adversely affect the Corporation’s results of operations or financial condition. In addition, significant disruptions of our third party vendors’ and/or service providers’ security systems or infrastructure, or other similar data security incidents, could adversely affect our business operations and/or result in the loss, misappropriation, and/or unauthorized access, use or disclosure of, or the prevention of access to, regulated personal or confidential information, which could harm our business.

Although to date the Corporation has not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that it or its subsidiaries will not suffer such losses in the future and our information systems remain a target of cyber attacks. Given the evolving nature of security threats and evolving safeguards, there can be no assurance that any preventive, protective, or remedial measures are or will be adequate to address threats that arise. However, even security measures that are appropriate, reasonable, and/or in accordance with applicable legal requirements may not be able to fully protect our operational or security systems or infrastructure and the data contained therein, or our data that is contained in our subsidiaries’ or third parties’ systems. Additionally, while we have implemented security measures that we believe are appropriate, a regulator could deem our security measures not to be appropriate given the lack of prescriptive measures in certain data protection laws. The Corporation continues to enhance its data security systems, technology platforms, employee education and risk management processes, in an effort to underpin its business strategy as well as in response to the evolving threat landscape and any incidents we experience. In connection with these efforts, we have incurred costs and expect to incur additional costs as we continue to enhance our data security infrastructure and take further steps to prevent unauthorized access to our systems and the data we maintain. In addition, any actual or perceived failure by the Corporation or our vendors or business partners to comply with our privacy, confidentiality, or data security-related legal or other obligations to third parties may result in claims by third parties that we have breached our privacy- or confidentiality-related obligations, which could materially and adversely affect our business and prospects.

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The Corporation’s risk and exposure to these matters, including future "phishing" attempts like the 2020 incident, remain heightened because of, among other things, the evolving nature of these threats, our plans to continue to implement our Internet banking and mobile banking channel strategies and develop additional remote connectivity solutions to serve our customers when and how they want to be served. As a result, cybersecurity and the continued development and enhancement of the Corporation’s controls, processes and practices designed to protect its and its subsidiaries systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority for the Corporation. As cyber threats continue to evolve, the Corporation may be required to expend further significant resources to continue to modify or enhance its protective measures or to investigate and remediate future information security vulnerabilities.

While we have purchased cybersecurity insurance, there are no assurances that the coverage would be adequate in relation to any incurred losses. Moreover, as cyber attacks increase in frequency and magnitude, we may be unable to obtain cybersecurity insurance in amounts and on terms we view as adequate for our operations.

Risks Related to Legal and Compliance Matters

The Corporation is subject to extensive government regulation and supervision, which may affect its ability to conduct its business and may negatively impact its financial results.

The Corporation, primarily through the Bank and its non-bank subsidiary, is subject to extensive federal and state regulation and supervision. Banking regulations are primarily intended to protect depositors’ funds, the Federal Deposit Insurance Fund and the safety and soundness of the banking system as a whole, not stockholders. These regulations affect the Corporation’s lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. Changes to statutes, regulations or regulatory policies, including changes in interpretation or implementation of statutes, regulations or policies, could affect the Corporation in substantial and unpredictable ways. Such changes could subject it to additional costs, limit the types of financial services and products the Corporation may offer, and/or limit the pricing it may charge on certain banking services, among other things.

Failure to comply with laws, including the Bank Secrecy Act and USA Patriot Act, regulations or policies could result in sanctions by regulatory agencies, restrictions, civil money penalties and/or reputation damage, which could have a material adverse effect on the Corporation’s business, financial condition and results of operations and/or cause the Corporation to lose its financial holding company status. While the Corporation has policies and procedures designed to prevent any such violations, there can be no assurance that such violations will not occur. See the section captioned "Supervision and Regulation" in Part I, Item 1 of this report for further information.

Federal and state governments could pass legislation responsive to current credit conditions which could cause the Corporation to experience higher credit losses.

The Corporation could experience higher credit losses because of federal or state legislation or regulatory action that reduces the amount the Bank’s borrowers are otherwise contractually required to pay under existing loan contracts. Also, the Corporation could experience higher credit losses because of federal or state legislation or regulatory action that limits the Bank’s ability to foreclose on property or other collateral or makes foreclosure less economically feasible. The Corporation cannot assure you that future legislation will not significantly and adversely impact its ability to collect on its current loans or foreclose on collateral.

General Risk Factors

The Corporation relies on its management and other key personnel, and the loss of any of them may adversely affect its operations.

The Corporation is and will continue to be dependent upon the services of its executive management team. In addition, it will continue to depend on its ability to retain and recruit key client relationship managers. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on its business and financial condition.

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The Corporation's risk management framework may not be effective in mitigating risk and loss.

The Corporation maintains an enterprise risk management program that is designed to identify, quantify, monitor, report, and control the risks that it faces. These risks include, but are not limited to: strategic, interest-rate, credit, liquidity, operations, pricing, reputation, compliance, litigation, and cybersecurity. While the Corporation assesses and improves this program on an ongoing basis, there can be no assurance that its approach and framework for risk management and related controls will effectively mitigate all risk and limit losses in its business. If conditions or circumstances arise that expose flaws or gaps in the Corporation's risk-management program, or if its controls break down, the Corporation's results of operations and financial condition may be adversely affected.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

None.

ITEM 2.  PROPERTIES

The headquarters of the Corporation and the Bank are located at 1 South Second Street, Clearfield, Pennsylvania, in a building owned by the Corporation. The Bank operates 44 full-service offices at December 31, 2021 and has subsequently opened one additional full-service office. Of these 45 offices, 23 are owned and 21 are leased from independent owners and one is leased from the Corporation. Holiday has nine full-service offices, of which eight are leased from independent owners and one is leased from the Corporation. The Bank’s primary market area includes the Pennsylvania counties of Blair, Cambria, Cameron, Centre, Clearfield, Crawford, Elk, Indiana, Jefferson, and McKean. ERIEBANK, a division of the Bank, operates in the Pennsylvania counties of Crawford, Erie, and Warren and the Ohio counties of Ashtabula, Cuyahoga, and Lake. FCBank, a division of the Bank, operates in the Ohio counties of Crawford, Richland, Ashland, Wayne, Marion, Morrow, Knox, Delaware, and Franklin. BankOnBuffalo, a division of the Bank, operates in the New York counties of Erie and Niagara. Ridge View Bank, a division of the Bank, operates in Roanoke, Virginia. There are no encumbrances on the offices owned and the rental expense on the leased property is immaterial in relation to operating expenses. The initial lease terms range from three to twenty years.

ITEM 3.  LEGAL PROCEEDINGS

There are no material pending legal proceedings to which the Corporation or any of its subsidiaries is a party, or of which any of their properties is the subject, except ordinary routine proceedings which are incidental to the business.

ITEM 4.  MINE SAFETY DISCLOSURES

None.

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PART II.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is traded on the Global Select Market of NASDAQ under the symbol "CCNE." As of December 31, 2021, the number of shareholders of record of the Corporation’s common stock was 6,191.

Issuer Purchases of Equity Securities

The following table provides information with respect to any purchase of shares of the Corporation’s common stock made by or on behalf of the Corporation for the quarter ended December 31, 2021.

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or approximate dollar value) of Shares that May Yet Be Purchased Under the Plans or Programs
October 1 – 31, 2021	0	$	0	0	183,131	(1)
November 1 – 30, 2021	36,359	$	27.50	36,359	146,772	(1)
December 1 – 31, 2021	0	$	0	0	146,772	(1)

(1)The Corporation’s stock repurchase program, which was announced on November 12, 2014, authorizes the repurchase of up to 500,000 shares of common stock. The program will remain in effect until fully utilized or until modified, suspended or terminated. As of December 31, 2021, there were 146,772 shares remaining for repurchase under the program.

Additionally, during the quarter ended December 31, 2021, certain employees surrendered shares of common stock owned by them to satisfy their statutory minimum U.S. federal and state tax obligations associated with the vesting of shares of restricted common stock issued under the CNB Financial Corporation 2019 Omnibus Incentive Plan.

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Share Return Performance

Set forth below is a chart comparing the Corporation’s cumulative return to stockholders against the cumulative return of the NASDAQ Composite Index and a peer group index of banking organizations for the five-year period commencing December 31, 2016 and ending December 31, 2021. Previously, the Corporation utilized the SNL Bank NASDAQ Index as the peer group index. The SNL Bank NASDAQ Index was retired in August 2021 and, therefore, there is no value to disclose for the SNL Bank NASDAQ Index as of 12/31/2021. The Corporation utilized as a replacement index the KBW NASDAQ Bank Index.

 CNB Financial Corporation

	Period Ending
Index	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	12/31/21
CNB Financial Corporation	100.00	100.79	90.21	131.65	88.76	113.57
NASDAQ Composite Index	100.00	129.64	125.96	172.18	249.51	304.85
KBW NASDAQ Bank Index	100.00	118.59	97.58	132.84	119.14	164.80

Source : S&P Global Market Intelligence

© 2022

ITEM 6.  RESERVED

ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is presented to provide insight into management’s assessment of financial results and should be read in conjunction with the following parts of this Form 10-K: Part I, Item 1 “Business,” Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” and Part II, Item 8 “Financial Statements and Supplementary Data.”

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Dollar amounts in tables are stated in thousands, except for per share amounts.

Forward-Looking Statements and Factors that Could Affect Future Results

The information below includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to CNB’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond CNB’s control). Forward-looking statements often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would" and "could." CNB’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition, results of operations, cash flows and performance of the Corporation, our customers and the global economy and financial markets. The COVID-19 pandemic has impacted us and our customers significantly, and the extent that it continues to impact us and our customers will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and its impact on our customers and demand for financial services, the actions governments, businesses and individuals take in response to the pandemic, the direct and indirect economic effects of the pandemic and containment measures, treatment developments, public adoption rates of COVID-19 vaccines, including booster shots, and their effectiveness against emerging variants of COVID-19, such as the Delta and Omicron variants, and the pace of recovery when the COVID-19 pandemic subsides, among others. Moreover, investors are cautioned to interpret many of the risks identified under Part I, "Item 1A. Risk Factors" in this Annual Report on Form 10-K as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.

Additional factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) changes in general business, industry or economic conditions or competition; (ii) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (iii) adverse changes or conditions in capital and financial markets; (iv) changes in interest rates; (v) higher than expected costs or other difficulties related to integration of combined or merged businesses; (vi) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (vii) changes in the quality or composition of our loan and investment portfolios; (viii) adequacy of loan loss reserves; (ix) increased competition; (x) loss of certain key officers; (xi) deposit attrition; (xii) rapidly changing technology; (xiii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xiv) changes in the cost of funds, demand for loan products or demand for financial services; and (xv) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on CNB's financial position and results of operations.

The forward-looking statements contained herein are based upon management’s beliefs and assumptions. Any forward-looking statement made herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. CNB undertakes no obligation to publicly update or revise any forward-looking statements included in this Annual Report on Form 10-K, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed might not occur and you should not put undue reliance on any forward-looking statements.

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Overview

The Corporation is a financial holding company registered under the BHC Act. It was incorporated under the laws of the Commonwealth of Pennsylvania in 1983 for the purpose of engaging in the business of a financial holding company. The Corporation’s subsidiary, the Bank, provides financial services to individuals and businesses primarily within its primary market area of the Pennsylvania counties of Blair, Cambria, Cameron, Centre, Clearfield, Crawford, Elk, Indiana, Jefferson, and McKean. ERIEBANK, a division of the Bank, operates in the Pennsylvania counties of Crawford, Erie, and Warren and in the Ohio counties of Ashtabula, Cuyahoga, and Lake. FCBank, a division of the Bank, operates in the Ohio counties of Crawford, Richland, Ashland, Wayne, Marion, Morrow, Knox, Delaware, and Franklin. BankOnBuffalo, a division of the Bank, operates in New York counties of Erie and Niagara. Ridge View Bank, a division of the Bank, operates in Roanoke, Virginia.

In addition to the Bank, the Corporation has four other subsidiaries. CNB Securities Corporation is incorporated in Delaware and currently maintains investments in debt and equity securities. CNB Insurance Agency, incorporated in Pennsylvania, provides for the sale of nonproprietary annuities and other insurance products. CNB Risk Management, Inc., incorporated in Delaware, is a captive insurance company that insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. Holiday, incorporated in Pennsylvania, offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics.

COVID-19 Considerations

The global outbreak of COVID-19 and the public health measures that have been undertaken in response have had, and continue to have, significant repercussions across regional and global economies and financial markets. The COVID-19 pandemic, its associated responsive measures and the resulting economic slowdown have disrupted our business and are expected to continue to have a significant impact on our business, financial performance and operating results. Since we cannot estimate when the COVID-19 pandemic and the associated responsive measures will end, we cannot estimate the ultimate operational and financial impact of COVID-19 on our business. However, management will continue to proactively implement strategies to mitigate the impact of the pandemic on the Corporation’s business, risk profile and financial performance.

To address the challenges arising as a result of the COVID-19 pandemic, and in order to continue to deliver essential services to the communities the Corporation serves while maintaining a high level of safety for customers and employees, the Corporation implemented its Pandemic Response Plan. Among other things, significant actions taken include:

•Implemented communication plans to ensure employees, customers and critical vendors are kept abreast of developments affecting the Corporation's operations.

•Restricted all non-essential travel while continuing to monitor and update the Corporation's quarantine protocols based on governmental guidelines;

•Enforcing safe practices in branch lobbies order to serve consumer and business customers and continued to offer the Corporation's customers alternatives through its drive-through capabilities, network of ATMs, internet banking, mobile application and telephone customer service capabilities;

•Continued remote-access availability for the Corporation's workforce to work from home or other remote locations. The Corporation has taken appropriate efforts to ensure that activities are performed in accordance with the Corporation's compliance and information security policies, which are designed to ensure customer data and other information is properly safeguarded; and

•Instituted mandatory social distancing policies for those employees not working remotely.

To ensure the safety of its customers and employees, the Corporation continues to monitor the COVID-19 pandemic closely and update its response plan accordingly.

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Non-GAAP Financial Information

This report contains references to financial measures that are not defined in GAAP. Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. Non-GAAP measures reflected within the discussion below include:

•Tangible book value per share;

•Tangible equity/tangible assets;

•Tangible common equity/tangible assets;

•Pre-provision net revenue ("PPNR");

•Non-interest income excluding realized gains on available for sale securities;

•Net interest margin (fully tax equivalent basis);

•Efficiency ratio;

•Return on average tangible equity; and

•Return on average tangible common equity

In addition, non-GAAP evaluations on the impact of PPP-related loans (as defined below), merger costs, branch closure costs and Federal Home Loan Bank of Pittsburgh ("FHLB") prepayment penalties on various metrics of the Corporation’s financial performance include calculations related to return on average equity, return on average tangible equity, return on average tangible common equity, tangible equity/tangible assets, tangible common equity/tangible assets and allowance for credit losses/loans. A reconciliation of these non-GAAP financial measures is provided below in the "Non-GAAP Financial Measures" section.

Management considers return on average assets, return on average equity, earnings per common share, asset quality, and other metrics as key measures of the financial performance of the Corporation. The interest rate environment will continue to play an important role in the future earnings of the Corporation. In order to address the challenging interest rate and competitive environments, the Corporation continues to evaluate, develop and implement strategies necessary to support its ongoing financial performance objectives.

Financial Condition

The following table presents ending balances, growth, and the percentage change of certain measures of our financial condition for specified years (dollars in millions):

	2021 Balance		2020 Balance		$ Change vs. prior year		% Change vs. prior year
Total assets	$	5,328.9	$	4,729.4	$	599.5	12.7	%
Total loans, net of allowance for credit losses	3,597.2		3,337.4		259.8		7.8	%
Total securities	707.6		591.6		116.0		19.6	%
Total deposits	4,715.6		4,181.7		533.9		12.8	%
Total shareholders’ equity	442.8		416.1		26.7		6.4	%

Cash and Cash Equivalents

Cash and cash equivalents totaled $732.2 million at December 31, 2021, including additional excess liquidity of $684.3 million held at the Federal Reserve. Cash and cash equivalents totaled $532.7 million at December 31, 2020. The increase in liquidity was primarily the result of the impact of government stimulus initiatives and organic growth in deposits.

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In addition to the Corporation's deposit growth strategies, management believes the liquidity needs of the Corporation are satisfied primarily by the current balance of cash and cash equivalents, customer deposits, FHLB borrowing capacity, and the portions of the securities and loan portfolios that mature within one year. The Corporation expects that these sources of funds will support both existing operations, future loan and investment portfolio growth and off-balance sheet commitments as they come due.

Securities

Securities available for sale and equity securities totaled $707.6 million and $591.6 million at December 31, 2021 and 2020, respectively. Note 3, "Securities," in the consolidated financial statements provides more detail concerning the composition of the Corporation’s securities portfolio and the process for evaluating securities for impairment. The increase of approximately $116.0 million, or 20%, from December 31, 2020 to December 31, 2021, resulted primarily from the Corporation’s liquidity strategy implemented in 2021. This strategy focused on deploying excess liquidity earning a relatively modest level of interest at the Federal Reserve towards investment securities that met the Corporation’s risk profile parameters for investments.

The following tables summarize the maturity distribution schedule with corresponding weighted-average yields of securities available for sale as of December 31, 2021. Weighted-average yields have been computed on a fully taxable-equivalent basis using a tax rate of 21%. Mortgage-backed securities are included in maturity categories based on their stated maturity date.

	December 31, 2021
	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years				Total
	$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield
U.S. Government Sponsored Entities	$	7,328	1.97	%	$	60,354	1.57	%	$	44,066	1.83	%	$	0	0.00	%	$	111,748	1.70	%
State and Political Subdivisions	$	3,139	3.00	%	$	26,223	2.85	%	$	51,851	2.22	%	$	22,497	2.33	%	103,710		2.43	%
Residential and multi-family mortgage	$	0	0.00	%	$	28,439	2.88	%	$	41,051	2.09	%	$	365,147	1.38	%	434,637		1.55	%
Corporate notes and bonds	$	661	0.38	%	$	2,946	0.62	%	$	24,457	3.92	%	$	0	0.00	%	28,064		3.49	%
Pooled SBA	$	0	0.00	%	$	359	5.15	%	$	12,449	2.73	%	$	6,224	1.78	%	19,032		2.46	%
Total	$	11,128	2.17	%	$	118,321	2.16	%	$	173,874	2.37	%	$	393,868	1.44	%	$	697,191	1.81	%

The portfolio contains no holdings of a single issuer that exceeds 10% of shareholders’ equity other than the U.S. Treasury and governmental sponsored entities.

The Corporation generally purchases debt securities over time and does not attempt to "time" its transactions, which allows for more efficient management of fluctuations in the interest rate environment. The Corporation's strategy given the current environment is to focus on lower risk securities, shorter durations that complement the current portfolio investment ladder, and consistent reinvestment of cash flows to replace lower earning assets.

The Corporation monitors the earnings performance and the effectiveness of the liquidity of the securities portfolio on a regular basis through meetings of the ALCO. The ALCO also reviews and manages interest rate risk for the Corporation. Through active balance sheet management and analysis of the securities portfolio, a sufficient level of liquidity is maintained to satisfy depositor requirements and various credit needs of our customers.

Loans

Note 4, "Loans," in the consolidated financial statements provides more detail concerning the loan portfolio of the Corporation. At December 31, 2021, loans totaled $3.6 billion, an increase of $263.0 million, or 7.8%, compared to December 31, 2020. As further discussed below, during the second quarter of 2020, the Corporation began originating loans to qualified small businesses under the Paycheck Protection Program ("PPP") administered by the Small Business Administration ("SBA") under the provisions of the CARES Act. Excluding the impact of PPP loans, net of PPP deferred processing fees (such loans, the "PPP-related loans"), the Corporation's loan portfolio increased $373.3 million, or 11.6%, from December 31, 2020. The growth was primarily driven by the Corporation's ongoing expansion in the Cleveland and Ridge View regions, combined with continued strong growth in its Private Banking division, coupled with increased lending opportunities in other regions of the Corporation.

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Included in the loan growth discussed above, and as part of the liquidity management strategies first implemented by the Corporation in 2020, the year ended December 31, 2021 reflected an increase in syndicated lending activities of $103.7 million from December 31, 2020. The syndicated loan portfolio totaled $125.8 million, or 3.5% of total loans, excluding PPP-related loans, at December 31, 2021. The Corporation internally underwrites each syndicated loan individually and considers these loans as an alternative to purchasing investment securities. While the overall strategy is to redeploy lower earning assets towards a higher profitability loan with a risk profile that meets the underwriting policies, the Corporation does not expect this type of activity to become a significant component of its business.

Loan Origination/Risk Management

The Corporation has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. The Corporation has not underwritten any hybrid loans, payment option loans, or low documentation/no documentation loans. Variable rate loans are generally underwritten at the fully indexed rate. Loan underwriting policies and procedures have not changed materially between any periods presented. As discussed more fully above, syndicated loan purchases are underwritten utilizing the same process as the Corporation’s originated loans.

The Corporation has begun to explore the credit and reputational risks associated with climate change and their potential impact on the foregoing, while closely monitoring regulatory developments on climate risk. This includes, among other things, researching and developing a formalized approach to considering climate change related risks in the Corporation's underwriting processes. This approach will be impacted, in part, by the accessibility and reliability of both customer climate risk data and climate risk data in general. One of the objectives of these efforts is to enable the Corporation to better understand the climate change related risks associated with the Corporation's customers' business activities and to be able to monitor their response to those risks and their ultimate impact on the Corporation's customers.

Although it is possible that the on-going effects of COVID-19 could continue to impact demand for our loan products, the Corporation expects to continue to achieve robust loan growth in 2022 as a result of its diversified markets and its focus on core customer acquisition strategies.

Customer Support Strategies and Loan Portfolio Profile

As of December 31, 2021, the Corporation had outstanding $47.1 million in PPP loans at a rate of 1.00%, representing 446 PPP loan relationships, and deferred PPP processing fees of approximately $1.9 million. For the twelve months ended December 31, 2021, the Corporation recognized $8.7 million in deferred PPP processing fees ("PPP-related fees"). The outstanding balance of PPP loans at December 31, 2021 included loans from the two different origination years: (i) $199 thousand, or seven loans from the Corporation's participation in the PPP in 2020, and (ii) $46.9 million, or 439 loans, from the Corporation’s participation in the PPP in 2021.

In accordance with the CARES Act, the Corporation also deferred loan payments for its commercial and consumer customers, as determined on a case-by-case basis by the financial needs of each customer. As of December 31, 2021, there were five loans with deferred loan payment arrangements totaling $397 thousand, compared to $151.0 million, or 167 loans, at December 31, 2020.

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Maturities and Sensitivities of Loans to Changes in Interest Rate

The following table presents the maturity distribution of the Corporation's loan portfolio at December 31, 2021. The table also presents the portion of loans that have fixed interest rates or variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index.

	December 31, 2021
	Due in One Year or Less		After One, but Within Five Years		After Five but Within Fifteen Years		After Fifteen Years		Total
Loans with Fixed Interest Rate
Farmland	$	99	$	1,667	$	1,611	$	935	$	4,312
Owner-occupied, nonfarm nonresidential properties	5,277		19,399		19,807		9,056		53,539
Agricultural production and other loans to farmers	0		284		0		0		284
Commercial and Industrial	15,621		224,510		62,089		185		302,405
Obligations (other than securities and leases) of states and political subdivisions	2,679		4,559		50,807		39,902		97,947
Other loans	21		1,125		871		295		2,312
Other construction loans and all land development and other land loans (1)	10,243		10,878		7,319		1,790		30,230
Multifamily (5 or more) residential properties	1,452		56,949		3,090		4,753		66,244
Non-owner occupied, nonfarm nonresidential properties	25,595		63,094		18,319		6,798		113,806
1-4 Family Construction (1)	2,482		0		652		4,951		8,085
Home equity lines of credit	1		102		701		518		1,322
Residential Mortgages secured by first liens	1,815		23,663		252,640		109,134		387,252
Residential Mortgages secured by junior liens	234		5,802		42,533		4,385		52,954
Other revolving credit plans	29		16		16		2		63
Automobile	394		15,514		4,954		0		20,862
Other consumer	7,646		31,176		7,793		2,852		49,467
Credit cards	0		0		0		0		0
Overdrafts	0		0		0		0		0
Total	$	73,588	$	458,738	$	473,202	$	185,556	$	1,191,084
Loans with Variable or Floating Interest Rate
Farmland	$	451	$	2,544	$	9,010	$	7,451	$	19,456
Owner-occupied, nonfarm nonresidential properties	11,800		30,222		283,777		55,334		381,133
Agricultural production and other loans to farmers	829		0		266		0		1,095
Commercial and Industrial	196,459		120,532		87,633		1,960		406,584
Obligations (other than securities and leases) of states and political subdivisions	0		1,660		17,244		24,036		42,940
Other loans	2,174		2,911		1,647		4,935		11,667
Other construction loans and all land development and other land loans (1)	60,175		110,199		88,427		9,838		268,639
Multifamily (5 or more) residential properties	16,311		48,928		66,351		18,309		149,899
Non-owner occupied, nonfarm nonresidential properties	68,275		137,110		288,479		55,392		549,256
1-4 Family Construction (1)	7,382		1,287		3,526		17,542		29,737
Home equity lines of credit	4,786		6,761		73,563		18,085		103,195
Residential Mortgages secured by first liens	6,976		14,721		154,116		263,664		439,477
Residential Mortgages secured by junior liens	1,098		113		2,318		206		3,735
Other revolving credit plans	2,992		1,930		21,102		449		26,473
Automobile	0		0		0		0		0
Other consumer	1		46		78		84		209
Credit cards	9,935		0		0		0		9,935
Overdrafts	278		0		0		0		278
Total	$	389,922	$	478,964	$	1,097,537	$	477,285	$	2,443,708
11-4 family construction loans and other construction loans and all land development and other land loans segments include loans that are construction to permanent loans in which the loan segment will change when the construction period has concluded.

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The Corporation generally structures commercial loans with shorter-term maturities in order to match our funding sources and to enable us to effectively manage the loan portfolio by providing the flexibility to respond to liquidity needs, changes in interest rates and changes in underwriting standards and loan structures, among other things. Due to the shorter-term nature of such loans, from time to time in the ordinary course of business and without any contractual obligation on our part, we will renew/extend maturing lines of credit or refinance existing loans at their maturity dates.

Loan Concentration

At December 31, 2021, no industry concentration existed which exceeded 10% of the total loan portfolio.

Loan Quality

The following table presents information concerning loan delinquency and other nonperforming assets at December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
Nonaccrual loans	$	19,420		$	30,359
Accrual loans greater than 90 days past due	168			325
Total nonperforming loans	19,588			30,684
Other real estate owned	707			862
Total nonperforming assets	$	20,295		$	31,546
Loans modified in a troubled debt restructuring (TDR):
Performing TDR loans	$	9,006		$	10,457
Nonperforming TDR loans (1)	7,600			4,631
Total TDR loans	$	16,606		$	15,088
Total loans	$	3,634,792		$	3,371,789
Nonaccrual loans as a percentage of loans	0.53		%	0.90		%
Total assets	$	5,328,939		$	4,729,399
Nonperforming assets as a percentage of total assets	0.38		%	0.67		%
Allowance for credit losses on loans	$	37,588		$	34,340
Ratio of allowance for credit losses on loans to nonaccrual loans	193.55		%	113.11		%

(1) Nonperforming TDR loans are also included in the balance of nonaccrual loans.

Total nonperforming assets were $20.3 million, or 0.38%, of total assets, as of December 31, 2021, reflecting a substantial decrease when compared to nonperforming assets of $31.5 million, or 0.67%, as of December 31, 2020. The reduction in nonperforming assets resulted primarily from the resolution of an $8.7 million commercial real estate loan relationship with no additional loss to the Corporation. In addition, the fourth quarter of 2021 included the resolution of a $1.4 million nonperforming commercial real estate loan relationship with no loss to the Corporation.

The Corporation has established written lending policies and procedures that require underwriting standards, loan documentation, and credit analysis standards to be met prior to funding a loan. Subsequent to the funding of a loan, ongoing review of credits is required. Credit reviews are performed quarterly by an outsourced loan review firm and cover approximately 65% of the commercial loan portfolio on an annual basis. In addition, the external independent loan review firm reviews classified assets, past due loans and nonaccrual loans quarterly. Note 1, "Summary of Significant Accounting Policies," in the consolidated financial statements provides a discussion of the Corporation's policy for placing loans on nonaccrual status.

Potential problem loans consist of loans that are performing in accordance with contractual terms but for which management has concerns about the ability of a borrower to continue to comply with repayment terms because of the borrower’s potential operating or financial difficulties. Management monitors these "watchlist" loans on a monthly basis to determine potential losses within the commercial loan portfolio. The "watchlist" is comprised of all credits risk rated special mention, substandard and doubtful.

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Allowance for Credit Losses

As discussed in Note 1, "Summary of Significant Accounting Policies," in the consolidated financial statements, the Corporation's policies and procedures related to accounting for credit losses changed on January 1, 2020 in connection with the adoption of a new accounting standard update as codified in Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) Financial Instruments - Credit Losses. The amount of each allowance account represents management's best estimate of current expected credit losses (“CECL”) on these financial instruments considering available information, from internal and external sources, relevant to assessing exposure to credit loss over the contractual term of the instrument. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. While management utilizes its best judgment and information available, the ultimate adequacy of the Corporation's allowance accounts is dependent upon a variety of factors beyond the Corporation's control, including the performance of the Corporation's portfolios, the economy, changes in interest rates and the view of the regulatory authorities toward classification of assets. The adequacy of the allowance for credit losses is subject to a formal analysis by the Credit Administration and Finance Departments of the Corporation. For additional information regarding the Corporation's accounting policies related to credit losses, refer to Note 1, "Summary of Significant Accounting Policies," and Note 4, "Loans" in the consolidated financial statements.

The table below provides an allocation of the allowance for credit losses on loans by loan portfolio segment at December 31, 2021 and 2020; however, allocation of a portion of the allowance to one segment does not preclude its availability to absorb losses in other segments.

	December 31, 2021
	Amount of Allowance Allocated		Percent of Loans in Each Category to Total Loans		Total Loans		Ratio of Allowance Allocated to Loans in Each Category
Farmland	$	151	0.7	%	$	23,768	0.64	%
Owner-occupied, nonfarm nonresidential properties	3,339		12.0	%	434,672		0.77	%
Agricultural production and other loans to farmers	9		0.0	%	1,379		0.65	%
Commercial and Industrial 1	8,837		19.5	%	708,989		1.25	%
Obligations (other than securities and leases) of states and political subdivisions	1,649		3.9	%	140,887		1.17	%
Other loans	149		0.4	%	13,979		1.07	%
Other construction loans and all land development and other land loans	2,198		8.2	%	298,869		0.74	%
Multifamily (5 or more) residential properties	2,289		5.9	%	216,143		1.06	%
Non-owner occupied, nonfarm nonresidential properties	6,481		18.2	%	663,062		0.98	%
1-4 Family Construction	158		1.0	%	37,822		0.42	%
Home equity lines of credit	1,169		2.9	%	104,517		1.12	%
Residential Mortgages secured by first liens	6,943		22.7	%	826,729		0.84	%
Residential Mortgages secured by junior liens	546		1.6	%	56,689		0.96	%
Other revolving credit plans	528		0.7	%	26,536		1.99	%
Automobile	263		0.6	%	20,862		1.26	%
Other consumer	2,546		1.4	%	49,676		5.13	%
Credit cards	92		0.3	%	9,935		0.93	%
Overdrafts	241		0.0	%	278		86.69	%
Total loans	$	37,588	100.0	%	$	3,634,792	1.03	%
Excluding PPP loans, net of deferred processing fees	$	37,588			$	3,589,589	1.05	%
1 PPP loans, net of deferred PPP processing fees, those disbursed in 2021, are included in the Commercial and Industrial classification.

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	December 31, 2020
	Amount of Allowance Allocated		Percent of Loans in Each Category to Total Loans		Total Loans		Ratio of Allowance Allocated to Loans in Each Category
Farmland	$	221	0.7	%	$	23,316	0.95	%
Owner-occupied, nonfarm nonresidential properties	3,700		12.1	%	407,924		0.91	%
Agricultural production and other loans to farmers	24		0.1	%	2,664		0.90	%
Commercial and Industrial 1	6,233		19.7	%	663,550		0.94	%
Obligations (other than securities and leases) of states and political subdivisions	998		3.9	%	132,818		0.75	%
Other loans	68		0.4	%	11,961		0.57	%
Other construction loans and all land development and other land loans	1,956		6.1	%	205,734		0.95	%
Multifamily (5 or more) residential properties	2,724		6.3	%	212,815		1.28	%
Non-owner occupied, nonfarm nonresidential properties	8,658		19.0	%	640,945		1.35	%
1-4 Family Construction	82		0.8	%	27,768		0.30	%
Home equity lines of credit	985		3.2	%	109,444		0.90	%
Residential Mortgages secured by first liens	4,539		23.0	%	777,030		0.58	%
Residential Mortgages secured by junior liens	241		1.6	%	53,726		0.45	%
Other revolving credit plans	507		0.8	%	25,507		1.99	%
Automobile	132		0.8	%	25,344		0.52	%
Other consumer	2,962		1.3	%	42,792		6.92	%
Credit cards	66		0.2	%	8,115		0.81	%
Overdrafts	244		0.0	%	336		72.62	%
Total loans	$	34,340	100.0	%	$	3,371,789	1.02	%
Excluding PPP loans, net of deferred processing fees	$	34,340			$	3,216,260	1.07	%
1 PPP loans, net of deferred PPP processing fees, those disbursed in 2020, are included in the Commercial and Industrial classification.

The allowance for credit losses measured as a percentage of loans was 1.03% as of December 31, 2021, compared to 1.02% as of December 2020. The allowance for credit losses measured as a percentage of loans, net of PPP-related loans, was 1.05% as of December 31, 2021 compared to 1.07% as of December 31, 2020.

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 year ended December 31, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, coupled with qualitative adjustments in the Corporation's residential and consumer loan portfolios, growth in new market areas, and qualitative adjustments related to the continued uncertainty with the pandemic and economic environment. These factors were partially offset by improvements in the Corporation's historical loss rates and quantitative inputs including the unemployment forecast and prepayment and curtailment speeds, as well as the impact of net charge-offs and improvements or resolutions in the Corporation's individually evaluated loans.

There is still a significant amount of uncertainty related to the economic impact of COVID-19, including duration, new variants, future government responses, and the resiliency of the U.S. economy. During 2021, management reviewed internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Specifically, management reevaluated the loss given default assumptions that utilize Frye Jacobs, the time period used for prepayment and curtailment speeds and the unemployment forecast. Management will continue to evaluate its estimate of expected credit losses as new information becomes available.

Note 4, "Loans," to the consolidated financial statements provides further disclosure of loan balances by portfolio segment as of December 31, 2021 and 2020, as well as the nature and scope of loans modified in a troubled debt restructuring during 2021 and 2020 and the related effect on provision for credit expense and allowance for credit losses.

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Additional information related to credit loss expense and net (charge-offs) recoveries at December 31, 2021 and 2020 is presented in the tables below.

	December 31, 2021
	Provision (Benefit) for Credit Loss Expense		Net (Charge-Offs) Recoveries		Average Loans		Ratio of Annualized Net (Charge-Offs) Recoveries to Average Loans
Farmland	$	(70)	$	0	$	22,970	0.00	%
Owner-occupied, nonfarm nonresidential properties	213		(574)		428,377		(0.13)	%
Agricultural production and other loans to farmers	(15)		0		2,245		0.00	%
Commercial and Industrial	2,564		40		680,368		0.01	%
Obligations (other than securities and leases) of states and political subdivisions	1,028		(377)		138,604		(0.27)	%
Other loans	81		0		12,187		0.00	%
Other construction loans and all land development and other land loans	524		(282)		246,583		(0.11)	%
Multifamily (5 or more) residential properties	(435)		0		218,285		0.00	%
Non-owner occupied, nonfarm nonresidential properties	(2,128)		(49)		627,595		(0.01)	%
1-4 Family Construction	76		0		30,513		0.00	%
Home equity lines of credit	186		(2)		106,214		0.00	%
Residential Mortgages secured by first liens	2,436		(32)		795,747		0.00	%
Residential Mortgages secured by junior liens	308		(3)		55,063		(0.01)	%
Other revolving credit plans	49		(28)		25,751		(0.11)	%
Automobile	154		(23)		23,027		(0.10)	%
Other consumer	637		(1,053)		42,634		(2.47)	%
Credit cards	120		(94)		9,532		(0.99)	%
Overdrafts	275		(278)		224		(124.11)	%
Total loans	$	6,003	$	(2,755)	$	3,465,919	(0.08)	%

	December 31, 2020
	Provision (Benefit) for Credit Loss Expense		Net (Charge-Offs) Recoveries		Average Loans		Ratio of Annualized Net (Charge-Offs) Recoveries to Average Loans
Farmland	$	(30)	$	0	$	27,359	0.00	%
Owner-occupied, nonfarm nonresidential properties	2,031		(49)		396,881		(0.01)	%
Agricultural production and other loans to farmers	(6)		0		3,185		0.00	%
Commercial and Industrial	5,283		(2,740)		644,793		(0.42)	%
Obligations (other than securities and leases) of states and political subdivisions	207		0		147,851		0.00	%
Other loans	19		0		10,546		0.00	%
Other construction loans and all land development and other land loans	(1,504)		125		191,984		0.07	%
Multifamily (5 or more) residential properties	1,301		0		184,980		0.00	%
Non-owner occupied, nonfarm nonresidential properties	3,266		(1,470)		532,088		(0.28)	%
1-4 Family Construction	61		0		24,893		0.00	%
Home equity lines of credit	367		(5)		103,723		0.00	%
Residential Mortgages secured by first liens	2,366		(220)		691,294		(0.03)	%
Residential Mortgages secured by junior liens	148		(156)		55,018		(0.28)	%
Other revolving credit plans	(51)		(116)		27,102		(0.43)	%
Automobile	99		(27)		26,419		(0.10)	%
Other consumer	1,364		(1,383)		38,679		(3.58)	%
Credit cards	179		(139)		8,126		(1.71)	%
Overdrafts	254		(250)		250		(100.00)	%
Total loans	$	15,354	$	(6,430)	$	3,115,171	(0.21)	%

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Prior to January 1, 2020, the Corporation calculated the allowance for loan losses using the probable incurred methodology. The activity in our allowance for loan losses was as follows during the year ended December 31, 2019:

	December 31, 2019
	Provision (Benefit) for Credit Loss Expense		Net (Charge-Offs) Recoveries		Average Loans		Ratio of Annualized Net (Charge-Offs) Recoveries to Average Loans
Commercial, Industrial, and Agricultural	$	1,134	$	(188)	$	987,974	(0.02)	%
Commercial Mortgages	2,729		(3,267)		748,915		(0.44)	%
Residential Real Estate	(344)		(313)		790,293		(0.04)	%
Consumer	2,080		(2,046)		95,018		(2.15)	%
Credit cards	82		(101)		7,448		(1.36)	%
Overdrafts	343		(340)		462		(73.59)	%
Total loans	$	6,024	$	(6,255)	$	2,630,110	(0.24)	%

During the year ended December 31, 2021, the Corporation recorded a provision for credit losses of $6.0 million, as compared to a provision for credit losses of $15.4 million for the year ended December 31, 2020. Net chargeoffs during the year ended December 31, 2021 were $2.8 million, compared to net chargeoffs of $6.4 million during the year ended December 31, 2020. The year ended December 31, 2020 included (i) a charge-off of approximately $2.6 million related to a secured commercial and industrial loan relationship with a borrower who is deceased, and (ii) a separate $1 million charge-off related to the $8.7 million commercial real estate loan relationship discussed above.

Premises and Equipment

During the years ended December 31, 2021 and 2020, the Corporation invested $6.5 million and $5.6 million, respectively, in its physical infrastructure through the purchase of land, buildings, and equipment. The year ended December 31, 2020 includes premises and equipment related to the Bank of Akron acquisition.

Bank Owned Life Insurance

The Corporation has periodically purchased Bank Owned Life Insurance ("BOLI"). The policies cover executive officers and a select group of other employees with the Bank being named as beneficiary. Earnings from BOLI assist the Corporation in offsetting its benefit costs. The Corporation made $22 million in purchases of BOLI during the twelve months ended December 31, 2021, while the Corporation made no purchases of BOLI during the twelve months ended December 31, 2020. The year ended December 31, 2020 includes $8.2 million of BOLI related to the Bank of Akron acquisition.

Funding Sources

Deposits

The Corporation’s sources of funds are deposits, borrowings, amortization and repayment of loan principal, interest earned on or maturation of investment securities and funds provided from operations. The Corporation considers deposits to be its primary source of funding in support of growth in assets.

	December 31, 2021		December 31, 2020		Percentage change 2021 vs. 2020
Demand, Non interest bearing	$	792,086	$	627,114	26.3%
Demand, Interest bearing	1,079,336		951,903		13.4%
Savings deposits	2,457,745		2,126,183		15.6%
Time deposits	386,452		476,544		(18.9)%
Total	$	4,715,619	$	4,181,744	12.8%

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Deposits totaled $4.7 billion at December 31, 2021, reflecting a $533.9 million, or 12.8%, increase from December 31, 2020, primarily resulting from the Corporation's customer acquisition strategies across all of the Corporation's regions and its Private Banking division, as well as the impact of government stimulus initiatives. The number of households across all regions increased 3.3% from December 31, 2020.

The following table sets forth the average balances of and the average rates paid on deposits for the period indicated.

	Year Ended December 31,
	2021				2020				2019
	Average Amount		Annual Rate		Average Amount		Annual Rate		Average Amount		Annual Rate
Demand – Non-Interest Bearing	$	724,839			$	516,724			$	360,208
Demand – Interest Bearing	978,279		0.18	%	755,200		0.24	%	580,244		0.42	%
Savings Deposits	2,309,560		0.22	%	1,923,214		0.66	%	1,450,653		1.39	%
Time Deposits	445,488		1.82	%	445,408		2.15	%	371,464		2.05	%
Total	$	4,458,166			$	3,640,546			$	2,762,569

The following table presents additional information about our December 31, 2021 and 2020 deposits:

	December 31, 2021		December 31, 2020
Time deposits not covered by deposit insurance	$	68,562	$	64,202
Total deposits not covered by deposit insurance	1,711,676		1,401,417

Scheduled maturities of time deposits not covered by deposit insurance at December 31, 2021 were as follows:

	December 31, 2021
3 months or less	$	7,482
Over 3 through 6 months	9,618
Over 6 through 12 months	31,619
Over 12 months	19,843
Total	$	68,562

Borrowings

Periodically, the Corporation utilizes term borrowings from the FHLB and other lenders to meet funding obligations or match fund certain loan assets. The terms of these borrowings are detailed in Note 12, "Borrowings," to the consolidated financial statements. There were no FHLB or other long-term borrowings as of December 31, 2021 and 2020. As a result of its strong deposit growth, during the third and fourth quarters of 2020, the Corporation prepaid the entire balance of its borrowings from the FHLB. The combined prepayment penalty associated with these prepayments totaled $7.9 million. The weighted average rate associated with these borrowings was 2.20%.

On October 18, 2021, the Corporation announced that it had completed the redemption of $50 million aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due October 15, 2026 (the “2026 Notes”), representing all outstanding 2026 Notes. The 2026 Notes were redeemed pursuant to their terms at a price equal to 100% of the principal amount, plus accrued and unpaid interest up to, but excluding, October 15, 2021. The Corporation financed the redemption of the 2026 Notes with cash on hand, including net proceeds from the issuance and sale of $85.0 million aggregate principal amount of the Corporation’s 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 completed in June 2021.

Liquidity and Capital Resources

Liquidity

Liquidity measures an organization’s ability to meet its cash obligations as they come due. The liquidity of a financial institution reflects its ability to meet loan requests, to accommodate possible outflows in deposits and to take advantage of interest rate market opportunities. The ability of a financial institution to meet its current financial obligations is a function of its balance sheet structure, its ability to liquidate assets and its access to alternative sources of funds.

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The Corporation’s expected material cash requirements for the twelve months ended December 31, 2022 and thereafter consist withdrawals by depositors, credit commitments to borrowers, shareholder dividends, share repurchases, operating expenses and capital expenditures. The Corporation expects to satisfy these short-term and long-term cash requirements through deposit growth, principal and interest payments on loans and investment securities, maturing loans and investment securities, as well as the Corporation maintains access to wholesale funding sources.

The objective of the Corporation's liquidity management is to manage cash flow and liquidity reserves so that they are adequate to fund the Corporation's operations and to meet cash obligations and other commitments on a timely basis and at a reasonable cost. The Corporation seeks to achieve this objective and ensure that funding needs are met by maintaining an appropriate level of liquid funds through asset/liability management, which includes managing the mix and time to maturity of financial assets and financial liabilities on its balance sheet. The Corporation's liquidity position is enhanced by its ability to raise additional funds as needed in the wholesale markets.

Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future. Liquid assets include cash, interest-bearing deposits in banks, including the Federal Reserve, and securities available for sale. Liability liquidity is provided by access to funding sources which include core deposits, correspondent banks and other wholesale funding.

The Corporation's liquidity position is continuously monitored and adjustments are made to the balance between sources and uses of funds as deemed appropriate. Liquidity risk management is an important element in the Corporation's asset/liability management process. The Corporation regularly models liquidity stress scenarios to assess potential liquidity outflows or funding problems resulting from economic disruptions, volatility in the financial markets, unexpected credit events or other significant occurrences deemed problematic by management. These scenarios are incorporated into the Corporation's contingency funding plan, which provides the basis for the identification of its liquidity needs.

As of December 31, 2021, the Corporation had approximately $684.3 million held in an interest-bearing account at the Federal Reserve. The Corporation also has the ability to borrow funds as a member of the FHLB. As of December 31, 2021, based upon available, pledgeable collateral, the Corporation's total borrowing capacity with the FHLB was approximately $932.7 million. Furthermore, at December 31, 2021, the Corporation had approximately $235.7 million in securities that were unencumbered by a pledge and could be used to support additional borrowings through the Federal Reserve discount window, as needed. As of December 31, 2021, management is not aware of any events that are reasonably likely to have a material adverse effect on the Corporation's liquidity, capital resources or operations. In addition, management is not aware of any regulatory recommendations regarding liquidity that would have a material adverse effect on the Corporation.

In the ordinary course of business the Corporation has entered into contractual obligations and have made other commitments to make future payments. Refer to the accompanying notes to consolidated financial statements elsewhere in this report for the expected timing of such payments as of December 31, 2021. The Corporation’s material contractual obligations as of December 31, 2021 consist of (i) long-term borrowings - Note 12, "Borrowings," (ii) operating leases - Note 9, "Leases," (iii) time deposits with stated maturity dates - Note 11, "Deposits," and (iv) commitments to extend credit and standby letters of credit - Note 20, "Off-Balance Sheet Activities."

Shareholders’ Equity, Capital Ratios and Metrics

The Corporation’s capital continues to provide a source of strength for the Corporation's growth, strategies and profitability. As of December 31, 2021, CNB’s total shareholders’ equity was $442.8 million, an increase of $26.7 million, or 6.4%, from December 31, 2020 primarily as a result of growth in organic earnings, partially offset by a decrease in accumulated other comprehensive income and payment of common and preferred stock dividends to the Corporation's common and preferred shareholders during the year ended December 31, 2021.

Under the Basel III Capital Rules, the Corporation elected to opt-out of the requirement to include most components of accumulated other comprehensive income in regulatory capital. Accordingly, amounts reported as accumulated other comprehensive income/loss related to securities available for sale, effective cash flow hedges and defined benefit post-retirement benefit plans do not impact regulatory capital and are not included in the calculation of risk-based capital and leverage ratios. In connection with the adoption of ASC 326 on January 1, 2020, the Corporation also elected to exclude, for a transitional period, the effects of credit loss accounting under CECL in the calculation of our regulatory capital and regulatory capital ratios. Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items. See Note 19, "Regulatory Capital Matters," in the accompanying notes to consolidated financial statements.

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Preferred Stock

During the three months ended September 30, 2020, the Corporation raised $57.8 million, net of issuance costs, from the issuance of depositary shares, each representing a 1/40th ownership interest in a share of the Corporation's 7.125% Series A fixed rate non-cumulative perpetual preferred stock, no par value, with a liquidation preference of $1,000 per share of preferred stock. The $57.8 million qualify as Tier 1 capital for regulatory capital purposes.

Subordinated Debentures and Notes

On October 18, 2021, the Corporation announced that it had completed the redemption of $50 million aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due October 15, 2026 (the “2026 Notes”), representing all outstanding 2026 Notes. The 2026 Notes were redeemed pursuant to their terms at a price equal to 100% of the principal amount, plus accrued and unpaid interest up to, but excluding, October 15, 2021. The Corporation financed the redemption of the 2026 Notes with cash on hand, including net proceeds from the issuance and sale of $85.0 million aggregate principal amount of the Corporation’s 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 completed in June 2021. The $85.0 million qualify as Tier 2 capital for regulatory capital purposes.

Additional details about our subordinated debentures and notes are included in Note 12, "Borrowings" in the accompanying notes to consolidated financial statements.

As of December 31, 2021 all of the Corporation's capital ratios exceeded regulatory “well-capitalized” levels and continue to support the Corporation's growth strategy. The Corporation’s capital ratios and book value per common share at December 31, 2021 and 2020 were as follows:

	December 31, 2021			December 31, 2020
Total risk-based capital ratio	14.92		%	14.32		%
Tier 1 capital ratio	11.79		%	11.91		%
Common equity tier 1 ratio	9.65		%	9.50		%
Leverage ratio	8.22		%	8.11		%
Tangible common common equity/tangible assets (1)	6.45		%	6.70		%
Book value per common share	$	22.85		$	21.29
Tangible book value per common share (1)	$	20.22		$	18.66

(1) Tangible common equity, tangible assets and tangible book value per common share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of stockholders’ equity. Tangible assets is calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets. Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding. The Corporation believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

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Average Balances, Interest Rates and Yields

The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses for loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. See Note 1, "Summary of Significant Accounting Policies," and Note 4, "Loans," for more information about pooling of loans for the allowance for credit losses.

The following table presents average balances of certain measures of our financial condition and net interest margin for the specified years.

	December 31, 2021						December 31, 2020						December 31, 2019
	Average Balance		Annual Rate		Interest Inc./ Exp.		Average Balance		Annual Rate		Interest Inc./ Exp.		Average Balance		Annual Rate		Interest Inc./ Exp.
Assets
Securities:
Taxable (1)	$	624,330	1.70	%	$	10,500	$	505,770	2.35	%	$	11,510	$	436,122	2.77	%	$	11,973
Tax-Exempt (1) (2)	42,658		3.43	%	1,403		55,460		3.32	%	1,772		85,802		3.40	%	2,867
Equity Securities (1) (2)	8,136		3.58	%	291		12,814		5.89	%	755		18,203		6.17	%	1,123
Total Securities	675,124		1.83	%	12,194		574,044		2.53	%	14,037		540,127		2.99	%	15,963
Loans:
Commercial (2)	1,284,750		4.95	%	63,642		1,230,615		4.80	%	59,016		987,974		5.35	%	52,868
Mortgage (2)	2,080,000		4.51	%	93,738		1,783,980		4.76	%	84,857		1,539,208		5.04	%	77,501
Consumer	101,169		9.98	%	10,098		100,576		9.71	%	9,766		102,928		10.08	%	10,373
Total Loans (3)	3,465,919		4.83	%	167,478		3,115,171		4.93	%	153,639		2,630,110		5.35	%	140,742
Other Earning Assets	626,997		0.14	%	881		402,861		0.21	%	852		24,674		2.02	%	499
Total earning assets	4,768,040		3.79	%	$	180,553	4,092,076		4.14	%	$	168,528	3,194,911		4.93	%	$	157,204
Non-Interest Earning Assets
Cash & Due From Banks	48,673						42,001						33,218
Premises, Equipment and Right of Use Assets	79,807						75,516						68,744
Other Assets	199,107						166,511						137,519
Allowance for Credit Losses	(36,727)						(28,962)						(20,655)
Total Non-Interest Earning Assets	290,860						255,066						218,826
Total Assets	$	5,058,900					$	4,347,142					$	3,413,737
Liabilities and Shareholders’ Equity
Interest Bearing Deposits
Demand – interest bearing	$	978,279	0.18	%	$	1,783	$	755,200	0.24	%	$	1,781	$	580,244	0.42	%	$	2,455
Savings	2,309,560		0.22	%	5,164		1,923,214		0.66	%	12,775		1,450,653		1.39	%	20,138
Time	445,488		1.82	%	8,115		445,408		2.15	%	9,586		371,464		2.05	%	7,609
Total interest bearing deposits	3,733,327		0.40	%	15,062		3,123,822		0.77	%	24,142		2,402,361		1.26	%	30,202
Short-term borrowings	0		0.00	%	0		0		0.00	%	0		16,022		2.65	%	425
Long-term borrowings	0		0.00	%	0		220,849		2.04	%	4,507		228,714		2.15	%	4,894
Finance lease liabilities	507		4.54	%	23		587		4.60	%	27		663		4.52	%	30
Subordinated debentures & notes	108,963		4.35	%	4,735		70,620		5.35	%	3,780		70,620		5.63	%	3,979
Total interest bearing liabilities	3,842,797		0.52	%	$	19,820	3,415,878		0.95	%	$	32,456	2,718,380		1.45	%	$	39,530
Demand – non-interest bearing	724,839						516,724						360,208
Other liabilities	60,202						56,377						49,825
Total Liabilities	4,627,838						3,988,979						3,128,413
Shareholders’ Equity	431,062						358,163						285,324
Total Liabilities and Shareholders’ Equity	$	5,058,900					$	4,347,142					$	3,413,737
Interest Income/Earning Assets			3.79	%	$	180,553			4.14	%	$	168,528			4.93	%	$	157,204
Interest Expense/Interest Bearing Liabilities			0.52	%	19,820				0.95	%	32,456				1.45	%	39,530
Net Interest Spread			3.27	%	$	160,733			3.19	%	$	136,072			3.48	%	$	117,674
Interest Income/Earning Assets			3.79	%	$	180,553			4.14	%	$	168,528			4.93	%	$	157,204
Interest Expense/Earning Assets			0.41	%	19,820				0.80	%	32,456				1.24	%	39,530
Net Interest Margin			3.38	%	$	160,733			3.34	%	$	136,072			3.69	%	$	117,674

(1) Includes unamortized discounts and premiums. Average balance is computed using the fair value of securities. The average yield has been computed using the amortized cost average balance for available for sale securities.

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(2) Average yields and interest income are stated on a fully taxable equivalent basis using the Corporation’s marginal federal income tax rate of 21% for the years end December 31, 2021, 2020 and 2019. Interest income has been increased by $953 thousand, $1.4 million, and $1.5 million for the years ended December 31, 2021, 2020, and 2019, respectively, as a result of the effect of tax-exempt interest and dividends earned by the Corporation.

(3) Average balance outstanding includes the average balance outstanding of all nonaccrual loans. Loans consist of the average of total loans less average unearned income. Included in loan interest income are loan fees of $15.5 million, $10.4 million, and $4.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Loan fees for the year ended December 31, 2021 and 2020 included $8.7 million and $5.1 million in PPP deferred processing fees.

Volume Analysis of Changes in Net Interest Income

The following table presents the change in net interest income for the years specified.

Net Interest Income Rate-Volume Variance	For Twelve Months Ended December 31, 2021 over (under) 2020 Due to Change In (1)						For Twelve Months Ended December 31, 2020 over (under) 2019 Due to Change In (1)
	Volume		Rate		Net		Volume		Rate		Net
Assets
Securities:
Taxable	$	2,278	$	(3,288)	$	(1,010)	$	1,369	$	(1,832)	$	(463)
Tax-Exempt (2)	(430)		61		(369)		(1,026)		(69)		(1,095)
Equity Securities (2)	(168)		(296)		(464)		(317)		(51)		(368)
Total Securities	1,680		(3,523)		(1,843)		26		(1,952)		(1,926)
Loans:
Commercial (2)	2,780		1,846		4,626		11,582		(5,434)		6,148
Mortgage (2)	13,341		(4,460)		8,881		11,666		(4,310)		7,356
Consumer	60		272		332		(226)		(381)		(607)
Total Loans	16,181		(2,342)		13,839		23,022		(10,125)		12,897
Other Earning Assets	311		(282)		29		800		(447)		353
Total Earning Assets	$	18,172	$	(6,147)	$	12,025	$	23,848	$	(12,524)	$	11,324
Liabilities and Shareholders’ Equity
Interest Bearing Deposits
Demand – Interest Bearing	$	407	$	(405)	$	2	$	413	$	(1,087)	$	(674)
Savings	864		(8,475)		(7,611)		3,139		(10,502)		(7,363)
Time	1		(1,472)		(1,471)		1,591		386		1,977
Total Interest Bearing Deposits	1,272		(10,352)		(9,080)		5,143		(11,203)		(6,060)
Short-Term Borrowings	0		0		0		0		(425)		(425)
Long-Term Borrowings	0		(4,507)		(4,507)		(145)		(242)		(387)
Finance Lease Liabilities	(4)		0		(4)		(3)		0		(3)
Subordinated Debentures	1,666		(711)		955		0		(199)		(199)
Total Interest Bearing Liabilities	$	2,934	$	(15,570)	$	(12,636)	$	4,995	$	(12,069)	$	(7,074)
Change in Net Interest Income	$	15,238	$	9,423	$	24,661	$	18,853	$	(455)	$	18,398

(1) The change in interest due to both volume and rate have been allocated entirely to volume changes.

(2) Changes in interest income on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21% for the year ended December 31, 2021 and 2020.

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Results of Operations

Year Ended December 31, 2021 vs. Year Ended December 31, 2020

Overview of the Statements of Income and Comprehensive Income

Net income was $57.7 million, or $3.16 per diluted common share, for the year ended December 31, 2021, compared to $32.7 million, or $1.97 per diluted share, for the year ended December 31, 2020, reflecting increases of $25.0 million, or 76.2%, and $1.19 per diluted share, or 60.4%. The primary drivers of the increase in net income were the growth in earning assets and PPP related fees. In addition, included in net income for the year ended December 31, 2020 was the after-tax impact of $10.2 million, or $0.63 per diluted share, in merger costs, FHLB prepayment penalties and branch closure costs. Partially offsetting were the growth in operating expenses to support the Corporation's growth, as well as a lower net interest margin as a result of the low interest rate environment. Pre-provision net revenue ("PPNR") was $76.8 million for the year ended December 31, 2021, compared to $55.4 million for the year ended December 31, 2020, reflecting an increase of $21.3 million, or 38.5%. Included in PPNR for the year ended December 31, 2020 was $12.6 million in merger costs, prepayment penalties and branch closure costs.

Return on average equity was 13.39% for the year ended December 31, 2021, compared to 9.14% for the year ended December 31, 2020. Return on average tangible common equity was 16.23% and 10.67% for the same periods in 2021 and 2020, respectively. Excluding after-tax merger costs, FHLB prepayment penalties and branch closure costs, adjusted return on average equity and average tangible common equity were 11.98% and 14.10% for the year ended December 31, 2020, respectively.

As a measure of the Corporation’s efficiency in management of its expenses, the efficiency ratio was 59.76% for the year ended December 31, 2021, compared to 65.10% for the year ended December 31, 2020. The efficiency ratio for the year ended December 31, 2020 included $12.6 million in merger costs, FHLB prepayment penalties and branch closure costs.

Interest Income and Expense

Net interest income for the twelve months ended increased $25.1 million, or 18.6%, to $159.8 million from the twelve months ended December 31, 2020, primarily as a result of loan growth, various deposit pricing and liquidity strategies. Included in net interest income were PPP-related fees, which totaled approximately $8.7 million for the year ended December 31, 2021, compared to $5.1 million for the year ended December 31, 2020.

Net interest margin on a fully tax-equivalent basis was 3.38% and 3.34% for the year ended December 31, 2021 and 2020, respectively.

The yield on earning assets of 3.79% for the twelve months ended December 31, 2021 decreased 35 basis points from 4.14% for the twelve months ended December 31, 2020, primarily as a result of the lower interest rate environment and higher level of excess cash at the Federal Reserve, partially offset by higher PPP-related fees. The cost of interest-bearing liabilities decreased 43 basis points from 0.95% for the year ended December 31, 2020 to 0.52% for the year ended December 31, 2021, primarily as a result of the Corporation’s targeted deposit rate reductions and the prepayment of the Corporation's remaining FHLB borrowings, which were approximately $160 million at a weighted average interest rate of 2.24%, in the fourth quarter of 2020.

Provision for Credit Losses

The Corporation recorded a provision for credit losses of $6.0 million in 2021 compared to $15.4 million in 2020. Net loan charge-offs were $2.8 million during the year ended December 31, 2021, compared to $6.4 million during the year ended December 31, 2020. As disclosed in "Allowance for Credit Losses" discussion above, management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, reasonable and supportable forecasts, and other significant qualitative and quantitative factors.

Management believes the charges to the provision for credit losses in 2021 were appropriate and the allowance for credit losses was adequate to absorb losses in the loan portfolio at December 31, 2021.

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Non-Interest Income

Total non-interest income was $33.4 million for the year ended December 31, 2021 compared to $28.1 million from the same period in 2020, reflecting an increase of $5.4 million, or 19.2%. Included in non-interest income for the year ended December 31, 2021 and 2020 were $783 thousand and $2.2 million, respectively, in net realized gains on available for sale securities. Excluding the impact of the realized gains on available for sale securities for the year ended December 31, 2021 and 2020, total non-interest income for the year ended December 31, 2021 increased $6.8 million, or 26.2%, from the same period in 2020. The increase was partially driven by growth in Wealth and Asset Management fees, as assets under management increased by $135.2 million, or 11.9%, from December 31, 2020, to $1.3 billion as of December 31, 2021. Other significant factors that contributed to the increase included income from investments in small business investment company ("SBIC") funds, card processing and interchange income and service charges on deposits from increased business activity as well as an increase in bank owned life insurance income.

Non-Interest Expense

For the year ended December 31, 2021, total non-interest expense was $116.4 million, reflecting an increase of $9.1 million, or 8.5%, from the year ended December 31, 2020. Included in non-interest expense for the year ended December 31, 2020 was $12.6 million in merger costs, prepayment penalties and branch closure costs. In addition, non-interest expense for the year ended December 31, 2021 included expenses related to hiring additional personnel in the Corporation's growth regions of Cleveland, Buffalo and Ridge View (Roanoke) as well as investments in technology aimed at enhancing customer experience. Also, included in the fourth quarter of 2021 is approximately $2.3 million in additional personnel costs primarily from increased incentive compensation accruals and certain retirement benefit expenses.

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Year Ended December 31, 2020 vs. Year Ended December 31, 2019

Overview of the Statements of Income and Comprehensive Income

Net income was $32.7 million, or $1.97 per diluted common share, for the year ended December 31, 2020. PPNR was $55.4 million, for the twelve months ended December 31, 2020. Excluding after-tax merger costs related to CNB's acquisition of Bank of Akron, FHLB prepayment penalties and branch closure costs totaling a combined $10.2 million, net income was $42.9 million, or $2.60 per diluted common share, for the year ended December 31, 2020, compared to $40.2 million, or $2.64 per diluted share, for the year ended December 31, 2019, reflecting an increase of $2.7 million, or 6.7%, and a decrease of $0.04 per diluted common share, or 1.5%. For the year ended December 31, 2020, excluding the impact of merger, prepayment penalties and branch closure costs PTPP income was $68.1 million, representing an increase of approximately $13.3 million, or 24.2%, from the same period in 2019.

For the twelve months ended December 31, 2020, return on equity was 9.14%, while return on average common equity was 9.35% and return on average tangible common equity was 10.67%. Excluding after-tax merger costs, prepayment penalties and branch closure costs, adjusted return on average tangible common equity was 14.10% for the year ended December 31, 2020, compared to 16.34% for the year ended December 31, 2019. For the twelve months ended December 31, 2020, return on average assets was 0.75%. Excluding after-tax merger costs, prepayment penalties and branch closure costs, adjusted return on average assets was 0.99% for the year ended December 31, 2020, compared to 1.18% for the year ended December 31, 2019.

As a measure of the Corporation’s efficiency in management of its expenses, the efficiency ratio was 65.10% for twelve months ended December 31, 2020. Excluding after-tax merger costs, prepayment penalties and branch closure costs, the adjusted efficiency ratio was 57.41% for the twelve months ended December 31, 2020, compared to 60.07% for the comparable period in 2019. The improvement in efficiency ratio resulted from the impact of PPP-related fees, coupled with an overall lower level of business activity resulting from the pandemic and the Corporation’s internal cost management initiatives focusing on travel restrictions, a hiring freeze, lower marketing expenditures and other expense management initiatives.

Interest Income and Expense

Net interest income for the twelve months ended December 31, 2020 increased 15.9% to $134.7 million from the twelve months ended December 31, 2019, driven by an organic growth of $560.9 million in earning assets, coupled with $336.3 million in PPP-related loans, estimated PPP-related deposits and Paycheck Protection Program Lending Facility ("PPPLF") related assets (collectively the "PPP-related assets"). In addition, the twelve months ended December 31, 2020 included PPP-related fees totaling approximately $5.1 million.

Net interest margin on a fully tax-equivalent basis was 3.34% and 3.69% for the twelve months ended December 31, 2020 and 2019, respectively, Excluding $336.3 million in PPP-related assets, the net interest margin on a fully-tax equivalent basis was 3.50% for the twelve months ended December 31, 2020.

The yield on earning assets of 4.15% for the twelve months ended December 31, 2020 included $336.3 million in PPP-related assets. Excluding PPP-related assets and PPP-related fees, the yield on earning assets was 4.37% for the twelve months ended December 31, 2020, a decrease of 56 basis points from 4.93% for the twelve months ended December 31, 2019, primarily as a result of the lower interest rate environment. The cost of interest-bearing liabilities decreased 50 basis points to 0.95% for the twelve months ended December 31, 2020 from 1.45% for the twelve months ended December 31, 2019 primarily as a result of the Corporation’s targeted deposit rate reductions.

Provision for Credit Losses

The Corporation recorded a provision for credit losses of $15.4 million in 2020 compared to $6.0 million in 2019. Net loan charge-offs were $6.4 million during the year ended December 31, 2020, compared to $6.3 million during the year ended December 31, 2019. As disclosed in "Allowance for Credit Losses" discussion above, management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts, and other significant qualitative and quantitative factors.

Management believes the charges to the provision for credit losses in 2020 were appropriate and the allowance for credit losses was adequate to absorb losses in the loan portfolio at December 31, 2020

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Non-Interest Income

Total non-interest income was $28.1 million for the twelve months ended December 31, 2020, an increase of $2.1 million, or 8.0%, from the twelve months ended December 31, 2019. Total non-interest income includes net realized and unrealized losses on trading securities, which combined totaled $2.5 million for the twelve months ended December 31, 2020 compared to $2.0 million for the twelve months ended December 31, 2019. The remainder of the $2.1 million increase was primarily due to continued growth in Wealth and Asset Management fees, increased mortgage banking activity coupled with higher card processing and interchange income, partially offset by a decrease in service charges on deposits and other fees resulting from lower business activity and CNB’s response to the pandemic.

Non-Interest Expense

For the twelve months ended December 31, 2020, total non-interest expense was $107.3 million. Excluding merger costs, prepayment penalties and branch closure costs, total non-interest expense was $94.7 million for the twelve months ended December 31, 2020, an increase of $7.3 million, or 8.4%, from the twelve months ended December 31, 2019, including a $1.6 million impact from the acquisition of Bank of Akron. The remaining $5.7 million increase was the result of the Corporation’s ongoing investments in technology and other general expenditures to support long-term growth. The ratio of non-interest expenses to average assets was 2.47% at December 31, 2020. Excluding merger costs, prepayment penalties and branch closure costs and average PPP-related assets, the ratio of non-interest expenses to average assets was 2.36% at December 31, 2020 compared to 2.56% at December 31, 2019.

Income Tax Expense

Income tax expense was $13.1 million in 2021, compared to $7.3 million in 2020 and $8.6 million in 2019. The effective tax rates were 18.5%, 18.3%, and 17.6% for 2021, 2020, and 2019, respectively. The effective tax rate for the periods differed from the federal statutory rate of 21.0% principally as a result of tax-exempt income from securities and loans as well as earnings from bank owned life insurance. Included in the 18.3% effective tax rate for the year ended December 30, 2020 were merger costs, FHLB prepayment penalties and branch closure costs, all of which reduced the effective tax rate.

Critical Accounting Policies and Estimates

The Corporation's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. and follow general practices within the industries in which the Corporation operates. The most significant accounting policies used by the Corporation are presented in Note 1, "Summary of Significant Accounting Policies," to the consolidated financial statements. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates or judgments. In management’s opinion, some of these estimates and assumptions have a more significant impact than others on the Corporation's financial reporting. For the Corporation, these estimates and assumptions include accounting for the allowance for credit losses and goodwill.

Allowance for Credit Losses

The Corporation's allowance for credit losses is a critical accounting policy that requires the most significant judgments and estimates used in preparation of its consolidated financial statements. In determining the appropriate estimate for the allowance for credit losses, management considers a number of factors relative to both individually evaluated credits in the loan portfolio and macro-economic factors relative to the economy of the U.S. as a whole and the economies of the areas in which the Corporation does business.

Management performs a quarterly evaluation of the adequacy of the allowance for credit losses. Management considers a variety of factors in establishing this estimate. This evaluation is inherently subjective as it requires material estimates by management that may be susceptible to significant change based on changes in economic and real estate market conditions.

The evaluation is comprised of specific and pooled components. The specific component is the Corporation's evaluation of credit loss on individually evaluated loans based on the fair value of the collateral less estimated selling costs if collateral dependent or based on the present value of expected future cash flows discounted at the loan's initial effective interest rate if not collateral dependent. The majority of the Corporation's loans subject to individual evaluation are considered collateral dependent. All other loans are evaluated collectively for credit loss by pooling loans based on similar risk characteristics.

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As a significant percentage of the Corporation's loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the charge-offs for specific loans. Assumptions are instrumental in determining the value of properties. Overly optimistic assumptions or negative changes to assumptions could significantly affect the valuation of a property securing a loan and the related allowance determined. Management carefully reviews the assumptions supporting such appraisals to determine that the resulting values reasonably reflect amounts realizable on the related loans.

The pooled component of the evaluation is determined by applying reasonable and supportable economic forecasts and historical averages to the remaining loans segmented by similar risk characteristics. The key assumptions used in projecting future loss rates include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions. The assumptions are used to calculate and aggregate estimated cash flows for the time period that remains in each loan's contractual life. The cash flows are discounted back to the balance sheet date using each loan's effective yield, to arrive at a present value of future cash flows, which is compared to the amortized cost basis of the loan pool to determine the amount of allowance for credit loss required by the calculation.

One of the most significant judgments used in projecting loss rates when estimating the allowance for credit loss is the macro-economic forecast provided by a third party. The economic indices sourced from the macro-economic forecast and used in projecting loss rates are national unemployment rate and changes in home values. The economic index used in the calculation to which the calculation is most sensitive is the national unemployment rate. Changes in the macro-economic forecast, especially for the national unemployment rate, could significantly impact the calculated estimated credit losses between reporting periods.

Other key assumptions in the calculation of the allowance for credit loss include the forecast and reversion to mean time periods and prepayment and curtailment assumptions. The macro-economic forecast is applied for a reasonable and supportable time period before reverting to long-term historical averages for each economic index. The forecast and reversion to mean time period used for each economic index at December 31, 2021 were four quarters and eight quarters, respectively. Prepayment and curtailment assumptions are based on the Corporation's historical experience over the trailing 12 months and are adjusted by management as deemed necessary. The prepayment and curtailment assumptions vary based on segment.

The quantitative estimated losses are supplemented by more qualitative factors that impact potential losses. Qualitative factors include changes in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors. The allowance for credit loss may be materially affected by these qualitative factors, especially during periods of economic uncertainty, for items not reflected in the lifetime credit loss calculation, but which are deemed appropriate by management's current assessment of the risks related to the loan portfolio and/or external factors. The qualitative factors applied at December 31, 2021, and the importance and levels of the qualitative factors applied, may change in future periods depending on the level of changes to items such as the uncertainty of economic conditions and management's assessment of the level of credit risk within the loan portfolio as a result of such changes, compared to the amount of allowance for credit loss calculated by the model. The evaluation of qualitative factors is inherently imprecise and requires significant management judgment.

While management utilizes its best judgment and information available, the adequacy of the allowance for credit loss is determined by certain factors outside of the Corporation's control, such as the performance of the Corporation's portfolios, changes in the economic environment including economic uncertainty, changes in interest rates, and the view of the regulatory authorities toward classification of assets and the level of allowance for credit loss. Additionally, the level of allowance for credit loss may fluctuate based on the balance and mix of the loan portfolio. If actual results differ significantly from management's assumptions, the Corporation's allowance for credit loss may not be sufficient to cover inherent losses in the Corporation's loan portfolio, resulting in additions to the Corporation's allowance for credit loss and an increase in the provision for credit losses.

Goodwill

Certain intangible assets generated in connection with acquisitions are periodically assessed for impairment. Goodwill is tested at least annually for impairment, and if certain events occur which indicate goodwill might be impaired between annual tests, such as the potential impact of the COVID-19 pandemic, goodwill must be tested when such events occur. In making this assessment, the Corporation considers a number of factors including operating results, business plans, economic projections, anticipated future cash flows, current market data, stock price, etc. There are inherent uncertainties related to these factors and the Corporation's judgment in applying them to the analysis of goodwill impairment. Future changes in economic and operating conditions could result in goodwill impairment in subsequent periods.

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Non-GAAP Financial Measures

The following tables reconcile the non-GAAP financial measures to their most directly comparable measures under GAAP.

	December 31,			December 31,
	2021			2020
Calculation of tangible book value per share and tangible common equity/tangible assets:
Shareholders' equity	$	442,847		$	416,137
Less: preferred equity	57,785			57,785
Less: goodwill	43,749			43,749
Less: core deposit intangible	460			567
Tangible common equity	$	340,853		$	314,036
Total assets	$	5,328,939		$	4,729,399
Less: goodwill	43,749			43,749
Less: core deposit intangible	460			567
Tangible assets	$	5,284,730		$	4,685,083
Ending shares outstanding	16,855,062			16,833,008
Tangible book value per common share	$	20.22		$	18.66
Tangible common equity/Tangible assets	6.45		%	6.70		%

	December 31,			December 31,
	2021			2020
Calculation of allowance / loans, net of PPP-related loans:
Total allowance for credit losses	$	37,588		$	34,340
Total loans	$	3,634,792		$	3,371,789
Less: PPP-related loans	45,203			155,529
Adjusted total loans, net of PPP-related loans (non-GAAP)	$	3,589,589		$	3,216,260
Adjusted allowance / loans, net of PPP-related loans (non-GAAP)	1.05		%	1.07		%

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	Twelve Months Ended
	December 31,
	2021			2020
Calculation of net interest margin (fully tax equivalent basis):
Interest income (fully tax equivalent basis) (non-GAAP)	$	180,553		$	168,528
Interest expense (fully tax equivalent basis) (non-GAAP)	19,820			32,456
Net interest income (fully tax equivalent basis) (non-GAAP)	$	160,733		$	136,072
Average total earning assets	$	4,768,040		$	4,092,076
Less: average mark to market adjustment on investments	8,141			18,884
Adjusted average total earning assets, net of mark to market (non-GAAP)	$	4,759,899		$	4,073,192
Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)	3.38		%	3.34		%

	Twelve Months Ended
	December 31,
	2021			2020
Calculation of efficiency ratio:
Non-interest expense	$	116,433		$	107,326
Less: core deposit intangible amortization	107			206
Adjusted non-interest expense (non-GAAP)	$	116,326		$	107,120
Non-interest income	$	33,434		$	28,059
Net interest income	$	159,780		$	134,711
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)	4,973			5,703
Add: tax exempt investment and loan income (non-GAAP) (tax-equivalent)	6,416			7,490
Adjusted net interest income (non-GAAP)	161,223			136,498
Adjusted net revenue (non-GAAP) (tax-equivalent)	$	194,657		$	164,557
Efficiency ratio	59.76		%	65.10		%

	Twelve Months Ended
	December 31,
	2021		2020
Calculation of PPNR:
Net interest income	$	159,780	$	134,711
Add: Non-interest income	33,434		28,059
Less: Non-interest expense	116,433		107,326
PPNR (non-GAAP)	$	76,781	$	55,444

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	Twelve Months Ended
	December 31,
	2021			2020
Calculation of adjusted return on average equity:
Net income	$	57,707		$	32,743
Add: merger costs, prepayment penalties and branch closure costs (net of tax)	0			10,168
Adjusted net income	$	57,707		$	42,911
Average shareholders' equity	$	431,062		$	358,163
Adjusted return on average equity	13.39		%	11.98		%

	Twelve Months Ended
	December 31,
	2021			2020
Calculation of return on average tangible common equity:
Net income available to common stockholders	$	53,405		$	31,596
Average tangible common shareholders' equity	329,012			296,142
Return on average tangible common equity (non-GAAP) (annualized)	16.23		%	10.67		%
Calculation of adjusted return on average tangible common equity:
Net income available to common stockholders	$	53,405		$	31,596
Add: merger costs, prepayment penalties and branch closure costs (net of tax)	0			10,168
Adjusted net income available to common stockholders	$	53,405		$	41,764
Average tangible common shareholders' equity	329,012			296,142
Adjusted return on average tangible common equity (non-GAAP) (annualized)	16.23		%	14.10		%

	Twelve Months Ended
	December 31,
	2021		2020
Calculation of non-interest income excluding net realized gains on available-for-sale securities:
Non-interest income	$	33,434	$	28,059
Less: net realized gains on available-for-sale securities	783		2,190
Adjusted non-interest income	$	32,651	$	25,869

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ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a financial institution, the Corporation’s primary source of market risk is interest rate risk, which is the exposure to fluctuations in the Corporation’s future earnings resulting from changes in interest rates. This exposure is correlated to the repricing characteristics of the Corporation’s portfolio of assets and liabilities. Each asset or liability reprices either at maturity or during the life of the instrument.

The principal purpose of asset/liability management is to maximize current and future net interest income within acceptable levels of interest rate risk while satisfying liquidity and capital requirements. Net interest income is enhanced by increasing the net interest margin and the growth in earning assets. As a result, the primary goal of interest rate risk management is to maintain a balance between risk and reward such that net interest income is maximized while risk is maintained at an acceptable level.

The Corporation uses an asset-liability management model to measure the effect of interest rate changes on its net interest income. The Corporation’s management also reviews asset-liability maturity gap and repricing analyses regularly. The Corporation does not always attempt to achieve a precise match between interest sensitive assets and liabilities because it believes that an actively managed amount of interest rate risk is inherent and appropriate in the management of the Corporation’s profitability.

Asset-liability modeling techniques and simulation involve assumptions and estimates that inherently cannot be measured with precision. Key assumptions in these analyses include maturity and repricing characteristics of assets and liabilities, prepayments on amortizing assets, non-maturing deposit sensitivity, and loan and deposit pricing. These assumptions are inherently uncertain due to the timing, magnitude, and frequency of rate changes and changes in market conditions and management strategies, among other factors. However, the analyses are useful in quantifying risk and provide a relative gauge of the Corporation’s interest rate risk position over time.

Management reviews interest rate risk on a quarterly basis and reports to the ALCO. This review includes earnings shock scenarios whereby interest rates are immediately increased and decreased by 100, 200, 300, and 400 basis points. These scenarios, detailed in the table below, indicate that there would not be a significant variance in net interest income over a one-year period due to interest rate changes; however, actual results could vary significantly. At December 31, 2021 and 2020, all interest rate risk levels according to the model were within the tolerance limits of ALCO-approved policy. In addition, the table does not take into consideration changes that management would make to realign its assets and liabilities in the event of an unexpected changing interest rate environment. Due to the current low interest rate environment, the 300 and 400 basis point declining interest rate scenarios have been excluded the following table.

December 31, 2021		December 31, 2020
Change in Basis Points	% Change in Net Interest Income	Change in Basis Points	% Change in Net Interest Income
400	23.7%	400	5.0%
300	17.4%	300	2.8%
200	12.1%	200	1.7%
100	6.5%	100	(0.2)%
(100)	(4.8)%	(100)	(7.2)%
(200)	(9.0)%	(200)	(11.4)%

At December 31, 2021, the Corporation has approximately $1.8 billion in outstanding loan balances that are rate sensitive over the next twelve months.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

Shareholders and the Board of Directors

CNB Financial Corporation

Clearfield, Pennsylvania

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of CNB Financial Corporation (the "Corporation") as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the threeyear period ended December 31, 2021, and the related notes (collectively referred to as the "financial statements"). We also have audited the Corporation’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Corporation as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

Change in Accounting Principle

As discussed in Note 1 to the financial statements, the Corporation has changed its method of accounting for credit losses effective January 1, 2020 due to the adoption of ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit losses on Financial Instruments. The Corporation adopted the new credit loss standard using the modified retrospective method such that prior period amounts are not adjusted and continue to be reported in accordance with previously applicable generally accepted accounting principles.

Basis for Opinions

The Corporation’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Corporation’s financial statements and an opinion on the Corporation’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

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Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses on Loans

The allowance for credit losses (the “ACL”) as described in Notes 1 and 4 is an accounting estimate of expected credit losses over the estimated life of loans. The Corporation’s loan portfolio, measured at amortized cost, is presented at the net amount expected to be collected. Estimates of expected credit losses for loans are based on historical experience, current conditions and reasonable and supportable forecasts over the life of the loans.

The Corporation measures expected credit losses based on pooled loans when similar risk characteristics exist primarily using a discounted cash flow (“DCF”) model. The DCF model discounts instrument-level cash flows, adjusting for prepayments and curtailments, and incorporates loss expectations based on inputs of current and forecasted macroeconomic indicators. The Corporation adjusts its quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The qualitative framework reflects changes related to relevant data, such as differences in underwriting standards, changes in environmental conditions, delinquency levels, segment growth rates and changes in duration within new markets, or other relevant factors not considered in the base model.

The ACL was identified by us as a critical audit matter because of the extent of auditor judgment applied and significant audit effort to evaluate the significant subjective and complex judgments made by management. The principal considerations resulting in our determination included the following:

•Significant auditor judgment and audit effort to evaluate the significant assumptions input into the DCF model, including assistance by our valuation services specialists.

•Significant auditor judgment and audit effort to evaluate the qualitative factors used in the calculation.

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The primary procedures performed to address the critical audit matter included:

•Testing the effectiveness of management’s controls addressing:

◦Evaluation of the appropriateness of the loss driver analysis and probability of default and loss given default curves input into the model.

◦Evaluation of the relevance and reliability of data used in the DCF model.

◦Evaluation of the appropriateness of the key assumptions and judgments used in the determination of qualitative factors.

•Substantive testing including:

◦Evaluating the appropriateness of the loss driver analysis and probability of default and loss given default curves in the DCF model, assisted by our valuation services specialists.

◦Evaluating the relevance and reliability of data used in the DCF model.

◦Evaluating management’s judgments and the relevance of data used in applying qualitative factors, including evaluating assumptions for reasonableness.

/s/ Crowe LLP

We have served as the Corporation’s auditor since 2000.

Columbus, Ohio

March 3, 2022

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CONSOLIDATED BALANCE SHEETS

Dollars in thousands, except share data

	December 31,
	2021		2020
ASSETS
Cash and due from banks	$	42,440	$	44,368
Interest bearing deposits with other banks	689,758		488,326
Total cash and cash equivalents	732,198		532,694
Debt securities available for sale, at fair value (amortized cost of $698,085 as of December 31, 2021 and $565,493 as of December 31, 2020)	697,191		584,908
Equity securities	10,366		6,649
Loans held for sale	849		8,514
Loans
PPP	45,203		155,529
Syndicated	125,761		22,064
All other	3,463,828		3,194,196
Total loans	3,634,792		3,371,789
Less: allowance for credit losses	(37,588)		(34,340)
Net loans	3,597,204		3,337,449
FHLB and other equity interests	23,276		21,018
Premises and equipment, net	61,659		60,064
Operating lease right-of-use assets	19,928		18,407
Bank owned life insurance	99,719		76,471
Mortgage servicing rights	1,664		1,527
Goodwill	43,749		43,749
Core deposit intangible	460		567
Accrued interest receivable and other assets	40,676		37,382
Total Assets	$	5,328,939	$	4,729,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Non-interest bearing deposits	$	792,086	$	627,114
Interest bearing demand deposits	1,079,336		951,903
Savings	2,457,745		2,126,183
Certificates of deposit	386,452		476,544
Total deposits	4,715,619		4,181,744
Subordinated debentures	20,620		20,620
Subordinated notes, net of unamortized issuance costs	83,661		50,000
Operating lease liabilities	21,159		19,449
Accrued interest payable and other liabilities	45,033		41,449
Total liabilities	4,886,092		4,313,262
Commitments and contingent liabilities
Preferred stock, Series A non-cumulative perpetual, $0 par value; $1,000 liquidation preference; shares authorized 60,375; Shares issued 60,375 at December 31, 2021 and 60,375 at December 31, 2020	57,785		57,785
Common stock, $0 par value; 50,000,000 shares authorized; Shares issued 16,978,057 shares at December 31, 2021 and 16,978,057 at December 31, 2020	0		0
Additional paid in capital	127,351		127,518
Retained earnings	260,582		218,727
Treasury stock, at cost (122,995 shares at December 31, 2021 and 145,049 shares at December 31, 2020)	(2,477)		(2,967)
Accumulated other comprehensive income (loss)	(394)		15,074
Total shareholders’ equity	442,847		416,137
Total Liabilities and Shareholders’ Equity	$	5,328,939	$	4,729,399

See Notes to Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Dollars in thousands, except per share data

	Year ended December 31,
	2021		2020		2019
INTEREST AND DIVIDEND INCOME:
Loans including fees
Interest and fees on loans	$	157,799	$	147,547	$	139,867
Processing fees on PPP loans	8,737		5,140		0
Securities and cash and cash equivalents:
Taxable	11,680		12,362		12,472
Tax-exempt	1,125		1,441		2,372
Dividends	259		677		1,017
Total interest and dividend income	179,600		167,167		155,728
INTEREST EXPENSE:
Deposits	15,062		24,142		30,202
Borrowed funds and finance lease liabilities	23		4,534		5,349
Subordinated debentures (includes $276, $224, and $63 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements, respectively)	4,735		3,780		3,979
Total interest expense	19,820		32,456		39,530
NET INTEREST INCOME	159,780		134,711		116,198
PROVISION FOR CREDIT LOSS EXPENSE	6,003		15,354		6,024
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSS EXPENSE	153,777		119,357		110,174
NON-INTEREST INCOME:
Service charges on deposit accounts	6,195		5,095		6,402
Other service charges and fees	2,436		2,548		2,930
Wealth and asset management fees	6,740		5,497		4,627
Net realized gains on available-for-sale securities (includes $783, $2,190, and $148 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities, respectively)	783		2,190		148
Net realized gains on equity securities	0		75		16
Net unrealized gains on equity securities	790		253		1,872
Realized gains on Visa Class B shares	0		0		463
Mortgage banking	3,147		3,354		1,412
Bank owned life insurance	2,638		1,747		1,317
Card processing and interchange income	7,796		5,727		4,641
Other	2,909		1,573		2,147
Total non-interest income	33,434		28,059		25,975
NON-INTEREST EXPENSES:
Compensation and benefits (includes $(44), $0, and $23 accumulated other comprehensive income reclassifications for net amortization of actuarial (gains) losses, respectively)	61,175		48,723		46,405
Net occupancy expense	12,381		12,333		11,221
Amortization of core deposit intangible	107		206		567
Technology expense	11,723		7,153		4,994
State and local taxes	4,057		3,340		3,140
Legal, professional and examination fees	3,517		2,990		2,514
Advertising	2,081		1,993		2,113
FDIC insurance	2,509		2,414		1,252
Merger costs, prepayment penalties and branch closure costs	0		12,642		170
Dues and subscriptions	2,089		1,843		1,876
Card processing and interchange expenses	3,836		3,135		2,891
Other	12,958		10,554		10,365
Total non-interest expenses	116,433		107,326		87,508
INCOME BEFORE INCOME TAXES	70,778		40,090		48,641
INCOME TAX EXPENSE (includes $116, $413, and $13 income tax expense reclassification items, respectively)	13,071		7,347		8,560
NET INCOME	57,707		32,743		40,081
PREFERRED STOCK DIVIDENDS	4,302		1,147		0
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	53,405		31,596		40,081
EARNINGS PER COMMON SHARE:
Basic	$	3.16	$	1.97	$	2.63
Diluted	$	3.16	$	1.97	$	2.63
NET INCOME	$	57,707	$	32,743	$	40,081
OTHER COMPREHENSIVE INCOME (LOSS):
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification and tax	$	(16,044)	$	8,140	$	10,732
Change in actuarial gain, for post-employment health care plan, net of amortization and tax	275		219		428
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of interest and tax	301		(224)		(225)
Total other comprehensive income (loss)	(15,468)		8,135		10,935
COMPREHENSIVE INCOME	$	42,239	$	40,878	$	51,016

See Notes to Consolidated Financial Statements

54

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

Dollars in thousands, except share and per share data

	Preferred Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)	Total Share- holders’ Equity
Balance, January 1, 2019	0		97,602		171,780		(2,556)		(3,996)	262,830
Net income					40,081					40,081
Other comprehensive income									10,935	10,935
Forfeiture of restricted stock award grants (2,699 shares)			71				(71)			0
Restricted stock award grants (40,978 shares)			(1,086)				1,086			0
Performance based restricted stock award grants (798 shares)			(21)				21			0
Stock-based compensation expense			1,346							1,346
Issuance of common stock, net of issuance costs (52,568 shares)			1,423							1,423
Purchase of treasury stock (40,000 shares)							(994)			(994)
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (10,467)							(289)			(289)
Purchase of treasury stock for the purpose of tax withholding related to performance based restricted stock award vesting (294)							(8)			(8)
Cash dividends declared ($0.68 per share)					(10,358)					(10,358)
Balance, December 31, 2019	0		99,335		201,503		(2,811)		6,939	304,966
Cumulative-effect adjustment due to the adoption of ASU No. 2016-13					(3,391)					(3,391)
Net income					32,743					32,743
Other comprehensive income									8,135	8,135
Restricted stock award grants (36,968 shares)			(934)				934			0
Performance based restricted stock award grants (8,351 shares)			(217)				217			0
Stock-based compensation expense			1,410							1,410
Issuance of common stock, net of issuance costs (115,790 shares)			3,257							3,257
Purchase of treasury stock (66,600 shares)							(981)			(981)
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (7,349)							(213)			(213)
Purchase of treasury stock for the purpose of tax withholding related to performance based restricted stock award vesting (3,458)							(113)			(113)
Issuance of preferred equity, net of issuance costs	57,785									57,785
Acquisition of Bank of Akron			24,667							24,667
Preferred cash dividend declared					(1,147)					(1,147)
Common cash dividends declared ($0.68 per share)					(10,981)					(10,981)
Balance, December 31, 2020	$	57,785	$	127,518	$	218,727	$	(2,967)	15,074	$	416,137

See Notes to Consolidated Financial Statements

55

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019

Dollars in thousands, except share and per share data

	Preferred Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)	Total Share- holders’ Equity
Net income					57,707					57,707
Other comprehensive loss									(15,468)	(15,468)
Forfeiture of restricted stock award grants (2,669 shares)			64				(64)			0
Restricted stock award grants (55,218 shares)			(1,374)				1,374			0
Performance based restricted stock award grants (10,587 shares)			(262)				262			0
Stock-based compensation expense			1,411							1,411
Contribution of treasury stock (3,000 shares)			(81)				81			0
Stock-based contribution expense			75							75
Purchase of treasury stock (36,359 shares)							(1,000)			(1,000)
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (6,782 shares)							(143)			(143)
Purchase of treasury stock for the purpose of tax withholding related to performance based restricted stock award vesting (941 shares)							(20)			(20)
Preferred cash dividend declared					(4,302)					(4,302)
Cash dividends declared ($0.685 per share)					(11,550)					(11,550)
Balance, December 31, 2021	$	57,785	$	127,351	$	260,582	$	(2,477)	(394)	$	442,847

See Notes to Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in thousands

	Year ended December 31,
	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	57,707	$	32,743	$	40,081
Adjustments to reconcile net income to net cash provided by operations:
Provision for credit loss expense	6,003		15,354		6,024
Depreciation and amortization of premises and equipment, operating leases assets, core deposit intangible, and mortgage servicing rights	6,241		6,082		5,963
Amortization (accretion) of securities, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income	(2,127)		(1,955)		(870)
Net amortization of deferred costs on borrowings	177		0		0
Accretion of deferred PPP processing fees	(8,737)		(5,140)		0
Deferred taxes	(1,691)		1,390		(204)
Net realized gains on sales of available-for-sale securities	(783)		(2,190)		(148)
Net realized and unrealized losses (gains) on equity securities	(790)		(328)		(1,888)
Proceeds from sale of Visa Class B shares	0		0		463
Gain on sale of Visa Class B shares	0		0		(463)
Gain on sale of loans	(2,737)		(2,961)		(990)
Net losses (gains) on dispositions of premises and equipment and foreclosed assets	230		1,097		(377)
Proceeds from sale of loans	95,258		82,619		43,198
Origination of loans held for sale	(95,411)		(87,528)		(43,458)
Income on bank owned life insurance	(2,184)		(1,747)		(1,317)
Gain on bank owned life insurance (death benefit proceeds in excess of cash surrender value)	(454)		0		0
Stock-based compensation expense	1,411		1,410		1,346
Stock-based contribution expense	75		0		0
Changes in:
Accrued interest receivable and other assets	(1,056)		(6,242)		1,072
Accrued interest payable, lease liabilities, and other liabilities	7,788		(3,846)		3,610
NET CASH PROVIDED BY OPERATING ACTIVITIES	58,920		28,758		52,042
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities, prepayments and calls of available-for-sale securities	170,962		164,488		98,274
Proceeds from sales of available-for-sale securities	33,553		57,185		11,403
Proceeds from sale of equity securities	0		5,935		301
Purchase of available-for-sale securities	(341,140)		(224,080)		(122,358)
Purchase of equity securities	(407)		(2,447)		(436)
Proceeds from loans held for sale previously classified as portfolio loans	1,921		0		0
Loan origination and payments, net	(246,043)		(244,903)		(335,965)
Purchase of bank owned life insurance	(22,000)		0		(8,778)
Proceeds from death benefit of bank owned life insurance policies	1,390		0		0
Net cash from business combinations	0		72,852		0
Redemption (purchase) of FHLB, other equity, and restricted equity interests	(2,258)		7,268		(3,360)
Purchase of premises and equipment	(6,484)		(5,644)		(9,045)
Proceeds from the sale of premises and equipment and foreclosed assets	746		666		1,228
NET CASH USED BY INVESTING ACTIVITIES	(409,760)		(168,680)		(368,736)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in:
Checking, money market and savings accounts	623,967		702,452		459,162
Certificates of deposit	(90,092)		(42,510)		32,379
Purchase of treasury stock	(1,163)		(1,307)		(1,291)
Proceeds from stock offering, net of issuance costs	0		3,257		1,423
Proceeds from preferred stock offering, net of issuance costs	0		57,785		0
Cash dividends paid on common stock	(11,550)		(10,981)		(10,358)
Cash dividends paid on preferred stock	(4,302)		(1,147)		0
Proceeds from issuance of subordinated notes, net of issuance costs	83,484		0		0
Proceeds from long-term borrowings	0		231,985		30,353
Repayments on long-term borrowings	(50,000)		(459,892)		(47,563)
NET CASH PROVIDED BY FINANCING ACTIVITIES	550,344		479,642		464,105
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	199,504		339,720		147,411
CASH AND CASH EQUIVALENTS, Beginning	532,694		192,974		45,563
CASH AND CASH EQUIVALENTS, Ending	$	732,198	$	532,694	$	192,974

See Notes to Consolidated Financial Statements

57

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

Dollars in thousands

	Year ended December 31,
	2021		2020		2019
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	20,030	$	32,957	$	39,282
Income taxes	11,788		9,524		8,006
SUPPLEMENTAL NONCASH DISCLOSURES:
Transfers to other real estate owned	$	1,470	$	241	$	2,066
Transfers from loans held for sale to loans held for investment	9,965		0		0
Transfers from loans held for investment to loans held for sale	1,921		0		0
Grant of restricted stock awards from treasury stock	1,374		934		1,086
Grant of performance based restricted stock awards from treasury stock	262		217		21
Restricted stock forfeiture	64		0		71
Contribution of stock from treasury stock	81		0		0
Lease liabilities arising from obtaining right-of-use assets	2,643		1,386		19,465

See Notes to Consolidated Financial Statements

58

Notes to Consolidated Financial Statements

1.  Summary of Significant Accounting Policies

Unless otherwise indicated, dollar amounts in tables are stated in thousands, except for per share amounts.

Business and Organization

CNB Financial Corporation (the "Corporation") is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the "Bank"). In addition, the Bank provides wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation ("Holiday"). The Corporation and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania, the central and northeast regions of the state of Ohio, western New York and Roanoke, Virginia.

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation, the Bank, CNB Securities Corporation, Holiday, CNB Risk Management, Inc. and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Risks and Uncertainties

The worldwide spread of COVID-19 has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effects the global COVID-19 pandemic may have, and, as a result, the ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic and the related government responses impact the Corporation’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.

Use of Estimates

To prepare financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The Corporation's business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain the COVID-19 pandemic requires further restricted measures or is unsuccessful, the Corporation could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Since the extent to which the COVID-19 pandemic impacts its operations will depend on future developments that are highly uncertain, the Corporation cannot estimate the impact on its business, financial condition or near or long-term financial or operational results with reasonable certainty. Accordingly, the Corporation is disclosing potentially material items of which it is aware.

Asset valuation: Currently, the Corporation does not expect the COVID-19 pandemic to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods due to any number of potential impacts from the COVID-19 pandemic.

The COVID-19 pandemic could cause a decline in the Corporation's stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to perform a goodwill impairment test, resulting in an impairment charge being recorded for that period. In the event that the Corporation concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings.

59

Credit: The Corporation is working with customers directly affected by the COVID-19 pandemic. The Corporation has offered assistance in accordance with regulator guidelines. As a result of the current economic slowdown related to the COVID-19 pandemic, the Corporation is engaging in more frequent communication with borrowers to better understand their situation and the challenges faced, allowing it to respond proactively as needs and issues arise.

Determining the appropriateness of the allowance for credit losses on loans is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses on loans in those future periods. Should economic conditions worsen, the Corporation could experience further increases in its required allowance for credit losses and record additional provision expense. It is possible that the Corporation's asset quality measures could worsen at future measurement periods if the effects of the COVID-19 pandemic are prolonged.

Operating Segments

While the Corporation monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

Note 20, "Interest Rate Swaps," to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Debt Securities

Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

The Corporation has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in accrued interest receivable and other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the year ended December 31, 2021.

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Allowance for Credit Losses (Debt Securities Available-for Sale)

For available-for-sale debt securities in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management confirms that an available-for-sale security is uncollectable or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2021 and December 31, 2020, the Corporation determined that the unrealized loss positions in available-for-sale debt securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 3, "Debt Securities," and Note 6, "Fair Value Measurements," for more information about available-for-sale debt securities.

Accrued interest receivable on available-for-sale debt securities totaled $2.2 million and $2.2 million at December 31, 2021 and December 31, 2020, respectivley, and is excluded from the estimate of credit losses.

Equity Securities

Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest receivable totaled $13.3 million and $15.4 million at December 31, 2021 and December 31, 2020, respectively, and was reported in accrued interest receivable and other assets on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans continue to accrue interest until they are recorded as charge-offs no later than 180 days past due unless the loan is in the process of collection. Past-due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or recorded as charge-offs at an earlier date if collection of principal or interest is considered doubtful.

61

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Credit Deteriorated ("PCD") Loans

The Corporation has purchased loans, some of which have experienced more than insignificant credit deterioration since origination.

PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.

Troubled Debt Restructurings ("TDRs")

Loans are classified as TDRs when a borrower is experiencing financial difficulty and the Corporation has granted a concession that would not have otherwise been made for a borrower with similar credit characteristics. Prior to granting a modification, the borrower's ability to repay the loan is evaluated, including: current income levels and debt to income ratio, credit score, payment history and an evaluation of secondary repayment sources, if any is updated. The Corporation's policy is to modify loans typically through a payment reduction or through an interest rate reduction for a specified period of time, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an option for modification. The allowance for credit loss on a TDR is measured using the same method as all other loans held for investment, except the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. When there is a reasonable expectation, at the reporting date, that a TDR will be executed with a borrower the estimated life of the TDR reflects the extension or renewal. The Corporation also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, loans to borrowers experiencing financial difficulty related to the COVID-19 pandemic which were granted short-term modifications after March 1, 2020 and which were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification. In addition, for loans modified in response to the COVID-19 pandemic that do not meet the above delinquency criteria (e.g., more than 30 days past due as of December 31, 2019), the Corporation applies the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were less than 30 days past due as of the implementation date of a loan modification program are exempt from TDR classification. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the states of Ohio, New York and Virginia. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania, Ohio, New York and Virginia.

Allowance for Credit Losses - Loans

The allowance for credit losses on loans represents management’s estimate of expected credit losses over the estimated life of our existing portfolio of loans. The allowance for credit losses is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans.

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The expense for credit loss recorded through earnings is the amount necessary to maintain the allowance for credit losses on loans at the amount of expected credit losses inherent within the loan portfolio. Loans are recorded as charge-offs against the allowance when management confirms a loan balance is uncollectable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts, and other significant qualitative and quantitative factors. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors. For further information on the allowance for credit losses on loans, see Note 4, "Loans," for additional detail.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Corporation has segregated its portfolio segments based on federal call report codes which classify loans based on the primary collateral supporting the loan. The following are the Corporation's segmented portfolios:

1-4 Family Construction: The Bank originates construction loans to finance 1-4 family residential buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, or related to changes in general economic conditions.

Other construction loans and all land development and other land loans: The Bank originates construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or multi-family buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions.

Farmland (including farm residential and other improvements): The Bank originates loans secured by farmland and improvements thereon, secured by mortgages. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland also includes grazing or pasture land, whether tillable or not and whether wooded or not. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Home equity lines of credit: The primary risk characteristics associated with home equity lines of credit typically involve changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by first liens: The Bank originates one-to-four family residential mortgage loans primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. These loans are secured by first liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

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Residential Mortgages secured by junior liens: The Bank originates loans secured by junior liens against one to four family properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Loans secured by junior liens are primarily in the form of an amortizing home equity loan. These loans are subordinate to a first mortgage which may be from another lending institution. The primary risk characteristics associated with loans secured by junior liens typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Real estate values could decrease and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Multifamily (5 or more) residential properties: The Bank originates mortgage loans for multifamily properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan.

Owner-occupied, nonfarm nonresidential properties: The Bank originates mortgage loans to operating companies primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Owner-occupied real estate properties primarily include retail buildings, medical buildings and industrial/warehouse space. Owner-occupied loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions.

Non-owner occupied, nonfarm nonresidential properties: The Bank originates mortgage loans for commercial real estate that is managed as an investment property primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Agricultural production and other loans to farmers: The Bank originates loans secured or unsecured to farm owners and operators (including tenants) or to nonfarmers for the purpose of financing agricultural production, including the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock, and for purchases of farm machinery, equipment, and implements. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Commercial and Industrial: The Bank originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment as well as the stock of a company, if privately held. Commercial and Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Bank to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Bank will often require more frequent reporting requirements from the borrower in order to better monitor its business performance.

Credit cards: The Bank originates credit cards offered to individuals and businesses for household, family, other personal and business expenditures. Credit cards generally are floating rate loans and include both unsecured and secured lines. Credit card loans generally do not have stated maturities and are unconditionally cancellable. The primary risk characteristics associated with credit cards typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

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Other revolving credit plans: The Bank originates lines of credit to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other revolving loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Automobile: The Bank originates consumer loans extended for the purpose of purchasing new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use. The primary risk characteristics associated with automobile loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Other consumer: The Bank originates loans to individuals for household, family, and other personal expenditures. This also represents all other loans that cannot be categorized in any of the previous mentioned consumer loan segments. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other consumer loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Obligations (other than securities and leases) of states and political subdivisions: The Bank originates various types of loans made directly to municipalities. These loans are repaid through general cash flows or through specific revenue streams, such as water and sewer fees. The primary risk characteristics associated with municipal loans are the municipality's ability to manage cash flow, balance the fiscal budget, fixed asset and infrastructure requirements. Additional risks include changes in demographics, as well as social and political conditions.

Other loans: The Bank originates other loans, such as loans to nonprofit organizations, including churches, hospitals, educational and charitable institutions, clubs, and similar associations. The primary risk characteristics associated with these types of loans are repayment, demographic, social, political and reputation risks.

Overdrafts: The Bank reports overdrawn customer deposit balances as loans.

Methods utilized by management to estimate expected credit losses include a discounted cash flow ("DCF") model that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity ("WARM") model which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both models, management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the mean loss rate over a period of eight quarters.

Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors.

The DCF model uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the Corporation is the Federal unemployment rate and the S&P/Case-Shiller U.S. National Home Price Index for select collective residential related pools. In building the CECL methodology utilized in the DCF model, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Federal unemployment rates and S&P/Case-Shiller U.S. National Home Price Index.

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The portfolio segments utilizing the DCF methodology comprised 88.4% and 90.8% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•Farmland

•Home equity lines of credit

•Residential Mortgages secured by first liens

•Residential Mortgages secured by junior liens

•Multifamily (5 or more) residential properties

•Owner-occupied, nonfarm nonresidential properties

•Non-owner occupied, nonfarm nonresidential properties

•Agricultural production and other loans to farmers

•Commercial and Industrial

•Automobile

•Obligations (other than securities and leases) of states and political subdivisions

•Other loans

The WARM model uses combined historic loss rates for the Corporation and peer institutions, if necessary, gathered from call report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions.

The portfolio segments utilizing the WARM methodology comprised 11.6% and 9.2% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•1-4 Family Construction

•Other construction loans and all land development and other land loans

•Credit cards

•Other revolving credit plans

•Other consumer

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation and typically represent collateral dependent loans but may also include other nonperforming loans or TDRs. The Corporation uses the practical expedient to measure individually evaluated loans as collateral dependent and/or when repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are based on the fair value at the reporting date, adjusted for selling costs as appropriate. For collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Allowance for Credit Losses on Off-Balance Sheet ("OBS") Credit Exposures

Management estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Bank and applying the loss factors used in the allowance for credit losses on loans methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan segment. The estimate of credit losses on OBS credit exposures is not material at December 31, 2021 or December 31, 2020.

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Mortgage Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Foreclosed Assets

Foreclosed assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment

Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Leases

The Corporation leases real estate property for branches and certain equipment. The Corporation determines if an arrangement is a lease at inception and if the lease is an operating lease or a finance lease.

Operating lease right-of-use assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. The period over which the right-of-use asset is amortized is generally the lesser of the expected remaining term or the remaining useful life of the leased asset. The lease liability is decreased as periodic lease payments are made. The Corporation performs impairment assessments for right-of-use assets when events or changes in circumstances indicate that their carrying values may not be recoverable.

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The calculated amounts of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum remaining 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 includes the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Corporation cannot practically determine the interest rate implicit in the lease so the Corporation's incremental borrowing rate is used as the discount rate for the lease. The Corporation uses Federal Home Loan Bank ("FHLB") of Pittsburgh advance interest rates, which have been deemed as the Company's incremental borrowing rate, at lease inception based upon the term of the lease. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease expense, variable lease expense and short-term lease expense are included in occupancy expense in the Corporation's consolidated statements of income. For facility-related leases, the Corporation elected, by lease class, to not separate lease and non-lease components. Lease expense is recognized on a straight-line basis over the lease term. Variable lease expense primarily represents payments such as common area maintenance, real estate taxes, and utilities and are recognized as expense in the period when those payments are incurred. Short-term lease expense relates to leases with an initial term of 12 months or less. The Corporation has elected to not record a right-of-use asset or lease liability for short-term leases.

Federal Home Loan Bank Stock

As a member of the FHLB of Pittsburgh, the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

•its operating performance;

•the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

•its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

•the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

•its liquidity and funding position.

Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key employees. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Corporation has no intangible assets with an indefinite useful life.

The Corporation has selected December 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet.

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Other intangible assets consist of core deposit intangible assets arising from the acquisition of FC Banc Corp. in 2013, Lake National Bank in 2016 and Bank of Akron in 2020. The core deposit intangible assets from these acquisitions are amortized using an accelerated method over their estimated useful lives, which range from four years to ten years, respectively.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the Corporation's intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

The Corporation is exposed to losses if a counterparty fails to make its payments under a contract in which the Corporation is in the net receiving position. The Corporation anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Corporation is a party settle monthly or quarterly. In addition, the Corporation obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Corporation has netting agreements with the dealers with which it does business.

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Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made in the open market based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Corporation's accounting policy is to recognize forfeitures as they occur.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Post retirement obligation expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Common Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested time-based restricted stock awards are participating securities.

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statements of Income and Comprehensive Income. Other comprehensive income and loss consists of unrealized holding gains and losses on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps, net of tax.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

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Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Reclassifications

Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or shareholders’ equity as previously reported.

Adoption of New Accounting Standards

On January 1, 2020, the Corporation adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments. standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose.

Upon adoption, the Corporation's total allowance for credit losses increased by $5.0 million, or 25.5%. The increase in the total allowance for credit losses resulted in a $3.4 million decrease to retained earnings, net of deferred taxes. The overall change in total allowance for credit losses upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $670 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

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The following tables illustrates the impact of ASC 326.

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans:
Commercial, industrial and agricultural	$	1,046,665	$	(1,046,665)	$	0	$	0	$	0
Farmland	0		27,199		27,199		27,199		0
Owner-occupied, nonfarm nonresidential properties	0		333,117		333,117		333,117		0
Agricultural production and other loans to farmers	0		3,407		3,407		3,407		0
Commercial and Industrial	0		474,614		474,614		474,614		0
Obligations (other than securities and leases) of states and political subdivisions	0		139,052		139,052		139,052		0
Other loans	0		5,740		5,740		5,740		0
Commercial mortgages	814,002		(814,002)		0		0		0
Other construction loans and all land development and other land loans	0		277,412		277,412		277,412		0
Multifamily (5 or more) residential properties	0		124,390		124,390		124,390		0
Non-owner occupied, nonfarm nonresidential properties	0		467,852		467,852		468,522		670
Residential real estate	814,030		(814,030)		0		0		0
1-4 Family Construction	0		22,427		22,427		22,427		0
Home equity lines of credit	0		95,089		95,089		95,089		0
Residential Mortgages secured by first liens	0		646,199		646,199		646,199		0
Residential Mortgages secured by junior liens	0		57,965		57,965		57,965		0
Consumer, net of unearned discount	119,623		(119,623)		0		0		0
Other revolving credit plans	0		52,353		52,353		52,353		0
Automobile	0		27,807		27,807		27,807		0
Other consumer	0		39,697		39,697		39,697		0
Credit cards	7,569		0		7,569		7,569		0
Overdrafts	2,146		0		2,146		2,146		0
Total loans	$	2,804,035	$	0	$	2,804,035	$	2,804,705	$	670

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	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Allowance for credit losses on loans:
Commercial, industrial and agricultural	$	8,287	$	(8,287)	$	0	$	0	$	0
Farmland	0		190		190		251		61
Owner-occupied, nonfarm nonresidential properties	0		2,390		2,390		1,636		(754)
Agricultural production and other loans to farmers	0		25		25		30		5
Commercial and Industrial	0		4,105		4,105		3,474		(631)
Obligations (other than securities and leases) of states and political subdivisions	0		1,022		1,022		791		(231)
Other loans	0		41		41		49		8
Commercial mortgages	6,952		(6,952)		0		0		0
Other construction loans and all land development and other land loans	0		2,327		2,327		3,107		780
Multifamily (5 or more) residential properties	0		1,087		1,087		1,399		312
Non-owner occupied, nonfarm nonresidential properties	0		3,980		3,980		6,527		2,547
Residential real estate	1,499		(1,499)		0		0		0
1-4 Family Construction	0		56		56		21		(35)
Home equity lines of credit	0		180		180		601		421
Residential Mortgages secured by first liens	0		1,220		1,220		2,320		1,100
Residential Mortgages secured by junior liens	0		114		114		249		135
Consumer	2,411		(2,411)		0		0		0
Other revolving credit plans	0		296		296		674		378
Automobile	0		156		156		60		(96)
Other consumer	0		1,960		1,960		2,981		1,021
Credit cards	84		0		84		26		(58)
Overdrafts	240		0		240		240		0
Total allowance for credit losses on loans	$	19,473	$	0	$	19,473	$	24,436	$	4,963
Retained earnings:
Total increase in allowance for credit losses on loans									$	4,963
Balance sheet reclassification									(670)
Total pre-tax impact									4,293
Tax effect									(902)
Decrease in retained earnings									$	3,391

In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 amends ASC 715-20, "Compensation - Retirement Benefits - Defined Benefit Plans - General." The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. ASU 2018-14 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

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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. ASU 2019-12 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statements.

In January 2020, the FASB issued ASU 2020-01 - Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. ASU 2020-01 represents changes to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these transactions. ASU 2020-01 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Corporation's financial statement disclosures.

In October 2020, the FASB issued ASU 2020-08 - Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. ASU 2020-08 clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In August 2021, FASB issued ASU 2021-06 - Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946). ASU 2021-06 updates the codification to align with SEC Final Rule Releases No. 33-10786 and No. 33-10835. Specific to financial institutions, these SEC releases updated required annual statistical disclosures. The amendments in ASU 2021-06 were effective immediately. The updates to the statistical disclosures are reflected in the Corporation's Annual Report on Form 10-K for the fiscal year ending December 31, 2021, to align with this guidance.

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Effects of Newly Issued But Not Yet Effective Accounting Standards

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848). ASU 2021-01 expands and clarifies the scope of ASU No. 2020-04 to include derivatives affected by changes in interest rates used for margining, discounting, or contract price alignment, commonly referred to as the “discounting transaction.” Derivatives impacted by the discounting transaction will be eligible for certain optional expedients and exceptions related to contract modifications and hedge accounting as defined in Topic 848. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

2.  Business Combinations

On July 17, 2020, the Corporation completed its previously announced acquisition of Bank of Akron, pursuant to the Merger Agreement. Under the terms of the Merger Agreement, Bank of Akron merged with and into the Bank (the "Merger"), with the Bank continuing as the surviving entity. Banking offices of Bank of Akron continue to operate under the trade name BankOnBuffalo, a division of the Bank.

Pursuant to the Merger Agreement, for each share of Bank of Akron common stock, Bank of Akron shareholders were entitled to elect to receive either (x) $215.00 in cash or (y) 6.6729 shares of the Corporation's common stock and also received cash in lieu of fractional shares. Elections were subject to proration procedures whereby at least 75% of the shares of Bank of Akron common stock were exchanged for shares of the Corporation's common stock. Based on the elections and proration procedures, the total consideration payable to Bank of Akron shareholders was approximately $40.8 million, comprised of approximately $16.1 million in cash and 1,501,321 shares of the Corporation's common stock, net of fractional shares, valued at approximately $24.7 million based on the July 17, 2020 closing price of $16.43 per share of the Corporation's common stock.

Bank of Akron's results of operations were included in the Corporation's results of operations beginning July 17, 2020. The Corporation incurred no merger-related expenses during the year ended December 31, 2021 and $4.0 million of merger-related expenses during the year ended December 31, 2020, consisting largely of professional services of attorneys, accountants, investment bankers and other advisors. There were $170 thousand in merger-related expenses incurred during the year ended December 31, 2019.

	July 17, 2020
Merger consideration
Value of stock consideration assigned to Bank of Akron common shares exchanged for stock paid to shareholders	$	24,667
Value of cash consideration for Bank of Akron common stock exchanged for cash	16,126
Total merger consideration	$	40,793

Core deposit intangible ("CDI") of $613 thousand and goodwill of $5.0 million were recognized as a result of the acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes.

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	July 17, 2020
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	78,830
Interest bearing deposits with other banks	10,148
Investment securities	29,407
Loans, net of allowance for credit losses on PCD loans	319,063
Premises and equipment, net	4,265
Core deposit intangible	613
Deferred tax assets	2,777
Bank owned life insurance	8,187
Accrued interest receivable and other assets	5,307
Total assets acquired	$	458,597
Liabilities assumed
Deposits	$	419,475
Accrued interest payable and other liabilities	3,348
Total liabilities assumed	422,823
Total fair value of identifiable net assets	35,774
Total merger consideration	40,793
Goodwill recognized	$	5,019

The Corporation accounted for this transaction under the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires purchased assets and liabilities assumed and consideration exchanged to be recorded at their respective estimated fair values at the date of acquisition. The determination of estimated fair values required management to make certain estimates about discount rates, future expected cash flows, market conditions at the time of the acquisition and other future events that are highly subjective in nature and subject to refinement for up to one year after the closing date of acquisition as additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier.

The calculation of goodwill is subject to change for up to one year after the closing date of transaction as additional information relative to the closing date estimates and uncertainties becomes available. There were no adjustments recorded to goodwill or closing date fair values subsequent to December 31, 2020 and the measurement period closed in July 2021.

Financial assets acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326, after which acquired assets are separated into two types. Purchased credit deteriorated ("PCD") assets are acquired assets that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD assets are acquired assets that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired assets, the Corporation evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. In the case of loans, the determining criteria may involve general characteristics, such as loan payment history or changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the COVID-19 pandemic.

Securities

The estimated fair values of the securities were calculated utilizing Level 2 inputs. The securities acquired are bought and sold in active markets. Prices for these instruments were obtained through security industry sources that actively participate in the buying and selling of securities.

Loans

Bank of Akron’s loan portfolio was recorded at fair value at the date of acquisition. A valuation of Bank of Akron’s loan portfolio was performed as of the acquisition date in accordance with ASC 820 to assess the fair value of the loan portfolio, considering adjustments for market discount rates, credit, and liquidity. The loan portfolio was segmented into two groups: non-PCD loans and PCD loans. The non-PCD loans were pooled based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and nonaccrual status. The PCD loans were valued on a pooled basis and at the loan level with similar characteristics noted above.

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Premises and Equipment

Fair values are based upon appraisal values. In addition to owned properties, Bank of Akron operated one property subject to a lease agreement.

Core deposit intangible

The CDI on non-maturing deposits was determined by evaluating the underlying characteristics of the deposit relationships, including customer attrition, deposit interest rates and maintenance costs, fee income and costs of alternative funding using the discounted cash flow approach. The core deposit intangibles represent the costs saved by the Corporation between maintaining the existing deposits and obtaining alternative funds over the life of the deposit base.

Fixed maturity deposits

In determining the fair value of certificates of deposit, the cash flows of the contractual interest payments during the specific period of the certificates of deposit and scheduled principal payout were discounted to present value at market-based interest rates.

Supplemental Pro Forma Financial Information

The following table presents certain unaudited pro forma financial information for illustrative purposes only, for the year ended December 31, 2020 and 2019, respectively, as if Bank of Akron had been acquired on January 1, 2019. This unaudited pro forma information combines the historical results of Bank of Akron with the Corporation’s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. The unaudited pro forma information does not consider any changes to the provision expense resulting from recording loan assets at fair value, cost savings or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant.

	December 31, 2020		December 31, 2019
Net interest income	$	137,097	$	119,062
Net income	$	34,628	$	42,343
Basic earnings per common share	$	2.01	$	2.54
Diluted earnings per common share	$	2.01	$	2.54

3.  Securities

Securities available-for-sale at December 31, 2021 and 2020 were as follows: 

	December 31, 2021								December 31, 2020
	Amortized		Gross Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Gov’t sponsored entities	$	110,788	$	2,728	$	(1,768)	$	111,748	$	150,404	$	6,698	$	(60)	$	157,042
State & political subdivisions	103,232		2,162		(1,682)		103,712		67,819		3,186		(122)		70,883
Residential & multi-family mortgage	437,021		4,127		(6,513)		434,635		306,054		9,276		(138)		315,192
Corporate notes & bonds	28,257		250		(443)		28,064		15,221		105		(400)		14,926
Pooled SBA	18,787		283		(38)		19,032		24,975		912		(1)		25,886
Other	0		0		0		0		1,020		0		(41)		979
Total	$	698,085	$	9,550	$	(10,444)	$	697,191	$	565,493	$	20,177	$	(762)	$	584,908

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2021	$	33,553	$	783	$	0
2020	57,185		2,257		67
2019	11,403		152		4

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The tax provision related to these net realized gains at December 31, 2021, 2020 and 2019 were $164 thousand, $460 thousand, and $31 thousand, respectively.

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2021:

	December 31, 2021
	Amortized Cost		Fair Value
1 year or less	$	17,959	$	18,241
1 year – 5 years	77,146		78,191
5 years – 10 years	139,201		139,000
After 10 years	7,971		8,092
	242,277		243,524
Residential and multi-family mortgage	437,021		434,635
Pooled SBA	18,787		19,032
Total debt securities	$	698,085	$	697,191

Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

On December 31, 2021 and 2020, securities carried at $461.5 million and $453.4 million, respectively, were pledged to secure public deposits and for other purposes as provided by law.

At December 31, 2021 and 2020, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity.

Securities with unrealized losses at December 31, 2021 and 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

December 31, 2021	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	23,733	$	(553)	37,911		(1,215)		$	61,644	$	(1,768)
State & political subdivisions	55,636		(1,399)		5,026		(283)		60,662		(1,682)
Residential & multi-family mortgage	248,690		(4,837)		45,185		(1,676)		293,875		(6,513)
Corporate notes & bonds	6,466		(249)		3,806		(194)		10,272		(443)
Pooled SBA	4,394		(37)		127		(1)		4,521		(38)
	338,919		$	(7,075)	$	92,055	$	(3,369)	$	430,974	$	(10,444)

December 31, 2020	Less than 12 Months		12 Months or More		Total
Description of Securities	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
U.S. Gov’t sponsored entities	24,991	(60)	0	0	24,991	(60)
State & political subdivisions	3,854	(19)	164	(103)	4,018	(122)
Residential and multi-family mortgage	44,092	(119)	3,277	(19)	47,369	(138)
Corporate notes & bonds	0	0	4,545	(400)	4,545	(400)
Pooled SBA	525	(1)	0	0	525	(1)
Other	0	0	979	(41)	979	(41)
	73,462	(199)	8,965	(563)	82,427	(762)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

At December 31, 2021 and 2020, management performed an assessment for possible other-than-temporary impairment of the Corporation’s debt securities, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. Based on the results of the assessment, management believes impairment of these debt securities at December 31, 2021 and 2020 to be temporary.

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For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly "call" report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of December 31, 2021 and 2020, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

•There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

•All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

Equity securities at December 31, 2021 and 2020 were as follows:

	December 31, 2021		December 31, 2020
Corporate equity securities	$	6,715	$	4,343
Mutual funds	2,566		1,283
Money market	506		404
Corporate notes and bonds	579		569
U.S. Government sponsored entities	0		50
Total	$	10,366	$	6,649

During December 31, 2021, 2020, and 2019, the Corporation sold equity securities. Proceeds were $0 in December 31, 2021, $5.9 million in December 31, 2020 and $301 thousand in December 31, 2019, resulting in net realized gains of $0 in December 31, 2021, $75 thousand in December 31, 2020, and $16 thousand in December 31, 2019. During 2019, the Corporation sold Visa Class B shares. The proceeds and realized gain related to the sale of the Visa Class B shares were $463 thousand.

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4.  Loans

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

	2021		Percentage of Total		2020		Percentage of Total
Farmland	$	23,768	0.7	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	434,672		12.0	%	407,924		12.1	%
Agricultural production and other loans to farmers	1,379		0.0	%	2,664		0.1	%
Commercial and Industrial 1	708,989		19.5	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	140,887		3.9	%	132,818		3.9	%
Other loans	13,979		0.4	%	11,961		0.4	%
Other construction loans and all land development and other land loans	298,869		8.2	%	205,734		6.1	%
Multifamily (5 or more) residential properties	216,143		5.9	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	663,062		18.2	%	640,945		19.0	%
1-4 Family Construction	37,822		1.0	%	27,768		0.8	%
Home equity lines of credit	104,517		2.9	%	109,444		3.2	%
Residential Mortgages secured by first liens	826,729		22.7	%	777,030		23.0	%
Residential Mortgages secured by junior liens	56,689		1.6	%	53,726		1.6	%
Other revolving credit plans	26,536		0.7	%	25,507		0.8	%
Automobile	20,862		0.6	%	25,344		0.8	%
Other consumer	49,676		1.4	%	42,792		1.3	%
Credit cards	9,935		0.3	%	8,115		0.2	%
Overdrafts	278		0.0	%	336		0.0	%
Total loans	$	3,634,792	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(37,588)				(34,340)
Loans, net	$	3,597,204			$	3,337,449
Net deferred loan origination fees (costs) included in the above loan table	$	5,667			$	8,789
1 PPP loans, net of deferred PPP processing fees, both those disbursed in 2020 and those disbursed in 2021, are included in the Commercial and Industrial classification and totaled $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. In addition, syndicated loans, net of deferred fees and costs, are included in the Commercial and Industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, western New York and Roanoke, Virginia. 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.

PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no required allowance for credit losses was recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

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Transactions in the allowance for credit losses for the year ended December 31, 2021 were as follows:

	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	(70)	$	151
Owner-occupied, nonfarm nonresidential properties	3,700		(584)		10		213		3,339
Agricultural production and other loans to farmers	24		0		0		(15)		9
Commercial and Industrial	6,233		(163)		203		2,564		8,837
Obligations (other than securities and leases) of states and political subdivisions	998		(407)		30		1,028		1,649
Other loans	68		0		0		81		149
Other construction loans and all land development and other land loans	1,956		(282)		0		524		2,198
Multifamily (5 or more) residential properties	2,724		0		0		(435)		2,289
Non-owner occupied, nonfarm nonresidential properties	8,658		(49)		0		(2,128)		6,481
1-4 Family Construction	82		0		0		76		158
Home equity lines of credit	985		(7)		5		186		1,169
Residential Mortgages secured by first liens	4,539		(79)		47		2,436		6,943
Residential Mortgages secured by junior liens	241		(3)		0		308		546
Other revolving credit plans	507		(41)		13		49		528
Automobile	132		(26)		3		154		263
Other consumer	2,962		(1,193)		140		637		2,546
Credit cards	66		(112)		18		120		92
Overdrafts	244		(438)		160		275		241
Total loans	$	34,340	$	(3,384)	$	629	$	6,003	$	37,588

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 year ended December 31, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, coupled with qualitative adjustments in the Corporation's residential and consumer loan portfolios, growth in new market areas, and qualitative adjustments related to the continued uncertainty with the pandemic and economic environment. These factors were partially offset by improvements in the Corporation's historical loss rates and quantitative inputs including the unemployment forecast and prepayment and curtailment speeds, as well as the impact of net charge-offs and improvements or resolutions in the Corporation's individually evaluated loans.

There is still a significant amount of uncertainty related to the economic impact of COVID-19, including duration, new variants, future government responses, and the resiliency of the U.S. economy. During 2021, management reviewed internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Specifically, management reevaluated the loss given default assumptions that utilize Frye Jacobs, the time period used for prepayment and curtailment speeds and the unemployment forecast. Management will continue to evaluate its estimate of expected credit losses as new information becomes available.

81

Transactions in the allowance for loan losses for the year ended December 31, 2020 were as follows:

	Beginning Allowance (Before ASC 326 Adoption)		Impact of ASC 326 Adoption		Initial Allowance on Loans Purchased with Credit Deterioration		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance (After ASC 326 Adoption)
Farmland	$	190	$	61	$	0	$	0	$	0	$	(30)	$	221
Owner-occupied, nonfarm nonresidential properties	2,390		(754)		82		(61)		12		2,031		3,700
Agricultural production and other loans to farmers	25		5		0		0		0		(6)		24
Commercial and Industrial	4,105		(631)		216		(2,779)		39		5,283		6,233
Obligations (other than securities and leases) of states and political subdivisions	1,022		(231)		0		0		0		207		998
Other loans	41		8		0		0		0		19		68
Other construction loans and all land development and other land loans	2,327		780		228		0		125		(1,504)		1,956
Multifamily (5 or more) residential properties	1,087		312		24		0		0		1,301		2,724
Non-owner occupied, nonfarm nonresidential properties	3,980		2,547		335		(1,522)		52		3,266		8,658
1-4 Family Construction	56		(35)		0		0		0		61		82
Home equity lines of credit	180		421		22		(6)		1		367		985
Residential Mortgages secured by first liens	1,220		1,100		73		(285)		65		2,366		4,539
Residential Mortgages secured by junior liens	114		135		0		(158)		2		148		241
Other revolving credit plans	296		378		0		(137)		21		(51)		507
Automobile	156		(96)		0		(29)		2		99		132
Other consumer	1,960		1,021		0		(1,513)		130		1,364		2,962
Credit cards	84		(58)		0		(153)		14		179		66
Overdrafts	240		0		0		(435)		185		254		244
Total loans	$	19,473	$	4,963	$	980	$	(7,078)	$	648	$	15,354	$	34,340

Transactions in the allowance for loan losses for the year ended December 31, 2019 were as follows: 

	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2019	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704
Charge-offs	(205)		(3,391)		(386)		(2,200)		(116)		(453)		(6,751)
Recoveries	17		124		73		154		15		113		496
Provision for loan losses	1,134		2,729		(344)		2,080		82		343		6,024
Allowance for loan losses, December 31, 2019	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473

82

The following table presents information related to impaired loans by class of loan as of and for the year ended December 31, 2019:

	Year Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,750	$	90	$	90
Commercial mortgage	6,586		119		119
Residential real estate	191		13		13
Overdrafts	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,919		208		208
Commercial mortgage	3,985		158		158
Residential real estate	294		11		11
Overdrafts	0		0		0
Total	$	17,725	$	599	$	599

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

	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	965	$	965	$	0
Owner-occupied, nonfarm nonresidential properties	850		762		0
Commercial and Industrial	7,060		1,653		8
Other construction loans and all land development and other land loans	516		77		0
Multifamily (5 or more) residential properties	1,270		5		0
Non-owner occupied, nonfarm nonresidential properties	3,771		2,143		0
Home equity lines of credit	824		824		0
Residential Mortgages secured by first liens	3,410		3,410		137
Residential Mortgages secured by junior liens	147		147		0
Other revolving credit plans	13		13		0
Automobile	36		36		0
Other consumer	558		558		0
Credit cards	0		0		23
Total loans	$	19,420	$	10,593	$	168

83

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of 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 tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated as of December 31, 2021:

	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	920	$	0
Owner-occupied, nonfarm nonresidential properties	194		9
Commercial and Industrial	1,488		2,351
Other construction loans and all land development and other land loans	438		0
Multifamily (5 or more) residential properties	1,265		0
Non-owner occupied, nonfarm nonresidential properties	3,378		0
Residential Mortgages secured by first liens	435		0
Total loans	$	8,118	$	2,360

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated 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

84

The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 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	$	348	$	0	$	0	$	348	$	23,420	$	23,768
Owner-occupied, nonfarm nonresidential properties	278		18		414		710		433,962		434,672
Agricultural production and other loans to farmers	0		0		0		0		1,379		1,379
Commercial and Industrial	377		13		333		723		708,266		708,989
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		140,887		140,887
Other loans	0		0		0		0		13,979		13,979
Other construction loans and all land development and other land loans	0		0		77		77		298,792		298,869
Multifamily (5 or more) residential properties	0		10		209		219		215,924		216,143
Non-owner occupied, nonfarm nonresidential properties	0		0		1,792		1,792		661,270		663,062
1-4 Family Construction	0		0		0		0		37,822		37,822
Home equity lines of credit	506		50		172		728		103,789		104,517
Residential Mortgages secured by first liens	1,286		1,145		1,647		4,078		822,651		826,729
Residential Mortgages secured by junior liens	32		24		1		57		56,632		56,689
Other revolving credit plans	56		17		4		77		26,459		26,536
Automobile	45		3		23		71		20,791		20,862
Other consumer	283		158		295		736		48,940		49,676
Credit cards	26		12		23		61		9,874		9,935
Overdrafts	0		0		0		0		278		278
Total loans	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

85

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

During the years ended December 31, 2021 and 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 $16.6 million and $15.1 million as of December 31, 2021 and 2020, respectively. The Corporation has allocated $2.6 million and $779 thousand of allowance for those loans as of December 31, 2021 and 2020, respectively.

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2021, 2020, and 2019:

	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial and Industrial	2	$	3,336	$	3,336
Multifamily (5 or more) residential properties	1	717		717
Non-owner occupied, nonfarm nonresidential properties	1	1,604		1,604
Total loans	4	$	5,657	$	5,657

86

	Year Ended December 31, 2020
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Owner-occupied, nonfarm nonresidential properties	1	$	260	$	260
Commercial and Industrial	6	1,140		1,140
Other construction loans and all land development and other land loans	1	46		46
Non-owner occupied, nonfarm nonresidential properties	1	3,684		3,684
Residential Mortgages secured by first liens	2	309		309
Total loans	11	$	5,439	$	5,439

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial mortgages	1	$	383	$	383
Total	1	$	383	$	383

The troubled debt restructurings described above increased the allowance for credit losses by immaterial amounts for the years ended December 31, 2021, 2020, and 2019, respectively.

There were no loans modified as troubled debt restructures for which there was a payment default within twelve months following the modification during the years ended December 31, 2021, 2020 and 2019, respectively, and no principal balances were forgiven in connection with the loan restructurings.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

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.

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.

87

The following tables represent the Corporation's credit risk profile by risk rating as of December 31, 2021 and 2020. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans.

	December 31, 2021
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	21,286	$	1,514	$	968	$	0	$	2,482	$	23,768
Owner-occupied, nonfarm nonresidential properties	419,368		6,723		8,581		0		15,304		434,672
Agricultural production and other loans to farmers	1,379		0		0		0		0		1,379
Commercial and Industrial	687,010		7,946		12,654		1,379		21,979		708,989
Obligations (other than securities and leases) of states and political subdivisions	140,887		0		0		0		0		140,887
Other loans	13,979		0		0		0		0		13,979
Other construction loans and all land development and other land loans	294,103		4,221		545		0		4,766		298,869
Multifamily (5 or more) residential properties	214,772		100		1,271		0		1,371		216,143
Non-owner occupied, nonfarm nonresidential properties	631,534		9,628		21,900		0		31,528		663,062
Total loans	$	2,424,318	$	30,132	$	45,919	$	1,379	$	77,430	$	2,501,748

	December 31, 2020
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	20,316	$	1,156	$	1,844	$	0	$	3,000	$	23,316
Owner-occupied, nonfarm nonresidential properties	391,899		2,826		13,199		0		16,025		407,924
Agricultural production and other loans to farmers	2,664		0		0		0		0		2,664
Commercial and Industrial	637,071		11,368		15,111		0		26,479		663,550
Obligations (other than securities and leases) of states and political subdivisions	132,110		0		708		0		708		132,818
Other loans	11,961		0		0		0		0		11,961
Other construction loans and all land development and other land loans	198,206		5,611		1,917		0		7,528		205,734
Multifamily (5 or more) residential properties	211,563		0		1,252		0		1,252		212,815
Non-owner occupied, nonfarm nonresidential properties	594,603		12,496		33,846		0		46,342		640,945
Total loans	$	2,200,393	$	33,457	$	67,877	$	0	$	101,334	$	2,301,727

88

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, 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	$	8,203	$	1,690	$	3,276	$	3,547	$	564	$	3,545	$	461	$	0	$	21,286
Special mention	0		0		0		0		394		1,120		0		0		1,514
Substandard	388		0		0		0		48		532		0		0		968
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,591	$	1,690	$	3,276	$	3,547	$	1,006	$	5,197	$	461	$	0	$	23,768
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	135,095	$	78,068	$	78,621	$	29,100	$	40,677	$	50,079	$	7,728	$	0	$	419,368
Special mention	243		0		903		4,287		135		1,145		10		0		6,723
Substandard	687		416		2,190		868		250		4,152		18		0		8,581
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	136,025	$	78,484	$	81,714	$	34,255	$	41,062	$	55,376	$	7,756	$	0	$	434,672
Agricultural production and other loans to farmers
Risk rating
Pass	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
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	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
Commercial and Industrial
Risk rating
Pass	$	313,983	$	84,815	$	31,375	$	16,577	$	12,389	$	6,777	$	221,094	$	0	$	687,010
Special mention	0		363		793		381		82		844		5,483		0		7,946
Substandard	1,991		800		1,862		452		29		2,016		5,504		0		12,654
Doubtful(1)	1,379		0		0		0		0		0		0		0		1,379
Total	$	317,353	$	85,978	$	34,030	$	17,410	$	12,500	$	9,637	$	232,081	$	0	$	708,989
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
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	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
Other loans
Risk rating
Pass	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979
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	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979

(1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period.

89

	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	$	98,406	$	168,372	$	8,752	$	11,141	$	853	$	898	$	5,681	$	0	$	294,103
Special mention	1,500		0		650		0		2,071		0		0		0		4,221
Substandard	0		0		0		29		439		0		77		0		545
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	99,906	$	168,372	$	9,402	$	11,170	$	3,363	$	898	$	5,758	$	0	$	298,869
Multifamily (5 or more) residential properties
Risk rating
Pass	$	74,687	$	55,663	$	33,436	$	7,937	$	27,729	$	12,882	$	2,438	$	0	$	214,772
Special mention	0		0		0		0		0		100		0		0		100
Substandard	0		6		682		379		204		0		0		0		1,271
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	74,687	$	55,669	$	34,118	$	8,316	$	27,933	$	12,982	$	2,438	$	0	$	216,143
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	194,800	$	125,039	$	84,943	$	52,233	$	42,714	$	123,021	$	8,784	$	0	$	631,534
Special mention	0		0		428		1,004		189		5,556		2,451		0		9,628
Substandard	826		0		2,305		1,662		4,638		12,134		335		0		21,900
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	195,626	$	125,039	$	87,676	$	54,899	$	47,541	$	140,711	$	11,570	$	0	$	663,062

90

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

91

	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 also 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.

	December 31, 2021						December 31, 2020
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
1-4 Family Construction	$	37,822	$	0	$	37,822	$	27,768	$	0	$	27,768
Home equity lines of credit	103,693		824		104,517		108,759		685		109,444
Residential Mortgages secured by first liens	823,182		3,547		826,729		772,572		4,458		777,030
Residential Mortgages secured by junior liens	56,542		147		56,689		53,612		114		53,726
Other revolving credit plans	26,523		13		26,536		25,501		6		25,507
Automobile	20,826		36		20,862		25,312		32		25,344
Other consumer	49,118		558		49,676		42,288		504		42,792
Total loans	$	1,117,706	$	5,125	$	1,122,831	$	1,055,812	$	5,799	$	1,061,611

92

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, 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	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Home equity lines of credit
Payment performance
Performing	$	14,383	$	14,621	$	9,564	$	10,584	$	6,863	$	39,527	$	8,151	$	0	$	103,693
Nonperforming	0		0		9		10		377		428		0		0		824
Total	$	14,383	$	14,621	$	9,573	$	10,594	$	7,240	$	39,955	$	8,151	$	0	$	104,517
Residential mortgages secured by first lien
Payment performance
Performing	$	232,606	$	178,380	$	111,333	$	62,850	$	74,136	$	160,402	$	3,475	$	0	$	823,182
Nonperforming	79		259		227		151		258		2,379		194		0		3,547
Total	$	232,685	$	178,639	$	111,560	$	63,001	$	74,394	$	162,781	$	3,669	$	0	$	826,729
Residential mortgages secured by junior liens
Payment performance
Performing	$	20,617	$	11,256	$	7,239	$	4,407	$	3,508	$	9,095	$	420	$	0	$	56,542
Nonperforming	0		0		0		0		84		63		0		0		147
Total	$	20,617	$	11,256	$	7,239	$	4,407	$	3,592	$	9,158	$	420	$	0	$	56,689
Other revolving credit plans
Payment performance
Performing	$	5,313	$	3,596	$	3,090	$	2,592	$	2,977	$	8,955	$	0	$	0	$	26,523
Nonperforming	0		0		4		4		0		5		0		0		13
Total	$	5,313	$	3,596	$	3,094	$	2,596	$	2,977	$	8,960	$	0	$	0	$	26,536
Automobile
Payment performance
Performing	$	7,047	$	5,448	$	4,668	$	2,457	$	682	$	524	$	0	$	0	$	20,826
Nonperforming	11		13		12		0		0		0		0		0		36
Total	$	7,058	$	5,461	$	4,680	$	2,457	$	682	$	524	$	0	$	0	$	20,862
Other consumer
Payment performance
Performing	$	30,423	$	11,017	$	4,537	$	1,451	$	316	$	1,374	$	0	$	0	$	49,118
Nonperforming	204		170		96		25		3		60		0		0		558
Total	$	30,627	$	11,187	$	4,633	$	1,476	$	319	$	1,434	$	0	$	0	$	49,676

93

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
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	$	1,654	$	0	$	0	$	42,288
Nonperforming	82		264		75		13		0			70		0		0		504
Total	$	24,939	$	11,447	$	3,654	$	809	$	218		$	1,724	$	0	$	0	$	42,792

	December 31, 2021		December 31, 2020
Credit card
Payment performance
Performing	$	9,912	$	8,081
Nonperforming	23		34
Total	$	9,935	$	8,115

94

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, 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, are considered to be subprime loans.

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

	December 31, 2021		December 31, 2020
Gross consumer loans	$	29,227	$	27,998
Less: unearned discounts	(5,716)		(5,181)
Total consumer loans, net of unearned discounts	$	23,511	$	22,817

5.  Real Estate Owned

Real estate owned is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2021, 2020, and 2019 were as follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	862	$	1,633	$	418
Loans transferred to real estate owned	1,470		241		2,066
Sales of real estate owned (at carrying value)	(1,625)		(1,012)		(851)
Balance, end of year	$	707	$	862	$	1,633

Expenses related to foreclosed real estate include:

	December 31, 2021		December 31, 2020		December 31, 2019
Net loss (gain) on sales	$	32	$	346	$	(377)
Operating expenses, net of rental income	85		240		316
	$	117	$	586	$	(61)

6.  Fair Value

Fair Value Measurement

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The following three levels of inputs are used to measure fair value:

Level 1: Quoted prices (unadjusted) for 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 1 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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

95

The Corporation used the following methods and significant assumptions to estimate fair value:

Investment Securities: The fair values of most equity securities and debt securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) 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 relying on the securities’ relationship to other benchmark quoted securities (Level 2). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities that observable inputs about the specific issuer are not available, fair values are estimated using observable data from other securities presumed to be similar or other market data on other similar securities (Level 3).

Loans Held for Sale: Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a loan-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2).

Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Corporation's derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Individually Evaluated Loans: The fair value of individually evaluated loans with specific allocations of the allowance for credit losses is generally based on recent real estate appraisals prepared by third-parties. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also adjusts appraised values based on the length of time that has passed since the appraisal date and other factors. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Assets and liabilities measured at fair value on a recurring basis were as follows at December 31, 2021 and 2020:

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	111,748	$	0	$	111,748	$	0
States and political subdivisions	103,712		0		103,712		0
Residential and multi-family mortgage	434,635		4,995		429,640		0
Corporate notes and bonds	28,064		0		28,064		0
Pooled SBA	19,032		0		19,032		0
Total Securities Available For Sale	$	697,191	$	4,995	$	692,196	$	0
Interest rate swaps	$	2,124	$	0	$	2,124	$	0
Equity Securities:
Corporate equity securities	$	6,715	$	6,715	$	0	$	0
Mutual funds	2,566		2,566		0		0
Certificates of deposit	506		506		0		0
Corporate notes and bonds	579		579		0		0
Total Equity Securities	$	10,366	$	10,366	$	0	$	0
Liabilities
Interest rate swaps	$	(2,512)	$	0	$	(2,512)	$	0

96

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	157,042	$	0	$	157,042	$	0
States and political subdivisions	70,883		0		70,819		64
Residential and multi-family mortgage	315,192		15,039		300,153		0
Corporate notes and bonds	14,926		0		14,926		0
Pooled SBA	25,886		0		25,886		0
Other	979		979		0		0
Total Securities Available For Sale	$	584,908	$	16,018	$	568,826	$	64
Interest rate swaps	$	4,017	$	0	$	4,017	$	0
Equity Securities:
Corporate equity securities	$	4,343	$	4,343	$	0	$	0
Mutual funds	1,283		1,283		0		0
Certificates of deposit	404		404		0		0
Corporate notes and bonds	569		569		0		0
U.S. Government sponsored entities	50		0		50		0
Total Equity Securities	$	6,649	$	6,599	$	50	$	0
Liabilities
Interest rate swaps	$	(4,785)	$	0	$	(4,785)	$	0

97

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2021: 

	States and Political Subdivisions		Corporate Notes and Bonds
Balance, January 1, 2021	$	64	$	0
Purchases	0		8,250
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Settlements	(64)		0
Transfers out of Level 3	0		(8,250)
Balance, December 31, 2021	$	0	$	0

The Corporation's corporate notes and bonds with a fair value of $8.3 million for the year ended December 31, 2021 were transferred out of Level 3 and into Level 2 because of available observable market data for these investments.

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2020: 

	States and Political Subdivisions		Residential & Multi-Family Mortgage
Balance, January 1, 2020	$	0	$	2,795
Purchases	422		0
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Transfers out of Level 3	(358)		$	(2,795)
Balance, December 31, 2020	$	64	$	0

The Corporation's states and political subdivsions with a fair value of $358 thousand and residential and multi-family mortgage of $2.8 million for the year ended December 31, 2020 were transferred out of Level 3 and into Level 2 because of available observable market data for these investments.

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2021 and 2020: 

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	920	0	0	$	920
Owner-occupied, nonfarm nonresidential properties	194		0	0	194
Commercial and industrial	3,102		0	0	3,102
Other construction loans and all land development loans and other land loans	248		0	0	248
Multifamily (5 or more) residential properties	627		0	0	627
Non-owner occupied, nonfarm nonresidential	2,889		0	0	2,889

98

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	659	0	0	$	659
Owner-occupied, nonfarm nonresidential properties	329		0	0	329
Commercial and industrial	3,680		0	0	3,680
Other construction loans and all land development loans and other land loans	1,790		0	0	1,790
Multifamily (5 or more) residential properties	0		0	0	0
Non-owner occupied, nonfarm nonresidential	9,622		0	0	9,622
Residential mortgages secured by first liens	659		0	0	659

A loan is considered to be a collateral dependent loan when, based on current information and events, the Corporation expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Corporation has determined that the borrower is experiencing financial difficulty as of the measurement date. The allowance for credit losses is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Corporation reviews the third-party appraisal for appropriateness and may adjust the value downward to consider selling and closing costs. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2021:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	920	Valuation of third party appraisal on underlying collateral	Loss severity rates	60% (60%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	194		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-60% (57%)
Collateral-dependent loans - Commercial and industrial	3,102		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-59% (42%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	248		Valuation of third party appraisal on underlying collateral	Loss severity rates	25% (25%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	627		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-57% (26%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	2,889		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-60% (34%)

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The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020: 

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	659	Valuation of third party appraisal on underlying collateral	Loss severity rates	45%-54% (47%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	329		Valuation of third party appraisal on underlying collateral	Loss severity rates	60%-90% (80%)
Collateral-dependent loans - Commercial and industrial	3,680		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-100% (39%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	1,790		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-41% (28%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	0		Valuation of third party appraisal on underlying collateral	Loss severity rates	58% (58%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	9,622		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-100% (29%)
Collateral-dependent loans - Residential mortgages secured by first liens	659		Valuation of third party appraisal on underlying collateral	Loss severity rates	31% (31%)

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2021: 

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	732,198	$	732,198	$	0	$	0	$	732,198
Securities available for sale	697,191		4,995		692,196		0		697,191
Equity securities	10,366		10,366		0		0		10,366
Loans held for sale	849		0		858		0		858
Net loans	3,597,204		0		0		3,613,452		3,613,452
FHLB and other equity interests	23,276		n/a		n/a		n/a		n/a
Interest rate swaps	2,124		0		2,124		0		2,124
Accrued interest receivable	15,516		16		2,171		13,329		15,516
LIABILITIES
Deposits	$	(4,715,619)	$	(4,329,167)	$	(391,850)	$	0	$	(4,721,017)
Subordinated debentures	(104,281)		0		(92,675)		0		(92,675)
Interest rate swaps	(2,512)		0		(2,512)		0		(2,512)
Accrued interest payable	(886)		0		(886)		0		(886)

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The following table presents the carrying amount and fair value of financial instruments at December 31, 2020:

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	532,694	$	532,694	$	0	$	0	$	532,694
Securities available for sale	584,908		16,018		568,826		64		584,908
Equity securities	6,649		6,599		50		0		6,649
Loans held for sale	8,514		0		8,617		0		8,617
Net loans	3,337,449		0		0		3,339,482		3,339,482
FHLB and other equity interests	21,018		n/a		n/a		n/a		n/a
Interest rate swaps	4,017		0		4,017		0		4,017
Accrued interest receivable	17,659		61		2,152		15,446		17,659
LIABILITIES
Deposits	$	(4,181,744)	$	(3,705,200)	$	(488,000)	$	0	$	(4,193,200)
Subordinated debentures	(70,620)		0		(62,583)		0		(62,583)
Interest rate swaps	(4,785)		0		(4,785)		0		(4,785)
Accrued interest payable	(1,096)		0		(1,096)		0		(1,096)

While estimates of fair value are based on management’s judgment of the most appropriate factors as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets had been disposed of or the liabilities settled at that date, since market values may differ depending on various circumstances. The estimated fair values would also not apply to subsequent dates. The fair value of other equity interests is based on the net asset values provided by the underlying investment partnership. ASU 2015-7 removes the requirement to categorize within the fair value hierarchy all investments measured using the net asset value per share practical expedient and related disclosures. In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the disclosures.

Also, non-financial assets such as, among other things, the estimated earnings power of core deposits, the earnings potential of trust accounts, the trained workforce, and customer goodwill, which typically are not recognized on the balance sheet, may have value but are not included in the fair value disclosures.

7.  Secondary Market Mortgage Activities

Total loans serviced for others were $264.2 million and $224.3 million for the years ended December 31, 2021 and 2020, respectively.

The following summarizes secondary market mortgage activities for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Loans originated for resale	$	95,411	$	87,528	$	43,458
Proceeds from sales of loans held for sale	97,179		82,619		43,198
Net gains on sales of loans held for sale	2,737		2,961		990
Loan servicing fees	720		726		634

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	1,527	$	1,573	$	1,495
Additions	514		540		292
Servicing rights acquired	0		0		0
Amortization	(377)		(586)		(214)
Balance, end of year	$	1,664	$	1,527	$	1,573

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was not materially different than amortized cost at December 31, 2021 and 2020, respectively. No valuation allowance was deemed necessary at December 31, 2021, 2020, and 2019. The fair value of interest rate lock commitments and forward commitments to sell loans was not material at December 31, 2021 or 2020.

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8.  Premises and Equipment

The following summarizes premises and equipment at December 31, 2021 and 2020: 

	December 31, 2021		December 31, 2020
Land	$	8,798	$	8,016
Premises and leasehold improvements	70,212		68,346
Furniture and equipment	39,851		37,203
Construction in process	2,589		1,556
	121,450		115,121
Less: accumulated depreciation	59,791		55,057
Premises and equipment, net	$	61,659	$	60,064

Depreciation on premises and equipment amounted to $5.3 million in 2021, $4.6 million in 2020 and $4.1 million in 2019.

9.  Leases

Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

Leases	Classification	December 31, 2021		December 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	19,928	$	18,407
Finance lease assets	Premises and equipment, net (1)	358		429
Total leased assets		$	20,286	$	18,836
Liabilities:
Operating lease liabilities	Operating lease liabilities	$	21,159	$	19,449
Finance lease liabilities	Accrued interest payable and other liabilities	469		550
Total leased liabilities		$	21,628	$	19,999

(1) Finance lease assets are recorded net of accumulated amortization of $858 thousand and $787 thousand as of December 31, 2021 and 2020, respectively.

The components of the Corporation's net lease expense for the year ended December 31, 2021, 2020 and 2019 were as follows:

Lease Cost	Classification	December 31, 2021		December 31, 2020		December 31, 2019
Operating lease cost	Net occupancy expense	$	1,801	$	1,785	$	1,666
Variable lease cost	Net occupancy expense	55		87		98
Finance lease cost:
Amortization of leased assets	Net occupancy expense	72		72		72
Interest on lease liabilities	Interest expense - borrowed funds	23		27		30
Sublease income (1)	Net occupancy expense	(71)		(86)		(83)
Net lease cost		$	1,880	$	1,885	$	1,783

(1) Sublease income excludes rental income from owned properties.

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The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2021:

Maturity of Lease Liabilities as of December 31, 2021	Operating Leases (1)		Finance Leases		Total
2022	$	1,804	$	105	$	1,909
2023	1,693		105		1,798
2024	1,649		105		1,754
2025	1,637		105		1,742
2026	1,605		105		1,710
After 2026	20,564		0		20,564
Total lease payments	28,952		525		29,477
Less: Interest	7,793		56		7,849
Present value of lease liabilities	$	21,159	$	469	$	21,628

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $10.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Lease Term and Discount Rate	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	18.8		19.0
Finance leases	5.0		6.0
Weighted-average discount rate
Operating leases	3.42	%	3.46	%
Finance leases	4.49	%	4.49	%

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Other Information	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases	$	964	$	922

10.  Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 was as follows: 

	December 31, 2021		December 31, 2020
Balance, beginning of year	$	43,749	$	38,730
Acquired during the year	0		5,019
Balance, end of year	$	43,749	$	43,749

Impairment exists when the carrying value of goodwill exceeds its fair value. Goodwill is evaluated for impairment on an annual basis as of December 31 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value.

At December 31, 2021, the Corporation elected to perform a qualitative assessment to determine if it was more likely than not that the fair value exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value exceeded its carrying value, resulting in no impairment.

The Corporation engaged a third party to perform a quantitative analysis of its goodwill at June 30, 2020 due to the on-going economic market disruption caused by the COVID-19 pandemic and the resultant impact on the Corporation's stock price. In addition, interim qualitative analyses were performed as of March 31, 2020 and September 30, 2020 as a result of COVID-19 and for the annual impairment analysis at December 31, 2020. The results of the quantitative analysis and the qualitative analyses did not indicate the Corporation's goodwill was impaired.

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Intangible Assets

In connection with its acquisition of FC Banc Corp. in 2013, the Corporation recorded a core deposit intangible asset of $4.8 million. During the years ended December 31, 2021, 2020, and 2019, the Corporation recorded amortization expense of $0, $94 thousand and $316 thousand, respectively. The net carrying values at December 31, 2021 and 2020 was $0, respectively. No other intangible assets were required to be recorded in connection with the acquisition of FC Banc Corp.

In connection with its acquisition of Lake National Bank in 2016, the Corporation recorded a core deposit intangible asset of $1.6 million. During the year ended December 31, 2021, 2020, and 2019, the Corporation recorded amortization expense of $0, $66 thousand, and $251 thousand, respectively. The net carrying values at December 31, 2021 and 2020 was $0, respectively. No other intangible assets were required to be recorded in connection with the acquisition of Lake National Bank.

In connection with its acquisition of Bank of Akron in 2020, the Corporation recorded a core deposit intangible asset of $613 thousand. During the year ended December 31, 2021 and 2020, the Corporation recorded amortization expense of $107 thousand and $46 thousand, respectively. The net carrying value at December 31, 2021 and 2020 was $460 thousand and $567 thousand, respectively. No other intangible assets were required to be recorded in connection with the acquisition of Bank of Akron.

Estimated amortization expense of core deposit intangible assets for each of the next five years is as follows:

2022	$	96
2023	85
2024	73
2025	62
2026	51
Thereafter	93
	$	460

11.  Deposits

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2021:

Time deposits maturing:
2022	$	252,340
2023	54,676
2024	34,009
2025	26,121
2026	7,258
Thereafter	12,048
	$	386,452

Certificates of deposit of $250 thousand or more totaled $116.6 million and $128.2 million at December 31, 2021 and 2020, respectively.

The Corporation had $52.9 million and $23.6 million in reciprocal ICS deposits at December 31, 2021 and 2020, respectively.

12.  Borrowings

At December 31, 2021 and 2020, the Corporation had available one $10 million unsecured line of credit with an unaffiliated institution, at a variable interest rate with a floor as defined in the agreement. There were no borrowings on the line of credit at December 31, 2021 and 2020.

104

FHLB Borrowings

The Bank has the ability to borrow funds from the FHLB. The Bank maintains a $150.0 million line-of-credit (Open Repo Plus) with the FHLB which is a revolving term commitment available on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates. Under terms of a blanket collateral agreement with the FHLB, the line-of-credit and long term advances are secured by FHLB stock and the Bank pledges its single-family residential mortgage loan portfolio, certain commercial real estate loans, and certain agriculture real estate loans as security for any advances.

Total loans pledged to the FHLB at December 31, 2021, and 2020, were $1.3 billion and $1.2 billion, respectively. The Bank could obtain advances of up to approximately $932.7 million from the FHLB at December 31, 2021 and $797.4 million at December 31, 2020.

At December 31, 2021 and December 31, 2020, the Bank had no outstanding advances from the FHLB. During 2020 CNB prepaid the entire balance of its borrowings from the FHLB, totaling $190.4 million. The pre-payment penalty associated with these prepayments totaled approximately $7.9 million and the weighted average rate associated with these borrowings was 2.20%.

At December 31, 2021 and 2020, municipal deposit letters of credit issued by the FHLB on behalf of the Bank naming applicable municipalities as beneficiaries were $10.4 million and $57.3 million, respectively. The letters of credit were utilized in place of securities pledged to the municipalities for their deposits maintained at the Bank.

Other Borrowings

At December 31, 2021 and 2020, the Bank had no outstanding borrowings from unaffiliated institutions under overnight borrowing agreements.

Subordinated Debentures

In 2007, the Corporation issued two $10.0 million floating rate trust preferred securities as part of a pooled offering of such securities. The interest rate on each offering is determined quarterly and floats based on the 3 month LIBOR plus 1.55%. The all-in rate was 1.75% at December 31, 2021 and 1.80% at December 31, 2020. The Corporation issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The subordinated debentures must be redeemed no later than 2037. The Corporation may redeem the debentures, in whole or in part, at face value at any time. The Corporation has the option to defer interest payments from time to time for a period not to exceed five consecutive years. Although the trusts are variable interest entities, the Corporation is not the primary beneficiary. As a result, because the trusts are not consolidated with the Corporation, the Corporation does not report the securities issued by the trusts as liabilities. Instead, the Corporation reports as liabilities the subordinated debentures issued by the Corporation and held by the trusts, since the liabilities are not eliminated in consolidation. The trust preferred securities were designated to qualify as Tier 1 capital under the Federal Reserve’s capital guidelines.

Subordinated Notes

In September 2016, the Corporation completed a private placement of $50.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "2026 Notes"). The notes will mature in October 2026, and will initially bear interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears, to, but excluding, October 15, 2021, and thereafter to, but excluding, the maturity date or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 4.55%. These subordinated notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital guidelines and were given an investment grade rating of BBB- by Kroll Bond Rating Agency. On October 15, 2021, the Corporation completed its redemption of the 2026 Notes, representing all of the outstanding 2026 Notes. The 2026 Notes were redeemed pursuant to their terms at a price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, October 15, 2021. The total aggregate redemption price was $50.7 million, which amount included an accrued interest payment of $719 thousand. The Corporation financed the redemption with cash on hand, including the net proceeds from the issuance and sale of $85.0 million aggregate principal amount of the Corporation’s 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031.

105

In June 2021, the Corporation sold $85.0 million aggregate principal amount of its fixed-to-floating rate subordinated notes to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act and the provisions of Rule 506 of Regulation D thereunder. The notes will mature in June 2031, and initially bear interest at a fixed rate of 3.25% per annum, payable semi-annually in arrears, to, but excluding, June 15, 2026, and thereafter to, but excluding, the maturity date or earlier redemption, the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month average Secured Overnight Financing Rate (“SOFR”) plus 2.58%. The net proceeds from the sale were approximately $83.5 million, after deducting offering expenses. These subordinated notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital guidelines and were given an investment grade rating of BBB- by Kroll Bond Rating Agency. The unamortized debt issuance costs were $1.3 million as of December 31, 2021.

13.  Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan. The plan permits eligible employees to make pre-tax and Roth contributions up to 70% of salary. Employees 21 years of age or over with a minimum of one-year with 1,000 hours of service are eligible for matching contributions by the Corporation at 100% for every 1% contributed up to 3% then 50% for every 1% contributed up to the next 2% in total of the employee’s compensation. The Corporation’s matching contribution and related expenses were $1.2 million, $1.1 million and $906 thousand for the years ended December 31, 2021, 2020, and 2019, respectively. A profit sharing discretionary non-contributory pension plan component is in place for employees 21 years of age or over with a minimum of one-year with 1,000 hours of service and allows employer contributions in an amount equal to a percentage of eligible compensation plus 5.7% of the compensation in excess of $143 thousand, subject to a $290 thousand salary limit. The Corporation recognized profit sharing expense of $2.0 million, $1.9 million and $1.9 million for the year ended December 31, 2021, 2020, and 2019 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan ("SERP") for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2021 and 2020, obligations of $8.8 million and $7.0 million, respectively, were included in other liabilities for this plan. Expenses related to this plan were $2.1 million for the year ended December 31, 2021, $992 thousand for the year ended December 31, 2020 and $724 thousand for the year ended December 31, 2019.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2021 and 2020, obligations of $1.5 million and $1.4 million, respectively, were included in other liabilities for this plan. Expenses (benefits) related to this plan were $196 thousand for the year ended December 31, 2021, $253 thousand for the year ended December 31, 2020 and $(1) thousand for the year ended December 31, 2019.

On December 31, 2021, the Corporation adopted a Defined Contribution Plan for several employees (the “Plan”), pursuant to which the Corporation will make certain annual contributions to the Plan on the employee's behalf, which will be paid to the employee following their termination of employment from the Corporation or, if earlier, upon the employee becoming disabled. The Plan became effective as of January 2, 2022.

The Corporation has an unfunded post-retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

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The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Benefit obligation at beginning of year	$	1,829	$	2,030
Interest cost	28		51
Service cost	52		61
Actual claims	(31)		(36)
Actuarial gain	(391)		(277)
Benefit obligation at end of year	$	1,487	$	1,829

Amounts recognized in accumulated other comprehensive income at December 31, 2021 and 2020 consisted of: 

	December 31, 2021		December 31, 2020
Net actuarial gain	$	782	$	435
Tax effect	(165)		(92)
	$	617	$	343

The accumulated benefit obligation was $1.5 million and $1.8 million at December 31, 2021 and 2020, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	52	$	61	$	74
Interest cost	28		51		89
Net amortization of transition obligation and actuarial loss	(43)		0		23
Net periodic benefit cost	37		112		186
Net gain	(391)		(277)		(518)
Amortization	43		0		(23)
Total recognized in other comprehensive income	(348)		(277)		(541)
Total recognized in net periodic benefit cost and other comprehensive income	$	(311)	$	(165)	$	(355)

The estimated net gain that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $(113) thousand.

The weighted average discount rate used to calculate net periodic benefit cost was 1.55% for year ended December 31, 2021, 2.59% for year ended December 31, 2020, and 3.78% for year ended December 31, 2019. The weighted average rate used to calculate accrued benefit obligations was 2.10% for year ended December 31, 2021, 1.55% for year ended December 31, 2020, and 2.59% for year ended December 31, 2019. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2022 and thereafter.

14.  Deferred Compensation Plans

Deferred compensation plans cover all directors and certain officers. Under the plans, the Corporation pays each participant, or their beneficiary, the value of the participant’s account over a maximum period of 10 years, beginning with the individual’s termination of service. A liability is accrued for the obligation under these plans.

A summary of changes in the deferred compensation plan liability follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	3,085	$	3,234	$	2,408
Deferrals, dividends, and changes in fair value	1,084		(70)		904
Deferred compensation payments	(494)		(79)		(78)
Balance, end of year	$	3,675	$	3,085	$	3,234

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15.  Income Taxes

The following is a summary of income tax expense for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Current – federal	$	13,494	$	8,681	$	8,265
Current – state	1,268		729		499
Deferred – federal	(1,025)		(1,672)		(204)
Deferred – state	(666)		(391)		0
Income tax expense	$	13,071	$	7,347	$	8,560

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows: 

	December 31, 2021		%	December 31, 2020		%	December 31, 2019		%
Tax at statutory rate	$	14,863	21.0	$	8,419	21.0	$	10,214	21.0
Tax exempt income, net	(1,231)		(1.7)	(1,223)		(3.1)	(1,382)		(2.8)
Bank owned life insurance	(554)		(0.8)	(367)		(0.9)	(276)		(0.6)
Effect of state tax	476		0.7	576		1.4	394		0.8
Other	(483)		(0.7)	(58)		(0.1)	(390)		(0.8)
Income tax expense	$	13,071	18.5	$	7,347	18.3	$	8,560	17.6

The following table sets forth deferred taxes as of December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Deferred tax assets:
Allowance for credit losses	$	7,606	$	6,751
Fair value adjustments – business combination	1,240		1,685
Deferred compensation	3,344		2,787
Net operating loss carryover	327		346
Post-retirement benefits	696		722
Unrealized loss on interest rate swap	81		161
Nonaccrual loan interest	509		478
Accrued expenses	1,718		681
Deferred fees and costs	1,259		1,613
Unrealized loss on securities available for sale	188		0
Operating lease liability	4,845		4,214
Other	383		300
	22,196		19,738
Deferred tax liabilities:
Unrealized gain on securities available for sale	0		4,077
Premises and equipment	3,093		2,997
Unrealized gain on equity securities	292		294
Intangibles – section 197	2,494		2,399
Mortgage servicing rights	366		321
Operating lease asset	4,649		4,079
Other	220		293
	11,114		14,460
Net deferred tax asset	$	11,082	$	5,278

At December 31, 2021 and 2020, the Corporation had no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

At December 31, 2021, the Corporation had state net operating loss carryforwards of approximately $15.9 million related to the acquisition of Bank of Akron, which expire at various dates from 2034 to 2039. The Corporation's ability to utilize carryforwards is limited to $363 thousand per year. Due to this limitation, management determined it is more likely than not that approximately $9.5 million of net operating loss carryforwards will expire unutilized.

108

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2021, 2020 and 2019, there were no amounts accrued for interest and/or penalties and no amounts recorded as expense for the years ending December 31, 2021, 2020, and 2019.

The Corporation and its subsidiaries are subject to U.S. federal income tax, as well as filing various state returns. The Corporation is no longer subject to U.S. federal income tax examinations by the taxing authorities for years prior to 2018. Tax years 2018 through 2021 are open to examination.

16.  Related Party Transactions

Loans to principal officers, directors, and their affiliates during 2021 were as follows:

Beginning balance	$	37,665
New loans and advances	11,830
Effect of changes in composition of related parties	0
Repayments	(3,738)
Ending balance	$	45,757

Deposits from principal officers, directors, and their affiliates were $23.5 million and $24.5 million at December 31, 2021 and 2020, respectively.

17. Stock-Based Compensation

The Corporation has a stock incentive plan, which is administered by a committee of the Board of Directors and which permits the Corporation to provide various types of stock-based compensation to its key employees, directors, and/or consultants, including time-based and performance-based shares of restricted stock. The Corporation previously maintained the CNB Financial Corporation 2009 Stock Incentive Plan, which terminated in accordance with its terms on February 10, 2019, and currently maintains the CNB Financial Corporation 2019 Omnibus Incentive Plan (the "2019 Stock Incentive Plan"), which was approved by the Corporation’s shareholders and became effective on April 16, 2019. 

The 2019 Stock Incentive Plan provides for up to 507,671 shares of common stock to be awarded in the form of nonqualified options or restricted stock. For key employees, the vesting of time-based restricted stock is one-third, one-fourth, or one-fifth of the granted restricted shares per year, beginning one year after the grant date, with 100% vesting on the third, fourth or fifth anniversary of the grant date, respectively. Prior to 2018, for non-employee directors, the vesting schedule was one-third of the granted restricted shares per year, beginning one year after the grant date, with 100% vested on the third anniversary of the grant date. Beginning in 2018, stock compensation received by non-employee directors vests immediately. All stock-based compensation grants during the years ending December 31, 2021, 2020 and 2019 and outstanding at December 31, 2021, 2020 and 2019 were time-based and performance-based restricted stock.

During the years ended December 31, 2021, 2020, and 2019, the Executive Compensation and Personnel Committee of the Corporation's Board of Directors granted a total of 55,218, 36,968 and 40,978 shares, respectively, of time-based restricted common stock to certain key employees and all independent directors of the Corporation.

Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Non-vested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from time-based, performance-based and director restricted stock awards was $1.4 million, $1.4 million and $1.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. The total income tax benefit related to the recognized compensation cost of vested restricted stock awards was $296 thousand, $296 thousand and $283 thousand for the years ended December 31, 2021, 2020 and 2019, respectively.

109

A summary of changes in time-based unvested restricted stock awards follows: 

	Shares	Weighted-average Grant Date Fair Value
Non-vested at January 1, 2021	56,306	$	27.14
Granted	40,332	21.61
Forfeited	(2,669)	23.49
Vested	(24,326)	26.85
Non-vested at December 31, 2021	69,643	$	24.18

The above table excludes 14,886 shares in restricted stock awards that were granted to the Corporation’s Board of Directors and certain employees at a weighted average fair value of $21.03 and immediately vested. As of December 31, 2021 and 2020, there was $1.1 million and $1.1 million, respectively, of total unrecognized compensation cost related to non-vested shares granted under the restricted stock award plan. The fair value of shares vesting during the year end December 31, 2021, 2020, and 2019 was $835 thousand, $1.1 million and $1.5 million, respectively.

In addition to the time-based restricted stock disclosed above, the Corporation’s Board of Directors grants performance-based restricted stock awards ("PBRSAs") to key employees. The number of PBRSAs will depend on certain performance conditions earned over a three year period and are also subject to service-based vesting. In 2021, awards with a maximum of 18,210 shares in aggregate were granted to key employees. In 2020, awards with a maximum of 18,100 shares in aggregate were granted to key employees. In 2019, awards with a maximum of 16,681 shares in aggregate were granted to key employees.

Total compensation expense related to the PBRSAs and included in the above compensation expense total was $378 thousand, $384 thousand and $221 thousand for 2021, 2020 and 2019. Estimated remaining unearned compensation related to PBRSAs at December 31, 2021 was $312 thousand.

In 2020, the 2018 PBRSAs were fully earned and in 2021, 10,587 shares were fully distributed. The fair value of the shares distributed in 2021 was $223 thousand. In 2019, the 2017 PBRSAs were fully earned and in 2020, 7,109 shares were fully distributed. The fair value of the 7,109 shares distributed in 2020 was $233 thousand.

The number of authorized stock-based awards still available for grant as of December 31, 2021 was 390,090.

18.  Regulatory Capital Matters

Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action ("PCA") regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory enforcement actions. The net unrealized gain or loss on available for sale securities is excluded from computing regulatory capital. Management believes as of December 31, 2021 the Corporation and the Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2021 and 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

110

Actual and required capital amounts and ratios are presented below as of December 31, 2021 and 2020. The capital adequacy ratio includes the capital conservation buffer.

	Actual				For Capital Adequacy Purposes (1)				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total Capital to Risk Weighted Assets
Consolidated	$	541,651	14.92	%	$	381,093	10.50	%	N/A
Bank	$	475,231	13.16	%	$	379,180	10.50	%	$	361,123	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	427,988	11.79	%	$	308,504	8.50	%	N/A
Bank	$	447,055	12.38	%	$	306,955	8.50	%	$	288,899	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	350,203	9.65	%	$	254,062	7.00	%	N/A
Bank	$	439,676	12.18	%	$	252,786	7.00	%	$	234,730	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	427,988	8.22	%	$	208,208	4.00	%	N/A
Bank	$	447,055	8.63	%	$	207,109	4.00	%	$	258,887	5.00	%
December 31, 2020
Total Capital to Risk Weighted Assets
Consolidated	$	462,457	14.32	%	$	339,107	10.50	%	N/A
Bank	$	434,598	13.52	%	$	337,554	10.50	%	$	321,480	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	384,650	11.91	%	$	274,516	8.50	%	N/A
Bank	$	408,693	12.71	%	$	273,258	8.50	%	$	257,184	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	306,865	9.50	%	$	226,072	7.00	%	N/A
Bank	$	401,314	12.48	%	$	225,036	7.00	%	$	208,962	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	384,650	8.11	%	$	189,728	4.00	%	N/A
Bank	$	408,693	8.66	%	$	188,690	4.00	%	$	235,863	5.00	%

(1) The minimum amounts and ratios as of December 31, 2021 and 2020 include the full phase in of the capital conservation buffer of 2.5 percent required by the Basel III framework.

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. During 2021, $134.6 million of accumulated net earnings of the Bank included in consolidated shareholders’ equity, plus any 2022 net profits retained to the date of the dividend declared, is available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements described above.

19.  Interest Rate Swaps

On September 7, 2018, the Corporation executed an interest rate swap agreement with a 5-year term and an effective date of September 15, 2018 in order to hedge cash flows associated with $10.0 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2018 to September 15, 2023 without the exchange of the underlying notional amount. At December 31, 2021, the variable rate on the subordinated debt was 1.75% (LIBOR plus 155 basis points) and the Corporation was paying 4.53% (2.98% fixed rate plus 155 basis points).

As of December 31, 2021 and 2020, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

111

The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	December 31, 2021	December 31, 2020
Interest rate contract	Accrued interest payable and other liabilities	$(388)	$(768)
For the Year Ended December 31, 2021	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$301	Interest expense – subordinated debentures		$(276)	Other income	$0
For the Year Ended December 31, 2020
Interest rate contract	$(224)	Interest expense – subordinated debentures		$(224)	Other income	$0
For the Year Ended December 31, 2019
Interest rate contract	$(225)	Interest expense – subordinated debentures		$(63)	Other income	$0

(a)Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b)Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c)Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d)Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e)Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

Amounts reported in accumulated other comprehensive loss related to the interest rate swap will be reclassified to interest expense as interest payments are made on the subordinated debentures. Such amounts reclassified from accumulated other comprehensive loss to interest expense in the next twelve months are expected to be $278 thousand.

As of December 31, 2021 and 2020, a cash collateral balance of $1.1 million and $1.1 million, respectively, was maintained with the counterparty to the interest rate swaps. These balances are included in interest bearing deposits with other banks on the consolidated balance sheets.

The Corporation entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Corporation enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Corporation agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. Concurrently, the Corporation agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Corporation’s customers to effectively convert a variable rate loan to a fixed rate. Because the Corporation acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not impact the Corporation’s results of operations.

The Corporation pledged cash collateral to another financial institution with a balance $3.4 million as of December 31, 2021 and $4.9 million as of December 31, 2020. This balance is included in interest bearing deposits with other banks on the consolidated balance sheets. The Corporation may require its customers to post cash or securities as collateral on its program of back-to-back swaps depending upon the specific facts and circumstances surrounding each loan and individual swap. In addition, certain language is included in the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Corporation is permitted to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Corporation may be required to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions.

112

The following table provides information about the amounts and locations of activity related to the back-to-back interest rate swaps within the Corporation’s consolidated balance sheet as of December 31, 2021 and 2020: 

	Notional Amount		Average Maturity (in years)	Weighted Average Fixed Rate		Weighted Average Variable Rate	Fair Value
December 31, 2021
3rd Party interest rate swaps	$	32,768	5.8	4.12	%	1 month LIBOR + 2.27%	$	2,124	(a)
Customer interest rate swaps	(32,768)		5.8	4.12	%	1 month LIBOR + 2.27%	(2,124)		(b)
December 31, 2020
3rd Party interest rate swaps	$	34,089	6.7	4.13	%	1 month LIBOR + 2.27%	$	4,017	(a)
Customer interest rate swaps	(34,089)		6.7	4.13	%	1 month LIBOR + 2.27%	(4,017)		(b)

(a)Reported in accrued interest receivable and other assets within the consolidated balance sheets

(b)Reported in accrued interest payable and other liabilities within the consolidated balance sheets

20.  Off-Balance Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31, 2021 and 2020: 

	December 31, 2021				December 31, 2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans	$	94,924	$	323,013	$	52,073	$	266,336
Unused lines of credit	13,265		663,903		24,328		673,919
Standby letters of credit	15,063		1,623		15,301		1,597

Commitments to make loans are generally made for periods of 60 days or less. The fixed rate loan commitments at December 31, 2021 have interest rates ranging from 0.56% to 9.00% and maturities ranging from six months to approximately 31 years. The fixed rate loan commitments at December 31, 2020 have interest rates ranging from 1.24% to 18.00% and maturities ranging from four months to 35 years.

The Corporation makes investments in limited partnerships, including certain small business investment corporations and low income housing partnerships. Capital contributions for investments in small business companies ("SBIC") and other limited partnerships, reported in FHLB and other equity interests on the consolidated balance sheet, as of December 31, 2021 and 2020 were $14.5 million and $11.8 million, respectively. Unfunded capital commitments in investments in SBIC's and other limited partnerships totaled $8.0 million and $3.7 million as of December 31, 2021 and 2020, respectively. These investments are accounted for either under the equity method of accounting.

The carrying value of investments in the low income housing partnerships, reported in FHLB and other equity interests on the consolidated balance sheet, as of December 31, 2021 and 2020 were $5.3 million and $6.0 million, respectively. The related amortization for the twelve months ended December 31, 2021, 2020 and 2019 were $691 thousand, $634 thousand and $531 thousand, respectively. Unfunded commitments, reported in accrued interest payable and other liabilities on the consolidated balance sheet, as of December 31, 2021 and 2020 were $2.1 million and $3.6 million, respectively.

113

21.   Parent Company Only Financial Information

CONDENSED BALANCE SHEETS	December 31,
	2021		2020
Assets
Cash	$	47,035	$	10,729
Equity securities	2,850		2,692
Investment in bank subsidiary	474,902		456,531
Investment in non-bank subsidiaries	20,327		15,681
Deferreds and current receivable	1,798		1,788
Other assets	1,044		1,264
Total assets	$	547,956	$	488,685
Liabilities
Subordinated debentures	$	104,281	$	70,620
Other liabilities	828		1,928
Total liabilities	105,109		72,548
Stockholders' equity	442,847		416,137
Total liabilities and stockholders' equity	$	547,956	$	488,685

CONDENSED STATEMENTS OF INCOME	Year Ended December 31,
Income:	2021		2020		2019
Dividends from:
Bank subsidiary	$	22,165	$	16,702	$	12,696
Non-bank subsidiaries	1,700		10,350		0
Other	210		216		208
Total income	24,075		27,268		12,904
Expenses	(6,657)		(6,838)		(5,518)
Income before income taxes and equity in undistributed net income of subsidiaries:	17,418		20,430		7,386
Change in net unrealized holdings gains (losses) on equity securities not held for trading	121		(31)		24
Income tax benefit	1,381		1,306		1,177
Equity in undistributed net income of bank subsidiary	37,178		18,197		27,580
Equity in undistributed (distributions in excess) of net income of non-bank subsidiaries	1,609		(7,159)		3,914
Net income	57,707		32,743		40,081
Dividends on preferred stock	(4,302)		(1,147)		0
Net income available to common stockholders	$	53,405	$	31,596	$	40,081
Comprehensive income attributable to the parent	$	58,008	$	32,519	$	39,856

114

CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2021		2020		2019
Net income
Adjustments to reconcile net income to net cash provided by	$	57,707	$	32,743	$	40,081
operating activities:
Equity in undistributed net income of bank subsidiary	(37,178)		(18,197)		(27,580)
(Equity in undistributed) distributions in excess of net income of non–bank subsidiaries	(1,609)		7,159		(3,914)
Net unrealized (gains) losses on equity securities	(121)		31		(24)
Decrease in other assets	60		21		177
Increase in other liabilities	978		1,091		1,267
Net cash provided by operating activities	19,837		22,848		10,007
Cash flows from investing activities
Purchase of equity securities	0		(2,000)		(36)
Outlays for business acquisition	0		(16,126)		0
Investment in bank subsidiaries	0		(41,500)		0
Net cash used in investing activities	0		(59,626)		(36)
Cash flows from financing activities:
Dividends paid on common stock	(11,550)		(10,981)		(10,358)
Dividends paid on preferred stock	(4,302)		(1,147)		0
Proceeds from issuance of long term debt	83,484		0		0
Repayment of long term debt	(50,000)		0		0
Purchase of treasury stock	(1,163)		(1,307)		(1,291)
Net proceeds from the issuance of preferred stock	0		57,785		0
Net proceeds from issuance of common stock	0		3,257		1,423
Net advance (to) from subsidiary	0		(850)		650
Net cash provided by (used in) financing activities	16,469		46,757		(9,576)
Net increase (decrease) in cash	36,306		9,979		395
Cash beginning of year	10,729		750		355
Cash end of year	$	47,035	$	10,729	$	750

22.  Earnings Per Share

The computation of basic and diluted earnings per common share is shown below. There were no anti-dilutive stock options for the years ended December 31, 2021, 2020, and 2019.

	Years Ended December 31,
	2021		2020		2019
Basic earnings per common share computation
Net income per consolidated statements of income	$	53,405	$	31,596	$	40,081
Net earnings allocated to participating securities	(183)		(100)		(147)
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Distributed earnings allocated to common stock	$	11,514	$	10,942	$	10,317
Undistributed earnings allocated to common stock	41,708		20,554		29,617
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding, including shares considered participating securities	16,875		16,048		15,219
Less: Average participating securities	(55)		(48)		(55)
Weighted average shares	16,820		16,000		15,164
Basic earnings per common share	$	3.16	$	1.97	$	2.63
Diluted earnings per common share computation
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding for basic earnings per common share	16,820		16,000		15,164
Add: Dilutive effects of performance based-shares	0		0		0
Weighted average shares and dilutive potential common shares	16,820		16,000		15,164
Diluted earnings per common share	$	3.16	$	1.97	$	2.63

115

23.   Other Comprehensive Income

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Unrealized holding gains (losses) on available for sale securities	$	(19,526)	$	12,494	$	13,732
Less reclassification adjustment for gains recognized in earnings	(783)		(2,190)		(148)
Net unrealized gains (losses)	(20,309)		10,304		13,584
Tax effect	4,265		(2,164)		(2,852)
Net-of-tax amount	(16,044)		8,140		10,732
Actuarial gain (loss) on postemployment health care plan	391		277		518
Net amortization of transition obligation and actuarial gain	(43)		0		23
Net unrealized gain (loss) on postemployment health care plan	348		277		541
Tax effect	(73)		(58)		(113)
Net-of-tax amount	275		219		428
Unrealized gain (loss) on interest rate swap	105		(508)		(347)
Less reclassification adjustment for losses recognized in earnings	276		224		63
Net unrealized gain (loss)	381		(284)		(284)
Tax effect	(80)		60		59
Net-of-tax amount	301		(224)		(225)
Other comprehensive income (loss)	$	(15,468)	$	8,135	$	10,935

The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2021, 2020, and 2019. 

	Balance 12/31/20		Comprehensive Income (Loss)		Balance 12/31/21
Unrealized gains (losses) on securities available for sale	$	15,338	$	(16,044)	$	(706)
Unrealized gain on postretirement benefits plan	343		275		618
Unrealized loss on interest rate swap	(607)		301		(306)
Total	$	15,074	$	(15,468)	$	(394)

	Balance 12/31/19		Comprehensive Income (Loss)		Balance 12/31/20
Unrealized gains on securities available for sale	$	7,198	$	8,140	$	15,338
Unrealized gain on postretirement benefits plan	124		219		343
Unrealized loss on interest rate swap	(383)		(224)		(607)
Total	$	6,939	$	8,135	$	15,074

	Balance 1/1/19		Comprehensive Income (Loss)		Balance 12/31/19
Unrealized gains (losses) on securities available for sale	$	(3,534)	$	10,732	$	7,198
Unrealized gain (loss) on postretirement benefits plan	(304)		428		124
Unrealized loss on interest rate swap	(158)		(225)		(383)
Total	$	(3,996)	$	10,935	$	6,939

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24.   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 years ended December 31, 2021, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	December 31, 2021		December 31, 2020		December 31, 2019
Non-interest Income
Service charges on deposit accounts	$	6,195	$	5,095	$	6,402
Wealth and asset management fees	6,740		5,497		4,627
Mortgage banking (1)	3,147		3,354		1,412
Card processing and interchange income	7,796		5,727		4,641
Net realized gains on available-for-sale securities (1)	783		2,190		148
Other income	8,773		6,196		8,745
Total non-interest income	$	33,434	$	28,059	$	25,975

(1)Not within scope of ASC 606

Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investment securities along with non-interest revenue resulting from security gains, loan servicing, gains on the sale of loans, commitment fees, fees from financial guarantees, certain credit card fees, gains (losses) on sale of other real estate owned not financed by the Corporation, is not within the scope of ASU 2014-9.

The types of non-interest income within the scope of the standard that are material to the consolidated financial statements are services charges on deposit accounts, wealth and asset management fee income, card processing and interchange income, and other income.

Service charges on deposit accounts: 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. Services charges on deposits are withdrawn from the customer’s account balance.

Wealth and asset management fees: The Corporation earns wealth and asset management fees from its contracts with trust and brokerage 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 for these services are billed to customers on a monthly or quarterly basis and are recorded as revenue at the end of the period for which the wealth and asset management services have been performed. Other performance obligations, such as the delivery of account statements to customers, are generally considered immaterial to the overall transaction price.

Card processing and interchange income: The Corporation earns interchange fees from check card and credit card transactions conducted through the Visa 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.

Other income: The Corporation's other income includes sources such as bank owned life insurance, changes in fair value and realized gains on sales of equity securities, certain service fees, gains (losses) on sales of fixed assets, and gains (losses) on sale of other real estate owned. The service fees are recognized in the same manner as the service charges mentioned above. While gains (losses) on the sale of other real estate owned are within the scope of ASU 2014-9 if financed by the Corporation, the Corporation does not finance the sale of transactions. The revenue on the sale is recorded upon the transfer of control of the property to the buyer and the other real estate owned asset is derecognized.

117

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

The Corporation’s management, under the supervision of and with the participation of the Corporation’s Principal Executive Officer and Principal Financial Officer, has carried out an evaluation of the design and effectiveness of the Corporation’s disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based upon that evaluation, management, including the Principal Executive Officer and Principal Financial Officer, have concluded that, as of the end of such period, the Corporation’s disclosure controls and procedures are effective to provide reasonable assurance that all material information required to be disclosed in reports the Corporation files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Management’s Report on Internal Control Over Financial Reporting

The management of the Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the U.S.

The Corporation’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Corporation’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2021. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the 2013 Internal Control-Integrated Framework. Based on our assessment and those criteria, management concluded that the Corporation maintained effective internal control over financial reporting as of December 31, 2021. The effectiveness of our internal control over financial reporting as of December 31, 2021 has been audited by Crowe LLP, Columbus, OH, (U.S. PCAOB Auditor Firm I.D.: 173), an independent registered public accounting firm that audited the Corporation’s financial statements, as stated in their report which is located in Item 8 of this Annual Report on Form 10-K.

/s/ Joseph B. Bower, Jr.	/s/ Tito L. Lima
President and Chief Executive Officer	Treasurer and Principal Financial Officer
Date: March 3, 2022	Date: March 3, 2022

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

None.

118

PART III.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item 10 is incorporated herein by reference from our definitive Proxy Statement for our 2022 Annual Meeting of Stockholders (the "2022 Proxy Statement"), which we will file with the SEC on or before 120 days after our 2021 fiscal year-end, and which will appear in the 2022 Proxy Statement under the captions "Proposal 1. Election of Directors," "Executive Officers," "Corporate Governance – Meetings and Committees of the Board of Directors – Audit Committee," "Certain Transactions" and "Other Matters – Section 16(a) Beneficial Ownership Reporting Compliance."

The Corporation’s Board of Directors has approved a Code of Ethics for Officers and Directors. The Code of Ethics can be found at the Bank’s website, www.cnbbank.bank.

ITEM 11. EXECUTIVE COMPENSATION

Information required by this Item 11 is incorporated herein by reference from the 2022 Proxy Statement, including the information in the 2022 Proxy Statement appearing under the captions "Compensation of Executive Officers," "Compensation Committee Report" and "Compensation of Directors."

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information required by this Item 12 is incorporated herein by reference from the 2022 Proxy Statement, including the information in the 2022 Proxy Statement appearing under the captions "Stock Ownership" and "Compensation of Executive Officers – Equity Compensation Plan Information."

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information required by this Item 13 is incorporated herein by reference from the 2022 Proxy Statement, including the information in the 2022 Proxy Statement appearing under the captions "Proposal 1. Election of Directors," "Corporate Governance" and "Certain Transactions."

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information required by this Item 14 is incorporated herein by reference from the 2022 Proxy Statement, including the information in the 2022 Proxy Statement appearing under the captions "Corporate Governance – Meetings and Committees of the Board of Directors – Audit Committee" and "Concerning the Independent Registered Public Accounting Firm."

119

PART IV.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) The following consolidated financial statements are set forth in Part II, Item 8:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2021 and 2020

Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2021, 2020, and 2019

Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020, and 2019

Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2021, 2020, and 2019

Notes to Consolidated Financial Statements

(a)(2) Financial statement schedules are not applicable or are included in the consolidated financial statements or related notes.

(a)(3) The following exhibits are filed as a part of this report:

 

Exhibit No.	Description
2.1	Agreement and Plan of Merger, dates as of December 18, 2019, by and among CNB Financial Corporation, CNB Bank and Bank of Akron (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on December 18, 2019)
3.1	Second Amended and Restated Articles of Incorporation of CNB Financial Corporation (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
3.2	Second Amended and Restated Bylaws of CNB Financial Corporation (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
3.3	Statement with Respect to Shares of 7.125% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock, effective as of August 25, 2020 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on August 25, 2020)
4.1	Description of Registrant's Securities
4.2	Form of Certificate representing the 7.125% Series A Fixed-Rated Non-Cumulative Perpetual Preferred Stock (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on August 25, 2020)
4.3	Deposit Agreement, dated August 25, 2020, among CNB Financial Corporation, American Stock Transfer & Trust Company, LLC, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on August 25, 2020)
4.4	Form of Depositary Receipt representing the Depositary Shares (included as Exhibit A to Exhibit 4.3 of the Registration Statement on Form 8-A filed on August 25, 2020)
4.5	Form of 3.25% Fixed-to-Floating Rate Subordinated Note due 2031 (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on June 3, 2021)
10.1(1)	CNB Financial Corporation 2019 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
10.2(1)	Executive Employment Agreement dated October 24, 2019 by and among CNB Financial Corporation, CNB Bank and Joseph B. Bower Jr. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 25, 2019)
10.3(1)	Executive Employment Contract, dated February 8, 2012, by and between CNB Bank and Richard l. Greslick, Jr. (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on March 9, 2012)

120

Exhibit No.	Description
10.4(1)	Executive Employment Contract, dated September 23, 2013, by and between CNB Financial Corporation, CNB Bank and Joseph E. Dell, Jr. (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 10-K filed on March 7, 2014)
10.5(1)	Executive Employment Agreement, dated March 23, 2020, by and between CNB Financial Corporation, CNB Bank and Tito L. Lima (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on March 24, 2020)
10.6(1)	Executive Employment Agreement, dated August 30, 2021, by and between CNB Financial Corporation, CNB Bank and Martin T. Griffith (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on September 3, 2021)
10.7	Form of Subordinated Note Purchase Agreement, dated June 3, 2021, by and among CNB Financial Corporation and the Purchasers identified therein (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on June 3, 2021)
10.8(1)	Defined Contribution Plan for Tito L. Lima, effective as of January 2, 2022 (incorporated by reference to Exhibit 10.1 to the Registration’s Current Report on Form 8-K filed on January 4, 2022)
21	List of subsidiaries of CNB Financial Corporation, filed herewith
23.1	Consent of Crowe LLP
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB	XBRL Taxonomy Extension Presentation Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

(1) Indicates a management contract or compensatory plan.

ITEM 16. FORM 10-K SUMMARY

None.

121

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

			CNB FINANCIAL CORPORATION
			(Registrant)
Date:	March 3, 2022	By:	/s/ Joseph B. Bower, Jr.
			JOSEPH B. BOWER, JR.
			President & Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 3, 2022.

/s/ Joseph B. Bower, Jr.	/s/ Peter F. Smith
JOSEPH B. BOWER, JR.	PETER F. SMITH, Chairman
President and Director
(Principal Executive Officer)
/s/ Richard L. Greslick, Jr.	/s/ Richard B. Seager
RICHARD L. GRESLICK, JR.	RICHARD B. SEAGER, Director
Secretary and Director
/s/ Tito L. Lima	/s/ Francis X. Straub, III
TITO L. LIMA	FRANCIS X. STRAUB, III, Director
Treasurer
(Principal Financial and Accounting Officer)
/s/ N. Michael Obi	/s/ Peter C. Varischetti
N. MICHAEL OBI, Director	PETER C. VARISCHETTI, Director
/s/ Joel E. Peterson	/s/ Julie M. Young
JOEL E. PETERSON, Director	JULIE M. YOUNG, Director
/s/ Deborah Dick Pontzer
DEBORAH DICK PONTZER, Director
/s/ Jeffrey S. Powell
JEFFREY S. POWELL, Director
/s/ Nicholas N. Scott
NICHOLAS N. SCOTT, Director

122

EX-4.1

Exhibit 4.1

CNB FINANCIAL CORPORATION

Description of Securities Registered Pursuant to

Section 12 of the Securities Exchange Act of 1934

The following description is a general summary of the terms of our securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The description below does not purport to be complete and is subject to and qualified in its entirety by reference to our Second Amended and Restated Articles of Incorporation (the “Charter”) and Second Amended and Restated Bylaws (the “Bylaws”), copies of which are filed as exhibits to the Annual Report on Form 10-K of which this Exhibit 4.1 is part of. The description below does not contain all of the information that you might find useful or that might be important to you. You should refer to the provisions of our Charter and Bylaws because they, and not the summaries, define the rights of holders of our securities.

General

Our Charter authorizes us to issue 50,000,000 shares of stock, no par value.

Common Stock

Each share of our common stock has the same relative rights and is identical in all respects to each other share of our common stock. Our common stock is non-withdrawable capital, is not of an insurable type and is not insured by the Federal Deposit Insurance Corporation or any other governmental entity.

Voting Rights

Holders of our common stock are entitled to one vote per share on each matter properly submitted to shareholders for their vote, including the election of directors. Holders of our common stock do not have the right to cumulate their votes for the election of directors. Subject to certain exceptions, whenever any corporate action is to be taken by a vote of the shareholders, it will be authorized by the affirmative vote of a majority of the votes cast by all shareholders entitled to vote thereon. Directors receiving the highest number of votes shall be elected.

Liquidation Rights

The holders of our common stock, together with the holders of any class or series of stock entitled to participate with the holders of our common stock in the distribution of assets in the event of any liquidation, dissolution or winding-up of us, whether voluntary or involuntary, will be entitled to participate equally in the distribution of any of our assets remaining after we have paid, or provided for the payment of, all of our debts and liabilities and after we have paid, or set aside for payment to, the holders of any class of stock having preference over the common stock in the event of a liquidation, dissolution or winding-up the full preferential amounts to which they are entitled.

Dividends

The holders of our common stock and any class or series of stock entitled to participate with the holders of our common stock are entitled to receive dividends declared by our board of directors out of any assets legally available for distribution. We may not pay dividends or other distributions unless we have paid, declared or set aside all accumulated dividends and any sinking fund, retirement fund or other retirement payments on any class of stock having preference as to payments of dividends over our common stock. As a holding company, our ability to pay distributions is affected by the ability of our subsidiaries to pay dividends. The ability of our bank subsidiary, and our ability, to pay dividends in the future is, and could in the future be further, influenced by bank regulatory requirements and capital guidelines.

Miscellaneous

The holders of our common stock have no preemptive or conversion rights for any shares that may be issued. Our common stock is not subject to additional calls or assessments, and all shares of our common stock currently outstanding are fully paid and nonassessable. All shares of common stock offered, or issuable upon conversion, exchange or exercise of any convertible securities, will, when issued, be fully paid and nonassessable, which means that the full purchase price of the shares will have been paid and the holders of the shares will not be assessed any additional monies for the shares.

1

NASDAQ Stock Market Listing

Our common stock is traded on the NASDAQ Stock Market under the symbol “CCNE.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.

Certain Important Charter Provisions

Our Bylaws provide for the division of our board of directors into three classes of directors, each class as nearly as equal as possible, with each serving staggered terms. Any amendment to our Bylaws must be approved by the affirmative vote of a majority of the votes cast by all shareholders entitled to vote thereon and, if any shareholders are entitled to vote thereon as a class, upon receiving the affirmative vote of a majority of the votes cast by the shareholders entitled to vote as a class. Additionally, our Charter provides that the affirmative vote of at least 66% of the outstanding shares of each class entitled to vote is required to effect business combinations.

Some of the foregoing provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of us.

Since the terms of our Charter and Bylaws may differ from the general information we are providing, you should only rely on the actual provisions of our Charter and Bylaws. If you would like to read our Charter and Bylaws, copies are filed as exhibits to this Annual Report on Form 10-K.

Preferred Stock

Our Charter, subject to limitations prescribed in the Charter and subject to limitations prescribed by Pennsylvania law, authorizes the board of directors, from time to time by resolution and without further shareholder action, to provide for the issuance of shares of Series A Preferred Stock, in one or more series, and to fix the designation, powers, preferences and other rights of the shares and to fix the qualifications, limitations and restrictions thereof. As a result of its broad discretion with respect to the creation and issuance of Series A Preferred Stock without shareholder approval, the board of directors could adversely affect the voting power of the holders of common stock and, by issuing shares of Series A Preferred Stock with certain voting, conversion and/or redemption rights, could discourage any attempt to obtain control of us.

Upon issuance against full payment of the purchase price therefor, shares of Series A Preferred Stock are fully paid and nonassessable. The description of Series A Preferred Stock set forth below does not purport to be complete and is qualified in its entirety by reference to the Statement with Respect to Shares relating to the Series A Preferred Stock, a copy of which is filed as an exhibit to this Annual Report on Form 10-K. As of March 3, 2022, the only series of Series A Preferred Stock outstanding is our 7.125% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock, no par value per share, with a liquidation preference of $1,000 per share (the “Series A Preferred Stock”).

Ranking

The Series A Preferred Stock ranks, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up, (1) senior to our common stock and each other class or series of Series A Preferred Stock we may issue in the future the terms of which do not expressly provide that it ranks on a parity with or senior to the Series A Preferred Stock as to dividend rights and rights on liquidation, winding-up and dissolution of the Corporation (collectively, “junior securities”), (2) on a parity with each class or series of Series A Preferred Stock we may issue in the future the terms of which expressly provide that such class or series will rank on a parity with the Series A Preferred Stock as to dividend rights and rights on liquidation, winding-up and dissolution of the Corporation (collectively, “parity securities”), and (3) junior to all existing and future indebtedness and other liabilities and any class or series of Series A Preferred Stock that expressly provides in the statement with respect to shares creating such preferred stock that such series ranks senior to the Series A Preferred Stock (any such class or series, collectively, the “senior securities”).

We will not be entitled to issue any senior securities without the approval of the holders of at least two-thirds of the shares of the Series A Preferred Stock then outstanding and any class or series of parity securities upon which like voting rights have been conferred and are exercisable and are then outstanding, voting together as a single class, with each series or class having a number of votes proportionate to the aggregate liquidation preference of the outstanding shares of such class or series. See “—Other Voting Rights.”

2

We may re-open the Series A Preferred Stock and issue additional shares and related depositary shares either through public or private sales at any time and from time to time. The additional shares of Series A Preferred Stock and related depositary shares would be deemed to form a single series with the Series A Preferred Stock and the depositary shares, respectively, offered by this prospectus supplement. In the event that we issue additional shares of the Series A Preferred Stock and the related depositary shares after the original issue date, any dividends on such additional shares will accrue from the issue date of such additional shares.

Dividends

Dividends on the Series A Preferred Stock accrue and are payable when, as and if authorized and declared by our board of directors or a duly authorized committee of our board of directors out of legally available funds, on a non-cumulative basis on the $1,000 per share liquidation preference, at a rate equal to 7.125% per annum for each quarterly dividend period from the issue date.

Dividends are paid quarterly, in arrears on March 1, June 1, September 1 and December 1 of each year (each, a “dividend payment date”), with respect to the dividend period, or portion thereof, ending on the day preceding the respective dividend payment date. A “dividend period” means each period commencing on (and including) a dividend payment date and continuing to (but not including) the next succeeding dividend payment date. Each dividend will be payable to holders of record as they appear on our share transfer records at the close of business on the 15th day of the month preceding the month in which the relevant dividend payment date occurs or such other date, not exceeding 30 days before the applicable dividend payment date, as shall be fixed by our board of directors or a duly authorized committee of our board of directors. Each period from and including a dividend payment date to but excluding the following dividend payment date is herein referred to as a “dividend period.”

If a dividend payment date is not a business day, then such date will nevertheless be a dividend payment date but dividends on the Series A Preferred Stock, when, as and if declared, will be paid on the next succeeding business day (without adjustment in the amount of the dividend per share of the Series A Preferred Stock).

Dividends payable on the Series A Preferred Stock are computed on the basis of a 360-day year consisting of twelve 30-day months.

A “business day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or obligated by law or executive order to close in New York, New York.

Dividends on the Series A Preferred Stock are non-cumulative. If for any reason our board of directors or a duly authorized committee of our board does not authorize and declare cash dividends on the Series A Preferred Stock for a dividend period (or if less than full dividends for any dividend period are authorized and declared), we will have no obligation to pay any dividends or any additional dividends, as applicable, for that period, whether or not our board of directors or a duly authorized committee of our board authorizes and declares dividends on the Series A Preferred Stock for any subsequent dividend period.

We are not obligated to and will not pay holders of the Series A Preferred Stock any interest or sum of money in lieu of interest on any dividend not paid on a dividend payment date. We are also not obligated to and will not pay holders of the Series A Preferred Stock any dividend in excess of the dividends on the Series A Preferred Stock that are payable as described above.

As a bank holding company, our ability to pay dividends on the Series A Preferred Stock also is subject to rules and guidelines of the Federal Reserve related to capital adequacy and serving as a source of financial strength to the Bank. As a result, we may be unable to pay dividends on the Series A Preferred Stock on one or more of the scheduled payment dates, or at any other time, or any such payment may require the prior approval of the Federal Reserve.

There is no sinking fund with respect to dividends.

3

Dividend Stopper

In addition, if full dividends on all outstanding shares of the Series A Preferred Stock for the most recently completed dividend period have not been authorized, declared and paid or set aside for payment, we will be prohibited from declaring or paying dividends (other than a dividend payable solely in junior securities) with respect to, or redeeming, purchasing or acquiring any of, our junior securities during the next succeeding dividend period, other than:

i.redemptions, purchases or other acquisitions of junior securities in connection with any benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants or in connection with a dividend reinvestment or shareholder stock purchase plan;

ii.any declaration of a dividend in connection with any shareholders’ rights plan, or the issuance of rights, stock or other property under any shareholders’ rights plan, or the redemption or repurchase of rights pursuant thereto; and

iii.conversions into or exchanges for other junior securities and cash solely in lieu of fractional shares of the junior securities.

If dividends for any dividend payment date are not paid in full on the shares of the Series A Preferred Stock and there are issued and outstanding shares of parity securities for which such dividend payment date is also a scheduled dividend payment date, then all dividends declared on shares of the Series A Preferred Stock and such parity securities on such date shall be declared pro rata so that the respective amounts of such dividends shall bear the same ratio to each other as full dividends (or equivalent) per share on the shares of the Series A Preferred Stock and all such parity securities otherwise payable on such date (subject to their having been authorized by the board of directors or a duly authorized committee of the board of directors and declared by us out of legally available funds and including, in the case of any such parity securities that bear cumulative dividends, all accumulated but unpaid dividends) shall bear to each other.

Maturity

The Series A Preferred Stock does not have a maturity date, and we are not required to redeem the Series A Preferred Stock. Accordingly, the Series A Preferred Stock and related depositary shares will remain outstanding indefinitely, unless and until we decide to redeem it.

Redemption

The Series A Preferred Stock is redeemable, in whole or in part, from time to time, at our option on any dividend payment date on or after September 1, 2025 at a redemption price equal to the liquidation preference, plus any authorized, declared and unpaid dividends. Neither the holders of Series A Preferred Stock nor the holders of depositary shares has the right to require the redemption or repurchase of the Series A Preferred Stock.

Redemption upon a Regulatory Capital Treatment Event

The Series A Preferred Stock is redeemable, in whole but not in part, within 90 days following a regulatory capital treatment event at a redemption price equal to the liquidation preference, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. A “regulatory capital treatment event” means our good-faith determination that, as a result of (i) any amendment to, or change in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of any share of Series A Preferred Stock; (ii) any proposed change in those laws or regulations that is announced after the initial issuance of any share of Series A Preferred Stock; or (iii) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any share of Series A Preferred Stock, there is more than an insubstantial risk that we will not be entitled to treat the full liquidation value of the shares of Series A Preferred Stock then outstanding as “Additional Tier 1 Capital” (or its equivalent) for purposes of the capital adequacy standards of Federal Reserve Regulation Q, 12 C.F.R. Part 217 (or, as and if applicable, the successor capital adequacy guidelines or regulations of any successor appropriate federal banking agency), as then in effect and applicable, for as long as any share of Series A Preferred Stock is outstanding.

The Series A Preferred Stock is not subject to any sinking fund or other obligation to redeem, repurchase or retire the Series A Preferred Stock.

4

Redemption Procedures

If shares of the Series A Preferred Stock are to be redeemed, notice of redemption shall be given by first class mail to the holders of record of the Series A Preferred Stock to be redeemed, mailed at least 15 days and not more than 60 days before the date fixed for redemption (provided that, if the depositary shares are held in book-entry form through The Depositary Trust Company (“DTC”) we may give such notice in any manner permitted by DTC). Each notice of redemption will include a statement setting forth:

a.the redemption date;

b.the number of shares of Series A Preferred Stock to be redeemed and, if less than all the shares of a holder are to be redeemed, the number of such shares to be redeemed;

c.the redemption price;

d.the place or places where the certificates for such shares are to be surrendered for payment of the redemption price; and

e.that dividends on the shares to be redeemed will cease to accrue on the redemption date.

If notice of redemption of any shares of the Series A Preferred Stock has been duly given and if the funds necessary for such redemption have been deposited by us for the benefit of the holders of shares of the Series A Preferred Stock so called for redemption, then, on and after the redemption date, dividends will cease to accrue on such shares of the Series A Preferred Stock, such shares of the Series A Preferred Stock shall no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price plus any authorized, declared and unpaid dividends, without accumulation of any undeclared dividends. See “Description of the Depositary Shares” below for information about redemption of the depositary shares relating to the Series A Preferred Stock.

In case of any redemption of only part of the shares of the Series A Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro rata, by lot or in such other manner as we may determine to be equitable and permitted by the rules of any stock exchange on which the Series A Preferred Stock or related depositary shares are listed. Subject to the provisions hereof, our board of directors shall have full power and authority to prescribe the terms and conditions upon which shares of the Series A Preferred Stock shall be redeemed from time to time.

Under the Federal Reserve’s current risk-based capital guidelines applicable to bank holding companies, any redemption of the Series A Preferred Stock is subject to prior approval by the Federal Reserve. Any redemption of the Series A Preferred Stock is subject to our receipt of any required prior approval by the Federal Reserve (including any successor bank regulatory authority that may become our appropriate federal banking agency) and to the satisfaction of any conditions set forth in the capital standards, guidelines or regulations of the Federal Reserve (or another successor bank regulatory authority that may become our appropriate federal banking agency) applicable to redemption of the Series A Preferred Stock.

Any notice of redemption, once given, shall be irrevocable.

Neither the holders of the Series A Preferred Stock nor the holders of the related depositary shares have the right to require the redemption or repurchase of the Series A Preferred Stock.

Liquidation Rights

In the event that we voluntarily or involuntarily liquidate, dissolve or wind up, the holders of the Series A Preferred Stock at the time outstanding will be entitled to receive liquidating distributions in the amount of $1,000 per share of the Series A Preferred Stock (equivalent to $25 per depositary share), plus an amount equal to any authorized and declared but unpaid dividends thereon to and including the date of such liquidation without accumulation of any undeclared dividends, out of assets legally available for distribution to our shareholders, before any distribution of assets is made to the holders of our common stock or any other junior securities. After payment of the full amount of such liquidating distributions, the holders of the Series A Preferred Stock will not be entitled to any further participation in any distribution of assets by us, and will have no right or claim to any of our remaining assets.

In the event that our assets available for distribution to shareholders upon any liquidation, dissolution or winding-up of our affairs, whether voluntary or involuntary, are insufficient to pay in full the amounts payable with respect to all outstanding shares of the Series A Preferred Stock and the corresponding amounts payable on any parity securities, the holders of the Series A Preferred Stock and the holders of such other parity securities will share ratably in any distribution of our assets in proportion to the full respective liquidating distributions to which they would otherwise be respectively entitled.

5

For such purposes, our merger with or into any other entity, the merger of any other entity with or into us, our conversion into another entity, or the sale of all or substantially all of our property or business, will not be deemed to constitute our liquidation, dissolution, or winding-up.

Voting Rights

Except as indicated below and in “—Other Voting Rights,” or as otherwise provided by Pennsylvania law, the holders of the Series A Preferred Stock do not have any voting rights.

Right to Elect Two Directors upon Non-Payment of Dividends. If and when the dividends on the Series A Preferred Stock or on any other class or series of our parity securities that has voting rights equivalent to those of the Series A Preferred Stock, have not been authorized, declared and paid in full for at least six quarterly dividend periods or their equivalent (whether or not consecutive), the authorized number of directors then constituting our board of directors will be automatically increased by two. Holders of the Series A Preferred Stock and the holders of all other classes and series of parity securities upon which like voting rights have been conferred and are exercisable and which are entitled to vote for the election of the two additional directors, voting together as a single class, with each series or class having a number of votes proportionate to the aggregate liquidation preference of the outstanding shares of such class or series, will be entitled to elect two additional members of our board of directors (the “Preferred Stock Directors”) at any annual or special meeting of shareholders at which directors are to be elected or any special meeting of the holders of the Series A Preferred Stock and any parity securities for which dividends have not been paid, called as provided below, but only if the election of any Preferred Stock Directors would not cause us to violate the corporate governance requirement of NASDAQ (or any other exchange on which our securities may be listed) that listed companies must have a majority of independent directors. In addition, our board of directors shall at no time have more than two Preferred Stock Directors.

At any time after this voting power has vested as described above, our Secretary may, and upon the written request of holders of record of at least 20% of the outstanding shares of the Series A Preferred Stock and such parity securities (addressed to the Secretary at our principal office) must, call a special meeting of the holders of Series A Preferred Stock and such parity securities for the election of the Series A Preferred Stock Directors. Notice for a special meeting will be given in a similar manner to that provided in our Bylaws for a special meeting of the shareholders, which we will provide upon request, or as required by law. If our Secretary is required to call a meeting but does not do so within 20 days after receipt of any such request, then any holder of shares of the Series A Preferred Stock may (at our expense) call such meeting, upon notice as provided in our Charter and as described in this section, and for that purpose will have access to our share transfer records. The Series A Preferred Stock Directors elected at any such special meeting will hold office until the next annual meeting of our shareholders unless they have been previously terminated as set forth in our Charter and as described below. In case any vacancy occurs among the Series A Preferred Stock Directors, a successor will be elected by our board of directors to serve until the next annual meeting of the shareholders upon the nomination by the remaining Preferred Stock Director or if none remains in office, by the vote of the holders of record of the outstanding shares of Series A Preferred Stock and all parity securities, voting as a single class, with each series or class having a number of votes proportionate to the aggregate liquidation preference of the outstanding shares of such class or series. The Series A Preferred Stock Directors shall each be entitled to one vote per director on any matter.

Whenever full dividends have been paid or set aside for payment on the Series A Preferred Stock and any non-cumulative parity securities for at least one year and all dividends on any cumulative parity securities have been paid in full, then the right of the holders of the Series A Preferred Stock and any parity security to elect the Series A Preferred Stock Directors will cease (but subject always to the same provisions for the vesting of these voting rights in the case of any similar non-payment of dividends in respect of future dividend periods), the terms of office of all Preferred Stock Directors will immediately terminate and the number of directors constituting our board of directors will be automatically reduced accordingly.

Other Voting Rights

So long as any shares of the Series A Preferred Stock are outstanding, in addition to any other vote or consent of shareholders required by our Charter, our Bylaws or applicable Pennsylvania law, the vote or consent of the holders of at least two-thirds of the outstanding shares of the Series A Preferred Stock and any class or series of parity securities upon which like voting rights have been conferred and are exercisable and are then outstanding, voting together as a single class, with each series or class having a number of votes proportionate to the aggregate liquidation preference of the outstanding shares of such class or series, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or validating:

6

•Certain Charter Amendments. Any amendment of our Charter or Bylaws to authorize, or increase the authorized amount of, any shares of any class or series of stock ranking senior to the Series A Preferred Stock with respect to payment of dividends or distribution of assets on our liquidation, as well as any amendment of our Charter that would alter or change the voting powers, limitations, preferences or relative rights of the Series A Preferred Stock so as to affect them adversely; provided that the amendment of the Charter so as to authorize or create, or to increase the authorized amount of any shares of any class or series or any securities convertible into shares of any class or series of our stock ranking on a parity with or junior to the Series A Preferred Stock with respect to dividends and in the distribution of assets on our liquidation, dissolution or winding-up shall not be deemed to adversely affect the voting powers, limitations, preferences or relative rights of the Series A Preferred Stock; or

•Certain Share-Exchanges and/or Mergers. Any binding share exchange or reclassification involving the Series A Preferred Stock, or the sale, conveyance, exchange, or transfer of all or substantially all of our assets or business or any merger of us with or into any other corporation, unless, in each case, the shares of the Series A Preferred Stock (i) remain outstanding or (ii) are converted into or exchanged for preference securities of the surviving entity or any entity controlling such surviving entity and such new preference securities have powers, preferences, privileges, and rights that are not materially less favorable to the holders thereof than the powers, preferences, privileges, and rights of the Series A Preferred Stock, taken as a whole.

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which the vote would otherwise be required, all outstanding shares of the Series A Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds shall have been deposited by us for the benefit of the holders of shares of Series A Preferred Stock to effect the redemption.

The holders of Series A Preferred Stock have exclusive voting rights on any amendment to the Statement with Respect to Shares that would alter only the contract rights, as expressly set forth in the Statement with Respect to Shares of the Series A Preferred Stock, to the fullest extent permitted by the Pennsylvania Business Corporation Law of 1988, as amended.

Depositary

American Stock Transfer & Trust Company, LLC is the depositary for the shares of the Series A Preferred Stock.

Transfer Agent, Registrar, and Paying Agent

American Stock Transfer & Trust Company, LLC acts as initial transfer agent and registrar and as initial paying agent for the payment of dividends for the Series A Preferred Stock.

Title

We and the transfer agent, registrar and paying agent may treat the registered holder of the Series A Preferred Stock as the absolute owner of the Series A Preferred Stock for the purpose of making payment and for all other purposes.

Depositary Shares

We have issued depositary shares representing proportional fractional interests in shares of the Series A Preferred Stock. Each depositary share represents a 1/40th interest in a share of our Series A Preferred Stock, and is evidenced by depositary receipts. Subject to the terms of the deposit agreement, each holder of the depositary shares is entitled, through the depositary, to all the rights and preferences of the Series A Preferred Stock, as applicable, in proportion to the applicable fraction of a share of Series A Preferred Stock those depositary shares represent.

Dividends and Other Distributions

Each dividend payable on a depositary share is in an amount equal to 1/40th of the dividend authorized, declared and payable on the related share of the Series A Preferred Stock.

7

The depositary distributes any cash dividends or other cash distributions received in respect of the deposited Preferred Stock to the record holders of depositary shares relating to the underlying Preferred Stock in proportion to the number of depositary shares held by the holders. If we make a distribution other than in cash, the depositary will distribute any securities or property received by it to the record holders of depositary shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that (after consultation with us) it is not feasible to make a distribution, in which case the depositary may, with our approval, adopt a method of distribution that it deems equitable and practicable, including the sale of the securities or property and distribute the net proceeds from the sale to the holders of the depositary shares in proportion to the number of depositary shares they hold.

Record dates for the payment of dividends and other matters relating to the depositary shares are the same as the corresponding record dates for the Series A Preferred Stock.

The amounts distributed to holders of depositary shares are reduced by any amounts required to be withheld by us or the depositary on account of taxes or other governmental charges. The depositary may refuse to make any payment or distribution, or any transfer, exchange, or withdrawal of any depositary shares or the shares of the Series A Preferred Stock until such taxes or other governmental charges are paid.

Redemption of Depositary Shares

If we redeem the Series A Preferred Stock represented by the depositary shares, in whole or in part, as described above under “Preferred Stock—Redemption” and “Preferred Stock—Redemption upon a Regulatory Capital Treatment Event,” the depositary shares will be redeemed with the proceeds received by the depositary resulting from the redemption of the Series A Preferred Stock held by the depositary. The redemption price per depositary share will be equal to 1/40th of the redemption price per share payable with respect to the Series A Preferred Stock (or $25 per depositary share), plus any authorized, declared and unpaid dividends, without accumulation of undeclared dividends.

Whenever we redeem shares of the Series A Preferred Stock held by the depositary, the depositary will redeem, as of the same redemption date, the number of depositary shares representing those shares of the Series A Preferred Stock so redeemed. If fewer than all of the outstanding depositary shares are redeemed, the depositary will select the shares to be redeemed pro rata or by lot, or by any other equitable method, in each case as we may determine. The depositary will mail notice of redemption to record holders of the depositary receipts not less than 15 and not more than 60 days prior to the date fixed for redemption of the Series A Preferred Stock and the related depositary shares (provided that, if the depositary shares are held in book-entry form through DTC, notice may be given in any manner permitted by DTC).

Voting the Series A Preferred Stock

Because each depositary share represents a 1/40th interest in a share of the Series A Preferred Stock, holders of depositary receipts are entitled to 1/40th of a vote per depositary share under those limited circumstances in which holders of the Series A Preferred Stock are entitled to a vote, as described above in “Preferred Stock—Voting Rights” and “Preferred Stock—Other Voting Rights.”

When the depositary receives notice of any meeting at which the holders of the Series A Preferred Stock are entitled to vote, the depositary will mail the information contained in the notice to the record holders of the depositary shares relating to the Series A Preferred Stock. Each record holder of the depositary shares on the record date, which will be the same date as the record date for the Series A Preferred Stock, may instruct the depositary to vote the amount of the Series A Preferred Stock represented by the holder’s depositary shares. Insofar as practicable, the depositary will vote the amount of the Series A Preferred Stock represented by depositary shares in accordance with the instructions it receives. We will agree to take all reasonable actions that the depositary determines are necessary to enable the depositary to vote as instructed. If the depositary does not receive specific instructions from the holders of any depositary shares representing proportional interests in the Series A Preferred Stock, it will not vote the amount of the Series A Preferred Stock represented by such depositary shares.

Form and Notices

The Series A Preferred Stock are issued in registered form to the depositary, and the depositary shares are issued in book-entry form through DTC. The depositary will forward to the holders of depositary shares all reports, notices, and communications from us that are delivered to the depositary and that we are required to furnish to the holders of the Series A Preferred Stock.

Preemptive and Conversion Rights

The holders of the depositary shares and the Series A Preferred Stock do not have any preemptive or conversion rights.

8

Listing

The depositary shares are listed on the NASDAQ Stock Market under the symbol “CCNEP.”

Depositary, Dividend Disbursing Agent, Registrar and Redemption Agent

American Stock Transfer & Trust Company, LLC is the depositary, registrar and redemption agent, and American Stock Transfer & Trust Company, LLC is the dividend disbursing agent for the depositary shares.

9

EX-21

Exhibit 21

CNB FINANCIAL CORPORATION

Form 10-K For The Year Ended December 31, 2021

SUBSIDIARIES OF THE REGISTRANT

Name	Jurisdiction of Incorporation or Organization
CNB Bank	Banking Association Chartered in Pennsylvania Incorporated in Pennsylvania
CNB Securities Corporation	Investment Holding Company Incorporated in Delaware
Holiday Financial Services Corporation	Consumer Loan Company Incorporated in Pennsylvania
CNB Insurance Agency	Insurance and Annuity Agency Incorporated in Pennsylvania
CNB Risk Management, Inc.	Captive Insurance Company Incorporated in Delaware

EX-23.1

Exhibit 23.1

CNB FINANCIAL CORPORATION

Form 10-K For The Year Ended December 31, 2021

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-236018 on Form S-3/A, Registration Statement No. 333-163047 on Form S-3D and Registration Statement No. 333-231505 on Form S-8 of CNB Financial Corporation of our report dated March 3, 2022 relating to the consolidated financial statements and effectiveness of internal control over financial reporting appearing in this Annual Report on Form 10-K.

/s/ Crowe LLP

Crowe LLP

Columbus, Ohio

March 3, 2022

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Joseph B. Bower, Jr., certify that:

1. I have reviewed this Annual Report on Form 10-K of CNB 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 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 15d-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 purposes 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 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 control over financial reporting.

Date: March 3, 2022

/s/ Joseph B. Bower, Jr.

Joseph B. Bower, Jr.

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Tito L. Lima, certify that:

1. I have reviewed this Annual Report on Form 10-K of CNB 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 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 15d-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 purposes 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 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 control over financial reporting.

Date: March 3, 2022

/s/ Tito L. Lima

Tito L. Lima

Executive Vice President, Chief Financial Officer and Treasurer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Joseph B. Bower, Jr., President and Chief Executive Officer of CNB Financial Corporation (the “Corporation”), hereby certifies, to my knowledge, that the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

	/s/ Joseph B. Bower, Jr.
	Joseph B. Bower, Jr.
Date: March 3, 2022	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Tito L. Lima, Executive Vice President, Chief Financial Officer, and Treasurer of CNB Financial Corporation (the “Corporation”), hereby certifies, to my knowledge, that the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

	/s/ Tito L. Lima
	Tito L. Lima
Dated: March 3, 2022	Executive Vice President, Chief Financial Officer, and Treasurer

XML

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 01, 2022	Jun. 30, 2021
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39472
Entity Registrant Name	CNB FINANCIAL CORP/PA
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	25-1450605
Entity Address, Address Line One	1 South Second Street
Entity Address, Address Line Two	P.O. Box 42
Entity Address, City or Town	Clearfield
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	16830
City Area Code	814
Local Phone Number	765-9621
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 362,508,707
Entity Common Stock, Shares Outstanding (in shares)		16,910,921
Documents Incorporated by Reference	Portions of the definitive Proxy Statement for the 2021 Annual Meeting of Stockholders to be held on April 19, 2022 are incorporated by reference into Part III of this report.
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0000736772
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	CCNE
Security Exchange Name	NASDAQ
Series A Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of 7.125% Series A Non-Cumulative, perpetual preferred stock)
Trading Symbol	CCNEP
Security Exchange Name	NASDAQ

XML

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Firm ID	173
Auditor Name	Crowe LLP
Auditor Location	Columbus, OH

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 42,440	$ 44,368
Interest bearing deposits with other banks	689,758	488,326
Total cash and cash equivalents	732,198	532,694
Debt securities available for sale, at fair value (amortized cost of $698,085 as of December 31, 2021 and $565,493 as of December 31, 2020)	697,191	584,908
Equity securities	10,366	6,649
Loans held for sale	849	8,514
Loans	3,634,792	3,371,789
Less: allowance for credit losses	(37,588)	(34,340)
Net loans	3,597,204	3,337,449
FHLB and other equity interests	23,276	21,018
Premises and equipment, net	61,659	60,064
Operating lease right-of-use assets	19,928	18,407
Bank owned life insurance	99,719	76,471
Mortgage servicing rights	1,664	1,527
Goodwill	43,749	43,749
Core deposit intangible	460	567
Accrued interest receivable and other assets	40,676	37,382
Total Assets	5,328,939	4,729,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Non-interest bearing deposits	792,086	627,114
Interest bearing demand deposits	1,079,336	951,903
Savings	2,457,745	2,126,183
Certificates of deposit	386,452	476,544
Total deposits	4,715,619	4,181,744
Subordinated debentures	20,620	20,620
Subordinated notes, net of unamortized issuance costs	83,661	50,000
Operating lease liabilities	21,159	19,449
Accrued interest payable and other liabilities	45,033	41,449
Total liabilities	4,886,092	4,313,262
Commitments and contingent liabilities
Preferred stock, Series A non-cumulative perpetual, $0 par value; $1,000 liquidation preference; shares authorized 60,375; Shares issued 60,375 at December 31, 2021 and 60,375 at December 31, 2020	57,785	57,785
Common stock, $0 par value; 50,000,000 shares authorized; Shares issued 16,978,057 shares at December 31, 2021 and 16,978,057 at December 31, 2020	0	0
Additional paid in capital	127,351	127,518
Retained earnings	260,582	218,727
Treasury stock, at cost (122,995 shares at December 31, 2021 and 145,049 shares at December 31, 2020)	(2,477)	(2,967)
Accumulated other comprehensive income (loss)	(394)	15,074
Total shareholders’ equity	442,847	416,137
Total Liabilities and Shareholders’ Equity	5,328,939	4,729,399
PPP
ASSETS
Loans	45,203	155,529
Syndicated
ASSETS
Loans	125,761	22,064
All other
ASSETS
Loans	$ 3,463,828	$ 3,194,196

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Debt securities, available-for-sale, amortized cost	$ 698,085	$ 565,493
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, liquidation preference	$ 1	$ 1
Preferred stock, shares authorized (in shares)	60,375	60,375
Preferred stock, shares issued (in shares)	60,375	60,375
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	16,978,057	16,978,057
Treasury stock, shares (in shares)	122,995	145,049

XML

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans	$ 157,799	$ 147,547	$ 139,867
Processing fees on PPP loans	8,737	5,140	0
Securities and cash and cash equivalents:
Taxable	11,680	12,362	12,472
Tax-exempt	1,125	1,441	2,372
Dividends	259	677	1,017
Total interest and dividend income	179,600	167,167	155,728
INTEREST EXPENSE:
Deposits	15,062	24,142	30,202
Borrowed funds and finance lease liabilities	23	4,534	5,349
Subordinated debentures (includes $276, $224, and $63 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements, respectively)	4,735	3,780	3,979
Total interest expense	19,820	32,456	39,530
NET INTEREST INCOME	159,780	134,711	116,198
PROVISION FOR CREDIT LOSS EXPENSE	6,003	15,354	6,024
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSS EXPENSE	153,777	119,357	110,174
NON-INTEREST INCOME:
Service charges on deposit accounts	6,195	5,095	6,402
Other service charges and fees	2,436	2,548	2,930
Wealth and asset management fees	6,740	5,497	4,627
Net realized gains on available-for-sale securities (includes $783, $2,190, and $148 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities, respectively)	783	2,190	148
Net realized gains on equity securities	0	75	16
Net unrealized gains on equity securities	790	253	1,872
Realized gains on Visa Class B shares	0	0	463
Mortgage banking	3,147	3,354	1,412
Bank owned life insurance	2,638	1,747	1,317
Card processing and interchange income	7,796	5,727	4,641
Other	2,909	1,573	2,147
Total non-interest income	33,434	28,059	25,975
NON-INTEREST EXPENSES:
Compensation and benefits (includes $(44), $0, and $23 accumulated other comprehensive income reclassifications for net amortization of actuarial (gains) losses, respectively)	61,175	48,723	46,405
Net occupancy expense	12,381	12,333	11,221
Amortization of core deposit intangible	107	206	567
Technology expense	11,723	7,153	4,994
State and local taxes	4,057	3,340	3,140
Legal, professional and examination fees	3,517	2,990	2,514
Advertising	2,081	1,993	2,113
FDIC insurance	2,509	2,414	1,252
Merger costs, prepayment penalties and branch closure costs	0	12,642	170
Dues and subscriptions	2,089	1,843	1,876
Card processing and interchange expenses	3,836	3,135	2,891
Other	12,958	10,554	10,365
Total non-interest expenses	116,433	107,326	87,508
INCOME BEFORE INCOME TAXES	70,778	40,090	48,641
INCOME TAX EXPENSE (includes $116, $413, and $13 income tax expense reclassification items, respectively)	13,071	7,347	8,560
NET INCOME	57,707	32,743	40,081
PREFERRED STOCK DIVIDENDS	4,302	1,147	0
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 53,405	$ 31,596	$ 40,081
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 3.16	$ 1.97	$ 2.63
Diluted (in dollars per share)	$ 3.16	$ 1.97	$ 2.63
OTHER COMPREHENSIVE INCOME (LOSS):
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification and tax	$ (16,044)	$ 8,140	$ 10,732
Change in actuarial gain, for post-employment health care plan, net of amortization and tax	275	219	428
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of interest and tax	301	(224)	(225)
Total other comprehensive income (loss)	(15,468)	8,135	10,935
COMPREHENSIVE INCOME	$ 42,239	$ 40,878	$ 51,016

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Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements	$ 276	$ 224	$ 63
Accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities	783	2,190	148
Accumulated other comprehensive income reclassifications on employee benefits	(44)	0	23
Income tax expense from reclassification	$ (116)	$ (413)	$ (13)

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Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Impact of CECL Adoption	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Impact of CECL Adoption	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Restricted Stock	Restricted Stock Treasury Stock	Performance Based Restricted Stock Awards	Performance Based Restricted Stock Awards Treasury Stock
Beginning balance at Dec. 31, 2018	$ 262,830		$ 0	$ 97,602	$ 171,780		$ (2,556)	$ (3,996)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	40,081				40,081
Other comprehensive income (loss)	10,935							10,935
Forfeiture of restricted stock award grants	0			71			(71)
Restricted stock award grants	0			(1,086)			1,086
Performance based restricted stock award grants	0			(21)			21
Stock-based compensation expense	1,346			1,346
Contribution of stock from treasury stock	0
Issuance of common stock, net of issuance costs	1,423			1,423
Purchase of treasury stock	(994)						(994)		$ (289)	$ (289)	$ (8)	$ (8)
Common cash dividends declared	(10,358)				(10,358)
Ending balance at Dec. 31, 2019	304,966	$ (3,391)	0	99,335	201,503	$ (3,391)	(2,811)	6,939
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	32,743				32,743
Other comprehensive income (loss)	8,135							8,135
Restricted stock award grants	0			(934)			934
Performance based restricted stock award grants	0			(217)			217
Stock-based compensation expense	1,410			1,410
Contribution of stock from treasury stock	0
Issuance of common stock, net of issuance costs	3,257			3,257
Purchase of treasury stock	(981)						(981)		(213)	(213)	(113)	(113)
Issuance of preferred equity, net of issuance costs	57,785		57,785
Acquisition of Bank of Akron	24,667			24,667
Preferred cash dividend declared	(1,147)				(1,147)
Common cash dividends declared	(10,981)				(10,981)
Ending balance at Dec. 31, 2020	416,137		57,785	127,518	218,727		(2,967)	15,074
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	57,707				57,707
Other comprehensive income (loss)	(15,468)							(15,468)
Forfeiture of restricted stock award grants	0			64			(64)
Restricted stock award grants	0			(1,374)			1,374
Performance based restricted stock award grants	0			(262)			262
Stock-based compensation expense	1,411			1,411
Contribution of stock from treasury stock	81			(81)			81
Stock-based contribution expense	75			75
Purchase of treasury stock	(1,000)						(1,000)
Purchase of treasury stock for the purpose of tax withholding									$ (143)	$ (143)	$ (20)	$ (20)
Preferred cash dividend declared	(4,302)				(4,302)
Common cash dividends declared	(11,550)				(11,550)
Ending balance at Dec. 31, 2021	$ 442,847		$ 57,785	$ 127,351	$ 260,582		$ (2,477)	$ (394)

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Forfeiture of restricted stock award grants (in shares)	2,669		2,699
Restricted stock award grants (in shares)	55,218	36,968	40,978
Performance based restricted stock award grants (in shares)	10,587	8,351	798
Contribution of treasury stock (in shares)	3,000
Issuance of common stock, net of issuance costs (in shares)		115,790	52,568
Purchase of treasury stock (in shares)	36,359	66,600	40,000
Cash dividends declared (in dollars per share)	$ 685	$ 0.68	$ 0.68
Cumulative-effect adjustment due to the adoption of ASU No. 2016-13			ASU No. 2016-13
Restricted Stock
Purchase of treasury stock (in shares)	6,782	7,349	10,467
Performance Based Restricted Stock Awards
Purchase of treasury stock (in shares)	941	3,458	294

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 57,707	$ 32,743	$ 40,081
Adjustments to reconcile net income to net cash provided by operations:
Provision for credit loss expense	6,003	15,354	6,024
Depreciation and amortization of premises and equipment, operating leases assets, core deposit intangible, and mortgage servicing rights	6,241	6,082	5,963
Amortization (accretion) of securities, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income	(2,127)	(1,955)	(870)
Net amortization of deferred costs on borrowings	177	0	0
Accretion of deferred PPP processing fees	(8,737)	(5,140)	0
Deferred taxes	(1,691)	1,390	(204)
Net realized gains on sales of available-for-sale securities	(783)	(2,190)	(148)
Net realized and unrealized losses (gains) on equity securities	(790)	(328)	(1,888)
Proceeds from sale of Visa Class B shares	0	0	463
Gain on sale of Visa Class B shares	0	0	(463)
Gain on sale of loans	(2,737)	(2,961)	(990)
Net losses (gains) on dispositions of premises and equipment and foreclosed assets	230	1,097	(377)
Proceeds from sale of loans	95,258	82,619	43,198
Origination of loans held for sale	(95,411)	(87,528)	(43,458)
Income on bank owned life insurance	(2,184)	(1,747)	(1,317)
Gain on bank owned life insurance (death benefit proceeds in excess of cash surrender value)	(454)	0	0
Stock-based compensation expense	1,411	1,410	1,346
Stock-based contribution expense	75	0	0
Changes in:
Accrued interest receivable and other assets	(1,056)	(6,242)	1,072
Accrued interest payable, lease liabilities, and other liabilities	7,788	(3,846)	3,610
NET CASH PROVIDED BY OPERATING ACTIVITIES	58,920	28,758	52,042
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities, prepayments and calls of available-for-sale securities	170,962	164,488	98,274
Proceeds from sales of available-for-sale securities	33,553	57,185	11,403
Proceeds from sale of equity securities	0	5,935	301
Purchase of available-for-sale securities	(341,140)	(224,080)	(122,358)
Purchase of equity securities	(407)	(2,447)	(436)
Proceeds from loans held for sale previously classified as portfolio loans	1,921	0	0
Loan origination and payments, net	(246,043)	(244,903)	(335,965)
Purchase of bank owned life insurance	(22,000)	0	(8,778)
Proceeds from death benefit of bank owned life insurance policies	1,390	0	0
Net cash from business combinations	0	72,852	0
Redemption (purchase) of FHLB, other equity, and restricted equity interests	(2,258)	7,268	(3,360)
Purchase of premises and equipment	(6,484)	(5,644)	(9,045)
Proceeds from the sale of premises and equipment and foreclosed assets	746	666	1,228
NET CASH USED BY INVESTING ACTIVITIES	(409,760)	(168,680)	(368,736)
Net change in:
Checking, money market and savings accounts	623,967	702,452	459,162
Certificates of deposit	(90,092)	(42,510)	32,379
Purchase of treasury stock	(1,163)	(1,307)	(1,291)
Proceeds from stock offering, net of issuance costs	0	3,257	1,423
Proceeds from preferred stock offering, net of issuance costs	0	57,785	0
Cash dividends paid on common stock	(11,550)	(10,981)	(10,358)
Cash dividends paid on preferred stock	(4,302)	(1,147)	0
Proceeds from issuance of subordinated notes, net of issuance costs	83,484	0	0
Proceeds from long-term borrowings	0	231,985	30,353
Repayments on long-term borrowings	(50,000)	(459,892)	(47,563)
NET CASH PROVIDED BY FINANCING ACTIVITIES	550,344	479,642	464,105
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	199,504	339,720	147,411
CASH AND CASH EQUIVALENTS, Beginning	532,694	192,974	45,563
CASH AND CASH EQUIVALENTS, Ending	732,198	532,694	192,974
Cash paid during the period for:
Interest	20,030	32,957	39,282
Income taxes	11,788	9,524	8,006
SUPPLEMENTAL NONCASH DISCLOSURES:
Transfers to other real estate owned	1,470	241	2,066
Transfers from loans held for sale to loans held for investment	9,965	0	0
Transfers from loans held for investment to loans held for sale	1,921	0	0
Grant of restricted stock awards from treasury stock	1,374	934	1,086
Grant of performance based restricted stock awards from treasury stock	262	217	21
Restricted stock forfeiture	64	0	71
Contribution of stock from treasury stock	81	0	0
Lease liabilities arising from obtaining right-of-use assets	$ 2,643	$ 1,386	$ 19,465

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Unless otherwise indicated, dollar amounts in tables are stated in thousands, except for per share amounts.

Business and Organization

CNB Financial Corporation (the "Corporation") is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the "Bank"). In addition, the Bank provides wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation ("Holiday"). The Corporation and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania, the central and northeast regions of the state of Ohio, western New York and Roanoke, Virginia.

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation, the Bank, CNB Securities Corporation, Holiday, CNB Risk Management, Inc. and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Risks and Uncertainties

The worldwide spread of COVID-19 has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effects the global COVID-19 pandemic may have, and, as a result, the ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic and the related government responses impact the Corporation’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.

Use of Estimates

To prepare financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The Corporation's business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain the COVID-19 pandemic requires further restricted measures or is unsuccessful, the Corporation could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Since the extent to which the COVID-19 pandemic impacts its operations will depend on future developments that are highly uncertain, the Corporation cannot estimate the impact on its business, financial condition or near or long-term financial or operational results with reasonable certainty. Accordingly, the Corporation is disclosing potentially material items of which it is aware.

Asset valuation: Currently, the Corporation does not expect the COVID-19 pandemic to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods due to any number of potential impacts from the COVID-19 pandemic.

The COVID-19 pandemic could cause a decline in the Corporation's stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to perform a goodwill impairment test, resulting in an impairment charge being recorded for that period. In the event that the Corporation concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings.

Credit: The Corporation is working with customers directly affected by the COVID-19 pandemic. The Corporation has offered assistance in accordance with regulator guidelines. As a result of the current economic slowdown related to the COVID-19 pandemic, the Corporation is engaging in more frequent communication with borrowers to better understand their situation and the challenges faced, allowing it to respond proactively as needs and issues arise.

Determining the appropriateness of the allowance for credit losses on loans is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses on loans in those future periods. Should economic conditions worsen, the Corporation could experience further increases in its required allowance for credit losses and record additional provision expense. It is possible that the Corporation's asset quality measures could worsen at future measurement periods if the effects of the COVID-19 pandemic are prolonged.

Operating Segments

While the Corporation monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

Note 20, "Interest Rate Swaps," to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Debt Securities

Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

The Corporation has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in accrued interest receivable and other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the year ended December 31, 2021.

Allowance for Credit Losses (Debt Securities Available-for Sale)

For available-for-sale debt securities in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management confirms that an available-for-sale security is uncollectable or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2021 and December 31, 2020, the Corporation determined that the unrealized loss positions in available-for-sale debt securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 3, "Debt Securities," and Note 6, "Fair Value Measurements," for more information about available-for-sale debt securities.

Accrued interest receivable on available-for-sale debt securities totaled $2.2 million and $2.2 million at December 31, 2021 and December 31, 2020, respectivley, and is excluded from the estimate of credit losses.

Equity Securities

Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest receivable totaled $13.3 million and $15.4 million at December 31, 2021 and December 31, 2020, respectively, and was reported in accrued interest receivable and other assets on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans continue to accrue interest until they are recorded as charge-offs no later than 180 days past due unless the loan is in the process of collection. Past-due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or recorded as charge-offs at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Credit Deteriorated ("PCD") Loans

The Corporation has purchased loans, some of which have experienced more than insignificant credit deterioration since origination.

PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.

Troubled Debt Restructurings ("TDRs")

Loans are classified as TDRs when a borrower is experiencing financial difficulty and the Corporation has granted a concession that would not have otherwise been made for a borrower with similar credit characteristics. Prior to granting a modification, the borrower's ability to repay the loan is evaluated, including: current income levels and debt to income ratio, credit score, payment history and an evaluation of secondary repayment sources, if any is updated. The Corporation's policy is to modify loans typically through a payment reduction or through an interest rate reduction for a specified period of time, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an option for modification. The allowance for credit loss on a TDR is measured using the same method as all other loans held for investment, except the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. When there is a reasonable expectation, at the reporting date, that a TDR will be executed with a borrower the estimated life of the TDR reflects the extension or renewal. The Corporation also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, loans to borrowers experiencing financial difficulty related to the COVID-19 pandemic which were granted short-term modifications after March 1, 2020 and which were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification. In addition, for loans modified in response to the COVID-19 pandemic that do not meet the above delinquency criteria (e.g., more than 30 days past due as of December 31, 2019), the Corporation applies the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were less than 30 days past due as of the implementation date of a loan modification program are exempt from TDR classification. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the states of Ohio, New York and Virginia. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania, Ohio, New York and Virginia.

Allowance for Credit Losses - Loans

The allowance for credit losses on loans represents management’s estimate of expected credit losses over the estimated life of our existing portfolio of loans. The allowance for credit losses is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans.

The expense for credit loss recorded through earnings is the amount necessary to maintain the allowance for credit losses on loans at the amount of expected credit losses inherent within the loan portfolio. Loans are recorded as charge-offs against the allowance when management confirms a loan balance is uncollectable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts, and other significant qualitative and quantitative factors. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors. For further information on the allowance for credit losses on loans, see Note 4, "Loans," for additional detail.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Corporation has segregated its portfolio segments based on federal call report codes which classify loans based on the primary collateral supporting the loan. The following are the Corporation's segmented portfolios:

1-4 Family Construction: The Bank originates construction loans to finance 1-4 family residential buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, or related to changes in general economic conditions.

Other construction loans and all land development and other land loans: The Bank originates construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or multi-family buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions.

Farmland (including farm residential and other improvements): The Bank originates loans secured by farmland and improvements thereon, secured by mortgages. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland also includes grazing or pasture land, whether tillable or not and whether wooded or not. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Home equity lines of credit: The primary risk characteristics associated with home equity lines of credit typically involve changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by first liens: The Bank originates one-to-four family residential mortgage loans primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. These loans are secured by first liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by junior liens: The Bank originates loans secured by junior liens against one to four family properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Loans secured by junior liens are primarily in the form of an amortizing home equity loan. These loans are subordinate to a first mortgage which may be from another lending institution. The primary risk characteristics associated with loans secured by junior liens typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Real estate values could decrease and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Multifamily (5 or more) residential properties: The Bank originates mortgage loans for multifamily properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan.

Owner-occupied, nonfarm nonresidential properties: The Bank originates mortgage loans to operating companies primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Owner-occupied real estate properties primarily include retail buildings, medical buildings and industrial/warehouse space. Owner-occupied loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions.

Non-owner occupied, nonfarm nonresidential properties: The Bank originates mortgage loans for commercial real estate that is managed as an investment property primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Agricultural production and other loans to farmers: The Bank originates loans secured or unsecured to farm owners and operators (including tenants) or to nonfarmers for the purpose of financing agricultural production, including the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock, and for purchases of farm machinery, equipment, and implements. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Commercial and Industrial: The Bank originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment as well as the stock of a company, if privately held. Commercial and Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Bank to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Bank will often require more frequent reporting requirements from the borrower in order to better monitor its business performance.

Credit cards: The Bank originates credit cards offered to individuals and businesses for household, family, other personal and business expenditures. Credit cards generally are floating rate loans and include both unsecured and secured lines. Credit card loans generally do not have stated maturities and are unconditionally cancellable. The primary risk characteristics associated with credit cards typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Other revolving credit plans: The Bank originates lines of credit to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other revolving loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Automobile: The Bank originates consumer loans extended for the purpose of purchasing new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use. The primary risk characteristics associated with automobile loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Other consumer: The Bank originates loans to individuals for household, family, and other personal expenditures. This also represents all other loans that cannot be categorized in any of the previous mentioned consumer loan segments. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other consumer loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Obligations (other than securities and leases) of states and political subdivisions: The Bank originates various types of loans made directly to municipalities. These loans are repaid through general cash flows or through specific revenue streams, such as water and sewer fees. The primary risk characteristics associated with municipal loans are the municipality's ability to manage cash flow, balance the fiscal budget, fixed asset and infrastructure requirements. Additional risks include changes in demographics, as well as social and political conditions.

Other loans: The Bank originates other loans, such as loans to nonprofit organizations, including churches, hospitals, educational and charitable institutions, clubs, and similar associations. The primary risk characteristics associated with these types of loans are repayment, demographic, social, political and reputation risks.

Overdrafts: The Bank reports overdrawn customer deposit balances as loans.

Methods utilized by management to estimate expected credit losses include a discounted cash flow ("DCF") model that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity ("WARM") model which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both models, management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the mean loss rate over a period of eight quarters.

Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors.

The DCF model uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the Corporation is the Federal unemployment rate and the S&P/Case-Shiller U.S. National Home Price Index for select collective residential related pools. In building the CECL methodology utilized in the DCF model, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Federal unemployment rates and S&P/Case-Shiller U.S. National Home Price Index.

The portfolio segments utilizing the DCF methodology comprised 88.4% and 90.8% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•Farmland

•Home equity lines of credit

•Residential Mortgages secured by first liens

•Residential Mortgages secured by junior liens

•Multifamily (5 or more) residential properties

•Owner-occupied, nonfarm nonresidential properties

•Non-owner occupied, nonfarm nonresidential properties

•Agricultural production and other loans to farmers

•Commercial and Industrial

•Automobile

•Obligations (other than securities and leases) of states and political subdivisions

•Other loans

The WARM model uses combined historic loss rates for the Corporation and peer institutions, if necessary, gathered from call report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions.

The portfolio segments utilizing the WARM methodology comprised 11.6% and 9.2% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•1-4 Family Construction

•Other construction loans and all land development and other land loans

•Credit cards

•Other revolving credit plans

•Other consumer

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation and typically represent collateral dependent loans but may also include other nonperforming loans or TDRs. The Corporation uses the practical expedient to measure individually evaluated loans as collateral dependent and/or when repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are based on the fair value at the reporting date, adjusted for selling costs as appropriate. For collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Allowance for Credit Losses on Off-Balance Sheet ("OBS") Credit Exposures

Management estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Bank and applying the loss factors used in the allowance for credit losses on loans methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan segment. The estimate of credit losses on OBS credit exposures is not material at December 31, 2021 or December 31, 2020.

Mortgage Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Foreclosed Assets

Foreclosed assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment

Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Leases

The Corporation leases real estate property for branches and certain equipment. The Corporation determines if an arrangement is a lease at inception and if the lease is an operating lease or a finance lease.

Operating lease right-of-use assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. The period over which the right-of-use asset is amortized is generally the lesser of the expected remaining term or the remaining useful life of the leased asset. The lease liability is decreased as periodic lease payments are made. The Corporation performs impairment assessments for right-of-use assets when events or changes in circumstances indicate that their carrying values may not be recoverable.

The calculated amounts of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum remaining 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 includes the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Corporation cannot practically determine the interest rate implicit in the lease so the Corporation's incremental borrowing rate is used as the discount rate for the lease. The Corporation uses Federal Home Loan Bank ("FHLB") of Pittsburgh advance interest rates, which have been deemed as the Company's incremental borrowing rate, at lease inception based upon the term of the lease. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease expense, variable lease expense and short-term lease expense are included in occupancy expense in the Corporation's consolidated statements of income. For facility-related leases, the Corporation elected, by lease class, to not separate lease and non-lease components. Lease expense is recognized on a straight-line basis over the lease term. Variable lease expense primarily represents payments such as common area maintenance, real estate taxes, and utilities and are recognized as expense in the period when those payments are incurred. Short-term lease expense relates to leases with an initial term of 12 months or less. The Corporation has elected to not record a right-of-use asset or lease liability for short-term leases.

Federal Home Loan Bank Stock

As a member of the FHLB of Pittsburgh, the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

•its operating performance;

•the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

•its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

•the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

•its liquidity and funding position.

Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key employees. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Corporation has no intangible assets with an indefinite useful life.

The Corporation has selected December 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet.

Other intangible assets consist of core deposit intangible assets arising from the acquisition of FC Banc Corp. in 2013, Lake National Bank in 2016 and Bank of Akron in 2020. The core deposit intangible assets from these acquisitions are amortized using an accelerated method over their estimated useful lives, which range from four years to ten years, respectively.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the Corporation's intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

The Corporation is exposed to losses if a counterparty fails to make its payments under a contract in which the Corporation is in the net receiving position. The Corporation anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Corporation is a party settle monthly or quarterly. In addition, the Corporation obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Corporation has netting agreements with the dealers with which it does business.

Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made in the open market based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Corporation's accounting policy is to recognize forfeitures as they occur.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Post retirement obligation expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Common Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested time-based restricted stock awards are participating securities.

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statements of Income and Comprehensive Income. Other comprehensive income and loss consists of unrealized holding gains and losses on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps, net of tax.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Reclassifications

Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or shareholders’ equity as previously reported.

Adoption of New Accounting Standards

On January 1, 2020, the Corporation adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments. standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose.

Upon adoption, the Corporation's total allowance for credit losses increased by $5.0 million, or 25.5%. The increase in the total allowance for credit losses resulted in a $3.4 million decrease to retained earnings, net of deferred taxes. The overall change in total allowance for credit losses upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $670 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

The following tables illustrates the impact of ASC 326.

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans:
Commercial, industrial and agricultural	$	1,046,665	$	(1,046,665)	$	0	$	0	$	0
Farmland	0		27,199		27,199		27,199		0
Owner-occupied, nonfarm nonresidential properties	0		333,117		333,117		333,117		0
Agricultural production and other loans to farmers	0		3,407		3,407		3,407		0
Commercial and Industrial	0		474,614		474,614		474,614		0
Obligations (other than securities and leases) of states and political subdivisions	0		139,052		139,052		139,052		0
Other loans	0		5,740		5,740		5,740		0
Commercial mortgages	814,002		(814,002)		0		0		0
Other construction loans and all land development and other land loans	0		277,412		277,412		277,412		0
Multifamily (5 or more) residential properties	0		124,390		124,390		124,390		0
Non-owner occupied, nonfarm nonresidential properties	0		467,852		467,852		468,522		670
Residential real estate	814,030		(814,030)		0		0		0
1-4 Family Construction	0		22,427		22,427		22,427		0
Home equity lines of credit	0		95,089		95,089		95,089		0
Residential Mortgages secured by first liens	0		646,199		646,199		646,199		0
Residential Mortgages secured by junior liens	0		57,965		57,965		57,965		0
Consumer, net of unearned discount	119,623		(119,623)		0		0		0
Other revolving credit plans	0		52,353		52,353		52,353		0
Automobile	0		27,807		27,807		27,807		0
Other consumer	0		39,697		39,697		39,697		0
Credit cards	7,569		0		7,569		7,569		0
Overdrafts	2,146		0		2,146		2,146		0
Total loans	$	2,804,035	$	0	$	2,804,035	$	2,804,705	$	670

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Allowance for credit losses on loans:
Commercial, industrial and agricultural	$	8,287	$	(8,287)	$	0	$	0	$	0
Farmland	0		190		190		251		61
Owner-occupied, nonfarm nonresidential properties	0		2,390		2,390		1,636		(754)
Agricultural production and other loans to farmers	0		25		25		30		5
Commercial and Industrial	0		4,105		4,105		3,474		(631)
Obligations (other than securities and leases) of states and political subdivisions	0		1,022		1,022		791		(231)
Other loans	0		41		41		49		8
Commercial mortgages	6,952		(6,952)		0		0		0
Other construction loans and all land development and other land loans	0		2,327		2,327		3,107		780
Multifamily (5 or more) residential properties	0		1,087		1,087		1,399		312
Non-owner occupied, nonfarm nonresidential properties	0		3,980		3,980		6,527		2,547
Residential real estate	1,499		(1,499)		0		0		0
1-4 Family Construction	0		56		56		21		(35)
Home equity lines of credit	0		180		180		601		421
Residential Mortgages secured by first liens	0		1,220		1,220		2,320		1,100
Residential Mortgages secured by junior liens	0		114		114		249		135
Consumer	2,411		(2,411)		0		0		0
Other revolving credit plans	0		296		296		674		378
Automobile	0		156		156		60		(96)
Other consumer	0		1,960		1,960		2,981		1,021
Credit cards	84		0		84		26		(58)
Overdrafts	240		0		240		240		0
Total allowance for credit losses on loans	$	19,473	$	0	$	19,473	$	24,436	$	4,963
Retained earnings:
Total increase in allowance for credit losses on loans									$	4,963
Balance sheet reclassification									(670)
Total pre-tax impact									4,293
Tax effect									(902)
Decrease in retained earnings									$	3,391

In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 amends ASC 715-20, "Compensation - Retirement Benefits - Defined Benefit Plans - General." The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. ASU 2018-14 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

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. ASU 2019-12 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statements.

In January 2020, the FASB issued ASU 2020-01 - Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. ASU 2020-01 represents changes to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these transactions. ASU 2020-01 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Corporation's financial statement disclosures.

In October 2020, the FASB issued ASU 2020-08 - Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. ASU 2020-08 clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In August 2021, FASB issued ASU 2021-06 - Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946). ASU 2021-06 updates the codification to align with SEC Final Rule Releases No. 33-10786 and No. 33-10835. Specific to financial institutions, these SEC releases updated required annual statistical disclosures. The amendments in ASU 2021-06 were effective immediately. The updates to the statistical disclosures are reflected in the Corporation's Annual Report on Form 10-K for the fiscal year ending December 31, 2021, to align with this guidance.

Effects of Newly Issued But Not Yet Effective Accounting Standards

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848). ASU 2021-01 expands and clarifies the scope of ASU No. 2020-04 to include derivatives affected by changes in interest rates used for margining, discounting, or contract price alignment, commonly referred to as the “discounting transaction.” Derivatives impacted by the discounting transaction will be eligible for certain optional expedients and exceptions related to contract modifications and hedge accounting as defined in Topic 848. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

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Business Combinations

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Business Combinations

On July 17, 2020, the Corporation completed its previously announced acquisition of Bank of Akron, pursuant to the Merger Agreement. Under the terms of the Merger Agreement, Bank of Akron merged with and into the Bank (the "Merger"), with the Bank continuing as the surviving entity. Banking offices of Bank of Akron continue to operate under the trade name BankOnBuffalo, a division of the Bank.

Pursuant to the Merger Agreement, for each share of Bank of Akron common stock, Bank of Akron shareholders were entitled to elect to receive either (x) $215.00 in cash or (y) 6.6729 shares of the Corporation's common stock and also received cash in lieu of fractional shares. Elections were subject to proration procedures whereby at least 75% of the shares of Bank of Akron common stock were exchanged for shares of the Corporation's common stock. Based on the elections and proration procedures, the total consideration payable to Bank of Akron shareholders was approximately $40.8 million, comprised of approximately $16.1 million in cash and 1,501,321 shares of the Corporation's common stock, net of fractional shares, valued at approximately $24.7 million based on the July 17, 2020 closing price of $16.43 per share of the Corporation's common stock.

Bank of Akron's results of operations were included in the Corporation's results of operations beginning July 17, 2020. The Corporation incurred no merger-related expenses during the year ended December 31, 2021 and $4.0 million of merger-related expenses during the year ended December 31, 2020, consisting largely of professional services of attorneys, accountants, investment bankers and other advisors. There were $170 thousand in merger-related expenses incurred during the year ended December 31, 2019.

	July 17, 2020
Merger consideration
Value of stock consideration assigned to Bank of Akron common shares exchanged for stock paid to shareholders	$	24,667
Value of cash consideration for Bank of Akron common stock exchanged for cash	16,126
Total merger consideration	$	40,793

Core deposit intangible ("CDI") of $613 thousand and goodwill of $5.0 million were recognized as a result of the acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill recognized in this transaction is not deductible for income tax purposes.

	July 17, 2020
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	78,830
Interest bearing deposits with other banks	10,148
Investment securities	29,407
Loans, net of allowance for credit losses on PCD loans	319,063
Premises and equipment, net	4,265
Core deposit intangible	613
Deferred tax assets	2,777
Bank owned life insurance	8,187
Accrued interest receivable and other assets	5,307
Total assets acquired	$	458,597
Liabilities assumed
Deposits	$	419,475
Accrued interest payable and other liabilities	3,348
Total liabilities assumed	422,823
Total fair value of identifiable net assets	35,774
Total merger consideration	40,793
Goodwill recognized	$	5,019

The Corporation accounted for this transaction under the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires purchased assets and liabilities assumed and consideration exchanged to be recorded at their respective estimated fair values at the date of acquisition. The determination of estimated fair values required management to make certain estimates about discount rates, future expected cash flows, market conditions at the time of the acquisition and other future events that are highly subjective in nature and subject to refinement for up to one year after the closing date of acquisition as additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier.

The calculation of goodwill is subject to change for up to one year after the closing date of transaction as additional information relative to the closing date estimates and uncertainties becomes available. There were no adjustments recorded to goodwill or closing date fair values subsequent to December 31, 2020 and the measurement period closed in July 2021.

Financial assets acquired in a business combination after January 1, 2020 are recorded in accordance with ASC Topic 326, after which acquired assets are separated into two types. Purchased credit deteriorated ("PCD") assets are acquired assets that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD assets are acquired assets that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired assets, the Corporation evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. In the case of loans, the determining criteria may involve general characteristics, such as loan payment history or changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the COVID-19 pandemic.

Securities

The estimated fair values of the securities were calculated utilizing Level 2 inputs. The securities acquired are bought and sold in active markets. Prices for these instruments were obtained through security industry sources that actively participate in the buying and selling of securities.

Loans

Bank of Akron’s loan portfolio was recorded at fair value at the date of acquisition. A valuation of Bank of Akron’s loan portfolio was performed as of the acquisition date in accordance with ASC 820 to assess the fair value of the loan portfolio, considering adjustments for market discount rates, credit, and liquidity. The loan portfolio was segmented into two groups: non-PCD loans and PCD loans. The non-PCD loans were pooled based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and nonaccrual status. The PCD loans were valued on a pooled basis and at the loan level with similar characteristics noted above.

Premises and Equipment

Fair values are based upon appraisal values. In addition to owned properties, Bank of Akron operated one property subject to a lease agreement.

Core deposit intangible

The CDI on non-maturing deposits was determined by evaluating the underlying characteristics of the deposit relationships, including customer attrition, deposit interest rates and maintenance costs, fee income and costs of alternative funding using the discounted cash flow approach. The core deposit intangibles represent the costs saved by the Corporation between maintaining the existing deposits and obtaining alternative funds over the life of the deposit base.

Fixed maturity deposits

In determining the fair value of certificates of deposit, the cash flows of the contractual interest payments during the specific period of the certificates of deposit and scheduled principal payout were discounted to present value at market-based interest rates.

Supplemental Pro Forma Financial Information

The following table presents certain unaudited pro forma financial information for illustrative purposes only, for the year ended December 31, 2020 and 2019, respectively, as if Bank of Akron had been acquired on January 1, 2019. This unaudited pro forma information combines the historical results of Bank of Akron with the Corporation’s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. The unaudited pro forma information does not consider any changes to the provision expense resulting from recording loan assets at fair value, cost savings or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant.

	December 31, 2020		December 31, 2019
Net interest income	$	137,097	$	119,062
Net income	$	34,628	$	42,343
Basic earnings per common share	$	2.01	$	2.54
Diluted earnings per common share	$	2.01	$	2.54

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Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Securities available-for-sale at December 31, 2021 and 2020 were as follows: 

	December 31, 2021								December 31, 2020
	Amortized		Gross Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Gov’t sponsored entities	$	110,788	$	2,728	$	(1,768)	$	111,748	$	150,404	$	6,698	$	(60)	$	157,042
State & political subdivisions	103,232		2,162		(1,682)		103,712		67,819		3,186		(122)		70,883
Residential & multi-family mortgage	437,021		4,127		(6,513)		434,635		306,054		9,276		(138)		315,192
Corporate notes & bonds	28,257		250		(443)		28,064		15,221		105		(400)		14,926
Pooled SBA	18,787		283		(38)		19,032		24,975		912		(1)		25,886
Other	0		0		0		0		1,020		0		(41)		979
Total	$	698,085	$	9,550	$	(10,444)	$	697,191	$	565,493	$	20,177	$	(762)	$	584,908

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2021	$	33,553	$	783	$	0
2020	57,185		2,257		67
2019	11,403		152		4

The tax provision related to these net realized gains at December 31, 2021, 2020 and 2019 were $164 thousand, $460 thousand, and $31 thousand, respectively.

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2021:

	December 31, 2021
	Amortized Cost		Fair Value
1 year or less	$	17,959	$	18,241
1 year – 5 years	77,146		78,191
5 years – 10 years	139,201		139,000
After 10 years	7,971		8,092
	242,277		243,524
Residential and multi-family mortgage	437,021		434,635
Pooled SBA	18,787		19,032
Total debt securities	$	698,085	$	697,191

Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

On December 31, 2021 and 2020, securities carried at $461.5 million and $453.4 million, respectively, were pledged to secure public deposits and for other purposes as provided by law.

At December 31, 2021 and 2020, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity.

Securities with unrealized losses at December 31, 2021 and 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

December 31, 2021	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	23,733	$	(553)	37,911		(1,215)		$	61,644	$	(1,768)
State & political subdivisions	55,636		(1,399)		5,026		(283)		60,662		(1,682)
Residential & multi-family mortgage	248,690		(4,837)		45,185		(1,676)		293,875		(6,513)
Corporate notes & bonds	6,466		(249)		3,806		(194)		10,272		(443)
Pooled SBA	4,394		(37)		127		(1)		4,521		(38)
	338,919		$	(7,075)	$	92,055	$	(3,369)	$	430,974	$	(10,444)

December 31, 2020	Less than 12 Months		12 Months or More		Total
Description of Securities	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
U.S. Gov’t sponsored entities	24,991	(60)	0	0	24,991	(60)
State & political subdivisions	3,854	(19)	164	(103)	4,018	(122)
Residential and multi-family mortgage	44,092	(119)	3,277	(19)	47,369	(138)
Corporate notes & bonds	0	0	4,545	(400)	4,545	(400)
Pooled SBA	525	(1)	0	0	525	(1)
Other	0	0	979	(41)	979	(41)
	73,462	(199)	8,965	(563)	82,427	(762)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

At December 31, 2021 and 2020, management performed an assessment for possible other-than-temporary impairment of the Corporation’s debt securities, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. Based on the results of the assessment, management believes impairment of these debt securities at December 31, 2021 and 2020 to be temporary.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly "call" report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of December 31, 2021 and 2020, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

•There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

•All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

Equity securities at December 31, 2021 and 2020 were as follows:

	December 31, 2021		December 31, 2020
Corporate equity securities	$	6,715	$	4,343
Mutual funds	2,566		1,283
Money market	506		404
Corporate notes and bonds	579		569
U.S. Government sponsored entities	0		50
Total	$	10,366	$	6,649

During December 31, 2021, 2020, and 2019, the Corporation sold equity securities. Proceeds were $0 in December 31, 2021, $5.9 million in December 31, 2020 and $301 thousand in December 31, 2019, resulting in net realized gains of $0 in December 31, 2021, $75 thousand in December 31, 2020, and $16 thousand in December 31, 2019. During 2019, the Corporation sold Visa Class B shares. The proceeds and realized gain related to the sale of the Visa Class B shares were $463 thousand.

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Loans

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans

Loans

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

	2021		Percentage of Total		2020		Percentage of Total
Farmland	$	23,768	0.7	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	434,672		12.0	%	407,924		12.1	%
Agricultural production and other loans to farmers	1,379		0.0	%	2,664		0.1	%
Commercial and Industrial 1	708,989		19.5	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	140,887		3.9	%	132,818		3.9	%
Other loans	13,979		0.4	%	11,961		0.4	%
Other construction loans and all land development and other land loans	298,869		8.2	%	205,734		6.1	%
Multifamily (5 or more) residential properties	216,143		5.9	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	663,062		18.2	%	640,945		19.0	%
1-4 Family Construction	37,822		1.0	%	27,768		0.8	%
Home equity lines of credit	104,517		2.9	%	109,444		3.2	%
Residential Mortgages secured by first liens	826,729		22.7	%	777,030		23.0	%
Residential Mortgages secured by junior liens	56,689		1.6	%	53,726		1.6	%
Other revolving credit plans	26,536		0.7	%	25,507		0.8	%
Automobile	20,862		0.6	%	25,344		0.8	%
Other consumer	49,676		1.4	%	42,792		1.3	%
Credit cards	9,935		0.3	%	8,115		0.2	%
Overdrafts	278		0.0	%	336		0.0	%
Total loans	$	3,634,792	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(37,588)				(34,340)
Loans, net	$	3,597,204			$	3,337,449
Net deferred loan origination fees (costs) included in the above loan table	$	5,667			$	8,789
1 PPP loans, net of deferred PPP processing fees, both those disbursed in 2020 and those disbursed in 2021, are included in the Commercial and Industrial classification and totaled $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. In addition, syndicated loans, net of deferred fees and costs, are included in the Commercial and Industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, western New York and Roanoke, Virginia. 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.

PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no required allowance for credit losses was recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

Transactions in the allowance for credit losses for the year ended December 31, 2021 were as follows:

	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	(70)	$	151
Owner-occupied, nonfarm nonresidential properties	3,700		(584)		10		213		3,339
Agricultural production and other loans to farmers	24		0		0		(15)		9
Commercial and Industrial	6,233		(163)		203		2,564		8,837
Obligations (other than securities and leases) of states and political subdivisions	998		(407)		30		1,028		1,649
Other loans	68		0		0		81		149
Other construction loans and all land development and other land loans	1,956		(282)		0		524		2,198
Multifamily (5 or more) residential properties	2,724		0		0		(435)		2,289
Non-owner occupied, nonfarm nonresidential properties	8,658		(49)		0		(2,128)		6,481
1-4 Family Construction	82		0		0		76		158
Home equity lines of credit	985		(7)		5		186		1,169
Residential Mortgages secured by first liens	4,539		(79)		47		2,436		6,943
Residential Mortgages secured by junior liens	241		(3)		0		308		546
Other revolving credit plans	507		(41)		13		49		528
Automobile	132		(26)		3		154		263
Other consumer	2,962		(1,193)		140		637		2,546
Credit cards	66		(112)		18		120		92
Overdrafts	244		(438)		160		275		241
Total loans	$	34,340	$	(3,384)	$	629	$	6,003	$	37,588

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 year ended December 31, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, coupled with qualitative adjustments in the Corporation's residential and consumer loan portfolios, growth in new market areas, and qualitative adjustments related to the continued uncertainty with the pandemic and economic environment. These factors were partially offset by improvements in the Corporation's historical loss rates and quantitative inputs including the unemployment forecast and prepayment and curtailment speeds, as well as the impact of net charge-offs and improvements or resolutions in the Corporation's individually evaluated loans.

There is still a significant amount of uncertainty related to the economic impact of COVID-19, including duration, new variants, future government responses, and the resiliency of the U.S. economy. During 2021, management reviewed internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Specifically, management reevaluated the loss given default assumptions that utilize Frye Jacobs, the time period used for prepayment and curtailment speeds and the unemployment forecast. Management will continue to evaluate its estimate of expected credit losses as new information becomes available.

Transactions in the allowance for loan losses for the year ended December 31, 2020 were as follows:

	Beginning Allowance (Before ASC 326 Adoption)		Impact of ASC 326 Adoption		Initial Allowance on Loans Purchased with Credit Deterioration		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance (After ASC 326 Adoption)
Farmland	$	190	$	61	$	0	$	0	$	0	$	(30)	$	221
Owner-occupied, nonfarm nonresidential properties	2,390		(754)		82		(61)		12		2,031		3,700
Agricultural production and other loans to farmers	25		5		0		0		0		(6)		24
Commercial and Industrial	4,105		(631)		216		(2,779)		39		5,283		6,233
Obligations (other than securities and leases) of states and political subdivisions	1,022		(231)		0		0		0		207		998
Other loans	41		8		0		0		0		19		68
Other construction loans and all land development and other land loans	2,327		780		228		0		125		(1,504)		1,956
Multifamily (5 or more) residential properties	1,087		312		24		0		0		1,301		2,724
Non-owner occupied, nonfarm nonresidential properties	3,980		2,547		335		(1,522)		52		3,266		8,658
1-4 Family Construction	56		(35)		0		0		0		61		82
Home equity lines of credit	180		421		22		(6)		1		367		985
Residential Mortgages secured by first liens	1,220		1,100		73		(285)		65		2,366		4,539
Residential Mortgages secured by junior liens	114		135		0		(158)		2		148		241
Other revolving credit plans	296		378		0		(137)		21		(51)		507
Automobile	156		(96)		0		(29)		2		99		132
Other consumer	1,960		1,021		0		(1,513)		130		1,364		2,962
Credit cards	84		(58)		0		(153)		14		179		66
Overdrafts	240		0		0		(435)		185		254		244
Total loans	$	19,473	$	4,963	$	980	$	(7,078)	$	648	$	15,354	$	34,340

Transactions in the allowance for loan losses for the year ended December 31, 2019 were as follows: 

	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2019	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704
Charge-offs	(205)		(3,391)		(386)		(2,200)		(116)		(453)		(6,751)
Recoveries	17		124		73		154		15		113		496
Provision for loan losses	1,134		2,729		(344)		2,080		82		343		6,024
Allowance for loan losses, December 31, 2019	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473

The following table presents information related to impaired loans by class of loan as of and for the year ended December 31, 2019:

	Year Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,750	$	90	$	90
Commercial mortgage	6,586		119		119
Residential real estate	191		13		13
Overdrafts	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,919		208		208
Commercial mortgage	3,985		158		158
Residential real estate	294		11		11
Overdrafts	0		0		0
Total	$	17,725	$	599	$	599

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

	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	965	$	965	$	0
Owner-occupied, nonfarm nonresidential properties	850		762		0
Commercial and Industrial	7,060		1,653		8
Other construction loans and all land development and other land loans	516		77		0
Multifamily (5 or more) residential properties	1,270		5		0
Non-owner occupied, nonfarm nonresidential properties	3,771		2,143		0
Home equity lines of credit	824		824		0
Residential Mortgages secured by first liens	3,410		3,410		137
Residential Mortgages secured by junior liens	147		147		0
Other revolving credit plans	13		13		0
Automobile	36		36		0
Other consumer	558		558		0
Credit cards	0		0		23
Total loans	$	19,420	$	10,593	$	168

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of 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 tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated as of December 31, 2021:

	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	920	$	0
Owner-occupied, nonfarm nonresidential properties	194		9
Commercial and Industrial	1,488		2,351
Other construction loans and all land development and other land loans	438		0
Multifamily (5 or more) residential properties	1,265		0
Non-owner occupied, nonfarm nonresidential properties	3,378		0
Residential Mortgages secured by first liens	435		0
Total loans	$	8,118	$	2,360

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated 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 December 31, 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	$	348	$	0	$	0	$	348	$	23,420	$	23,768
Owner-occupied, nonfarm nonresidential properties	278		18		414		710		433,962		434,672
Agricultural production and other loans to farmers	0		0		0		0		1,379		1,379
Commercial and Industrial	377		13		333		723		708,266		708,989
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		140,887		140,887
Other loans	0		0		0		0		13,979		13,979
Other construction loans and all land development and other land loans	0		0		77		77		298,792		298,869
Multifamily (5 or more) residential properties	0		10		209		219		215,924		216,143
Non-owner occupied, nonfarm nonresidential properties	0		0		1,792		1,792		661,270		663,062
1-4 Family Construction	0		0		0		0		37,822		37,822
Home equity lines of credit	506		50		172		728		103,789		104,517
Residential Mortgages secured by first liens	1,286		1,145		1,647		4,078		822,651		826,729
Residential Mortgages secured by junior liens	32		24		1		57		56,632		56,689
Other revolving credit plans	56		17		4		77		26,459		26,536
Automobile	45		3		23		71		20,791		20,862
Other consumer	283		158		295		736		48,940		49,676
Credit cards	26		12		23		61		9,874		9,935
Overdrafts	0		0		0		0		278		278
Total loans	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

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

During the years ended December 31, 2021 and 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 $16.6 million and $15.1 million as of December 31, 2021 and 2020, respectively. The Corporation has allocated $2.6 million and $779 thousand of allowance for those loans as of December 31, 2021 and 2020, respectively.

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2021, 2020, and 2019:

	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial and Industrial	2	$	3,336	$	3,336
Multifamily (5 or more) residential properties	1	717		717
Non-owner occupied, nonfarm nonresidential properties	1	1,604		1,604
Total loans	4	$	5,657	$	5,657

	Year Ended December 31, 2020
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Owner-occupied, nonfarm nonresidential properties	1	$	260	$	260
Commercial and Industrial	6	1,140		1,140
Other construction loans and all land development and other land loans	1	46		46
Non-owner occupied, nonfarm nonresidential properties	1	3,684		3,684
Residential Mortgages secured by first liens	2	309		309
Total loans	11	$	5,439	$	5,439

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial mortgages	1	$	383	$	383
Total	1	$	383	$	383

The troubled debt restructurings described above increased the allowance for credit losses by immaterial amounts for the years ended December 31, 2021, 2020, and 2019, respectively.

There were no loans modified as troubled debt restructures for which there was a payment default within twelve months following the modification during the years ended December 31, 2021, 2020 and 2019, respectively, and no principal balances were forgiven in connection with the loan restructurings.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

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.

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 as of December 31, 2021 and 2020. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans.

	December 31, 2021
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	21,286	$	1,514	$	968	$	0	$	2,482	$	23,768
Owner-occupied, nonfarm nonresidential properties	419,368		6,723		8,581		0		15,304		434,672
Agricultural production and other loans to farmers	1,379		0		0		0		0		1,379
Commercial and Industrial	687,010		7,946		12,654		1,379		21,979		708,989
Obligations (other than securities and leases) of states and political subdivisions	140,887		0		0		0		0		140,887
Other loans	13,979		0		0		0		0		13,979
Other construction loans and all land development and other land loans	294,103		4,221		545		0		4,766		298,869
Multifamily (5 or more) residential properties	214,772		100		1,271		0		1,371		216,143
Non-owner occupied, nonfarm nonresidential properties	631,534		9,628		21,900		0		31,528		663,062
Total loans	$	2,424,318	$	30,132	$	45,919	$	1,379	$	77,430	$	2,501,748

	December 31, 2020
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	20,316	$	1,156	$	1,844	$	0	$	3,000	$	23,316
Owner-occupied, nonfarm nonresidential properties	391,899		2,826		13,199		0		16,025		407,924
Agricultural production and other loans to farmers	2,664		0		0		0		0		2,664
Commercial and Industrial	637,071		11,368		15,111		0		26,479		663,550
Obligations (other than securities and leases) of states and political subdivisions	132,110		0		708		0		708		132,818
Other loans	11,961		0		0		0		0		11,961
Other construction loans and all land development and other land loans	198,206		5,611		1,917		0		7,528		205,734
Multifamily (5 or more) residential properties	211,563		0		1,252		0		1,252		212,815
Non-owner occupied, nonfarm nonresidential properties	594,603		12,496		33,846		0		46,342		640,945
Total loans	$	2,200,393	$	33,457	$	67,877	$	0	$	101,334	$	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 December 31, 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	$	8,203	$	1,690	$	3,276	$	3,547	$	564	$	3,545	$	461	$	0	$	21,286
Special mention	0		0		0		0		394		1,120		0		0		1,514
Substandard	388		0		0		0		48		532		0		0		968
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,591	$	1,690	$	3,276	$	3,547	$	1,006	$	5,197	$	461	$	0	$	23,768
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	135,095	$	78,068	$	78,621	$	29,100	$	40,677	$	50,079	$	7,728	$	0	$	419,368
Special mention	243		0		903		4,287		135		1,145		10		0		6,723
Substandard	687		416		2,190		868		250		4,152		18		0		8,581
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	136,025	$	78,484	$	81,714	$	34,255	$	41,062	$	55,376	$	7,756	$	0	$	434,672
Agricultural production and other loans to farmers
Risk rating
Pass	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
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	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
Commercial and Industrial
Risk rating
Pass	$	313,983	$	84,815	$	31,375	$	16,577	$	12,389	$	6,777	$	221,094	$	0	$	687,010
Special mention	0		363		793		381		82		844		5,483		0		7,946
Substandard	1,991		800		1,862		452		29		2,016		5,504		0		12,654
Doubtful(1)	1,379		0		0		0		0		0		0		0		1,379
Total	$	317,353	$	85,978	$	34,030	$	17,410	$	12,500	$	9,637	$	232,081	$	0	$	708,989
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
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	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
Other loans
Risk rating
Pass	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979
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	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979

(1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period.

	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	$	98,406	$	168,372	$	8,752	$	11,141	$	853	$	898	$	5,681	$	0	$	294,103
Special mention	1,500		0		650		0		2,071		0		0		0		4,221
Substandard	0		0		0		29		439		0		77		0		545
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	99,906	$	168,372	$	9,402	$	11,170	$	3,363	$	898	$	5,758	$	0	$	298,869
Multifamily (5 or more) residential properties
Risk rating
Pass	$	74,687	$	55,663	$	33,436	$	7,937	$	27,729	$	12,882	$	2,438	$	0	$	214,772
Special mention	0		0		0		0		0		100		0		0		100
Substandard	0		6		682		379		204		0		0		0		1,271
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	74,687	$	55,669	$	34,118	$	8,316	$	27,933	$	12,982	$	2,438	$	0	$	216,143
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	194,800	$	125,039	$	84,943	$	52,233	$	42,714	$	123,021	$	8,784	$	0	$	631,534
Special mention	0		0		428		1,004		189		5,556		2,451		0		9,628
Substandard	826		0		2,305		1,662		4,638		12,134		335		0		21,900
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	195,626	$	125,039	$	87,676	$	54,899	$	47,541	$	140,711	$	11,570	$	0	$	663,062

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 also 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.

	December 31, 2021						December 31, 2020
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
1-4 Family Construction	$	37,822	$	0	$	37,822	$	27,768	$	0	$	27,768
Home equity lines of credit	103,693		824		104,517		108,759		685		109,444
Residential Mortgages secured by first liens	823,182		3,547		826,729		772,572		4,458		777,030
Residential Mortgages secured by junior liens	56,542		147		56,689		53,612		114		53,726
Other revolving credit plans	26,523		13		26,536		25,501		6		25,507
Automobile	20,826		36		20,862		25,312		32		25,344
Other consumer	49,118		558		49,676		42,288		504		42,792
Total loans	$	1,117,706	$	5,125	$	1,122,831	$	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 risk grade within each portfolio segment as of December 31, 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	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Home equity lines of credit
Payment performance
Performing	$	14,383	$	14,621	$	9,564	$	10,584	$	6,863	$	39,527	$	8,151	$	0	$	103,693
Nonperforming	0		0		9		10		377		428		0		0		824
Total	$	14,383	$	14,621	$	9,573	$	10,594	$	7,240	$	39,955	$	8,151	$	0	$	104,517
Residential mortgages secured by first lien
Payment performance
Performing	$	232,606	$	178,380	$	111,333	$	62,850	$	74,136	$	160,402	$	3,475	$	0	$	823,182
Nonperforming	79		259		227		151		258		2,379		194		0		3,547
Total	$	232,685	$	178,639	$	111,560	$	63,001	$	74,394	$	162,781	$	3,669	$	0	$	826,729
Residential mortgages secured by junior liens
Payment performance
Performing	$	20,617	$	11,256	$	7,239	$	4,407	$	3,508	$	9,095	$	420	$	0	$	56,542
Nonperforming	0		0		0		0		84		63		0		0		147
Total	$	20,617	$	11,256	$	7,239	$	4,407	$	3,592	$	9,158	$	420	$	0	$	56,689
Other revolving credit plans
Payment performance
Performing	$	5,313	$	3,596	$	3,090	$	2,592	$	2,977	$	8,955	$	0	$	0	$	26,523
Nonperforming	0		0		4		4		0		5		0		0		13
Total	$	5,313	$	3,596	$	3,094	$	2,596	$	2,977	$	8,960	$	0	$	0	$	26,536
Automobile
Payment performance
Performing	$	7,047	$	5,448	$	4,668	$	2,457	$	682	$	524	$	0	$	0	$	20,826
Nonperforming	11		13		12		0		0		0		0		0		36
Total	$	7,058	$	5,461	$	4,680	$	2,457	$	682	$	524	$	0	$	0	$	20,862
Other consumer
Payment performance
Performing	$	30,423	$	11,017	$	4,537	$	1,451	$	316	$	1,374	$	0	$	0	$	49,118
Nonperforming	204		170		96		25		3		60		0		0		558
Total	$	30,627	$	11,187	$	4,633	$	1,476	$	319	$	1,434	$	0	$	0	$	49,676

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
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	$	1,654	$	0	$	0	$	42,288
Nonperforming	82		264		75		13		0			70		0		0		504
Total	$	24,939	$	11,447	$	3,654	$	809	$	218		$	1,724	$	0	$	0	$	42,792

	December 31, 2021		December 31, 2020
Credit card
Payment performance
Performing	$	9,912	$	8,081
Nonperforming	23		34
Total	$	9,935	$	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, 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, are considered to be subprime loans.

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

	December 31, 2021		December 31, 2020
Gross consumer loans	$	29,227	$	27,998
Less: unearned discounts	(5,716)		(5,181)
Total consumer loans, net of unearned discounts	$	23,511	$	22,817

XML

Real Estate Owned

12 Months Ended

Dec. 31, 2021

Real Estate [Abstract]

Real Estate Owned

Real Estate Owned

Real estate owned is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2021, 2020, and 2019 were as follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	862	$	1,633	$	418
Loans transferred to real estate owned	1,470		241		2,066
Sales of real estate owned (at carrying value)	(1,625)		(1,012)		(851)
Balance, end of year	$	707	$	862	$	1,633

Expenses related to foreclosed real estate include:

	December 31, 2021		December 31, 2020		December 31, 2019
Net loss (gain) on sales	$	32	$	346	$	(377)
Operating expenses, net of rental income	85		240		316
	$	117	$	586	$	(61)

XML

Fair Value

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair Value Measurement

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The following three levels of inputs are used to measure fair value:

Level 1: Quoted prices (unadjusted) for 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 1 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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Corporation used the following methods and significant assumptions to estimate fair value:

Investment Securities: The fair values of most equity securities and debt securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1) 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 relying on the securities’ relationship to other benchmark quoted securities (Level 2). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities that observable inputs about the specific issuer are not available, fair values are estimated using observable data from other securities presumed to be similar or other market data on other similar securities (Level 3).

Loans Held for Sale: Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a loan-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2).

Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Corporation's derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Individually Evaluated Loans: The fair value of individually evaluated loans with specific allocations of the allowance for credit losses is generally based on recent real estate appraisals prepared by third-parties. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also adjusts appraised values based on the length of time that has passed since the appraisal date and other factors. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Assets and liabilities measured at fair value on a recurring basis were as follows at December 31, 2021 and 2020:

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	111,748	$	0	$	111,748	$	0
States and political subdivisions	103,712		0		103,712		0
Residential and multi-family mortgage	434,635		4,995		429,640		0
Corporate notes and bonds	28,064		0		28,064		0
Pooled SBA	19,032		0		19,032		0
Total Securities Available For Sale	$	697,191	$	4,995	$	692,196	$	0
Interest rate swaps	$	2,124	$	0	$	2,124	$	0
Equity Securities:
Corporate equity securities	$	6,715	$	6,715	$	0	$	0
Mutual funds	2,566		2,566		0		0
Certificates of deposit	506		506		0		0
Corporate notes and bonds	579		579		0		0
Total Equity Securities	$	10,366	$	10,366	$	0	$	0
Liabilities
Interest rate swaps	$	(2,512)	$	0	$	(2,512)	$	0

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	157,042	$	0	$	157,042	$	0
States and political subdivisions	70,883		0		70,819		64
Residential and multi-family mortgage	315,192		15,039		300,153		0
Corporate notes and bonds	14,926		0		14,926		0
Pooled SBA	25,886		0		25,886		0
Other	979		979		0		0
Total Securities Available For Sale	$	584,908	$	16,018	$	568,826	$	64
Interest rate swaps	$	4,017	$	0	$	4,017	$	0
Equity Securities:
Corporate equity securities	$	4,343	$	4,343	$	0	$	0
Mutual funds	1,283		1,283		0		0
Certificates of deposit	404		404		0		0
Corporate notes and bonds	569		569		0		0
U.S. Government sponsored entities	50		0		50		0
Total Equity Securities	$	6,649	$	6,599	$	50	$	0
Liabilities
Interest rate swaps	$	(4,785)	$	0	$	(4,785)	$	0

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2021: 

	States and Political Subdivisions		Corporate Notes and Bonds
Balance, January 1, 2021	$	64	$	0
Purchases	0		8,250
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Settlements	(64)		0
Transfers out of Level 3	0		(8,250)
Balance, December 31, 2021	$	0	$	0

The Corporation's corporate notes and bonds with a fair value of $8.3 million for the year ended December 31, 2021 were transferred out of Level 3 and into Level 2 because of available observable market data for these investments.

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2020: 

	States and Political Subdivisions		Residential & Multi-Family Mortgage
Balance, January 1, 2020	$	0	$	2,795
Purchases	422		0
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Transfers out of Level 3	(358)		$	(2,795)
Balance, December 31, 2020	$	64	$	0

The Corporation's states and political subdivsions with a fair value of $358 thousand and residential and multi-family mortgage of $2.8 million for the year ended December 31, 2020 were transferred out of Level 3 and into Level 2 because of available observable market data for these investments.

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2021 and 2020: 

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	920	0	0	$	920
Owner-occupied, nonfarm nonresidential properties	194		0	0	194
Commercial and industrial	3,102		0	0	3,102
Other construction loans and all land development loans and other land loans	248		0	0	248
Multifamily (5 or more) residential properties	627		0	0	627
Non-owner occupied, nonfarm nonresidential	2,889		0	0	2,889

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	659	0	0	$	659
Owner-occupied, nonfarm nonresidential properties	329		0	0	329
Commercial and industrial	3,680		0	0	3,680
Other construction loans and all land development loans and other land loans	1,790		0	0	1,790
Multifamily (5 or more) residential properties	0		0	0	0
Non-owner occupied, nonfarm nonresidential	9,622		0	0	9,622
Residential mortgages secured by first liens	659		0	0	659

A loan is considered to be a collateral dependent loan when, based on current information and events, the Corporation expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Corporation has determined that the borrower is experiencing financial difficulty as of the measurement date. The allowance for credit losses is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Corporation reviews the third-party appraisal for appropriateness and may adjust the value downward to consider selling and closing costs. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2021:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	920	Valuation of third party appraisal on underlying collateral	Loss severity rates	60% (60%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	194		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-60% (57%)
Collateral-dependent loans - Commercial and industrial	3,102		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-59% (42%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	248		Valuation of third party appraisal on underlying collateral	Loss severity rates	25% (25%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	627		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-57% (26%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	2,889		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-60% (34%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020: 

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	659	Valuation of third party appraisal on underlying collateral	Loss severity rates	45%-54% (47%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	329		Valuation of third party appraisal on underlying collateral	Loss severity rates	60%-90% (80%)
Collateral-dependent loans - Commercial and industrial	3,680		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-100% (39%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	1,790		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-41% (28%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	0		Valuation of third party appraisal on underlying collateral	Loss severity rates	58% (58%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	9,622		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-100% (29%)
Collateral-dependent loans - Residential mortgages secured by first liens	659		Valuation of third party appraisal on underlying collateral	Loss severity rates	31% (31%)

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2021: 

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	732,198	$	732,198	$	0	$	0	$	732,198
Securities available for sale	697,191		4,995		692,196		0		697,191
Equity securities	10,366		10,366		0		0		10,366
Loans held for sale	849		0		858		0		858
Net loans	3,597,204		0		0		3,613,452		3,613,452
FHLB and other equity interests	23,276		n/a		n/a		n/a		n/a
Interest rate swaps	2,124		0		2,124		0		2,124
Accrued interest receivable	15,516		16		2,171		13,329		15,516
LIABILITIES
Deposits	$	(4,715,619)	$	(4,329,167)	$	(391,850)	$	0	$	(4,721,017)
Subordinated debentures	(104,281)		0		(92,675)		0		(92,675)
Interest rate swaps	(2,512)		0		(2,512)		0		(2,512)
Accrued interest payable	(886)		0		(886)		0		(886)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2020:

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	532,694	$	532,694	$	0	$	0	$	532,694
Securities available for sale	584,908		16,018		568,826		64		584,908
Equity securities	6,649		6,599		50		0		6,649
Loans held for sale	8,514		0		8,617		0		8,617
Net loans	3,337,449		0		0		3,339,482		3,339,482
FHLB and other equity interests	21,018		n/a		n/a		n/a		n/a
Interest rate swaps	4,017		0		4,017		0		4,017
Accrued interest receivable	17,659		61		2,152		15,446		17,659
LIABILITIES
Deposits	$	(4,181,744)	$	(3,705,200)	$	(488,000)	$	0	$	(4,193,200)
Subordinated debentures	(70,620)		0		(62,583)		0		(62,583)
Interest rate swaps	(4,785)		0		(4,785)		0		(4,785)
Accrued interest payable	(1,096)		0		(1,096)		0		(1,096)

While estimates of fair value are based on management’s judgment of the most appropriate factors as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets had been disposed of or the liabilities settled at that date, since market values may differ depending on various circumstances. The estimated fair values would also not apply to subsequent dates. The fair value of other equity interests is based on the net asset values provided by the underlying investment partnership. ASU 2015-7 removes the requirement to categorize within the fair value hierarchy all investments measured using the net asset value per share practical expedient and related disclosures. In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the disclosures.

Also, non-financial assets such as, among other things, the estimated earnings power of core deposits, the earnings potential of trust accounts, the trained workforce, and customer goodwill, which typically are not recognized on the balance sheet, may have value but are not included in the fair value disclosures.

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Secondary Market Mortgage Activities

12 Months Ended

Dec. 31, 2021

Mortgage Banking [Abstract]

Secondary Market Mortgage Activities

Secondary Market Mortgage Activities

Total loans serviced for others were $264.2 million and $224.3 million for the years ended December 31, 2021 and 2020, respectively.

The following summarizes secondary market mortgage activities for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Loans originated for resale	$	95,411	$	87,528	$	43,458
Proceeds from sales of loans held for sale	97,179		82,619		43,198
Net gains on sales of loans held for sale	2,737		2,961		990
Loan servicing fees	720		726		634

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	1,527	$	1,573	$	1,495
Additions	514		540		292
Servicing rights acquired	0		0		0
Amortization	(377)		(586)		(214)
Balance, end of year	$	1,664	$	1,527	$	1,573

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was not materially different than amortized cost at December 31, 2021 and 2020, respectively. No valuation allowance was deemed necessary at December 31, 2021, 2020, and 2019. The fair value of interest rate lock commitments and forward commitments to sell loans was not material at December 31, 2021 or 2020.

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Premises and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

The following summarizes premises and equipment at December 31, 2021 and 2020: 

	December 31, 2021		December 31, 2020
Land	$	8,798	$	8,016
Premises and leasehold improvements	70,212		68,346
Furniture and equipment	39,851		37,203
Construction in process	2,589		1,556
	121,450		115,121
Less: accumulated depreciation	59,791		55,057
Premises and equipment, net	$	61,659	$	60,064

Depreciation on premises and equipment amounted to $5.3 million in 2021, $4.6 million in 2020 and $4.1 million in 2019.

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Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

Leases	Classification	December 31, 2021		December 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	19,928	$	18,407
Finance lease assets	Premises and equipment, net (1)	358		429
Total leased assets		$	20,286	$	18,836
Liabilities:
Operating lease liabilities	Operating lease liabilities	$	21,159	$	19,449
Finance lease liabilities	Accrued interest payable and other liabilities	469		550
Total leased liabilities		$	21,628	$	19,999

(1) Finance lease assets are recorded net of accumulated amortization of $858 thousand and $787 thousand as of December 31, 2021 and 2020, respectively.

The components of the Corporation's net lease expense for the year ended December 31, 2021, 2020 and 2019 were as follows:

Lease Cost	Classification	December 31, 2021		December 31, 2020		December 31, 2019
Operating lease cost	Net occupancy expense	$	1,801	$	1,785	$	1,666
Variable lease cost	Net occupancy expense	55		87		98
Finance lease cost:
Amortization of leased assets	Net occupancy expense	72		72		72
Interest on lease liabilities	Interest expense - borrowed funds	23		27		30
Sublease income (1)	Net occupancy expense	(71)		(86)		(83)
Net lease cost		$	1,880	$	1,885	$	1,783

(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2021:

Maturity of Lease Liabilities as of December 31, 2021	Operating Leases (1)		Finance Leases		Total
2022	$	1,804	$	105	$	1,909
2023	1,693		105		1,798
2024	1,649		105		1,754
2025	1,637		105		1,742
2026	1,605		105		1,710
After 2026	20,564		0		20,564
Total lease payments	28,952		525		29,477
Less: Interest	7,793		56		7,849
Present value of lease liabilities	$	21,159	$	469	$	21,628

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $10.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Lease Term and Discount Rate	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	18.8		19.0
Finance leases	5.0		6.0
Weighted-average discount rate
Operating leases	3.42	%	3.46	%
Finance leases	4.49	%	4.49	%

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Other Information	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases	$	964	$	922

Leases

Leases

Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

Leases	Classification	December 31, 2021		December 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	19,928	$	18,407
Finance lease assets	Premises and equipment, net (1)	358		429
Total leased assets		$	20,286	$	18,836
Liabilities:
Operating lease liabilities	Operating lease liabilities	$	21,159	$	19,449
Finance lease liabilities	Accrued interest payable and other liabilities	469		550
Total leased liabilities		$	21,628	$	19,999

(1) Finance lease assets are recorded net of accumulated amortization of $858 thousand and $787 thousand as of December 31, 2021 and 2020, respectively.

The components of the Corporation's net lease expense for the year ended December 31, 2021, 2020 and 2019 were as follows:

Lease Cost	Classification	December 31, 2021		December 31, 2020		December 31, 2019
Operating lease cost	Net occupancy expense	$	1,801	$	1,785	$	1,666
Variable lease cost	Net occupancy expense	55		87		98
Finance lease cost:
Amortization of leased assets	Net occupancy expense	72		72		72
Interest on lease liabilities	Interest expense - borrowed funds	23		27		30
Sublease income (1)	Net occupancy expense	(71)		(86)		(83)
Net lease cost		$	1,880	$	1,885	$	1,783

(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2021:

Maturity of Lease Liabilities as of December 31, 2021	Operating Leases (1)		Finance Leases		Total
2022	$	1,804	$	105	$	1,909
2023	1,693		105		1,798
2024	1,649		105		1,754
2025	1,637		105		1,742
2026	1,605		105		1,710
After 2026	20,564		0		20,564
Total lease payments	28,952		525		29,477
Less: Interest	7,793		56		7,849
Present value of lease liabilities	$	21,159	$	469	$	21,628

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $10.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Lease Term and Discount Rate	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	18.8		19.0
Finance leases	5.0		6.0
Weighted-average discount rate
Operating leases	3.42	%	3.46	%
Finance leases	4.49	%	4.49	%

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Other Information	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases	$	964	$	922

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 was as follows: 

	December 31, 2021		December 31, 2020
Balance, beginning of year	$	43,749	$	38,730
Acquired during the year	0		5,019
Balance, end of year	$	43,749	$	43,749

Impairment exists when the carrying value of goodwill exceeds its fair value. Goodwill is evaluated for impairment on an annual basis as of December 31 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value.

At December 31, 2021, the Corporation elected to perform a qualitative assessment to determine if it was more likely than not that the fair value exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value exceeded its carrying value, resulting in no impairment.

The Corporation engaged a third party to perform a quantitative analysis of its goodwill at June 30, 2020 due to the on-going economic market disruption caused by the COVID-19 pandemic and the resultant impact on the Corporation's stock price. In addition, interim qualitative analyses were performed as of March 31, 2020 and September 30, 2020 as a result of COVID-19 and for the annual impairment analysis at December 31, 2020. The results of the quantitative analysis and the qualitative analyses did not indicate the Corporation's goodwill was impaired.

Intangible Assets

In connection with its acquisition of FC Banc Corp. in 2013, the Corporation recorded a core deposit intangible asset of $4.8 million. During the years ended December 31, 2021, 2020, and 2019, the Corporation recorded amortization expense of $0, $94 thousand and $316 thousand, respectively. The net carrying values at December 31, 2021 and 2020 was $0, respectively. No other intangible assets were required to be recorded in connection with the acquisition of FC Banc Corp.

In connection with its acquisition of Lake National Bank in 2016, the Corporation recorded a core deposit intangible asset of $1.6 million. During the year ended December 31, 2021, 2020, and 2019, the Corporation recorded amortization expense of $0, $66 thousand, and $251 thousand, respectively. The net carrying values at December 31, 2021 and 2020 was $0, respectively. No other intangible assets were required to be recorded in connection with the acquisition of Lake National Bank.

In connection with its acquisition of Bank of Akron in 2020, the Corporation recorded a core deposit intangible asset of $613 thousand. During the year ended December 31, 2021 and 2020, the Corporation recorded amortization expense of $107 thousand and $46 thousand, respectively. The net carrying value at December 31, 2021 and 2020 was $460 thousand and $567 thousand, respectively. No other intangible assets were required to be recorded in connection with the acquisition of Bank of Akron.

Estimated amortization expense of core deposit intangible assets for each of the next five years is as follows:

2022	$	96
2023	85
2024	73
2025	62
2026	51
Thereafter	93
	$	460

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Deposits

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Deposits

Deposits

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2021:

Time deposits maturing:
2022	$	252,340
2023	54,676
2024	34,009
2025	26,121
2026	7,258
Thereafter	12,048
	$	386,452

Certificates of deposit of $250 thousand or more totaled $116.6 million and $128.2 million at December 31, 2021 and 2020, respectively.

The Corporation had $52.9 million and $23.6 million in reciprocal ICS deposits at December 31, 2021 and 2020, respectively.

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Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings

BorrowingsAt December 31, 2021 and 2020, the Corporation had available one $10 million unsecured line of credit with an unaffiliated institution, at a variable interest rate with a floor as defined in the agreement. There were no borrowings on the line of credit at December 31, 2021 and 2020.

FHLB Borrowings

The Bank has the ability to borrow funds from the FHLB. The Bank maintains a $150.0 million line-of-credit (Open Repo Plus) with the FHLB which is a revolving term commitment available on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates. Under terms of a blanket collateral agreement with the FHLB, the line-of-credit and long term advances are secured by FHLB stock and the Bank pledges its single-family residential mortgage loan portfolio, certain commercial real estate loans, and certain agriculture real estate loans as security for any advances.

Total loans pledged to the FHLB at December 31, 2021, and 2020, were $1.3 billion and $1.2 billion, respectively. The Bank could obtain advances of up to approximately $932.7 million from the FHLB at December 31, 2021 and $797.4 million at December 31, 2020.

At December 31, 2021 and December 31, 2020, the Bank had no outstanding advances from the FHLB. During 2020 CNB prepaid the entire balance of its borrowings from the FHLB, totaling $190.4 million. The pre-payment penalty associated with these prepayments totaled approximately $7.9 million and the weighted average rate associated with these borrowings was 2.20%.

At December 31, 2021 and 2020, municipal deposit letters of credit issued by the FHLB on behalf of the Bank naming applicable municipalities as beneficiaries were $10.4 million and $57.3 million, respectively. The letters of credit were utilized in place of securities pledged to the municipalities for their deposits maintained at the Bank.

Other Borrowings

At December 31, 2021 and 2020, the Bank had no outstanding borrowings from unaffiliated institutions under overnight borrowing agreements.

Subordinated Debentures

In 2007, the Corporation issued two $10.0 million floating rate trust preferred securities as part of a pooled offering of such securities. The interest rate on each offering is determined quarterly and floats based on the 3 month LIBOR plus 1.55%. The all-in rate was 1.75% at December 31, 2021 and 1.80% at December 31, 2020. The Corporation issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The subordinated debentures must be redeemed no later than 2037. The Corporation may redeem the debentures, in whole or in part, at face value at any time. The Corporation has the option to defer interest payments from time to time for a period not to exceed five consecutive years. Although the trusts are variable interest entities, the Corporation is not the primary beneficiary. As a result, because the trusts are not consolidated with the Corporation, the Corporation does not report the securities issued by the trusts as liabilities. Instead, the Corporation reports as liabilities the subordinated debentures issued by the Corporation and held by the trusts, since the liabilities are not eliminated in consolidation. The trust preferred securities were designated to qualify as Tier 1 capital under the Federal Reserve’s capital guidelines.

Subordinated Notes

In September 2016, the Corporation completed a private placement of $50.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "2026 Notes"). The notes will mature in October 2026, and will initially bear interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears, to, but excluding, October 15, 2021, and thereafter to, but excluding, the maturity date or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 4.55%. These subordinated notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital guidelines and were given an investment grade rating of BBB- by Kroll Bond Rating Agency. On October 15, 2021, the Corporation completed its redemption of the 2026 Notes, representing all of the outstanding 2026 Notes. The 2026 Notes were redeemed pursuant to their terms at a price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, October 15, 2021. The total aggregate redemption price was $50.7 million, which amount included an accrued interest payment of $719 thousand. The Corporation financed the redemption with cash on hand, including the net proceeds from the issuance and sale of $85.0 million aggregate principal amount of the Corporation’s 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031.

In June 2021, the Corporation sold $85.0 million aggregate principal amount of its fixed-to-floating rate subordinated notes to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act and the provisions of Rule 506 of Regulation D thereunder. The notes will mature in June 2031, and initially bear interest at a fixed rate of 3.25% per annum, payable semi-annually in arrears, to, but excluding, June 15, 2026, and thereafter to, but excluding, the maturity date or earlier redemption, the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month average Secured Overnight Financing Rate (“SOFR”) plus 2.58%. The net proceeds from the sale were approximately $83.5 million, after deducting offering expenses. These subordinated notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital guidelines and were given an investment grade rating of BBB- by Kroll Bond Rating Agency. The unamortized debt issuance costs were $1.3 million as of December 31, 2021.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan. The plan permits eligible employees to make pre-tax and Roth contributions up to 70% of salary. Employees 21 years of age or over with a minimum of one-year with 1,000 hours of service are eligible for matching contributions by the Corporation at 100% for every 1% contributed up to 3% then 50% for every 1% contributed up to the next 2% in total of the employee’s compensation. The Corporation’s matching contribution and related expenses were $1.2 million, $1.1 million and $906 thousand for the years ended December 31, 2021, 2020, and 2019, respectively. A profit sharing discretionary non-contributory pension plan component is in place for employees 21 years of age or over with a minimum of one-year with 1,000 hours of service and allows employer contributions in an amount equal to a percentage of eligible compensation plus 5.7% of the compensation in excess of $143 thousand, subject to a $290 thousand salary limit. The Corporation recognized profit sharing expense of $2.0 million, $1.9 million and $1.9 million for the year ended December 31, 2021, 2020, and 2019 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan ("SERP") for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2021 and 2020, obligations of $8.8 million and $7.0 million, respectively, were included in other liabilities for this plan. Expenses related to this plan were $2.1 million for the year ended December 31, 2021, $992 thousand for the year ended December 31, 2020 and $724 thousand for the year ended December 31, 2019.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2021 and 2020, obligations of $1.5 million and $1.4 million, respectively, were included in other liabilities for this plan. Expenses (benefits) related to this plan were $196 thousand for the year ended December 31, 2021, $253 thousand for the year ended December 31, 2020 and $(1) thousand for the year ended December 31, 2019.

On December 31, 2021, the Corporation adopted a Defined Contribution Plan for several employees (the “Plan”), pursuant to which the Corporation will make certain annual contributions to the Plan on the employee's behalf, which will be paid to the employee following their termination of employment from the Corporation or, if earlier, upon the employee becoming disabled. The Plan became effective as of January 2, 2022.

The Corporation has an unfunded post-retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Benefit obligation at beginning of year	$	1,829	$	2,030
Interest cost	28		51
Service cost	52		61
Actual claims	(31)		(36)
Actuarial gain	(391)		(277)
Benefit obligation at end of year	$	1,487	$	1,829

Amounts recognized in accumulated other comprehensive income at December 31, 2021 and 2020 consisted of: 

	December 31, 2021		December 31, 2020
Net actuarial gain	$	782	$	435
Tax effect	(165)		(92)
	$	617	$	343

The accumulated benefit obligation was $1.5 million and $1.8 million at December 31, 2021 and 2020, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	52	$	61	$	74
Interest cost	28		51		89
Net amortization of transition obligation and actuarial loss	(43)		0		23
Net periodic benefit cost	37		112		186
Net gain	(391)		(277)		(518)
Amortization	43		0		(23)
Total recognized in other comprehensive income	(348)		(277)		(541)
Total recognized in net periodic benefit cost and other comprehensive income	$	(311)	$	(165)	$	(355)

The estimated net gain that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $(113) thousand.

The weighted average discount rate used to calculate net periodic benefit cost was 1.55% for year ended December 31, 2021, 2.59% for year ended December 31, 2020, and 3.78% for year ended December 31, 2019. The weighted average rate used to calculate accrued benefit obligations was 2.10% for year ended December 31, 2021, 1.55% for year ended December 31, 2020, and 2.59% for year ended December 31, 2019. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2022 and thereafter.

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Deferred Compensation Plans

12 Months Ended

Dec. 31, 2021

Postemployment Benefits [Abstract]

Deferred Compensation Plans

Deferred Compensation Plans

Deferred compensation plans cover all directors and certain officers. Under the plans, the Corporation pays each participant, or their beneficiary, the value of the participant’s account over a maximum period of 10 years, beginning with the individual’s termination of service. A liability is accrued for the obligation under these plans.

A summary of changes in the deferred compensation plan liability follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	3,085	$	3,234	$	2,408
Deferrals, dividends, and changes in fair value	1,084		(70)		904
Deferred compensation payments	(494)		(79)		(78)
Balance, end of year	$	3,675	$	3,085	$	3,234

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following is a summary of income tax expense for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Current – federal	$	13,494	$	8,681	$	8,265
Current – state	1,268		729		499
Deferred – federal	(1,025)		(1,672)		(204)
Deferred – state	(666)		(391)		0
Income tax expense	$	13,071	$	7,347	$	8,560

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows: 

	December 31, 2021		%	December 31, 2020		%	December 31, 2019		%
Tax at statutory rate	$	14,863	21.0	$	8,419	21.0	$	10,214	21.0
Tax exempt income, net	(1,231)		(1.7)	(1,223)		(3.1)	(1,382)		(2.8)
Bank owned life insurance	(554)		(0.8)	(367)		(0.9)	(276)		(0.6)
Effect of state tax	476		0.7	576		1.4	394		0.8
Other	(483)		(0.7)	(58)		(0.1)	(390)		(0.8)
Income tax expense	$	13,071	18.5	$	7,347	18.3	$	8,560	17.6

The following table sets forth deferred taxes as of December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Deferred tax assets:
Allowance for credit losses	$	7,606	$	6,751
Fair value adjustments – business combination	1,240		1,685
Deferred compensation	3,344		2,787
Net operating loss carryover	327		346
Post-retirement benefits	696		722
Unrealized loss on interest rate swap	81		161
Nonaccrual loan interest	509		478
Accrued expenses	1,718		681
Deferred fees and costs	1,259		1,613
Unrealized loss on securities available for sale	188		0
Operating lease liability	4,845		4,214
Other	383		300
	22,196		19,738
Deferred tax liabilities:
Unrealized gain on securities available for sale	0		4,077
Premises and equipment	3,093		2,997
Unrealized gain on equity securities	292		294
Intangibles – section 197	2,494		2,399
Mortgage servicing rights	366		321
Operating lease asset	4,649		4,079
Other	220		293
	11,114		14,460
Net deferred tax asset	$	11,082	$	5,278

At December 31, 2021 and 2020, the Corporation had no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

At December 31, 2021, the Corporation had state net operating loss carryforwards of approximately $15.9 million related to the acquisition of Bank of Akron, which expire at various dates from 2034 to 2039. The Corporation's ability to utilize carryforwards is limited to $363 thousand per year. Due to this limitation, management determined it is more likely than not that approximately $9.5 million of net operating loss carryforwards will expire unutilized.

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2021, 2020 and 2019, there were no amounts accrued for interest and/or penalties and no amounts recorded as expense for the years ending December 31, 2021, 2020, and 2019.

The Corporation and its subsidiaries are subject to U.S. federal income tax, as well as filing various state returns. The Corporation is no longer subject to U.S. federal income tax examinations by the taxing authorities for years prior to 2018. Tax years 2018 through 2021 are open to examination.

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Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Loans to principal officers, directors, and their affiliates during 2021 were as follows:

Beginning balance	$	37,665
New loans and advances	11,830
Effect of changes in composition of related parties	0
Repayments	(3,738)
Ending balance	$	45,757

Deposits from principal officers, directors, and their affiliates were $23.5 million and $24.5 million at December 31, 2021 and 2020, respectively.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Corporation has a stock incentive plan, which is administered by a committee of the Board of Directors and which permits the Corporation to provide various types of stock-based compensation to its key employees, directors, and/or consultants, including time-based and performance-based shares of restricted stock. The Corporation previously maintained the CNB Financial Corporation 2009 Stock Incentive Plan, which terminated in accordance with its terms on February 10, 2019, and currently maintains the CNB Financial Corporation 2019 Omnibus Incentive Plan (the "2019 Stock Incentive Plan"), which was approved by the Corporation’s shareholders and became effective on April 16, 2019. 

The 2019 Stock Incentive Plan provides for up to 507,671 shares of common stock to be awarded in the form of nonqualified options or restricted stock. For key employees, the vesting of time-based restricted stock is one-third, one-fourth, or one-fifth of the granted restricted shares per year, beginning one year after the grant date, with 100% vesting on the third, fourth or fifth anniversary of the grant date, respectively. Prior to 2018, for non-employee directors, the vesting schedule was one-third of the granted restricted shares per year, beginning one year after the grant date, with 100% vested on the third anniversary of the grant date. Beginning in 2018, stock compensation received by non-employee directors vests immediately. All stock-based compensation grants during the years ending December 31, 2021, 2020 and 2019 and outstanding at December 31, 2021, 2020 and 2019 were time-based and performance-based restricted stock.

During the years ended December 31, 2021, 2020, and 2019, the Executive Compensation and Personnel Committee of the Corporation's Board of Directors granted a total of 55,218, 36,968 and 40,978 shares, respectively, of time-based restricted common stock to certain key employees and all independent directors of the Corporation.

Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Non-vested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from time-based, performance-based and director restricted stock awards was $1.4 million, $1.4 million and $1.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. The total income tax benefit related to the recognized compensation cost of vested restricted stock awards was $296 thousand, $296 thousand and $283 thousand for the years ended December 31, 2021, 2020 and 2019, respectively.

A summary of changes in time-based unvested restricted stock awards follows: 

	Shares	Weighted-average Grant Date Fair Value
Non-vested at January 1, 2021	56,306	$	27.14
Granted	40,332	21.61
Forfeited	(2,669)	23.49
Vested	(24,326)	26.85
Non-vested at December 31, 2021	69,643	$	24.18

The above table excludes 14,886 shares in restricted stock awards that were granted to the Corporation’s Board of Directors and certain employees at a weighted average fair value of $21.03 and immediately vested. As of December 31, 2021 and 2020, there was $1.1 million and $1.1 million, respectively, of total unrecognized compensation cost related to non-vested shares granted under the restricted stock award plan. The fair value of shares vesting during the year end December 31, 2021, 2020, and 2019 was $835 thousand, $1.1 million and $1.5 million, respectively.

In addition to the time-based restricted stock disclosed above, the Corporation’s Board of Directors grants performance-based restricted stock awards ("PBRSAs") to key employees. The number of PBRSAs will depend on certain performance conditions earned over a three year period and are also subject to service-based vesting. In 2021, awards with a maximum of 18,210 shares in aggregate were granted to key employees. In 2020, awards with a maximum of 18,100 shares in aggregate were granted to key employees. In 2019, awards with a maximum of 16,681 shares in aggregate were granted to key employees.

Total compensation expense related to the PBRSAs and included in the above compensation expense total was $378 thousand, $384 thousand and $221 thousand for 2021, 2020 and 2019. Estimated remaining unearned compensation related to PBRSAs at December 31, 2021 was $312 thousand.

In 2020, the 2018 PBRSAs were fully earned and in 2021, 10,587 shares were fully distributed. The fair value of the shares distributed in 2021 was $223 thousand. In 2019, the 2017 PBRSAs were fully earned and in 2020, 7,109 shares were fully distributed. The fair value of the 7,109 shares distributed in 2020 was $233 thousand.

The number of authorized stock-based awards still available for grant as of December 31, 2021 was 390,090.

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Regulatory Capital Matters

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Regulatory Capital Matters

Regulatory Capital Matters

Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action ("PCA") regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory enforcement actions. The net unrealized gain or loss on available for sale securities is excluded from computing regulatory capital. Management believes as of December 31, 2021 the Corporation and the Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2021 and 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

Actual and required capital amounts and ratios are presented below as of December 31, 2021 and 2020. The capital adequacy ratio includes the capital conservation buffer.

	Actual				For Capital Adequacy Purposes (1)				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total Capital to Risk Weighted Assets
Consolidated	$	541,651	14.92	%	$	381,093	10.50	%	N/A
Bank	$	475,231	13.16	%	$	379,180	10.50	%	$	361,123	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	427,988	11.79	%	$	308,504	8.50	%	N/A
Bank	$	447,055	12.38	%	$	306,955	8.50	%	$	288,899	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	350,203	9.65	%	$	254,062	7.00	%	N/A
Bank	$	439,676	12.18	%	$	252,786	7.00	%	$	234,730	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	427,988	8.22	%	$	208,208	4.00	%	N/A
Bank	$	447,055	8.63	%	$	207,109	4.00	%	$	258,887	5.00	%
December 31, 2020
Total Capital to Risk Weighted Assets
Consolidated	$	462,457	14.32	%	$	339,107	10.50	%	N/A
Bank	$	434,598	13.52	%	$	337,554	10.50	%	$	321,480	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	384,650	11.91	%	$	274,516	8.50	%	N/A
Bank	$	408,693	12.71	%	$	273,258	8.50	%	$	257,184	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	306,865	9.50	%	$	226,072	7.00	%	N/A
Bank	$	401,314	12.48	%	$	225,036	7.00	%	$	208,962	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	384,650	8.11	%	$	189,728	4.00	%	N/A
Bank	$	408,693	8.66	%	$	188,690	4.00	%	$	235,863	5.00	%

(1) The minimum amounts and ratios as of December 31, 2021 and 2020 include the full phase in of the capital conservation buffer of 2.5 percent required by the Basel III framework.

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. During 2021, $134.6 million of accumulated net earnings of the Bank included in consolidated shareholders’ equity, plus any 2022 net profits retained to the date of the dividend declared, is available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements described above.

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Interest Rate Swaps

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swaps

Interest Rate Swaps

On September 7, 2018, the Corporation executed an interest rate swap agreement with a 5-year term and an effective date of September 15, 2018 in order to hedge cash flows associated with $10.0 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2018 to September 15, 2023 without the exchange of the underlying notional amount. At December 31, 2021, the variable rate on the subordinated debt was 1.75% (LIBOR plus 155 basis points) and the Corporation was paying 4.53% (2.98% fixed rate plus 155 basis points).

As of December 31, 2021 and 2020, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	December 31, 2021	December 31, 2020
Interest rate contract	Accrued interest payable and other liabilities	$(388)	$(768)
For the Year Ended December 31, 2021	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$301	Interest expense – subordinated debentures		$(276)	Other income	$0
For the Year Ended December 31, 2020
Interest rate contract	$(224)	Interest expense – subordinated debentures		$(224)	Other income	$0
For the Year Ended December 31, 2019
Interest rate contract	$(225)	Interest expense – subordinated debentures		$(63)	Other income	$0

(a)Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b)Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c)Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d)Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e)Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

Amounts reported in accumulated other comprehensive loss related to the interest rate swap will be reclassified to interest expense as interest payments are made on the subordinated debentures. Such amounts reclassified from accumulated other comprehensive loss to interest expense in the next twelve months are expected to be $278 thousand.

As of December 31, 2021 and 2020, a cash collateral balance of $1.1 million and $1.1 million, respectively, was maintained with the counterparty to the interest rate swaps. These balances are included in interest bearing deposits with other banks on the consolidated balance sheets.

The Corporation entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Corporation enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Corporation agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. Concurrently, the Corporation agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Corporation’s customers to effectively convert a variable rate loan to a fixed rate. Because the Corporation acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not impact the Corporation’s results of operations.

The Corporation pledged cash collateral to another financial institution with a balance $3.4 million as of December 31, 2021 and $4.9 million as of December 31, 2020. This balance is included in interest bearing deposits with other banks on the consolidated balance sheets. The Corporation may require its customers to post cash or securities as collateral on its program of back-to-back swaps depending upon the specific facts and circumstances surrounding each loan and individual swap. In addition, certain language is included in the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Corporation is permitted to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Corporation may be required to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions.

The following table provides information about the amounts and locations of activity related to the back-to-back interest rate swaps within the Corporation’s consolidated balance sheet as of December 31, 2021 and 2020: 

	Notional Amount		Average Maturity (in years)	Weighted Average Fixed Rate		Weighted Average Variable Rate	Fair Value
December 31, 2021
3rd Party interest rate swaps	$	32,768	5.8	4.12	%	1 month LIBOR + 2.27%	$	2,124	(a)
Customer interest rate swaps	(32,768)		5.8	4.12	%	1 month LIBOR + 2.27%	(2,124)		(b)
December 31, 2020
3rd Party interest rate swaps	$	34,089	6.7	4.13	%	1 month LIBOR + 2.27%	$	4,017	(a)
Customer interest rate swaps	(34,089)		6.7	4.13	%	1 month LIBOR + 2.27%	(4,017)		(b)

(a)Reported in accrued interest receivable and other assets within the consolidated balance sheets

(b)Reported in accrued interest payable and other liabilities within the consolidated balance sheets

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Off-Balance Sheet Activities

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Off-Balance Sheet Activities

Off-Balance Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31, 2021 and 2020: 

	December 31, 2021				December 31, 2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans	$	94,924	$	323,013	$	52,073	$	266,336
Unused lines of credit	13,265		663,903		24,328		673,919
Standby letters of credit	15,063		1,623		15,301		1,597

Commitments to make loans are generally made for periods of 60 days or less. The fixed rate loan commitments at December 31, 2021 have interest rates ranging from 0.56% to 9.00% and maturities ranging from six months to approximately 31 years. The fixed rate loan commitments at December 31, 2020 have interest rates ranging from 1.24% to 18.00% and maturities ranging from four months to 35 years.

The Corporation makes investments in limited partnerships, including certain small business investment corporations and low income housing partnerships. Capital contributions for investments in small business companies ("SBIC") and other limited partnerships, reported in FHLB and other equity interests on the consolidated balance sheet, as of December 31, 2021 and 2020 were $14.5 million and $11.8 million, respectively. Unfunded capital commitments in investments in SBIC's and other limited partnerships totaled $8.0 million and $3.7 million as of December 31, 2021 and 2020, respectively. These investments are accounted for either under the equity method of accounting.

The carrying value of investments in the low income housing partnerships, reported in FHLB and other equity interests on the consolidated balance sheet, as of December 31, 2021 and 2020 were $5.3 million and $6.0 million, respectively. The related amortization for the twelve months ended December 31, 2021, 2020 and 2019 were $691 thousand, $634 thousand and $531 thousand, respectively. Unfunded commitments, reported in accrued interest payable and other liabilities on the consolidated balance sheet, as of December 31, 2021 and 2020 were $2.1 million and $3.6 million, respectively.

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Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Financial Information

Parent Company Only Financial Information

CONDENSED BALANCE SHEETS	December 31,
	2021		2020
Assets
Cash	$	47,035	$	10,729
Equity securities	2,850		2,692
Investment in bank subsidiary	474,902		456,531
Investment in non-bank subsidiaries	20,327		15,681
Deferreds and current receivable	1,798		1,788
Other assets	1,044		1,264
Total assets	$	547,956	$	488,685
Liabilities
Subordinated debentures	$	104,281	$	70,620
Other liabilities	828		1,928
Total liabilities	105,109		72,548
Stockholders' equity	442,847		416,137
Total liabilities and stockholders' equity	$	547,956	$	488,685

CONDENSED STATEMENTS OF INCOME	Year Ended December 31,
Income:	2021		2020		2019
Dividends from:
Bank subsidiary	$	22,165	$	16,702	$	12,696
Non-bank subsidiaries	1,700		10,350		0
Other	210		216		208
Total income	24,075		27,268		12,904
Expenses	(6,657)		(6,838)		(5,518)
Income before income taxes and equity in undistributed net income of subsidiaries:	17,418		20,430		7,386
Change in net unrealized holdings gains (losses) on equity securities not held for trading	121		(31)		24
Income tax benefit	1,381		1,306		1,177
Equity in undistributed net income of bank subsidiary	37,178		18,197		27,580
Equity in undistributed (distributions in excess) of net income of non-bank subsidiaries	1,609		(7,159)		3,914
Net income	57,707		32,743		40,081
Dividends on preferred stock	(4,302)		(1,147)		0
Net income available to common stockholders	$	53,405	$	31,596	$	40,081
Comprehensive income attributable to the parent	$	58,008	$	32,519	$	39,856

CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2021		2020		2019
Net income
Adjustments to reconcile net income to net cash provided by	$	57,707	$	32,743	$	40,081
operating activities:
Equity in undistributed net income of bank subsidiary	(37,178)		(18,197)		(27,580)
(Equity in undistributed) distributions in excess of net income of non–bank subsidiaries	(1,609)		7,159		(3,914)
Net unrealized (gains) losses on equity securities	(121)		31		(24)
Decrease in other assets	60		21		177
Increase in other liabilities	978		1,091		1,267
Net cash provided by operating activities	19,837		22,848		10,007
Cash flows from investing activities
Purchase of equity securities	0		(2,000)		(36)
Outlays for business acquisition	0		(16,126)		0
Investment in bank subsidiaries	0		(41,500)		0
Net cash used in investing activities	0		(59,626)		(36)
Cash flows from financing activities:
Dividends paid on common stock	(11,550)		(10,981)		(10,358)
Dividends paid on preferred stock	(4,302)		(1,147)		0
Proceeds from issuance of long term debt	83,484		0		0
Repayment of long term debt	(50,000)		0		0
Purchase of treasury stock	(1,163)		(1,307)		(1,291)
Net proceeds from the issuance of preferred stock	0		57,785		0
Net proceeds from issuance of common stock	0		3,257		1,423
Net advance (to) from subsidiary	0		(850)		650
Net cash provided by (used in) financing activities	16,469		46,757		(9,576)
Net increase (decrease) in cash	36,306		9,979		395
Cash beginning of year	10,729		750		355
Cash end of year	$	47,035	$	10,729	$	750

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Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The computation of basic and diluted earnings per common share is shown below. There were no anti-dilutive stock options for the years ended December 31, 2021, 2020, and 2019.

	Years Ended December 31,
	2021		2020		2019
Basic earnings per common share computation
Net income per consolidated statements of income	$	53,405	$	31,596	$	40,081
Net earnings allocated to participating securities	(183)		(100)		(147)
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Distributed earnings allocated to common stock	$	11,514	$	10,942	$	10,317
Undistributed earnings allocated to common stock	41,708		20,554		29,617
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding, including shares considered participating securities	16,875		16,048		15,219
Less: Average participating securities	(55)		(48)		(55)
Weighted average shares	16,820		16,000		15,164
Basic earnings per common share	$	3.16	$	1.97	$	2.63
Diluted earnings per common share computation
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding for basic earnings per common share	16,820		16,000		15,164
Add: Dilutive effects of performance based-shares	0		0		0
Weighted average shares and dilutive potential common shares	16,820		16,000		15,164
Diluted earnings per common share	$	3.16	$	1.97	$	2.63

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Other Comprehensive Income

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Other Comprehensive Income

Other Comprehensive Income

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Unrealized holding gains (losses) on available for sale securities	$	(19,526)	$	12,494	$	13,732
Less reclassification adjustment for gains recognized in earnings	(783)		(2,190)		(148)
Net unrealized gains (losses)	(20,309)		10,304		13,584
Tax effect	4,265		(2,164)		(2,852)
Net-of-tax amount	(16,044)		8,140		10,732
Actuarial gain (loss) on postemployment health care plan	391		277		518
Net amortization of transition obligation and actuarial gain	(43)		0		23
Net unrealized gain (loss) on postemployment health care plan	348		277		541
Tax effect	(73)		(58)		(113)
Net-of-tax amount	275		219		428
Unrealized gain (loss) on interest rate swap	105		(508)		(347)
Less reclassification adjustment for losses recognized in earnings	276		224		63
Net unrealized gain (loss)	381		(284)		(284)
Tax effect	(80)		60		59
Net-of-tax amount	301		(224)		(225)
Other comprehensive income (loss)	$	(15,468)	$	8,135	$	10,935

The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2021, 2020, and 2019. 

	Balance 12/31/20		Comprehensive Income (Loss)		Balance 12/31/21
Unrealized gains (losses) on securities available for sale	$	15,338	$	(16,044)	$	(706)
Unrealized gain on postretirement benefits plan	343		275		618
Unrealized loss on interest rate swap	(607)		301		(306)
Total	$	15,074	$	(15,468)	$	(394)

	Balance 12/31/19		Comprehensive Income (Loss)		Balance 12/31/20
Unrealized gains on securities available for sale	$	7,198	$	8,140	$	15,338
Unrealized gain on postretirement benefits plan	124		219		343
Unrealized loss on interest rate swap	(383)		(224)		(607)
Total	$	6,939	$	8,135	$	15,074

	Balance 1/1/19		Comprehensive Income (Loss)		Balance 12/31/19
Unrealized gains (losses) on securities available for sale	$	(3,534)	$	10,732	$	7,198
Unrealized gain (loss) on postretirement benefits plan	(304)		428		124
Unrealized loss on interest rate swap	(158)		(225)		(383)
Total	$	(3,996)	$	10,935	$	6,939

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Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

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 years ended December 31, 2021, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	December 31, 2021		December 31, 2020		December 31, 2019
Non-interest Income
Service charges on deposit accounts	$	6,195	$	5,095	$	6,402
Wealth and asset management fees	6,740		5,497		4,627
Mortgage banking (1)	3,147		3,354		1,412
Card processing and interchange income	7,796		5,727		4,641
Net realized gains on available-for-sale securities (1)	783		2,190		148
Other income	8,773		6,196		8,745
Total non-interest income	$	33,434	$	28,059	$	25,975

(1)Not within scope of ASC 606

Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investment securities along with non-interest revenue resulting from security gains, loan servicing, gains on the sale of loans, commitment fees, fees from financial guarantees, certain credit card fees, gains (losses) on sale of other real estate owned not financed by the Corporation, is not within the scope of ASU 2014-9.

The types of non-interest income within the scope of the standard that are material to the consolidated financial statements are services charges on deposit accounts, wealth and asset management fee income, card processing and interchange income, and other income.

Service charges on deposit accounts: 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. Services charges on deposits are withdrawn from the customer’s account balance.

Wealth and asset management fees: The Corporation earns wealth and asset management fees from its contracts with trust and brokerage 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 for these services are billed to customers on a monthly or quarterly basis and are recorded as revenue at the end of the period for which the wealth and asset management services have been performed. Other performance obligations, such as the delivery of account statements to customers, are generally considered immaterial to the overall transaction price.

Card processing and interchange income: The Corporation earns interchange fees from check card and credit card transactions conducted through the Visa 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.

Other income: The Corporation's other income includes sources such as bank owned life insurance, changes in fair value and realized gains on sales of equity securities, certain service fees, gains (losses) on sales of fixed assets, and gains (losses) on sale of other real estate owned. The service fees are recognized in the same manner as the service charges mentioned above. While gains (losses) on the sale of other real estate owned are within the scope of ASU 2014-9 if financed by the Corporation, the Corporation does not finance the sale of transactions. The revenue on the sale is recorded upon the transfer of control of the property to the buyer and the other real estate owned asset is derecognized.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Business and Organization

Business and Organization

CNB Financial Corporation (the "Corporation") is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the "Bank"). In addition, the Bank provides wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation ("Holiday"). The Corporation and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania, the central and northeast regions of the state of Ohio, western New York and Roanoke, Virginia.

Basis of Financial Presentation

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation, the Bank, CNB Securities Corporation, Holiday, CNB Risk Management, Inc. and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Risks and Uncertainties

Risks and Uncertainties

The worldwide spread of COVID-19 has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effects the global COVID-19 pandemic may have, and, as a result, the ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic and the related government responses impact the Corporation’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.

Use of Estimates

Use of Estimates

To prepare financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The Corporation's business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain the COVID-19 pandemic requires further restricted measures or is unsuccessful, the Corporation could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Since the extent to which the COVID-19 pandemic impacts its operations will depend on future developments that are highly uncertain, the Corporation cannot estimate the impact on its business, financial condition or near or long-term financial or operational results with reasonable certainty. Accordingly, the Corporation is disclosing potentially material items of which it is aware.

Asset valuation: Currently, the Corporation does not expect the COVID-19 pandemic to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods due to any number of potential impacts from the COVID-19 pandemic.

The COVID-19 pandemic could cause a decline in the Corporation's stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to perform a goodwill impairment test, resulting in an impairment charge being recorded for that period. In the event that the Corporation concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings.

Credit: The Corporation is working with customers directly affected by the COVID-19 pandemic. The Corporation has offered assistance in accordance with regulator guidelines. As a result of the current economic slowdown related to the COVID-19 pandemic, the Corporation is engaging in more frequent communication with borrowers to better understand their situation and the challenges faced, allowing it to respond proactively as needs and issues arise.

Determining the appropriateness of the allowance for credit losses on loans is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses on loans in those future periods. Should economic conditions worsen, the Corporation could experience further increases in its required allowance for credit losses and record additional provision expense. It is possible that the Corporation's asset quality measures could worsen at future measurement periods if the effects of the COVID-19 pandemic are prolonged.

Operating Segments

Operating Segments

While the Corporation monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

Restrictions on Cash

Note 20, "Interest Rate Swaps," to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Debt Securities

Debt Securities

Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

The Corporation has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in accrued interest receivable and other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the year ended December 31, 2021.

Allowance for Credit Losses

Allowance for Credit Losses (Debt Securities Available-for Sale)

For available-for-sale debt securities in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management confirms that an available-for-sale security is uncollectable or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2021 and December 31, 2020, the Corporation determined that the unrealized loss positions in available-for-sale debt securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 3, "Debt Securities," and Note 6, "Fair Value Measurements," for more information about available-for-sale debt securities.

Accrued interest receivable on available-for-sale debt securities totaled $2.2 million and $2.2 million at December 31, 2021 and December 31, 2020, respectivley, and is excluded from the estimate of credit losses.

Equity Securities

Equity Securities

Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Loans Held for Sale

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Loans

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest receivable totaled $13.3 million and $15.4 million at December 31, 2021 and December 31, 2020, respectively, and was reported in accrued interest receivable and other assets on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Consumer loans continue to accrue interest until they are recorded as charge-offs no later than 180 days past due unless the loan is in the process of collection. Past-due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or recorded as charge-offs at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Credit Deteriorated ("PCD") Loans

Purchased Credit Deteriorated ("PCD") Loans

The Corporation has purchased loans, some of which have experienced more than insignificant credit deterioration since origination.

PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense.

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

Troubled Debt Restructurings (“TDRs”)

Troubled Debt Restructurings ("TDRs")

Loans are classified as TDRs when a borrower is experiencing financial difficulty and the Corporation has granted a concession that would not have otherwise been made for a borrower with similar credit characteristics. Prior to granting a modification, the borrower's ability to repay the loan is evaluated, including: current income levels and debt to income ratio, credit score, payment history and an evaluation of secondary repayment sources, if any is updated. The Corporation's policy is to modify loans typically through a payment reduction or through an interest rate reduction for a specified period of time, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an option for modification. The allowance for credit loss on a TDR is measured using the same method as all other loans held for investment, except the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. When there is a reasonable expectation, at the reporting date, that a TDR will be executed with a borrower the estimated life of the TDR reflects the extension or renewal. The Corporation also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, loans to borrowers experiencing financial difficulty related to the COVID-19 pandemic which were granted short-term modifications after March 1, 2020 and which were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification. In addition, for loans modified in response to the COVID-19 pandemic that do not meet the above delinquency criteria (e.g., more than 30 days past due as of December 31, 2019), the Corporation applies the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were less than 30 days past due as of the implementation date of a loan modification program are exempt from TDR classification. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan.

Concentration of Credit Risk

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the states of Ohio, New York and Virginia. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania, Ohio, New York and Virginia.

Allowance for Loan Losses

Allowance for Credit Losses - Loans

The allowance for credit losses on loans represents management’s estimate of expected credit losses over the estimated life of our existing portfolio of loans. The allowance for credit losses is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans.

The expense for credit loss recorded through earnings is the amount necessary to maintain the allowance for credit losses on loans at the amount of expected credit losses inherent within the loan portfolio. Loans are recorded as charge-offs against the allowance when management confirms a loan balance is uncollectable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts, and other significant qualitative and quantitative factors. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors. For further information on the allowance for credit losses on loans, see Note 4, "Loans," for additional detail.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Corporation has segregated its portfolio segments based on federal call report codes which classify loans based on the primary collateral supporting the loan. The following are the Corporation's segmented portfolios:

1-4 Family Construction: The Bank originates construction loans to finance 1-4 family residential buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, or related to changes in general economic conditions.

Other construction loans and all land development and other land loans: The Bank originates construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or multi-family buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions.

Farmland (including farm residential and other improvements): The Bank originates loans secured by farmland and improvements thereon, secured by mortgages. Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland also includes grazing or pasture land, whether tillable or not and whether wooded or not. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Home equity lines of credit: The primary risk characteristics associated with home equity lines of credit typically involve changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by first liens: The Bank originates one-to-four family residential mortgage loans primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. These loans are secured by first liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by junior liens: The Bank originates loans secured by junior liens against one to four family properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Loans secured by junior liens are primarily in the form of an amortizing home equity loan. These loans are subordinate to a first mortgage which may be from another lending institution. The primary risk characteristics associated with loans secured by junior liens typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Real estate values could decrease and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Multifamily (5 or more) residential properties: The Bank originates mortgage loans for multifamily properties primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan.

Owner-occupied, nonfarm nonresidential properties: The Bank originates mortgage loans to operating companies primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Owner-occupied real estate properties primarily include retail buildings, medical buildings and industrial/warehouse space. Owner-occupied loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions.

Non-owner occupied, nonfarm nonresidential properties: The Bank originates mortgage loans for commercial real estate that is managed as an investment property primarily within central and northwest Pennsylvania, central and northeast Ohio, western New York and the Roanoke, Virginia market. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Agricultural production and other loans to farmers: The Bank originates loans secured or unsecured to farm owners and operators (including tenants) or to nonfarmers for the purpose of financing agricultural production, including the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock, and for purchases of farm machinery, equipment, and implements. The primary risk characteristics are specific to the uncertainty on production, market, financial, environmental and human resources.

Commercial and Industrial: The Bank originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment as well as the stock of a company, if privately held. Commercial and Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Bank to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Bank will often require more frequent reporting requirements from the borrower in order to better monitor its business performance.

Credit cards: The Bank originates credit cards offered to individuals and businesses for household, family, other personal and business expenditures. Credit cards generally are floating rate loans and include both unsecured and secured lines. Credit card loans generally do not have stated maturities and are unconditionally cancellable. The primary risk characteristics associated with credit cards typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Other revolving credit plans: The Bank originates lines of credit to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other revolving loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Automobile: The Bank originates consumer loans extended for the purpose of purchasing new and used passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use. The primary risk characteristics associated with automobile loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Other consumer: The Bank originates loans to individuals for household, family, and other personal expenditures. This also represents all other loans that cannot be categorized in any of the previous mentioned consumer loan segments. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. The primary risk characteristics associated with other consumer loans typically involve major changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death.

Obligations (other than securities and leases) of states and political subdivisions: The Bank originates various types of loans made directly to municipalities. These loans are repaid through general cash flows or through specific revenue streams, such as water and sewer fees. The primary risk characteristics associated with municipal loans are the municipality's ability to manage cash flow, balance the fiscal budget, fixed asset and infrastructure requirements. Additional risks include changes in demographics, as well as social and political conditions.

Other loans: The Bank originates other loans, such as loans to nonprofit organizations, including churches, hospitals, educational and charitable institutions, clubs, and similar associations. The primary risk characteristics associated with these types of loans are repayment, demographic, social, political and reputation risks.

Overdrafts: The Bank reports overdrawn customer deposit balances as loans.

Methods utilized by management to estimate expected credit losses include a discounted cash flow ("DCF") model that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity ("WARM") model which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both models, management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the mean loss rate over a period of eight quarters.

Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors.

The DCF model uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the Corporation is the Federal unemployment rate and the S&P/Case-Shiller U.S. National Home Price Index for select collective residential related pools. In building the CECL methodology utilized in the DCF model, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Federal unemployment rates and S&P/Case-Shiller U.S. National Home Price Index.

The portfolio segments utilizing the DCF methodology comprised 88.4% and 90.8% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•Farmland

•Home equity lines of credit

•Residential Mortgages secured by first liens

•Residential Mortgages secured by junior liens

•Multifamily (5 or more) residential properties

•Owner-occupied, nonfarm nonresidential properties

•Non-owner occupied, nonfarm nonresidential properties

•Agricultural production and other loans to farmers

•Commercial and Industrial

•Automobile

•Obligations (other than securities and leases) of states and political subdivisions

•Other loans

The WARM model uses combined historic loss rates for the Corporation and peer institutions, if necessary, gathered from call report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions.

The portfolio segments utilizing the WARM methodology comprised 11.6% and 9.2% of the amortized cost of loans as of December 31, 2021 and December 31, 2020, respectively, and included:

•1-4 Family Construction

•Other construction loans and all land development and other land loans

•Credit cards

•Other revolving credit plans

•Other consumer

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation and typically represent collateral dependent loans but may also include other nonperforming loans or TDRs. The Corporation uses the practical expedient to measure individually evaluated loans as collateral dependent and/or when repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are based on the fair value at the reporting date, adjusted for selling costs as appropriate. For collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.

Allowance for Credit Losses on Off-Balance Sheet ("OBS") Credit Exposures

Management estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Bank and applying the loss factors used in the allowance for credit losses on loans methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan segment. The estimate of credit losses on OBS credit exposures is not material at December 31, 2021 or December 31, 2020.

Mortgage Servicing Rights

Mortgage Servicing Rights

When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Foreclosed Assets

Foreclosed AssetsForeclosed assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment

Premises and Equipment

Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Leases

Leases

The Corporation leases real estate property for branches and certain equipment. The Corporation determines if an arrangement is a lease at inception and if the lease is an operating lease or a finance lease.

Operating lease right-of-use assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. The period over which the right-of-use asset is amortized is generally the lesser of the expected remaining term or the remaining useful life of the leased asset. The lease liability is decreased as periodic lease payments are made. The Corporation performs impairment assessments for right-of-use assets when events or changes in circumstances indicate that their carrying values may not be recoverable.

The calculated amounts of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum remaining 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 includes the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Corporation cannot practically determine the interest rate implicit in the lease so the Corporation's incremental borrowing rate is used as the discount rate for the lease. The Corporation uses Federal Home Loan Bank ("FHLB") of Pittsburgh advance interest rates, which have been deemed as the Company's incremental borrowing rate, at lease inception based upon the term of the lease. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease expense, variable lease expense and short-term lease expense are included in occupancy expense in the Corporation's consolidated statements of income. For facility-related leases, the Corporation elected, by lease class, to not separate lease and non-lease components. Lease expense is recognized on a straight-line basis over the lease term. Variable lease expense primarily represents payments such as common area maintenance, real estate taxes, and utilities and are recognized as expense in the period when those payments are incurred. Short-term lease expense relates to leases with an initial term of 12 months or less. The Corporation has elected to not record a right-of-use asset or lease liability for short-term leases.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock

As a member of the FHLB of Pittsburgh, the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

•its operating performance;

•the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

•its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

•the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

•its liquidity and funding position.

Bank Owned Life Insurance

Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key employees. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Corporation has no intangible assets with an indefinite useful life.

The Corporation has selected December 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet.

Other intangible assets consist of core deposit intangible assets arising from the acquisition of FC Banc Corp. in 2013, Lake National Bank in 2016 and Bank of Akron in 2020. The core deposit intangible assets from these acquisitions are amortized using an accelerated method over their estimated useful lives, which range from four years to ten years, respectively.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the Corporation's intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

The Corporation is exposed to losses if a counterparty fails to make its payments under a contract in which the Corporation is in the net receiving position. The Corporation anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Corporation is a party settle monthly or quarterly. In addition, the Corporation obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Corporation has netting agreements with the dealers with which it does business.

Treasury Stock

Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made in the open market based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

Stock-Based Compensation

Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Corporation's accounting policy is to recognize forfeitures as they occur.

Income Taxes

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Retirement Plans

Post retirement obligation expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested time-based restricted stock awards are participating securities.

Comprehensive Income

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statements of Income and Comprehensive Income. Other comprehensive income and loss consists of unrealized holding gains and losses on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps, net of tax.

Loss Contingencies

Loss ContingenciesLoss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Reclassifications

Reclassifications

Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or shareholders’ equity as previously reported.

Adoption of New/Effects of Newly Issued But Not Yet Effective Accounting Standards

Adoption of New Accounting Standards

On January 1, 2020, the Corporation adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments. standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose.

Upon adoption, the Corporation's total allowance for credit losses increased by $5.0 million, or 25.5%. The increase in the total allowance for credit losses resulted in a $3.4 million decrease to retained earnings, net of deferred taxes. The overall change in total allowance for credit losses upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $670 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

The following tables illustrates the impact of ASC 326.

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans:
Commercial, industrial and agricultural	$	1,046,665	$	(1,046,665)	$	0	$	0	$	0
Farmland	0		27,199		27,199		27,199		0
Owner-occupied, nonfarm nonresidential properties	0		333,117		333,117		333,117		0
Agricultural production and other loans to farmers	0		3,407		3,407		3,407		0
Commercial and Industrial	0		474,614		474,614		474,614		0
Obligations (other than securities and leases) of states and political subdivisions	0		139,052		139,052		139,052		0
Other loans	0		5,740		5,740		5,740		0
Commercial mortgages	814,002		(814,002)		0		0		0
Other construction loans and all land development and other land loans	0		277,412		277,412		277,412		0
Multifamily (5 or more) residential properties	0		124,390		124,390		124,390		0
Non-owner occupied, nonfarm nonresidential properties	0		467,852		467,852		468,522		670
Residential real estate	814,030		(814,030)		0		0		0
1-4 Family Construction	0		22,427		22,427		22,427		0
Home equity lines of credit	0		95,089		95,089		95,089		0
Residential Mortgages secured by first liens	0		646,199		646,199		646,199		0
Residential Mortgages secured by junior liens	0		57,965		57,965		57,965		0
Consumer, net of unearned discount	119,623		(119,623)		0		0		0
Other revolving credit plans	0		52,353		52,353		52,353		0
Automobile	0		27,807		27,807		27,807		0
Other consumer	0		39,697		39,697		39,697		0
Credit cards	7,569		0		7,569		7,569		0
Overdrafts	2,146		0		2,146		2,146		0
Total loans	$	2,804,035	$	0	$	2,804,035	$	2,804,705	$	670

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Allowance for credit losses on loans:
Commercial, industrial and agricultural	$	8,287	$	(8,287)	$	0	$	0	$	0
Farmland	0		190		190		251		61
Owner-occupied, nonfarm nonresidential properties	0		2,390		2,390		1,636		(754)
Agricultural production and other loans to farmers	0		25		25		30		5
Commercial and Industrial	0		4,105		4,105		3,474		(631)
Obligations (other than securities and leases) of states and political subdivisions	0		1,022		1,022		791		(231)
Other loans	0		41		41		49		8
Commercial mortgages	6,952		(6,952)		0		0		0
Other construction loans and all land development and other land loans	0		2,327		2,327		3,107		780
Multifamily (5 or more) residential properties	0		1,087		1,087		1,399		312
Non-owner occupied, nonfarm nonresidential properties	0		3,980		3,980		6,527		2,547
Residential real estate	1,499		(1,499)		0		0		0
1-4 Family Construction	0		56		56		21		(35)
Home equity lines of credit	0		180		180		601		421
Residential Mortgages secured by first liens	0		1,220		1,220		2,320		1,100
Residential Mortgages secured by junior liens	0		114		114		249		135
Consumer	2,411		(2,411)		0		0		0
Other revolving credit plans	0		296		296		674		378
Automobile	0		156		156		60		(96)
Other consumer	0		1,960		1,960		2,981		1,021
Credit cards	84		0		84		26		(58)
Overdrafts	240		0		240		240		0
Total allowance for credit losses on loans	$	19,473	$	0	$	19,473	$	24,436	$	4,963
Retained earnings:
Total increase in allowance for credit losses on loans									$	4,963
Balance sheet reclassification									(670)
Total pre-tax impact									4,293
Tax effect									(902)
Decrease in retained earnings									$	3,391

In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 amends ASC 715-20, "Compensation - Retirement Benefits - Defined Benefit Plans - General." The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. ASU 2018-14 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

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. ASU 2019-12 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statements.

In January 2020, the FASB issued ASU 2020-01 - Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. ASU 2020-01 represents changes to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these transactions. ASU 2020-01 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Corporation's financial statement disclosures.

In October 2020, the FASB issued ASU 2020-08 - Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. ASU 2020-08 clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Corporation on January 1, 2021 and did not have a material impact on the Corporation's financial statement disclosures.

In August 2021, FASB issued ASU 2021-06 - Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946). ASU 2021-06 updates the codification to align with SEC Final Rule Releases No. 33-10786 and No. 33-10835. Specific to financial institutions, these SEC releases updated required annual statistical disclosures. The amendments in ASU 2021-06 were effective immediately. The updates to the statistical disclosures are reflected in the Corporation's Annual Report on Form 10-K for the fiscal year ending December 31, 2021, to align with this guidance.

Effects of Newly Issued But Not Yet Effective Accounting Standards

In March 2020, the FASB issued ASU 2020-04, - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01 - Reference Rate Reform (Topic 848). ASU 2021-01 expands and clarifies the scope of ASU No. 2020-04 to include derivatives affected by changes in interest rates used for margining, discounting, or contract price alignment, commonly referred to as the “discounting transaction.” Derivatives impacted by the discounting transaction will be eligible for certain optional expedients and exceptions related to contract modifications and hedge accounting as defined in Topic 848. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is currently evaluating the impact of the reference rate reform on the Corporation's consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Impact of ASC

The following tables illustrates the impact of ASC 326.

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans:
Commercial, industrial and agricultural	$	1,046,665	$	(1,046,665)	$	0	$	0	$	0
Farmland	0		27,199		27,199		27,199		0
Owner-occupied, nonfarm nonresidential properties	0		333,117		333,117		333,117		0
Agricultural production and other loans to farmers	0		3,407		3,407		3,407		0
Commercial and Industrial	0		474,614		474,614		474,614		0
Obligations (other than securities and leases) of states and political subdivisions	0		139,052		139,052		139,052		0
Other loans	0		5,740		5,740		5,740		0
Commercial mortgages	814,002		(814,002)		0		0		0
Other construction loans and all land development and other land loans	0		277,412		277,412		277,412		0
Multifamily (5 or more) residential properties	0		124,390		124,390		124,390		0
Non-owner occupied, nonfarm nonresidential properties	0		467,852		467,852		468,522		670
Residential real estate	814,030		(814,030)		0		0		0
1-4 Family Construction	0		22,427		22,427		22,427		0
Home equity lines of credit	0		95,089		95,089		95,089		0
Residential Mortgages secured by first liens	0		646,199		646,199		646,199		0
Residential Mortgages secured by junior liens	0		57,965		57,965		57,965		0
Consumer, net of unearned discount	119,623		(119,623)		0		0		0
Other revolving credit plans	0		52,353		52,353		52,353		0
Automobile	0		27,807		27,807		27,807		0
Other consumer	0		39,697		39,697		39,697		0
Credit cards	7,569		0		7,569		7,569		0
Overdrafts	2,146		0		2,146		2,146		0
Total loans	$	2,804,035	$	0	$	2,804,035	$	2,804,705	$	670

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Allowance for credit losses on loans:
Commercial, industrial and agricultural	$	8,287	$	(8,287)	$	0	$	0	$	0
Farmland	0		190		190		251		61
Owner-occupied, nonfarm nonresidential properties	0		2,390		2,390		1,636		(754)
Agricultural production and other loans to farmers	0		25		25		30		5
Commercial and Industrial	0		4,105		4,105		3,474		(631)
Obligations (other than securities and leases) of states and political subdivisions	0		1,022		1,022		791		(231)
Other loans	0		41		41		49		8
Commercial mortgages	6,952		(6,952)		0		0		0
Other construction loans and all land development and other land loans	0		2,327		2,327		3,107		780
Multifamily (5 or more) residential properties	0		1,087		1,087		1,399		312
Non-owner occupied, nonfarm nonresidential properties	0		3,980		3,980		6,527		2,547
Residential real estate	1,499		(1,499)		0		0		0
1-4 Family Construction	0		56		56		21		(35)
Home equity lines of credit	0		180		180		601		421
Residential Mortgages secured by first liens	0		1,220		1,220		2,320		1,100
Residential Mortgages secured by junior liens	0		114		114		249		135
Consumer	2,411		(2,411)		0		0		0
Other revolving credit plans	0		296		296		674		378
Automobile	0		156		156		60		(96)
Other consumer	0		1,960		1,960		2,981		1,021
Credit cards	84		0		84		26		(58)
Overdrafts	240		0		240		240		0
Total allowance for credit losses on loans	$	19,473	$	0	$	19,473	$	24,436	$	4,963
Retained earnings:
Total increase in allowance for credit losses on loans									$	4,963
Balance sheet reclassification									(670)
Total pre-tax impact									4,293
Tax effect									(902)
Decrease in retained earnings									$	3,391

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Business Combinations (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

	July 17, 2020
Merger consideration
Value of stock consideration assigned to Bank of Akron common shares exchanged for stock paid to shareholders	$	24,667
Value of cash consideration for Bank of Akron common stock exchanged for cash	16,126
Total merger consideration	$	40,793

	July 17, 2020
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	78,830
Interest bearing deposits with other banks	10,148
Investment securities	29,407
Loans, net of allowance for credit losses on PCD loans	319,063
Premises and equipment, net	4,265
Core deposit intangible	613
Deferred tax assets	2,777
Bank owned life insurance	8,187
Accrued interest receivable and other assets	5,307
Total assets acquired	$	458,597
Liabilities assumed
Deposits	$	419,475
Accrued interest payable and other liabilities	3,348
Total liabilities assumed	422,823
Total fair value of identifiable net assets	35,774
Total merger consideration	40,793
Goodwill recognized	$	5,019

Business Acquisition, Pro Forma Information

As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant.

	December 31, 2020		December 31, 2019
Net interest income	$	137,097	$	119,062
Net income	$	34,628	$	42,343
Basic earnings per common share	$	2.01	$	2.54
Diluted earnings per common share	$	2.01	$	2.54

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Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

Securities available-for-sale at December 31, 2021 and 2020 were as follows: 

	December 31, 2021								December 31, 2020
	Amortized		Gross Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Gov’t sponsored entities	$	110,788	$	2,728	$	(1,768)	$	111,748	$	150,404	$	6,698	$	(60)	$	157,042
State & political subdivisions	103,232		2,162		(1,682)		103,712		67,819		3,186		(122)		70,883
Residential & multi-family mortgage	437,021		4,127		(6,513)		434,635		306,054		9,276		(138)		315,192
Corporate notes & bonds	28,257		250		(443)		28,064		15,221		105		(400)		14,926
Pooled SBA	18,787		283		(38)		19,032		24,975		912		(1)		25,886
Other	0		0		0		0		1,020		0		(41)		979
Total	$	698,085	$	9,550	$	(10,444)	$	697,191	$	565,493	$	20,177	$	(762)	$	584,908

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2021	$	33,553	$	783	$	0
2020	57,185		2,257		67
2019	11,403		152		4

Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2021:

	December 31, 2021
	Amortized Cost		Fair Value
1 year or less	$	17,959	$	18,241
1 year – 5 years	77,146		78,191
5 years – 10 years	139,201		139,000
After 10 years	7,971		8,092
	242,277		243,524
Residential and multi-family mortgage	437,021		434,635
Pooled SBA	18,787		19,032
Total debt securities	$	698,085	$	697,191

Securities with Unrealized Loss Position

Securities with unrealized losses at December 31, 2021 and 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

December 31, 2021	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	23,733	$	(553)	37,911		(1,215)		$	61,644	$	(1,768)
State & political subdivisions	55,636		(1,399)		5,026		(283)		60,662		(1,682)
Residential & multi-family mortgage	248,690		(4,837)		45,185		(1,676)		293,875		(6,513)
Corporate notes & bonds	6,466		(249)		3,806		(194)		10,272		(443)
Pooled SBA	4,394		(37)		127		(1)		4,521		(38)
	338,919		$	(7,075)	$	92,055	$	(3,369)	$	430,974	$	(10,444)

December 31, 2020	Less than 12 Months		12 Months or More		Total
Description of Securities	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
U.S. Gov’t sponsored entities	24,991	(60)	0	0	24,991	(60)
State & political subdivisions	3,854	(19)	164	(103)	4,018	(122)
Residential and multi-family mortgage	44,092	(119)	3,277	(19)	47,369	(138)
Corporate notes & bonds	0	0	4,545	(400)	4,545	(400)
Pooled SBA	525	(1)	0	0	525	(1)
Other	0	0	979	(41)	979	(41)
	73,462	(199)	8,965	(563)	82,427	(762)

Trading Securities

Equity securities at December 31, 2021 and 2020 were as follows:

	December 31, 2021		December 31, 2020
Corporate equity securities	$	6,715	$	4,343
Mutual funds	2,566		1,283
Money market	506		404
Corporate notes and bonds	579		569
U.S. Government sponsored entities	0		50
Total	$	10,366	$	6,649

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Loans (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Net Loans

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

	2021		Percentage of Total		2020		Percentage of Total
Farmland	$	23,768	0.7	%	$	23,316	0.7	%
Owner-occupied, nonfarm nonresidential properties	434,672		12.0	%	407,924		12.1	%
Agricultural production and other loans to farmers	1,379		0.0	%	2,664		0.1	%
Commercial and Industrial 1	708,989		19.5	%	663,550		19.7	%
Obligations (other than securities and leases) of states and political subdivisions	140,887		3.9	%	132,818		3.9	%
Other loans	13,979		0.4	%	11,961		0.4	%
Other construction loans and all land development and other land loans	298,869		8.2	%	205,734		6.1	%
Multifamily (5 or more) residential properties	216,143		5.9	%	212,815		6.3	%
Non-owner occupied, nonfarm nonresidential properties	663,062		18.2	%	640,945		19.0	%
1-4 Family Construction	37,822		1.0	%	27,768		0.8	%
Home equity lines of credit	104,517		2.9	%	109,444		3.2	%
Residential Mortgages secured by first liens	826,729		22.7	%	777,030		23.0	%
Residential Mortgages secured by junior liens	56,689		1.6	%	53,726		1.6	%
Other revolving credit plans	26,536		0.7	%	25,507		0.8	%
Automobile	20,862		0.6	%	25,344		0.8	%
Other consumer	49,676		1.4	%	42,792		1.3	%
Credit cards	9,935		0.3	%	8,115		0.2	%
Overdrafts	278		0.0	%	336		0.0	%
Total loans	$	3,634,792	100.0	%	$	3,371,789	100.0	%
Less: Allowance for credit losses	(37,588)				(34,340)
Loans, net	$	3,597,204			$	3,337,449
Net deferred loan origination fees (costs) included in the above loan table	$	5,667			$	8,789
1 PPP loans, net of deferred PPP processing fees, both those disbursed in 2020 and those disbursed in 2021, are included in the Commercial and Industrial classification and totaled $45.2 million and $155.5 million as of December 31, 2021 and 2020, respectively. In addition, syndicated loans, net of deferred fees and costs, are included in the Commercial and Industrial classification and totaled $125.8 million and $22.1 million as of December 31, 2021 and 2020, respectively.

Transactions in the allowance for loan losses for the year ended December 31, 2020 were as follows:

	Beginning Allowance (Before ASC 326 Adoption)		Impact of ASC 326 Adoption		Initial Allowance on Loans Purchased with Credit Deterioration		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance (After ASC 326 Adoption)
Farmland	$	190	$	61	$	0	$	0	$	0	$	(30)	$	221
Owner-occupied, nonfarm nonresidential properties	2,390		(754)		82		(61)		12		2,031		3,700
Agricultural production and other loans to farmers	25		5		0		0		0		(6)		24
Commercial and Industrial	4,105		(631)		216		(2,779)		39		5,283		6,233
Obligations (other than securities and leases) of states and political subdivisions	1,022		(231)		0		0		0		207		998
Other loans	41		8		0		0		0		19		68
Other construction loans and all land development and other land loans	2,327		780		228		0		125		(1,504)		1,956
Multifamily (5 or more) residential properties	1,087		312		24		0		0		1,301		2,724
Non-owner occupied, nonfarm nonresidential properties	3,980		2,547		335		(1,522)		52		3,266		8,658
1-4 Family Construction	56		(35)		0		0		0		61		82
Home equity lines of credit	180		421		22		(6)		1		367		985
Residential Mortgages secured by first liens	1,220		1,100		73		(285)		65		2,366		4,539
Residential Mortgages secured by junior liens	114		135		0		(158)		2		148		241
Other revolving credit plans	296		378		0		(137)		21		(51)		507
Automobile	156		(96)		0		(29)		2		99		132
Other consumer	1,960		1,021		0		(1,513)		130		1,364		2,962
Credit cards	84		(58)		0		(153)		14		179		66
Overdrafts	240		0		0		(435)		185		254		244
Total loans	$	19,473	$	4,963	$	980	$	(7,078)	$	648	$	15,354	$	34,340

Allowance for Loan Losses

Transactions in the allowance for credit losses for the year ended December 31, 2021 were as follows:

	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Loss Expense		Ending Allowance
Farmland	$	221	$	0	$	0	$	(70)	$	151
Owner-occupied, nonfarm nonresidential properties	3,700		(584)		10		213		3,339
Agricultural production and other loans to farmers	24		0		0		(15)		9
Commercial and Industrial	6,233		(163)		203		2,564		8,837
Obligations (other than securities and leases) of states and political subdivisions	998		(407)		30		1,028		1,649
Other loans	68		0		0		81		149
Other construction loans and all land development and other land loans	1,956		(282)		0		524		2,198
Multifamily (5 or more) residential properties	2,724		0		0		(435)		2,289
Non-owner occupied, nonfarm nonresidential properties	8,658		(49)		0		(2,128)		6,481
1-4 Family Construction	82		0		0		76		158
Home equity lines of credit	985		(7)		5		186		1,169
Residential Mortgages secured by first liens	4,539		(79)		47		2,436		6,943
Residential Mortgages secured by junior liens	241		(3)		0		308		546
Other revolving credit plans	507		(41)		13		49		528
Automobile	132		(26)		3		154		263
Other consumer	2,962		(1,193)		140		637		2,546
Credit cards	66		(112)		18		120		92
Overdrafts	244		(438)		160		275		241
Total loans	$	34,340	$	(3,384)	$	629	$	6,003	$	37,588

Transactions in the allowance for loan losses for the year ended December 31, 2019 were as follows: 

	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses, January 1, 2019	$	7,341	$	7,490	$	2,156	$	2,377	$	103	$	237	$	19,704
Charge-offs	(205)		(3,391)		(386)		(2,200)		(116)		(453)		(6,751)
Recoveries	17		124		73		154		15		113		496
Provision for loan losses	1,134		2,729		(344)		2,080		82		343		6,024
Allowance for loan losses, December 31, 2019	$	8,287	$	6,952	$	1,499	$	2,411	$	84	$	240	$	19,473

Impaired Financing Receivables with Related and not Related Allowances

The following table presents information related to impaired loans by class of loan as of and for the year ended December 31, 2019:

	Year Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,750	$	90	$	90
Commercial mortgage	6,586		119		119
Residential real estate	191		13		13
Overdrafts	0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural	4,919		208		208
Commercial mortgage	3,985		158		158
Residential real estate	294		11		11
Overdrafts	0		0		0
Total	$	17,725	$	599	$	599

Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans

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

	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	965	$	965	$	0
Owner-occupied, nonfarm nonresidential properties	850		762		0
Commercial and Industrial	7,060		1,653		8
Other construction loans and all land development and other land loans	516		77		0
Multifamily (5 or more) residential properties	1,270		5		0
Non-owner occupied, nonfarm nonresidential properties	3,771		2,143		0
Home equity lines of credit	824		824		0
Residential Mortgages secured by first liens	3,410		3,410		137
Residential Mortgages secured by junior liens	147		147		0
Other revolving credit plans	13		13		0
Automobile	36		36		0
Other consumer	558		558		0
Credit cards	0		0		23
Total loans	$	19,420	$	10,593	$	168

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of 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

Aging of Recorded Investment in Past Due Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated as of December 31, 2021:

	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	920	$	0
Owner-occupied, nonfarm nonresidential properties	194		9
Commercial and Industrial	1,488		2,351
Other construction loans and all land development and other land loans	438		0
Multifamily (5 or more) residential properties	1,265		0
Non-owner occupied, nonfarm nonresidential properties	3,378		0
Residential Mortgages secured by first liens	435		0
Total loans	$	8,118	$	2,360

The following tables present the amortized cost basis of collateral-dependent loans by class of loans that are individually evaluated 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 December 31, 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	$	348	$	0	$	0	$	348	$	23,420	$	23,768
Owner-occupied, nonfarm nonresidential properties	278		18		414		710		433,962		434,672
Agricultural production and other loans to farmers	0		0		0		0		1,379		1,379
Commercial and Industrial	377		13		333		723		708,266		708,989
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		140,887		140,887
Other loans	0		0		0		0		13,979		13,979
Other construction loans and all land development and other land loans	0		0		77		77		298,792		298,869
Multifamily (5 or more) residential properties	0		10		209		219		215,924		216,143
Non-owner occupied, nonfarm nonresidential properties	0		0		1,792		1,792		661,270		663,062
1-4 Family Construction	0		0		0		0		37,822		37,822
Home equity lines of credit	506		50		172		728		103,789		104,517
Residential Mortgages secured by first liens	1,286		1,145		1,647		4,078		822,651		826,729
Residential Mortgages secured by junior liens	32		24		1		57		56,632		56,689
Other revolving credit plans	56		17		4		77		26,459		26,536
Automobile	45		3		23		71		20,791		20,862
Other consumer	283		158		295		736		48,940		49,676
Credit cards	26		12		23		61		9,874		9,935
Overdrafts	0		0		0		0		278		278
Total loans	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

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

Restructured in Troubled Debt

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2021, 2020, and 2019:

	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial and Industrial	2	$	3,336	$	3,336
Multifamily (5 or more) residential properties	1	717		717
Non-owner occupied, nonfarm nonresidential properties	1	1,604		1,604
Total loans	4	$	5,657	$	5,657

	Year Ended December 31, 2020
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Owner-occupied, nonfarm nonresidential properties	1	$	260	$	260
Commercial and Industrial	6	1,140		1,140
Other construction loans and all land development and other land loans	1	46		46
Non-owner occupied, nonfarm nonresidential properties	1	3,684		3,684
Residential Mortgages secured by first liens	2	309		309
Total loans	11	$	5,439	$	5,439

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial mortgages	1	$	383	$	383
Total	1	$	383	$	383

Amortized Cost of Loans, by Year of Origination

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, 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	$	8,203	$	1,690	$	3,276	$	3,547	$	564	$	3,545	$	461	$	0	$	21,286
Special mention	0		0		0		0		394		1,120		0		0		1,514
Substandard	388		0		0		0		48		532		0		0		968
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,591	$	1,690	$	3,276	$	3,547	$	1,006	$	5,197	$	461	$	0	$	23,768
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	135,095	$	78,068	$	78,621	$	29,100	$	40,677	$	50,079	$	7,728	$	0	$	419,368
Special mention	243		0		903		4,287		135		1,145		10		0		6,723
Substandard	687		416		2,190		868		250		4,152		18		0		8,581
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	136,025	$	78,484	$	81,714	$	34,255	$	41,062	$	55,376	$	7,756	$	0	$	434,672
Agricultural production and other loans to farmers
Risk rating
Pass	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
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	$	211	$	103	$	76	$	198	$	0	$	0	$	791	$	0	$	1,379
Commercial and Industrial
Risk rating
Pass	$	313,983	$	84,815	$	31,375	$	16,577	$	12,389	$	6,777	$	221,094	$	0	$	687,010
Special mention	0		363		793		381		82		844		5,483		0		7,946
Substandard	1,991		800		1,862		452		29		2,016		5,504		0		12,654
Doubtful(1)	1,379		0		0		0		0		0		0		0		1,379
Total	$	317,353	$	85,978	$	34,030	$	17,410	$	12,500	$	9,637	$	232,081	$	0	$	708,989
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
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	$	36,853	$	16,688	$	8,774	$	16,957	$	20,071	$	36,764	$	4,780	$	0	$	140,887
Other loans
Risk rating
Pass	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979
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	$	5,851	$	5,305	$	552	$	3	$	0	$	0	$	2,268	$	0	$	13,979

(1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period.

	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	$	98,406	$	168,372	$	8,752	$	11,141	$	853	$	898	$	5,681	$	0	$	294,103
Special mention	1,500		0		650		0		2,071		0		0		0		4,221
Substandard	0		0		0		29		439		0		77		0		545
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	99,906	$	168,372	$	9,402	$	11,170	$	3,363	$	898	$	5,758	$	0	$	298,869
Multifamily (5 or more) residential properties
Risk rating
Pass	$	74,687	$	55,663	$	33,436	$	7,937	$	27,729	$	12,882	$	2,438	$	0	$	214,772
Special mention	0		0		0		0		0		100		0		0		100
Substandard	0		6		682		379		204		0		0		0		1,271
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	74,687	$	55,669	$	34,118	$	8,316	$	27,933	$	12,982	$	2,438	$	0	$	216,143
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	194,800	$	125,039	$	84,943	$	52,233	$	42,714	$	123,021	$	8,784	$	0	$	631,534
Special mention	0		0		428		1,004		189		5,556		2,451		0		9,628
Substandard	826		0		2,305		1,662		4,638		12,134		335		0		21,900
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	195,626	$	125,039	$	87,676	$	54,899	$	47,541	$	140,711	$	11,570	$	0	$	663,062

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 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, 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	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	27,539	$	9,137	$	857	$	66	$	0	$	0	$	223	$	0	$	37,822
Home equity lines of credit
Payment performance
Performing	$	14,383	$	14,621	$	9,564	$	10,584	$	6,863	$	39,527	$	8,151	$	0	$	103,693
Nonperforming	0		0		9		10		377		428		0		0		824
Total	$	14,383	$	14,621	$	9,573	$	10,594	$	7,240	$	39,955	$	8,151	$	0	$	104,517
Residential mortgages secured by first lien
Payment performance
Performing	$	232,606	$	178,380	$	111,333	$	62,850	$	74,136	$	160,402	$	3,475	$	0	$	823,182
Nonperforming	79		259		227		151		258		2,379		194		0		3,547
Total	$	232,685	$	178,639	$	111,560	$	63,001	$	74,394	$	162,781	$	3,669	$	0	$	826,729
Residential mortgages secured by junior liens
Payment performance
Performing	$	20,617	$	11,256	$	7,239	$	4,407	$	3,508	$	9,095	$	420	$	0	$	56,542
Nonperforming	0		0		0		0		84		63		0		0		147
Total	$	20,617	$	11,256	$	7,239	$	4,407	$	3,592	$	9,158	$	420	$	0	$	56,689
Other revolving credit plans
Payment performance
Performing	$	5,313	$	3,596	$	3,090	$	2,592	$	2,977	$	8,955	$	0	$	0	$	26,523
Nonperforming	0		0		4		4		0		5		0		0		13
Total	$	5,313	$	3,596	$	3,094	$	2,596	$	2,977	$	8,960	$	0	$	0	$	26,536
Automobile
Payment performance
Performing	$	7,047	$	5,448	$	4,668	$	2,457	$	682	$	524	$	0	$	0	$	20,826
Nonperforming	11		13		12		0		0		0		0		0		36
Total	$	7,058	$	5,461	$	4,680	$	2,457	$	682	$	524	$	0	$	0	$	20,862
Other consumer
Payment performance
Performing	$	30,423	$	11,017	$	4,537	$	1,451	$	316	$	1,374	$	0	$	0	$	49,118
Nonperforming	204		170		96		25		3		60		0		0		558
Total	$	30,627	$	11,187	$	4,633	$	1,476	$	319	$	1,434	$	0	$	0	$	49,676

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
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	$	1,654	$	0	$	0	$	42,288
Nonperforming	82		264		75		13		0			70		0		0		504
Total	$	24,939	$	11,447	$	3,654	$	809	$	218		$	1,724	$	0	$	0	$	42,792

	December 31, 2021		December 31, 2020
Credit card
Payment performance
Performing	$	9,912	$	8,081
Nonperforming	23		34
Total	$	9,935	$	8,115

Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date

The following tables represent the Corporation's credit risk profile by risk rating as of December 31, 2021 and 2020. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans.

	December 31, 2021
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	21,286	$	1,514	$	968	$	0	$	2,482	$	23,768
Owner-occupied, nonfarm nonresidential properties	419,368		6,723		8,581		0		15,304		434,672
Agricultural production and other loans to farmers	1,379		0		0		0		0		1,379
Commercial and Industrial	687,010		7,946		12,654		1,379		21,979		708,989
Obligations (other than securities and leases) of states and political subdivisions	140,887		0		0		0		0		140,887
Other loans	13,979		0		0		0		0		13,979
Other construction loans and all land development and other land loans	294,103		4,221		545		0		4,766		298,869
Multifamily (5 or more) residential properties	214,772		100		1,271		0		1,371		216,143
Non-owner occupied, nonfarm nonresidential properties	631,534		9,628		21,900		0		31,528		663,062
Total loans	$	2,424,318	$	30,132	$	45,919	$	1,379	$	77,430	$	2,501,748

	December 31, 2020
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	20,316	$	1,156	$	1,844	$	0	$	3,000	$	23,316
Owner-occupied, nonfarm nonresidential properties	391,899		2,826		13,199		0		16,025		407,924
Agricultural production and other loans to farmers	2,664		0		0		0		0		2,664
Commercial and Industrial	637,071		11,368		15,111		0		26,479		663,550
Obligations (other than securities and leases) of states and political subdivisions	132,110		0		708		0		708		132,818
Other loans	11,961		0		0		0		0		11,961
Other construction loans and all land development and other land loans	198,206		5,611		1,917		0		7,528		205,734
Multifamily (5 or more) residential properties	211,563		0		1,252		0		1,252		212,815
Non-owner occupied, nonfarm nonresidential properties	594,603		12,496		33,846		0		46,342		640,945
Total loans	$	2,200,393	$	33,457	$	67,877	$	0	$	101,334	$	2,301,727

Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity

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 also 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.

	December 31, 2021						December 31, 2020
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
1-4 Family Construction	$	37,822	$	0	$	37,822	$	27,768	$	0	$	27,768
Home equity lines of credit	103,693		824		104,517		108,759		685		109,444
Residential Mortgages secured by first liens	823,182		3,547		826,729		772,572		4,458		777,030
Residential Mortgages secured by junior liens	56,542		147		56,689		53,612		114		53,726
Other revolving credit plans	26,523		13		26,536		25,501		6		25,507
Automobile	20,826		36		20,862		25,312		32		25,344
Other consumer	49,118		558		49,676		42,288		504		42,792
Total loans	$	1,117,706	$	5,125	$	1,122,831	$	1,055,812	$	5,799	$	1,061,611

Purchased Credit Deteriorated Loans

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

Summary of Holiday's Loan Portfolio Included in Consumer and Residential Loans

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

	December 31, 2021		December 31, 2020
Gross consumer loans	$	29,227	$	27,998
Less: unearned discounts	(5,716)		(5,181)
Total consumer loans, net of unearned discounts	$	23,511	$	22,817

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Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2021

Real Estate [Abstract]

Summary of Real Estate Owned Assets Activity

Real estate owned is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2021, 2020, and 2019 were as follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	862	$	1,633	$	418
Loans transferred to real estate owned	1,470		241		2,066
Sales of real estate owned (at carrying value)	(1,625)		(1,012)		(851)
Balance, end of year	$	707	$	862	$	1,633

Summary of Expenses Related to Foreclosed Real Estate

Expenses related to foreclosed real estate include:

	December 31, 2021		December 31, 2020		December 31, 2019
Net loss (gain) on sales	$	32	$	346	$	(377)
Operating expenses, net of rental income	85		240		316
	$	117	$	586	$	(61)

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Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows at December 31, 2021 and 2020:

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	111,748	$	0	$	111,748	$	0
States and political subdivisions	103,712		0		103,712		0
Residential and multi-family mortgage	434,635		4,995		429,640		0
Corporate notes and bonds	28,064		0		28,064		0
Pooled SBA	19,032		0		19,032		0
Total Securities Available For Sale	$	697,191	$	4,995	$	692,196	$	0
Interest rate swaps	$	2,124	$	0	$	2,124	$	0
Equity Securities:
Corporate equity securities	$	6,715	$	6,715	$	0	$	0
Mutual funds	2,566		2,566		0		0
Certificates of deposit	506		506		0		0
Corporate notes and bonds	579		579		0		0
Total Equity Securities	$	10,366	$	10,366	$	0	$	0
Liabilities
Interest rate swaps	$	(2,512)	$	0	$	(2,512)	$	0

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	157,042	$	0	$	157,042	$	0
States and political subdivisions	70,883		0		70,819		64
Residential and multi-family mortgage	315,192		15,039		300,153		0
Corporate notes and bonds	14,926		0		14,926		0
Pooled SBA	25,886		0		25,886		0
Other	979		979		0		0
Total Securities Available For Sale	$	584,908	$	16,018	$	568,826	$	64
Interest rate swaps	$	4,017	$	0	$	4,017	$	0
Equity Securities:
Corporate equity securities	$	4,343	$	4,343	$	0	$	0
Mutual funds	1,283		1,283		0		0
Certificates of deposit	404		404		0		0
Corporate notes and bonds	569		569		0		0
U.S. Government sponsored entities	50		0		50		0
Total Equity Securities	$	6,649	$	6,599	$	50	$	0
Liabilities
Interest rate swaps	$	(4,785)	$	0	$	(4,785)	$	0

Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2021: 

	States and Political Subdivisions		Corporate Notes and Bonds
Balance, January 1, 2021	$	64	$	0
Purchases	0		8,250
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Settlements	(64)		0
Transfers out of Level 3	0		(8,250)
Balance, December 31, 2021	$	0	$	0

The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2020: 

	States and Political Subdivisions		Residential & Multi-Family Mortgage
Balance, January 1, 2020	$	0	$	2,795
Purchases	422		0
Total gains or (losses):
Included in other comprehensive income (loss)	0		0
Transfers out of Level 3	(358)		$	(2,795)
Balance, December 31, 2020	$	64	$	0

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2021 and 2020: 

			Fair Value Measurements at December 31, 2021 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	920	0	0	$	920
Owner-occupied, nonfarm nonresidential properties	194		0	0	194
Commercial and industrial	3,102		0	0	3,102
Other construction loans and all land development loans and other land loans	248		0	0	248
Multifamily (5 or more) residential properties	627		0	0	627
Non-owner occupied, nonfarm nonresidential	2,889		0	0	2,889

			Fair Value Measurements at December 31, 2020 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	659	0	0	$	659
Owner-occupied, nonfarm nonresidential properties	329		0	0	329
Commercial and industrial	3,680		0	0	3,680
Other construction loans and all land development loans and other land loans	1,790		0	0	1,790
Multifamily (5 or more) residential properties	0		0	0	0
Non-owner occupied, nonfarm nonresidential	9,622		0	0	9,622
Residential mortgages secured by first liens	659		0	0	659

A loan is considered to be a collateral dependent loan when, based on current information and events, the Corporation expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Corporation has determined that the borrower is experiencing financial difficulty as of the measurement date. The allowance for credit losses is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Corporation reviews the third-party appraisal for appropriateness and may adjust the value downward to consider selling and closing costs. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business.

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2021:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	920	Valuation of third party appraisal on underlying collateral	Loss severity rates	60% (60%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	194		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-60% (57%)
Collateral-dependent loans - Commercial and industrial	3,102		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-59% (42%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	248		Valuation of third party appraisal on underlying collateral	Loss severity rates	25% (25%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	627		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-57% (26%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	2,889		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-60% (34%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020: 

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent loans - Farmland	$	659	Valuation of third party appraisal on underlying collateral	Loss severity rates	45%-54% (47%)
Collateral-dependent loans - Owner-occupied, nonfarm nonresidential properties	329		Valuation of third party appraisal on underlying collateral	Loss severity rates	60%-90% (80%)
Collateral-dependent loans - Commercial and industrial	3,680		Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-100% (39%)
Collateral-dependent loans - Other construction loans and all land development loans and other land loans	1,790		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-41% (28%)
Collateral-dependent loans - Multifamily (5 or more) residential properties	0		Valuation of third party appraisal on underlying collateral	Loss severity rates	58% (58%)
Collateral-dependent loans - Non-owner occupied, nonfarm nonresidential	9,622		Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-100% (29%)
Collateral-dependent loans - Residential mortgages secured by first liens	659		Valuation of third party appraisal on underlying collateral	Loss severity rates	31% (31%)

Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2021: 

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	732,198	$	732,198	$	0	$	0	$	732,198
Securities available for sale	697,191		4,995		692,196		0		697,191
Equity securities	10,366		10,366		0		0		10,366
Loans held for sale	849		0		858		0		858
Net loans	3,597,204		0		0		3,613,452		3,613,452
FHLB and other equity interests	23,276		n/a		n/a		n/a		n/a
Interest rate swaps	2,124		0		2,124		0		2,124
Accrued interest receivable	15,516		16		2,171		13,329		15,516
LIABILITIES
Deposits	$	(4,715,619)	$	(4,329,167)	$	(391,850)	$	0	$	(4,721,017)
Subordinated debentures	(104,281)		0		(92,675)		0		(92,675)
Interest rate swaps	(2,512)		0		(2,512)		0		(2,512)
Accrued interest payable	(886)		0		(886)		0		(886)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2020:

	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	532,694	$	532,694	$	0	$	0	$	532,694
Securities available for sale	584,908		16,018		568,826		64		584,908
Equity securities	6,649		6,599		50		0		6,649
Loans held for sale	8,514		0		8,617		0		8,617
Net loans	3,337,449		0		0		3,339,482		3,339,482
FHLB and other equity interests	21,018		n/a		n/a		n/a		n/a
Interest rate swaps	4,017		0		4,017		0		4,017
Accrued interest receivable	17,659		61		2,152		15,446		17,659
LIABILITIES
Deposits	$	(4,181,744)	$	(3,705,200)	$	(488,000)	$	0	$	(4,193,200)
Subordinated debentures	(70,620)		0		(62,583)		0		(62,583)
Interest rate swaps	(4,785)		0		(4,785)		0		(4,785)
Accrued interest payable	(1,096)		0		(1,096)		0		(1,096)

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Secondary Market Mortgage Activities (Tables)

12 Months Ended

Dec. 31, 2021

Mortgage Banking [Abstract]

Summary of Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Loans originated for resale	$	95,411	$	87,528	$	43,458
Proceeds from sales of loans held for sale	97,179		82,619		43,198
Net gains on sales of loans held for sale	2,737		2,961		990
Loan servicing fees	720		726		634

Summary of Activity for Capitalized Mortgage Servicing Rights

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	1,527	$	1,573	$	1,495
Additions	514		540		292
Servicing rights acquired	0		0		0
Amortization	(377)		(586)		(214)
Balance, end of year	$	1,664	$	1,527	$	1,573

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

The following summarizes premises and equipment at December 31, 2021 and 2020: 

	December 31, 2021		December 31, 2020
Land	$	8,798	$	8,016
Premises and leasehold improvements	70,212		68,346
Furniture and equipment	39,851		37,203
Construction in process	2,589		1,556
	121,450		115,121
Less: accumulated depreciation	59,791		55,057
Premises and equipment, net	$	61,659	$	60,064

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Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule Of Operating And Finance Lease Liabilities

Leases	Classification	December 31, 2021		December 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	19,928	$	18,407
Finance lease assets	Premises and equipment, net (1)	358		429
Total leased assets		$	20,286	$	18,836
Liabilities:
Operating lease liabilities	Operating lease liabilities	$	21,159	$	19,449
Finance lease liabilities	Accrued interest payable and other liabilities	469		550
Total leased liabilities		$	21,628	$	19,999

(1) Finance lease assets are recorded net of accumulated amortization of $858 thousand and $787 thousand as of December 31, 2021 and 2020, respectively.

Schedule Of Lease Cost

The components of the Corporation's net lease expense for the year ended December 31, 2021, 2020 and 2019 were as follows:

Lease Cost	Classification	December 31, 2021		December 31, 2020		December 31, 2019
Operating lease cost	Net occupancy expense	$	1,801	$	1,785	$	1,666
Variable lease cost	Net occupancy expense	55		87		98
Finance lease cost:
Amortization of leased assets	Net occupancy expense	72		72		72
Interest on lease liabilities	Interest expense - borrowed funds	23		27		30
Sublease income (1)	Net occupancy expense	(71)		(86)		(83)
Net lease cost		$	1,880	$	1,885	$	1,783

(1) Sublease income excludes rental income from owned properties.

Finance Lease, Liability, Maturity

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2021:

Maturity of Lease Liabilities as of December 31, 2021	Operating Leases (1)		Finance Leases		Total
2022	$	1,804	$	105	$	1,909
2023	1,693		105		1,798
2024	1,649		105		1,754
2025	1,637		105		1,742
2026	1,605		105		1,710
After 2026	20,564		0		20,564
Total lease payments	28,952		525		29,477
Less: Interest	7,793		56		7,849
Present value of lease liabilities	$	21,159	$	469	$	21,628

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $10.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Summary of Minimum Annual Rental Commitments Under Operating Lease

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2021:

Maturity of Lease Liabilities as of December 31, 2021	Operating Leases (1)		Finance Leases		Total
2022	$	1,804	$	105	$	1,909
2023	1,693		105		1,798
2024	1,649		105		1,754
2025	1,637		105		1,742
2026	1,605		105		1,710
After 2026	20,564		0		20,564
Total lease payments	28,952		525		29,477
Less: Interest	7,793		56		7,849
Present value of lease liabilities	$	21,159	$	469	$	21,628

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $10.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Schedule of Weighted Average Lease Term and Discount Rate

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Lease Term and Discount Rate	December 31, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	18.8		19.0
Finance leases	5.0		6.0
Weighted-average discount rate
Operating leases	3.42	%	3.46	%
Finance leases	4.49	%	4.49	%

Other information related to the Corporation's lease liabilities as of December 31, 2021 and 2020 was as follows:

Other Information	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases	$	964	$	922

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Change in Carrying Amount of Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 was as follows: 

	December 31, 2021		December 31, 2020
Balance, beginning of year	$	43,749	$	38,730
Acquired during the year	0		5,019
Balance, end of year	$	43,749	$	43,749

Estimated Amortization Expense of Core Deposit Intangible Assets

Estimated amortization expense of core deposit intangible assets for each of the next five years is as follows:

2022	$	96
2023	85
2024	73
2025	62
2026	51
Thereafter	93
	$	460

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Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Summary of Time Certificates of Deposit Accounts Included in Total Deposits and Their Remaining Maturities

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2021:

Time deposits maturing:
2022	$	252,340
2023	54,676
2024	34,009
2025	26,121
2026	7,258
Thereafter	12,048
	$	386,452

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Unfunded Post Retirement Benefits Plan

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Benefit obligation at beginning of year	$	1,829	$	2,030
Interest cost	28		51
Service cost	52		61
Actual claims	(31)		(36)
Actuarial gain	(391)		(277)
Benefit obligation at end of year	$	1,487	$	1,829

Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income at December 31, 2021 and 2020 consisted of: 

	December 31, 2021		December 31, 2020
Net actuarial gain	$	782	$	435
Tax effect	(165)		(92)
	$	617	$	343

Recognized Net Periodic Benefit Cost and Other Comprehensive Income

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	52	$	61	$	74
Interest cost	28		51		89
Net amortization of transition obligation and actuarial loss	(43)		0		23
Net periodic benefit cost	37		112		186
Net gain	(391)		(277)		(518)
Amortization	43		0		(23)
Total recognized in other comprehensive income	(348)		(277)		(541)
Total recognized in net periodic benefit cost and other comprehensive income	$	(311)	$	(165)	$	(355)

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Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2021

Postemployment Benefits [Abstract]

Summary of Changes in Deferred Compensation Plan Liability

A summary of changes in the deferred compensation plan liability follows:

	December 31, 2021		December 31, 2020		December 31, 2019
Balance, beginning of year	$	3,085	$	3,234	$	2,408
Deferrals, dividends, and changes in fair value	1,084		(70)		904
Deferred compensation payments	(494)		(79)		(78)
Balance, end of year	$	3,675	$	3,085	$	3,234

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

The following is a summary of income tax expense for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Current – federal	$	13,494	$	8,681	$	8,265
Current – state	1,268		729		499
Deferred – federal	(1,025)		(1,672)		(204)
Deferred – state	(666)		(391)		0
Income tax expense	$	13,071	$	7,347	$	8,560

Reconciliation of Income Tax Attributable to Pre-Tax Income at Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows: 

	December 31, 2021		%	December 31, 2020		%	December 31, 2019		%
Tax at statutory rate	$	14,863	21.0	$	8,419	21.0	$	10,214	21.0
Tax exempt income, net	(1,231)		(1.7)	(1,223)		(3.1)	(1,382)		(2.8)
Bank owned life insurance	(554)		(0.8)	(367)		(0.9)	(276)		(0.6)
Effect of state tax	476		0.7	576		1.4	394		0.8
Other	(483)		(0.7)	(58)		(0.1)	(390)		(0.8)
Income tax expense	$	13,071	18.5	$	7,347	18.3	$	8,560	17.6

Components of Net Deferred Tax Asset

The following table sets forth deferred taxes as of December 31, 2021 and 2020:

	December 31, 2021		December 31, 2020
Deferred tax assets:
Allowance for credit losses	$	7,606	$	6,751
Fair value adjustments – business combination	1,240		1,685
Deferred compensation	3,344		2,787
Net operating loss carryover	327		346
Post-retirement benefits	696		722
Unrealized loss on interest rate swap	81		161
Nonaccrual loan interest	509		478
Accrued expenses	1,718		681
Deferred fees and costs	1,259		1,613
Unrealized loss on securities available for sale	188		0
Operating lease liability	4,845		4,214
Other	383		300
	22,196		19,738
Deferred tax liabilities:
Unrealized gain on securities available for sale	0		4,077
Premises and equipment	3,093		2,997
Unrealized gain on equity securities	292		294
Intangibles – section 197	2,494		2,399
Mortgage servicing rights	366		321
Operating lease asset	4,649		4,079
Other	220		293
	11,114		14,460
Net deferred tax asset	$	11,082	$	5,278

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Related Party Disclosures (Tables)

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Schedule of loans to principal officers, directors, and their affiliates

Loans to principal officers, directors, and their affiliates during 2021 were as follows:

Beginning balance	$	37,665
New loans and advances	11,830
Effect of changes in composition of related parties	0
Repayments	(3,738)
Ending balance	$	45,757

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of Changes in Nonvested Restricted Stock Awards

A summary of changes in time-based unvested restricted stock awards follows: 

	Shares	Weighted-average Grant Date Fair Value
Non-vested at January 1, 2021	56,306	$	27.14
Granted	40,332	21.61
Forfeited	(2,669)	23.49
Vested	(24,326)	26.85
Non-vested at December 31, 2021	69,643	$	24.18

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Regulatory Capital Matters (Tables)

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Summary of Actual and Required Capital Amounts and Ratios

Actual and required capital amounts and ratios are presented below as of December 31, 2021 and 2020. The capital adequacy ratio includes the capital conservation buffer.

	Actual				For Capital Adequacy Purposes (1)				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total Capital to Risk Weighted Assets
Consolidated	$	541,651	14.92	%	$	381,093	10.50	%	N/A
Bank	$	475,231	13.16	%	$	379,180	10.50	%	$	361,123	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	427,988	11.79	%	$	308,504	8.50	%	N/A
Bank	$	447,055	12.38	%	$	306,955	8.50	%	$	288,899	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	350,203	9.65	%	$	254,062	7.00	%	N/A
Bank	$	439,676	12.18	%	$	252,786	7.00	%	$	234,730	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	427,988	8.22	%	$	208,208	4.00	%	N/A
Bank	$	447,055	8.63	%	$	207,109	4.00	%	$	258,887	5.00	%
December 31, 2020
Total Capital to Risk Weighted Assets
Consolidated	$	462,457	14.32	%	$	339,107	10.50	%	N/A
Bank	$	434,598	13.52	%	$	337,554	10.50	%	$	321,480	10.00	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated	$	384,650	11.91	%	$	274,516	8.50	%	N/A
Bank	$	408,693	12.71	%	$	273,258	8.50	%	$	257,184	8.00	%
Common equity Tier 1 to Risk Weighted Assets
Consolidated	$	306,865	9.50	%	$	226,072	7.00	%	N/A
Bank	$	401,314	12.48	%	$	225,036	7.00	%	$	208,962	6.50	%
Tier 1 (Core) Capital to Average Assets
Consolidated	$	384,650	8.11	%	$	189,728	4.00	%	N/A
Bank	$	408,693	8.66	%	$	188,690	4.00	%	$	235,863	5.00	%

(1) The minimum amounts and ratios as of December 31, 2021 and 2020 include the full phase in of the capital conservation buffer of 2.5 percent required by the Basel III framework.

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Interest Rate Swaps (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amounts and Locations of Activity Related to Interest Rate Swaps

The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	December 31, 2021	December 31, 2020
Interest rate contract	Accrued interest payable and other liabilities	$(388)	$(768)
For the Year Ended December 31, 2021	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$301	Interest expense – subordinated debentures		$(276)	Other income	$0
For the Year Ended December 31, 2020
Interest rate contract	$(224)	Interest expense – subordinated debentures		$(224)	Other income	$0
For the Year Ended December 31, 2019
Interest rate contract	$(225)	Interest expense – subordinated debentures		$(63)	Other income	$0

(a)Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b)Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c)Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d)Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e)Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

Amounts and Locations of Activity Related to Back-to-Back Interest Rate Swaps

The following table provides information about the amounts and locations of activity related to the back-to-back interest rate swaps within the Corporation’s consolidated balance sheet as of December 31, 2021 and 2020: 

	Notional Amount		Average Maturity (in years)	Weighted Average Fixed Rate		Weighted Average Variable Rate	Fair Value
December 31, 2021
3rd Party interest rate swaps	$	32,768	5.8	4.12	%	1 month LIBOR + 2.27%	$	2,124	(a)
Customer interest rate swaps	(32,768)		5.8	4.12	%	1 month LIBOR + 2.27%	(2,124)		(b)
December 31, 2020
3rd Party interest rate swaps	$	34,089	6.7	4.13	%	1 month LIBOR + 2.27%	$	4,017	(a)
Customer interest rate swaps	(34,089)		6.7	4.13	%	1 month LIBOR + 2.27%	(4,017)		(b)

(a)Reported in accrued interest receivable and other assets within the consolidated balance sheets

(b)Reported in accrued interest payable and other liabilities within the consolidated balance sheets

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Off-Balance Sheet Activities (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Off-Balance Sheet Risks

The contractual amount of financial instruments with off-balance sheet risk was as follows at December 31, 2021 and 2020: 

	December 31, 2021				December 31, 2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans	$	94,924	$	323,013	$	52,073	$	266,336
Unused lines of credit	13,265		663,903		24,328		673,919
Standby letters of credit	15,063		1,623		15,301		1,597

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Parent Company Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheets

CONDENSED BALANCE SHEETS	December 31,
	2021		2020
Assets
Cash	$	47,035	$	10,729
Equity securities	2,850		2,692
Investment in bank subsidiary	474,902		456,531
Investment in non-bank subsidiaries	20,327		15,681
Deferreds and current receivable	1,798		1,788
Other assets	1,044		1,264
Total assets	$	547,956	$	488,685
Liabilities
Subordinated debentures	$	104,281	$	70,620
Other liabilities	828		1,928
Total liabilities	105,109		72,548
Stockholders' equity	442,847		416,137
Total liabilities and stockholders' equity	$	547,956	$	488,685

Condensed Statements of Income

CONDENSED STATEMENTS OF INCOME	Year Ended December 31,
Income:	2021		2020		2019
Dividends from:
Bank subsidiary	$	22,165	$	16,702	$	12,696
Non-bank subsidiaries	1,700		10,350		0
Other	210		216		208
Total income	24,075		27,268		12,904
Expenses	(6,657)		(6,838)		(5,518)
Income before income taxes and equity in undistributed net income of subsidiaries:	17,418		20,430		7,386
Change in net unrealized holdings gains (losses) on equity securities not held for trading	121		(31)		24
Income tax benefit	1,381		1,306		1,177
Equity in undistributed net income of bank subsidiary	37,178		18,197		27,580
Equity in undistributed (distributions in excess) of net income of non-bank subsidiaries	1,609		(7,159)		3,914
Net income	57,707		32,743		40,081
Dividends on preferred stock	(4,302)		(1,147)		0
Net income available to common stockholders	$	53,405	$	31,596	$	40,081
Comprehensive income attributable to the parent	$	58,008	$	32,519	$	39,856

Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2021		2020		2019
Net income
Adjustments to reconcile net income to net cash provided by	$	57,707	$	32,743	$	40,081
operating activities:
Equity in undistributed net income of bank subsidiary	(37,178)		(18,197)		(27,580)
(Equity in undistributed) distributions in excess of net income of non–bank subsidiaries	(1,609)		7,159		(3,914)
Net unrealized (gains) losses on equity securities	(121)		31		(24)
Decrease in other assets	60		21		177
Increase in other liabilities	978		1,091		1,267
Net cash provided by operating activities	19,837		22,848		10,007
Cash flows from investing activities
Purchase of equity securities	0		(2,000)		(36)
Outlays for business acquisition	0		(16,126)		0
Investment in bank subsidiaries	0		(41,500)		0
Net cash used in investing activities	0		(59,626)		(36)
Cash flows from financing activities:
Dividends paid on common stock	(11,550)		(10,981)		(10,358)
Dividends paid on preferred stock	(4,302)		(1,147)		0
Proceeds from issuance of long term debt	83,484		0		0
Repayment of long term debt	(50,000)		0		0
Purchase of treasury stock	(1,163)		(1,307)		(1,291)
Net proceeds from the issuance of preferred stock	0		57,785		0
Net proceeds from issuance of common stock	0		3,257		1,423
Net advance (to) from subsidiary	0		(850)		650
Net cash provided by (used in) financing activities	16,469		46,757		(9,576)
Net increase (decrease) in cash	36,306		9,979		395
Cash beginning of year	10,729		750		355
Cash end of year	$	47,035	$	10,729	$	750

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted earnings per common share is shown below. There were no anti-dilutive stock options for the years ended December 31, 2021, 2020, and 2019.

	Years Ended December 31,
	2021		2020		2019
Basic earnings per common share computation
Net income per consolidated statements of income	$	53,405	$	31,596	$	40,081
Net earnings allocated to participating securities	(183)		(100)		(147)
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Distributed earnings allocated to common stock	$	11,514	$	10,942	$	10,317
Undistributed earnings allocated to common stock	41,708		20,554		29,617
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding, including shares considered participating securities	16,875		16,048		15,219
Less: Average participating securities	(55)		(48)		(55)
Weighted average shares	16,820		16,000		15,164
Basic earnings per common share	$	3.16	$	1.97	$	2.63
Diluted earnings per common share computation
Net earnings allocated to common stock	$	53,222	$	31,496	$	39,934
Weighted average common shares outstanding for basic earnings per common share	16,820		16,000		15,164
Add: Dilutive effects of performance based-shares	0		0		0
Weighted average shares and dilutive potential common shares	16,820		16,000		15,164
Diluted earnings per common share	$	3.16	$	1.97	$	2.63

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Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Components of Other Comprehensive Income and Related Tax Effects

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2021, 2020, and 2019: 

	December 31, 2021		December 31, 2020		December 31, 2019
Unrealized holding gains (losses) on available for sale securities	$	(19,526)	$	12,494	$	13,732
Less reclassification adjustment for gains recognized in earnings	(783)		(2,190)		(148)
Net unrealized gains (losses)	(20,309)		10,304		13,584
Tax effect	4,265		(2,164)		(2,852)
Net-of-tax amount	(16,044)		8,140		10,732
Actuarial gain (loss) on postemployment health care plan	391		277		518
Net amortization of transition obligation and actuarial gain	(43)		0		23
Net unrealized gain (loss) on postemployment health care plan	348		277		541
Tax effect	(73)		(58)		(113)
Net-of-tax amount	275		219		428
Unrealized gain (loss) on interest rate swap	105		(508)		(347)
Less reclassification adjustment for losses recognized in earnings	276		224		63
Net unrealized gain (loss)	381		(284)		(284)
Tax effect	(80)		60		59
Net-of-tax amount	301		(224)		(225)
Other comprehensive income (loss)	$	(15,468)	$	8,135	$	10,935

Summary of Change in Accumulated Other Comprehensive Income (Loss)

The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2021, 2020, and 2019. 

	Balance 12/31/20		Comprehensive Income (Loss)		Balance 12/31/21
Unrealized gains (losses) on securities available for sale	$	15,338	$	(16,044)	$	(706)
Unrealized gain on postretirement benefits plan	343		275		618
Unrealized loss on interest rate swap	(607)		301		(306)
Total	$	15,074	$	(15,468)	$	(394)

	Balance 12/31/19		Comprehensive Income (Loss)		Balance 12/31/20
Unrealized gains on securities available for sale	$	7,198	$	8,140	$	15,338
Unrealized gain on postretirement benefits plan	124		219		343
Unrealized loss on interest rate swap	(383)		(224)		(607)
Total	$	6,939	$	8,135	$	15,074

	Balance 1/1/19		Comprehensive Income (Loss)		Balance 12/31/19
Unrealized gains (losses) on securities available for sale	$	(3,534)	$	10,732	$	7,198
Unrealized gain (loss) on postretirement benefits plan	(304)		428		124
Unrealized loss on interest rate swap	(158)		(225)		(383)
Total	$	(3,996)	$	10,935	$	6,939

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Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue Derived from Contracts with Customers

The following table presents the Corporation's sources of Non-Interest Income for the years ended December 31, 2021, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	December 31, 2021		December 31, 2020		December 31, 2019
Non-interest Income
Service charges on deposit accounts	$	6,195	$	5,095	$	6,402
Wealth and asset management fees	6,740		5,497		4,627
Mortgage banking (1)	3,147		3,354		1,412
Card processing and interchange income	7,796		5,727		4,641
Net realized gains on available-for-sale securities (1)	783		2,190		148
Other income	8,773		6,196		8,745
Total non-interest income	$	33,434	$	28,059	$	25,975

(1)Not within scope of ASC 606

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Summary of Significant Accounting Policies - Narrative (Details)		12 Months Ended
	Jan. 01, 2020 USD ($)	Dec. 31, 2021 USD ($) renewal_option Segment qtr	Dec. 31, 2020 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable operating segment | Segment		1
Accrued interest reversed against interest income		$ 0
Accrued interest receivable on available-for-sale debt securities		2,200,000	$ 2,200,000
Accrued interest receivable		$ 13,300,000	$ 15,400,000
Period of delinquent loan		90 days
Number of quarters used in the mean loss calculation | qtr		8
DCF methodology, percentage (in percent)		88.40%	90.80%
WARM methodology, percentage (in percent)		11.60%	9.20%
Number of options to renew | renewal_option		1
Percentage of total loans (in percent)		1.000	1.000
Decrease to retained earnings		$ (260,582,000)	$ (218,727,000)
Allowance for credit losses on loans	$ 670,000
ASU No. 2016-13
Summary Of Significant Accounting Policies [Line Items]
Allowance for loan losses, period increase (decrease)	$ 5,000,000
Percentage of total loans (in percent)	0.255
Decrease to retained earnings	$ 3,400,000
Minimum
Summary Of Significant Accounting Policies [Line Items]
Reduced interest rate modification period		6 months
Maximum
Summary Of Significant Accounting Policies [Line Items]
Period of consumer loans charged off		180 days
Reduced interest rate modification period		12 months
Premises and Equipment | Minimum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		3 years
Premises and Equipment | Maximum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		39 years
Furniture, Fixtures and Equipment | Minimum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		3 years
Furniture, Fixtures and Equipment | Maximum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		10 years
Buildings and Building Improvements | Minimum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		15 years
Buildings and Building Improvements | Maximum
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment		39 years
Core Deposit | FC Banc Corp
Summary Of Significant Accounting Policies [Line Items]
Amortization of intangible assets		4 years
Core Deposit | Lake National Bank
Summary Of Significant Accounting Policies [Line Items]
Amortization of intangible assets		10 years

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Summary of Significant Accounting Policies - Schedule of Impact of ASC (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			$ 2,804,035
Impact of ASC 326 Adoption			19,473	$ 19,473	$ 19,704
Retained earnings	$ 260,582	$ 218,727
Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			2,804,035
Impact of ASC 326 Adoption			19,473
Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			2,804,705
Impact of ASC 326 Adoption			24,436
Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			670
Impact of ASC 326 Adoption			4,963
Balance sheet reclassification			(670)
Total pre-tax impact			4,293
Tax effect			(902)
Retained earnings			3,391
Commercial, industrial and agricultural
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			1,046,665
Impact of ASC 326 Adoption			8,287	8,287	7,341
Commercial, industrial and agricultural | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			(1,046,665)
Impact of ASC 326 Adoption			(8,287)
Commercial, industrial and agricultural | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Commercial, industrial and agricultural | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Commercial, industrial and agricultural | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Farmland | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,199
Impact of ASC 326 Adoption			190
Farmland | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,199
Impact of ASC 326 Adoption			190
Farmland | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,199
Impact of ASC 326 Adoption			251
Farmland | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			61
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Owner-occupied, nonfarm nonresidential properties | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			333,117
Impact of ASC 326 Adoption			2,390
Owner-occupied, nonfarm nonresidential properties | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			333,117
Impact of ASC 326 Adoption			2,390
Owner-occupied, nonfarm nonresidential properties | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			333,117
Impact of ASC 326 Adoption			1,636
Owner-occupied, nonfarm nonresidential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(754)
Agricultural production and other loans to farmers
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Agricultural production and other loans to farmers | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			3,407
Impact of ASC 326 Adoption			25
Agricultural production and other loans to farmers | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			3,407
Impact of ASC 326 Adoption			25
Agricultural production and other loans to farmers | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			3,407
Impact of ASC 326 Adoption			30
Agricultural production and other loans to farmers | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			5
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Commercial and Industrial | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			474,614
Impact of ASC 326 Adoption			4,105
Commercial and Industrial | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			474,614
Impact of ASC 326 Adoption			4,105
Commercial and Industrial | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			474,614
Impact of ASC 326 Adoption			3,474
Commercial and Industrial | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(631)
Obligations (other than securities and leases) of states and political subdivisions
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Obligations (other than securities and leases) of states and political subdivisions | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			139,052
Impact of ASC 326 Adoption			1,022
Obligations (other than securities and leases) of states and political subdivisions | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			139,052
Impact of ASC 326 Adoption			1,022
Obligations (other than securities and leases) of states and political subdivisions | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			139,052
Impact of ASC 326 Adoption			791
Obligations (other than securities and leases) of states and political subdivisions | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(231)
Other loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Other loans | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			5,740
Impact of ASC 326 Adoption			41
Other loans | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			5,740
Impact of ASC 326 Adoption			41
Other loans | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			5,740
Impact of ASC 326 Adoption			49
Other loans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			8
Commercial mortgages
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			814,002
Impact of ASC 326 Adoption			6,952	6,952	7,490
Commercial mortgages | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			(814,002)
Impact of ASC 326 Adoption			(6,952)
Commercial mortgages | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Commercial mortgages | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Commercial mortgages | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Other construction loans and all land development and other land loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Other construction loans and all land development and other land loans | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			277,412
Impact of ASC 326 Adoption			2,327
Other construction loans and all land development and other land loans | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			277,412
Impact of ASC 326 Adoption			2,327
Other construction loans and all land development and other land loans | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			277,412
Impact of ASC 326 Adoption			3,107
Other construction loans and all land development and other land loans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			780
Multifamily (5 or more) residential properties
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Multifamily (5 or more) residential properties | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			124,390
Impact of ASC 326 Adoption			1,087
Multifamily (5 or more) residential properties | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			124,390
Impact of ASC 326 Adoption			1,087
Multifamily (5 or more) residential properties | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			124,390
Impact of ASC 326 Adoption			1,399
Multifamily (5 or more) residential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			312
Non-owner occupied, nonfarm nonresidential properties
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Non-owner occupied, nonfarm nonresidential properties | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			467,852
Impact of ASC 326 Adoption			3,980
Non-owner occupied, nonfarm nonresidential properties | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			467,852
Impact of ASC 326 Adoption			3,980
Non-owner occupied, nonfarm nonresidential properties | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			468,522
Impact of ASC 326 Adoption			6,527
Non-owner occupied, nonfarm nonresidential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			670
Impact of ASC 326 Adoption			2,547
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			814,030
Impact of ASC 326 Adoption			1,499	1,499	2,156
Residential real estate | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			(814,030)
Impact of ASC 326 Adoption			(1,499)
Residential real estate | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Residential real estate | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Residential real estate | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
1-4 Family Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
1-4 Family Construction | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			22,427
Impact of ASC 326 Adoption			56
1-4 Family Construction | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			22,427
Impact of ASC 326 Adoption			56
1-4 Family Construction | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			22,427
Impact of ASC 326 Adoption			21
1-4 Family Construction | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(35)
Home equity lines of credit
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Home equity lines of credit | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			95,089
Impact of ASC 326 Adoption			180
Home equity lines of credit | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			95,089
Impact of ASC 326 Adoption			180
Home equity lines of credit | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			95,089
Impact of ASC 326 Adoption			601
Home equity lines of credit | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			421
Residential Mortgages secured by first liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Residential Mortgages secured by first liens | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			646,199
Impact of ASC 326 Adoption			1,220
Residential Mortgages secured by first liens | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			646,199
Impact of ASC 326 Adoption			1,220
Residential Mortgages secured by first liens | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			646,199
Impact of ASC 326 Adoption			2,320
Residential Mortgages secured by first liens | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			1,100
Residential Mortgages secured by junior liens
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Residential Mortgages secured by junior liens | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			57,965
Impact of ASC 326 Adoption			114
Residential Mortgages secured by junior liens | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			57,965
Impact of ASC 326 Adoption			114
Residential Mortgages secured by junior liens | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			57,965
Impact of ASC 326 Adoption			249
Residential Mortgages secured by junior liens | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			135
Consumer, net of unearned discount
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			119,623
Consumer, net of unearned discount | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			(119,623)
Consumer, net of unearned discount | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Consumer, net of unearned discount | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Consumer, net of unearned discount | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Impact of ASC 326 Adoption			2,411	2,411	2,377
Consumer | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Impact of ASC 326 Adoption			(2,411)
Consumer | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Impact of ASC 326 Adoption			0
Consumer | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Impact of ASC 326 Adoption			0
Consumer | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Impact of ASC 326 Adoption			0
Other revolving credit plans
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Other revolving credit plans | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			52,353
Impact of ASC 326 Adoption			296
Other revolving credit plans | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			52,353
Impact of ASC 326 Adoption			296
Other revolving credit plans | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			52,353
Impact of ASC 326 Adoption			674
Other revolving credit plans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			378
Automobile
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Automobile | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,807
Impact of ASC 326 Adoption			156
Automobile | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,807
Impact of ASC 326 Adoption			156
Automobile | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			27,807
Impact of ASC 326 Adoption			60
Automobile | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(96)
Other consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Other consumer | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			39,697
Impact of ASC 326 Adoption			1,960
Other consumer | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			39,697
Impact of ASC 326 Adoption			1,960
Other consumer | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			39,697
Impact of ASC 326 Adoption			2,981
Other consumer | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			1,021
Credit cards
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			7,569
Impact of ASC 326 Adoption			84	84	103
Credit cards | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Credit cards | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			7,569
Impact of ASC 326 Adoption			84
Credit cards | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			7,569
Impact of ASC 326 Adoption			26
Credit cards | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			(58)
Overdrafts
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			2,146
Impact of ASC 326 Adoption			240	$ 240	$ 237
Overdrafts | Reclassification to CECL Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			0
Overdrafts | Pre-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			2,146
Impact of ASC 326 Adoption			240
Overdrafts | Post-CECL Adoption Portfolio Segmentation
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			2,146
Impact of ASC 326 Adoption			240
Overdrafts | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans			0
Impact of ASC 326 Adoption			$ 0

XML

Business Combinations - Additional Information (Details)		7 Months Ended	12 Months Ended
	Jul. 17, 2020 USD ($) lease $ / shares shares	Jul. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) portfolio_group	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Acquisition related costs			$ 0	$ 4,000,000	$ 170,000
Goodwill			$ 43,749,000	$ 43,749,000	$ 38,730,000
Loan portfolio groups | portfolio_group			2
Core Deposit
Business Acquisition [Line Items]
Core deposit intangible	$ 613,000
Bank of Akron
Business Acquisition [Line Items]
Share price (in dollars per share) | $ / shares	$ 215.00
Share conversion ratio	6.6729
Percentage of shares exchanged	75.00%
Total merger consideration	$ 40,793,000
Value of cash consideration for Bank of Akron common stock exchanged for cash	$ 16,126,000
Equity interest issued (in shares) | shares	1,501,321
Value of stock consideration assigned to Bank of Akron common shares exchanged for stock paid to shareholders	$ 24,667,000
Equity interest issued, value assigned (in USD per share) | $ / shares	$ 16.43
Core deposit intangible	$ 613,000
Goodwill	$ 5,019,000
Adjustments to goodwill or closing date fair values		$ 0
Number of lease agreements | lease	1

XML

Business Combinations - Merger consideration (Details) - Bank of Akron $ in Thousands	Jul. 17, 2020 USD ($)
Business Acquisition [Line Items]
Value of stock consideration assigned to Bank of Akron common shares exchanged for stock paid to shareholders	$ 24,667
Value of cash consideration for Bank of Akron common stock exchanged for cash	16,126
Total merger consideration	$ 40,793

XML

Business Combinations - Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jul. 17, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Liabilities assumed
Goodwill		$ 43,749	$ 43,749	$ 38,730
Bank of Akron
Assets acquired
Cash and due from banks	$ 78,830
Interest bearing deposits with other banks	10,148
Investment securities	29,407
Loans, net of allowance for credit losses on PCD loans	319,063
Premises and equipment, net	4,265
Core deposit intangible	613
Deferred tax assets	2,777
Bank owned life insurance	8,187
Accrued interest receivable and other assets	5,307
Total assets acquired	458,597
Liabilities assumed
Deposits	419,475
Accrued interest payable and other liabilities	3,348
Total liabilities assumed	422,823
Total fair value of identifiable net assets	35,774
Total merger consideration	40,793
Goodwill	$ 5,019

XML

Business Combinations - Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Business Combination and Asset Acquisition [Abstract]
Net interest income	$ 137,097	$ 119,062
Net income	$ 34,628	$ 42,343
Basic earnings per common share (in USD per share)	$ 2.01	$ 2.54
Diluted earnings per common share (in USD per share)	$ 2.01	$ 2.54

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Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total debt securities	$ 698,085	$ 565,493
Unrealized gains	9,550	20,177
Unrealized losses	(10,444)	(762)
Fair value	697,191	584,908
U.S. Gov’t sponsored entities
Debt Securities, Available-for-sale [Line Items]
Total debt securities	110,788	150,404
Unrealized gains	2,728	6,698
Unrealized losses	(1,768)	(60)
Fair value	111,748	157,042
State & political subdivisions
Debt Securities, Available-for-sale [Line Items]
Total debt securities	103,232	67,819
Unrealized gains	2,162	3,186
Unrealized losses	(1,682)	(122)
Fair value	103,712	70,883
Residential & multi-family mortgage
Debt Securities, Available-for-sale [Line Items]
Total debt securities	437,021	306,054
Unrealized gains	4,127	9,276
Unrealized losses	(6,513)	(138)
Fair value	434,635	315,192
Corporate notes & bonds
Debt Securities, Available-for-sale [Line Items]
Total debt securities	28,257	15,221
Unrealized gains	250	105
Unrealized losses	(443)	(400)
Fair value	28,064	14,926
Pooled SBA
Debt Securities, Available-for-sale [Line Items]
Total debt securities	18,787	24,975
Unrealized gains	283	912
Unrealized losses	(38)	(1)
Fair value	19,032	25,886
Other
Debt Securities, Available-for-sale [Line Items]
Total debt securities	0	1,020
Unrealized gains	0	0
Unrealized losses	0	(41)
Fair value	$ 0	$ 979

XML

Securities - Information Pertaining to Security Sales (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 33,553	$ 57,185	$ 11,403
Gross Gains	783	2,257	152
Gross Losses	$ 0	$ 67	$ 4

XML

Securities - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Tax provision related to net realized gains	$ 164	$ 460	$ 31
Number of securities holdings | security	0	0
Shareholders equity, percentage	10.00%	10.00%
Proceeds from sale of securities, operating activities	$ 0	$ 5,900	301
Net realized gains on trading securities	0	75	16
Realized gains on Visa Class B shares	0	0	$ 463
Collateral Pledged
Debt Securities, Available-for-sale [Line Items]
Securities pledged to public deposits	$ 461,500	$ 453,400

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Securities - Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortized Cost
1 year or less	$ 17,959
1 year – 5 years	77,146
5 years – 10 years	139,201
After 10 years	7,971
Total, Amortized Cost	242,277
Total debt securities	698,085	$ 565,493
Fair Value
1 year or less	18,241
1 year – 5 years	78,191
5 years – 10 years	139,000
After 10 years	8,092
Total, Fair Value	243,524
Total debt securities	697,191	584,908
Residential & multi-family mortgage
Amortized Cost
Mortgage & asset backed securities, Amortized Cost	437,021
Total debt securities	437,021	306,054
Fair Value
Mortgage & asset backed securities, Fair Value	434,635
Total debt securities	434,635	315,192
Pooled SBA
Amortized Cost
Mortgage & asset backed securities, Amortized Cost	18,787
Total debt securities	18,787	24,975
Fair Value
Mortgage & asset backed securities, Fair Value	19,032
Total debt securities	$ 19,032	$ 25,886

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Securities - Securities with Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Less than 12 Months
Fair Value	$ 338,919	$ 73,462
Unrealized Loss	(7,075)	(199)
12 Months or More
Fair Value	92,055	8,965
Unrealized Loss	(3,369)	(563)
Fair Value	430,974	82,427
Unrealized Loss	(10,444)	(762)
U.S. Government sponsored entities
Less than 12 Months
Fair Value	23,733	24,991
Unrealized Loss	(553)	(60)
12 Months or More
Fair Value	37,911	0
Unrealized Loss	(1,215)	0
Fair Value	61,644	24,991
Unrealized Loss	(1,768)	(60)
State & political subdivisions
Less than 12 Months
Fair Value	55,636	3,854
Unrealized Loss	(1,399)	(19)
12 Months or More
Fair Value	5,026	164
Unrealized Loss	(283)	(103)
Fair Value	60,662	4,018
Unrealized Loss	(1,682)	(122)
Residential & multi-family mortgage
Less than 12 Months
Fair Value	248,690	44,092
Unrealized Loss	(4,837)	(119)
12 Months or More
Fair Value	45,185	3,277
Unrealized Loss	(1,676)	(19)
Fair Value	293,875	47,369
Unrealized Loss	(6,513)	(138)
Corporate notes & bonds
Less than 12 Months
Fair Value	6,466	0
Unrealized Loss	(249)	0
12 Months or More
Fair Value	3,806	4,545
Unrealized Loss	(194)	(400)
Fair Value	10,272	4,545
Unrealized Loss	(443)	(400)
Pooled SBA
Less than 12 Months
Fair Value	4,394	525
Unrealized Loss	(37)	(1)
12 Months or More
Fair Value	127	0
Unrealized Loss	(1)	0
Fair Value	4,521	525
Unrealized Loss	$ (38)	(1)
Other
Less than 12 Months
Fair Value		0
Unrealized Loss		0
12 Months or More
Fair Value		979
Unrealized Loss		(41)
Fair Value		979
Unrealized Loss		$ (41)

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Securities - Trading Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	$ 10,366	$ 6,649
Corporate equity securities
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	6,715	4,343
Mutual funds
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	2,566	1,283
Money market
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	506	404
Corporate notes and bonds
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	579	569
U.S. Government sponsored entities
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	$ 0	$ 50

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Loans - Schedule of Net Loans (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 3,634,792	$ 3,371,789
Less: Allowance for credit losses	(37,588)	(34,340)	$ (19,473)
Net loans	3,597,204	3,337,449
Net deferred loan origination fees (costs) included in the above loan table	$ 5,667	$ 8,789
Percentage of Total	1.000	1.000
Farmland
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 23,768	$ 23,316
Less: Allowance for credit losses	$ (151)	$ (221)	(190)
Percentage of Total	0.007	0.007
Owner-occupied, nonfarm nonresidential properties
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 434,672	$ 407,924
Less: Allowance for credit losses	$ (3,339)	$ (3,700)	(2,390)
Percentage of Total	0.120	0.121
Agricultural production and other loans to farmers
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 1,379	$ 2,664
Less: Allowance for credit losses	$ (9)	$ (24)	(25)
Percentage of Total	0.000	0.001
Commercial and Industrial
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 708,989	$ 663,550
Less: Allowance for credit losses	$ (8,837)	$ (6,233)	(4,105)
Percentage of Total	0.195	0.197
Obligations (other than securities and leases) of states and political subdivisions
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 140,887	$ 132,818
Less: Allowance for credit losses	$ (1,649)	$ (998)	(1,022)
Percentage of Total	0.039	0.039
Other loans
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 13,979	$ 11,961
Less: Allowance for credit losses	$ (149)	$ (68)	(41)
Percentage of Total	0.004	0.004
Other construction loans and all land development and other land loans
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 298,869	$ 205,734
Less: Allowance for credit losses	$ (2,198)	$ (1,956)	(2,327)
Percentage of Total	0.082	0.061
Multifamily (5 or more) residential properties
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 216,143	$ 212,815
Less: Allowance for credit losses	$ (2,289)	$ (2,724)	(1,087)
Percentage of Total	0.059	0.063
Non-owner occupied, nonfarm nonresidential properties
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 663,062	$ 640,945
Less: Allowance for credit losses	$ (6,481)	$ (8,658)	(3,980)
Percentage of Total	0.182	0.190
1-4 Family Construction
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 37,822	$ 27,768
Less: Allowance for credit losses	$ (158)	$ (82)	(56)
Percentage of Total	0.010	0.008
Home equity lines of credit
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 104,517	$ 109,444
Less: Allowance for credit losses	$ (1,169)	$ (985)	(180)
Percentage of Total	0.029	0.032
Residential Mortgages secured by first liens
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 826,729	$ 777,030
Less: Allowance for credit losses	$ (6,943)	$ (4,539)	(1,220)
Percentage of Total	0.227	0.230
Residential Mortgages secured by junior liens
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 56,689	$ 53,726
Less: Allowance for credit losses	$ (546)	$ (241)	(114)
Percentage of Total	0.016	0.016
Other revolving credit plans
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 26,536	$ 25,507
Less: Allowance for credit losses	$ (528)	$ (507)	(296)
Percentage of Total	0.007	0.008
Automobile
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 20,862	$ 25,344
Less: Allowance for credit losses	$ (263)	$ (132)	(156)
Percentage of Total	0.006	0.008
Other consumer
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 49,676	$ 42,792
Less: Allowance for credit losses	$ (2,546)	$ (2,962)	(1,960)
Percentage of Total	0.014	0.013
Credit cards
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 9,935	$ 8,115
Less: Allowance for credit losses	$ (92)	$ (66)	(84)
Percentage of Total	0.003	0.002
Overdrafts
Loan Portfolio By Loan Grade [Line Items]
Loans	$ 278	$ 336
Less: Allowance for credit losses	$ (241)	$ (244)	$ (240)
Percentage of Total	0.000	0.000

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Loans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	$ 37,588,000	$ 34,340,000	$ 19,473,000
Loans	3,634,792,000	3,371,789,000
Amortized cost in troubled debt restructurings	16,600,000	15,100,000
Financing receivable, troubled debt restructuring, allowance for loans	$ 2,600,000	$ 779,000
Loans modified as TDRs with a subsequent payment default | loan	0	0	0
Principal balances forgiven in connection with loan restructuring	$ 0	$ 0	$ 0
Minimum period to be considered for loan to have defaulted	90 days
Accrual status restoration period	6 months
PPP
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 45,203,000	155,529,000
Syndicated
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	125,761,000	22,064,000
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	8,837,000	6,233,000	$ 4,105,000
Loans	708,989,000	663,550,000
Commercial and Industrial | PPP
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	0	0
Loans	45,200,000	155,500,000
Commercial and Industrial | Syndicated
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 125,800,000	$ 22,100,000

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Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	$ 34,340	$ 19,473
Initial Allowance on Loans Purchased with Credit Deterioration		980
Charge-offs	(3,384)	(7,078)	$ (6,751)
Recoveries	629	648	496
Provision (Benefit) for Credit Loss Expense	6,003	15,354	6,024
Allowance for loan losses, Ending Balance	37,588	34,340	19,473
Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		4,963
Allowance for loan losses, Ending Balance			4,963
Farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	221	190
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	0	0
Recoveries	0	0
Provision (Benefit) for Credit Loss Expense	(70)	(30)
Allowance for loan losses, Ending Balance	151	221	190
Farmland | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		61
Allowance for loan losses, Ending Balance			61
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	3,700	2,390
Initial Allowance on Loans Purchased with Credit Deterioration		82
Charge-offs	(584)	(61)
Recoveries	10	12
Provision (Benefit) for Credit Loss Expense	213	2,031
Allowance for loan losses, Ending Balance	3,339	3,700	2,390
Owner-occupied, nonfarm nonresidential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(754)
Allowance for loan losses, Ending Balance			(754)
Agricultural production and other loans to farmers
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	24	25
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	0	0
Recoveries	0	0
Provision (Benefit) for Credit Loss Expense	(15)	(6)
Allowance for loan losses, Ending Balance	9	24	25
Agricultural production and other loans to farmers | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		5
Allowance for loan losses, Ending Balance			5
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	6,233	4,105
Initial Allowance on Loans Purchased with Credit Deterioration		216
Charge-offs	(163)	(2,779)
Recoveries	203	39
Provision (Benefit) for Credit Loss Expense	2,564	5,283
Allowance for loan losses, Ending Balance	8,837	6,233	4,105
Commercial and Industrial | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(631)
Allowance for loan losses, Ending Balance			(631)
Obligations (other than securities and leases) of states and political subdivisions
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	998	1,022
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(407)	0
Recoveries	30	0
Provision (Benefit) for Credit Loss Expense	1,028	207
Allowance for loan losses, Ending Balance	1,649	998	1,022
Obligations (other than securities and leases) of states and political subdivisions | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(231)
Allowance for loan losses, Ending Balance			(231)
Other loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	68	41
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	0	0
Recoveries	0	0
Provision (Benefit) for Credit Loss Expense	81	19
Allowance for loan losses, Ending Balance	149	68	41
Other loans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		8
Allowance for loan losses, Ending Balance			8
Other construction loans and all land development and other land loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	1,956	2,327
Initial Allowance on Loans Purchased with Credit Deterioration		228
Charge-offs	(282)	0
Recoveries	0	125
Provision (Benefit) for Credit Loss Expense	524	(1,504)
Allowance for loan losses, Ending Balance	2,198	1,956	2,327
Other construction loans and all land development and other land loans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		780
Allowance for loan losses, Ending Balance			780
Multifamily (5 or more) residential properties
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	2,724	1,087
Initial Allowance on Loans Purchased with Credit Deterioration		24
Charge-offs	0	0
Recoveries	0	0
Provision (Benefit) for Credit Loss Expense	(435)	1,301
Allowance for loan losses, Ending Balance	2,289	2,724	1,087
Multifamily (5 or more) residential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		312
Allowance for loan losses, Ending Balance			312
Non-owner occupied, nonfarm nonresidential properties
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	8,658	3,980
Initial Allowance on Loans Purchased with Credit Deterioration		335
Charge-offs	(49)	(1,522)
Recoveries	0	52
Provision (Benefit) for Credit Loss Expense	(2,128)	3,266
Allowance for loan losses, Ending Balance	6,481	8,658	3,980
Non-owner occupied, nonfarm nonresidential properties | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		2,547
Allowance for loan losses, Ending Balance			2,547
1-4 Family Construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	82	56
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	0	0
Recoveries	0	0
Provision (Benefit) for Credit Loss Expense	76	61
Allowance for loan losses, Ending Balance	158	82	56
1-4 Family Construction | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(35)
Allowance for loan losses, Ending Balance			(35)
Home equity lines of credit
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	985	180
Initial Allowance on Loans Purchased with Credit Deterioration		22
Charge-offs	(7)	(6)
Recoveries	5	1
Provision (Benefit) for Credit Loss Expense	186	367
Allowance for loan losses, Ending Balance	1,169	985	180
Home equity lines of credit | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		421
Allowance for loan losses, Ending Balance			421
Residential Mortgages secured by first liens
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	4,539	1,220
Initial Allowance on Loans Purchased with Credit Deterioration		73
Charge-offs	(79)	(285)
Recoveries	47	65
Provision (Benefit) for Credit Loss Expense	2,436	2,366
Allowance for loan losses, Ending Balance	6,943	4,539	1,220
Residential Mortgages secured by first liens | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		1,100
Allowance for loan losses, Ending Balance			1,100
Residential Mortgages secured by junior liens
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	241	114
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(3)	(158)
Recoveries	0	2
Provision (Benefit) for Credit Loss Expense	308	148
Allowance for loan losses, Ending Balance	546	241	114
Residential Mortgages secured by junior liens | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		135
Allowance for loan losses, Ending Balance			135
Other revolving credit plans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	507	296
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(41)	(137)
Recoveries	13	21
Provision (Benefit) for Credit Loss Expense	49	(51)
Allowance for loan losses, Ending Balance	528	507	296
Other revolving credit plans | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		378
Allowance for loan losses, Ending Balance			378
Automobile
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	132	156
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(26)	(29)
Recoveries	3	2
Provision (Benefit) for Credit Loss Expense	154	99
Allowance for loan losses, Ending Balance	263	132	156
Automobile | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(96)
Allowance for loan losses, Ending Balance			(96)
Other consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	2,962	1,960
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(1,193)	(1,513)
Recoveries	140	130
Provision (Benefit) for Credit Loss Expense	637	1,364
Allowance for loan losses, Ending Balance	2,546	2,962	1,960
Other consumer | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		1,021
Allowance for loan losses, Ending Balance			1,021
Credit cards
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	66	84
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(112)	(153)	(116)
Recoveries	18	14	15
Provision (Benefit) for Credit Loss Expense	120	179	82
Allowance for loan losses, Ending Balance	92	66	84
Credit cards | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		(58)
Allowance for loan losses, Ending Balance			(58)
Overdrafts
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance	244	240
Initial Allowance on Loans Purchased with Credit Deterioration		0
Charge-offs	(438)	(435)	(453)
Recoveries	160	185	113
Provision (Benefit) for Credit Loss Expense	275	254	343
Allowance for loan losses, Ending Balance	$ 241	244	240
Overdrafts | Impact of CECL Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for loan losses, Beginning Balance		$ 0
Allowance for loan losses, Ending Balance			0
Commercial, industrial and agricultural
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(205)
Recoveries			17
Provision (Benefit) for Credit Loss Expense			1,134
Commercial mortgages
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(3,391)
Recoveries			124
Provision (Benefit) for Credit Loss Expense			2,729
Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(386)
Recoveries			73
Provision (Benefit) for Credit Loss Expense			(344)
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(2,200)
Recoveries			154
Provision (Benefit) for Credit Loss Expense			$ 2,080

XML

Loans - Impaired Financing Receivables with Related and not Related Allowances (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
With no related allowance recorded:
Average Recorded Investment, Total	$ 17,725
Interest Income Recognized, Total	599
Cash Basis Interest Recognized, Total	599
Commercial, industrial and agricultural
With an allowance recorded:
Average Recorded Investment	1,750
Interest Income Recognized	90
Cash Basis Interest Recognized	90
With no related allowance recorded:
Average Recorded Investment	4,919
Interest Income Recognized	208
Cash Basis Interest Recognized	208
Commercial mortgages
With an allowance recorded:
Average Recorded Investment	6,586
Interest Income Recognized	119
Cash Basis Interest Recognized	119
With no related allowance recorded:
Average Recorded Investment	3,985
Interest Income Recognized	158
Cash Basis Interest Recognized	158
Residential real estate
With an allowance recorded:
Average Recorded Investment	191
Interest Income Recognized	13
Cash Basis Interest Recognized	13
With no related allowance recorded:
Average Recorded Investment	294
Interest Income Recognized	11
Cash Basis Interest Recognized	11
Overdrafts
With an allowance recorded:
Average Recorded Investment	0
Interest Income Recognized	0
Cash Basis Interest Recognized	0
With no related allowance recorded:
Average Recorded Investment	0
Interest Income Recognized	0
Cash Basis Interest Recognized	$ 0

XML

Loans - Nonaccrual Loans and Loans Past Due over 89 Days Still Accruing Interest by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Nonaccrual	$ 19,420	$ 30,359
Nonaccrual With No Allowance for Credit Loss	10,593	16,930
Loans Past Due over 89 Days Still Accruing	168	325
Farmland
Financing Receivable, Past Due [Line Items]
Nonaccrual	965	1,844
Nonaccrual With No Allowance for Credit Loss	965	633
Loans Past Due over 89 Days Still Accruing	0	0
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Past Due [Line Items]
Nonaccrual	850	1,781
Nonaccrual With No Allowance for Credit Loss	762	967
Loans Past Due over 89 Days Still Accruing	0	0
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual	7,060	6,657
Nonaccrual With No Allowance for Credit Loss	1,653	959
Loans Past Due over 89 Days Still Accruing	8	0
Other construction loans and all land development and other land loans
Financing Receivable, Past Due [Line Items]
Nonaccrual	516	2,349
Nonaccrual With No Allowance for Credit Loss	77	77
Loans Past Due over 89 Days Still Accruing	0	0
Multifamily (5 or more) residential properties
Financing Receivable, Past Due [Line Items]
Nonaccrual	1,270	288
Nonaccrual With No Allowance for Credit Loss	5	0
Loans Past Due over 89 Days Still Accruing	0	0
Non-owner occupied, nonfarm nonresidential properties
Financing Receivable, Past Due [Line Items]
Nonaccrual	3,771	11,932
Nonaccrual With No Allowance for Credit Loss	2,143	9,466
Loans Past Due over 89 Days Still Accruing	0	0
Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Nonaccrual	824	685
Nonaccrual With No Allowance for Credit Loss	824	685
Loans Past Due over 89 Days Still Accruing	0	0
Residential Mortgages secured by first liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	3,410	4,175
Nonaccrual With No Allowance for Credit Loss	3,410	3,495
Loans Past Due over 89 Days Still Accruing	137	283
Residential Mortgages secured by junior liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	147	114
Nonaccrual With No Allowance for Credit Loss	147	114
Loans Past Due over 89 Days Still Accruing	0	0
Other revolving credit plans
Financing Receivable, Past Due [Line Items]
Nonaccrual	13	6
Nonaccrual With No Allowance for Credit Loss	13	6
Loans Past Due over 89 Days Still Accruing	0	0
Automobile
Financing Receivable, Past Due [Line Items]
Nonaccrual	36	32
Nonaccrual With No Allowance for Credit Loss	36	32
Loans Past Due over 89 Days Still Accruing	0	0
Other consumer
Financing Receivable, Past Due [Line Items]
Nonaccrual	558	496
Nonaccrual With No Allowance for Credit Loss	558	496
Loans Past Due over 89 Days Still Accruing	0	8
Credit cards
Financing Receivable, Past Due [Line Items]
Nonaccrual	0	0
Nonaccrual With No Allowance for Credit Loss	0	0
Loans Past Due over 89 Days Still Accruing	$ 23	$ 34

XML

Loans - Amortized Cost Basis of Collateral-Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	$ 8,118	$ 15,439
Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	2,360	7,067
Farmland | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	920	1,793
Farmland | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	0	0
Owner-occupied, nonfarm nonresidential properties | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	194	285
Owner-occupied, nonfarm nonresidential properties | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	9	587
Commercial and Industrial | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	1,488	594
Commercial and Industrial | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	2,351	5,600
Other construction loans and all land development and other land loans | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	438	2,272
Other construction loans and all land development and other land loans | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	0	0
Multifamily (5 or more) residential properties | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	1,265	288
Multifamily (5 or more) residential properties | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	0	0
Non-owner occupied, nonfarm nonresidential properties | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	3,378	9,072
Non-owner occupied, nonfarm nonresidential properties | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	0	880
Residential Mortgages secured by first liens | Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	435	1,135
Residential Mortgages secured by first liens | Non-Real Estate Collateral
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized cost basis of collateral-dependent loans	$ 0	$ 0

XML

Loans - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total ending loans balance	$ 3,634,792	$ 3,371,789
30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	3,237	4,430
60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,450	2,430
Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	4,990	20,682
Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	9,677	27,542
Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	3,625,115	3,344,247
Farmland
Financing Receivable, Past Due [Line Items]
Total ending loans balance		23,316
Farmland | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	348	195
Farmland | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Farmland | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	1,211
Farmland | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	348	1,406
Farmland | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	23,420	21,910
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Past Due [Line Items]
Total ending loans balance		407,924
Owner-occupied, nonfarm nonresidential properties | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	278	10
Owner-occupied, nonfarm nonresidential properties | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	18	885
Owner-occupied, nonfarm nonresidential properties | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	414	732
Owner-occupied, nonfarm nonresidential properties | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	710	1,627
Owner-occupied, nonfarm nonresidential properties | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	433,962	406,297
Agricultural production and other loans to farmers
Financing Receivable, Past Due [Line Items]
Total ending loans balance		2,664
Agricultural production and other loans to farmers | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Agricultural production and other loans to farmers | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Agricultural production and other loans to farmers | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Agricultural production and other loans to farmers | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Agricultural production and other loans to farmers | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,379	2,664
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total ending loans balance		663,550
Commercial and Industrial | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	377	476
Commercial and Industrial | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	13	335
Commercial and Industrial | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	333	3,887
Commercial and Industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	723	4,698
Commercial and Industrial | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	708,266	658,852
Obligations (other than securities and leases) of states and political subdivisions
Financing Receivable, Past Due [Line Items]
Total ending loans balance		132,818
Obligations (other than securities and leases) of states and political subdivisions | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Obligations (other than securities and leases) of states and political subdivisions | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Obligations (other than securities and leases) of states and political subdivisions | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Obligations (other than securities and leases) of states and political subdivisions | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Obligations (other than securities and leases) of states and political subdivisions | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	140,887	132,818
Other loans
Financing Receivable, Past Due [Line Items]
Total ending loans balance		11,961
Other loans | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other loans | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other loans | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other loans | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other loans | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	13,979	11,961
Other construction loans and all land development and other land loans
Financing Receivable, Past Due [Line Items]
Total ending loans balance		205,734
Other construction loans and all land development and other land loans | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other construction loans and all land development and other land loans | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Other construction loans and all land development and other land loans | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	77	1,917
Other construction loans and all land development and other land loans | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	77	1,917
Other construction loans and all land development and other land loans | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	298,792	203,817
Multifamily (5 or more) residential properties
Financing Receivable, Past Due [Line Items]
Total ending loans balance		212,815
Multifamily (5 or more) residential properties | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Multifamily (5 or more) residential properties | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	10	0
Multifamily (5 or more) residential properties | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	209	0
Multifamily (5 or more) residential properties | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	219	0
Multifamily (5 or more) residential properties | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	215,924	212,815
Non-owner occupied, nonfarm nonresidential properties
Financing Receivable, Past Due [Line Items]
Total ending loans balance		640,945
Non-owner occupied, nonfarm nonresidential properties | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	314
Non-owner occupied, nonfarm nonresidential properties | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	156
Non-owner occupied, nonfarm nonresidential properties | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,792	10,184
Non-owner occupied, nonfarm nonresidential properties | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,792	10,654
Non-owner occupied, nonfarm nonresidential properties | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	661,270	630,291
1-4 Family Construction
Financing Receivable, Past Due [Line Items]
Total ending loans balance	37,822	27,768
1-4 Family Construction | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
1-4 Family Construction | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
1-4 Family Construction | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
1-4 Family Construction | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
1-4 Family Construction | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	37,822	27,768
Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Total ending loans balance	104,517	109,444
Home equity lines of credit | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	506	166
Home equity lines of credit | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	50	235
Home equity lines of credit | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	172	486
Home equity lines of credit | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	728	887
Home equity lines of credit | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	103,789	108,557
Residential Mortgages secured by first liens
Financing Receivable, Past Due [Line Items]
Total ending loans balance	826,729	777,030
Residential Mortgages secured by first liens | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,286	2,834
Residential Mortgages secured by first liens | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,145	629
Residential Mortgages secured by first liens | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1,647	1,911
Residential Mortgages secured by first liens | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	4,078	5,374
Residential Mortgages secured by first liens | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	822,651	771,656
Residential Mortgages secured by junior liens
Financing Receivable, Past Due [Line Items]
Total ending loans balance	56,689	53,726
Residential Mortgages secured by junior liens | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	32	8
Residential Mortgages secured by junior liens | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	24	0
Residential Mortgages secured by junior liens | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	1	66
Residential Mortgages secured by junior liens | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	57	74
Residential Mortgages secured by junior liens | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	56,632	53,652
Other revolving credit plans
Financing Receivable, Past Due [Line Items]
Total ending loans balance	26,536	25,507
Other revolving credit plans | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	56	36
Other revolving credit plans | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	17	19
Other revolving credit plans | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	4	0
Other revolving credit plans | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	77	55
Other revolving credit plans | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	26,459	25,452
Automobile
Financing Receivable, Past Due [Line Items]
Total ending loans balance	20,862	25,344
Automobile | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	45	73
Automobile | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	3	0
Automobile | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	23	9
Automobile | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	71	82
Automobile | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	20,791	25,262
Other consumer
Financing Receivable, Past Due [Line Items]
Total ending loans balance	49,676	42,792
Other consumer | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	283	246
Other consumer | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	158	132
Other consumer | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	295	245
Other consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	736	623
Other consumer | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	48,940	42,169
Credit cards
Financing Receivable, Past Due [Line Items]
Total ending loans balance		8,115
Credit cards | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	26	72
Credit cards | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	12	39
Credit cards | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	23	34
Credit cards | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	61	145
Credit cards | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	9,874	7,970
Overdrafts
Financing Receivable, Past Due [Line Items]
Total ending loans balance		336
Overdrafts | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Overdrafts | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Overdrafts | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Overdrafts | Total Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	0	0
Overdrafts | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total ending loans balance	$ 278	$ 336

XML

Loans - Loans by Class Modified as Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan	4	11
Pre-Modification Outstanding Recorded Investment	$ 5,657	$ 5,439
Post-Modification Outstanding Recorded Investment	$ 5,657	$ 5,439
Commercial and Industrial
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan	2	6
Pre-Modification Outstanding Recorded Investment	$ 3,336	$ 1,140
Post-Modification Outstanding Recorded Investment	$ 3,336	$ 1,140
Multifamily (5 or more) residential properties
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan	1
Pre-Modification Outstanding Recorded Investment	$ 717
Post-Modification Outstanding Recorded Investment	$ 717
Non-owner occupied, nonfarm nonresidential properties
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan	1	1
Pre-Modification Outstanding Recorded Investment	$ 1,604	$ 3,684
Post-Modification Outstanding Recorded Investment	$ 1,604	$ 3,684
Owner-occupied, nonfarm nonresidential properties
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan		1
Pre-Modification Outstanding Recorded Investment		$ 260
Post-Modification Outstanding Recorded Investment		$ 260
Other construction loans and all land development and other land loans
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan		1
Pre-Modification Outstanding Recorded Investment		$ 46
Post-Modification Outstanding Recorded Investment		$ 46
Residential Mortgages secured by first liens
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan		2
Pre-Modification Outstanding Recorded Investment		$ 309
Post-Modification Outstanding Recorded Investment		$ 309
Trouble Debt Restructuring
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan			1
Pre-Modification Outstanding Recorded Investment			$ 383
Post-Modification Outstanding Recorded Investment			$ 383
Trouble Debt Restructuring | Commercial mortgages
Schedule Of Financial Receivables [Line Items]
Number of Loans | loan			1
Pre-Modification Outstanding Recorded Investment			$ 383
Post-Modification Outstanding Recorded Investment			$ 383

XML

Loans - Schedule of Credit Risk Profile By Risk Rating (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			$ 2,804,035
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	$ 2,424,318	$ 2,200,393
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	30,132	33,457
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	45,919	67,877
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	1,379	0
Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	77,430	101,334
Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	2,501,748	2,301,727
Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Farmland | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		20,316
Farmland | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		1,156
Farmland | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		1,844
Farmland | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Farmland | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	2,482	3,000
Farmland | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	23,768	23,316
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Owner-occupied, nonfarm nonresidential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		391,899
Owner-occupied, nonfarm nonresidential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		2,826
Owner-occupied, nonfarm nonresidential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		13,199
Owner-occupied, nonfarm nonresidential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Owner-occupied, nonfarm nonresidential properties | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	15,304	16,025
Owner-occupied, nonfarm nonresidential properties | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	434,672	407,924
Agricultural production and other loans to farmers
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Agricultural production and other loans to farmers | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		2,664
Agricultural production and other loans to farmers | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Agricultural production and other loans to farmers | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Agricultural production and other loans to farmers | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Agricultural production and other loans to farmers | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	0	0
Agricultural production and other loans to farmers | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	1,379	2,664
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Commercial and Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		637,071
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		11,368
Commercial and Industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		15,111
Commercial and Industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Commercial and Industrial | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	21,979	26,479
Commercial and Industrial | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	708,989	663,550
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		132,110
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		708
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	0	708
Obligations Other Than Securities And Leases Of States And Political Subdivisions | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	140,887	132,818
Other loans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Other loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		11,961
Other loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Other loans | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Other loans | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Other loans | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	0	0
Other loans | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	13,979	11,961
Other construction loans and all land development and other land loans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Other construction loans and all land development and other land loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		198,206
Other construction loans and all land development and other land loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		5,611
Other construction loans and all land development and other land loans | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		1,917
Other construction loans and all land development and other land loans | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Other construction loans and all land development and other land loans | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	4,766	7,528
Other construction loans and all land development and other land loans | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	298,869	205,734
Multifamily (5 or more) residential properties
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			$ 0
Multifamily (5 or more) residential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		211,563
Multifamily (5 or more) residential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Multifamily (5 or more) residential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		1,252
Multifamily (5 or more) residential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Multifamily (5 or more) residential properties | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	1,371	1,252
Multifamily (5 or more) residential properties | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	216,143	212,815
Non-owner occupied, nonfarm nonresidential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		594,603
Non-owner occupied, nonfarm nonresidential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		12,496
Non-owner occupied, nonfarm nonresidential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		33,846
Non-owner occupied, nonfarm nonresidential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans		0
Non-owner occupied, nonfarm nonresidential properties | Criticized
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	31,528	46,342
Non-owner occupied, nonfarm nonresidential properties | Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	$ 663,062	$ 640,945

XML

Loans- Risk Rating (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 663,062
Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8,591	$ 2,773
2019	1,690	4,448
2018	3,276	3,767
2017	3,547	3,699
2016	1,006	1,476
Prior	5,197	6,491
Revolving Loans Amortized Cost Basis	461	662
Revolving Loans Converted to Term	0	0
Total	23,768	23,316
Farmland | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8,203	1,617
2019	1,690	4,448
2018	3,276	3,767
2017	3,547	3,648
2016	564	894
Prior	3,545	5,280
Revolving Loans Amortized Cost Basis	461	662
Revolving Loans Converted to Term	0	0
Total	21,286	20,316
Farmland | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	1,156
2019	0	0
2018	0	0
2017	0	0
2016	394	0
Prior	1,120	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,514	1,156
Farmland | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	388	0
2019	0	0
2018	0	0
2017	0	51
2016	48	582
Prior	532	1,211
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	968	1,844
Farmland | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Owner-occupied, nonfarm nonresidential properties
Financing Receivable, Credit Quality Indicator [Line Items]
2020	136,025	87,715
2019	78,484	112,129
2018	81,714	55,330
2017	34,255	58,427
2016	41,062	30,112
Prior	55,376	54,579
Revolving Loans Amortized Cost Basis	7,756	9,632
Revolving Loans Converted to Term	0	0
Total	434,672	407,924
Owner-occupied, nonfarm nonresidential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	135,095	86,694
2019	78,068	109,228
2018	78,621	52,818
2017	29,100	56,948
2016	40,677	26,119
Prior	50,079	50,839
Revolving Loans Amortized Cost Basis	7,728	9,253
Revolving Loans Converted to Term	0	0
Total	419,368	391,899
Owner-occupied, nonfarm nonresidential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	243	0
2019	0	452
2018	903	74
2017	4,287	541
2016	135	318
Prior	1,145	1,310
Revolving Loans Amortized Cost Basis	10	131
Revolving Loans Converted to Term	0	0
Total	6,723	2,826
Owner-occupied, nonfarm nonresidential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	687	1,021
2019	416	2,449
2018	2,190	2,438
2017	868	938
2016	250	3,675
Prior	4,152	2,430
Revolving Loans Amortized Cost Basis	18	248
Revolving Loans Converted to Term	0	0
Total	8,581	13,199
Owner-occupied, nonfarm nonresidential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Agricultural production and other loans to farmers
Financing Receivable, Credit Quality Indicator [Line Items]
2020	211	267
2019	103	155
2018	76	601
2017	198	0
2016	0	54
Prior	0	0
Revolving Loans Amortized Cost Basis	791	1,587
Revolving Loans Converted to Term	0	0
Total	1,379	2,664
Agricultural production and other loans to farmers | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	211	267
2019	103	155
2018	76	601
2017	198	0
2016	0	54
Prior	0	0
Revolving Loans Amortized Cost Basis	791	1,587
Revolving Loans Converted to Term	0	0
Total	1,379	2,664
Agricultural production and other loans to farmers | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Agricultural production and other loans to farmers | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Agricultural production and other loans to farmers | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2020	317,353	319,251
2019	85,978	57,553
2018	34,030	51,555
2017	17,410	33,250
2016	12,500	7,534
Prior	9,637	13,156
Revolving Loans Amortized Cost Basis	232,081	181,251
Revolving Loans Converted to Term	0	0
Total	708,989	663,550
Commercial and Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	313,983	318,323
2019	84,815	54,620
2018	31,375	46,854
2017	16,577	32,426
2016	12,389	7,197
Prior	6,777	7,265
Revolving Loans Amortized Cost Basis	221,094	170,386
Revolving Loans Converted to Term	0	0
Total	687,010	637,071
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	127
2019	363	1,017
2018	793	3,489
2017	381	712
2016	82	300
Prior	844	1,033
Revolving Loans Amortized Cost Basis	5,483	4,690
Revolving Loans Converted to Term	0	0
Total	7,946	11,368
Commercial and Industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,991	801
2019	800	1,916
2018	1,862	1,212
2017	452	112
2016	29	37
Prior	2,016	4,858
Revolving Loans Amortized Cost Basis	5,504	6,175
Revolving Loans Converted to Term	0	0
Total	12,654	15,111
Commercial and Industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,379	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,379	0
Obligations (other than securities and leases) of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
2020	36,853	11,430
2019	16,688	12,279
2018	8,774	35,176
2017	16,957	20,891
2016	20,071	19,365
Prior	36,764	24,789
Revolving Loans Amortized Cost Basis	4,780	8,888
Revolving Loans Converted to Term	0	0
Total	140,887	132,818
Obligations (other than securities and leases) of states and political subdivisions | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	36,853	10,722
2019	16,688	12,279
2018	8,774	35,176
2017	16,957	20,891
2016	20,071	19,365
Prior	36,764	24,789
Revolving Loans Amortized Cost Basis	4,780	8,888
Revolving Loans Converted to Term	0	0
Total	140,887	132,110
Obligations (other than securities and leases) of states and political subdivisions | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Obligations (other than securities and leases) of states and political subdivisions | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	708
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	708
Obligations (other than securities and leases) of states and political subdivisions | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Other loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,851	7,268
2019	5,305	1,237
2018	552	386
2017	3	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	2,268	3,070
Revolving Loans Converted to Term	0	0
Total	13,979	11,961
Other loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,851	7,268
2019	5,305	1,237
2018	552	386
2017	3	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	2,268	3,070
Revolving Loans Converted to Term	0	0
Total	13,979	11,961
Other loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Other loans | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Other loans | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Other construction loans and all land development and other land loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	99,906	120,797
2019	168,372	52,750
2018	9,402	20,006
2017	11,170	5,603
2016	3,363	28
Prior	898	3,925
Revolving Loans Amortized Cost Basis	5,758	2,625
Revolving Loans Converted to Term	0	0
Total	298,869	205,734
Other construction loans and all land development and other land loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	98,406	119,380
2019	168,372	52,078
2018	8,752	19,977
2017	11,141	2,300
2016	853	28
Prior	898	1,895
Revolving Loans Amortized Cost Basis	5,681	2,548
Revolving Loans Converted to Term	0	0
Total	294,103	198,206
Other construction loans and all land development and other land loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,500	1,417
2019	0	672
2018	650	29
2017	0	3,303
2016	2,071	0
Prior	0	190
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	4,221	5,611
Other construction loans and all land development and other land loans | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	29	0
2016	439	0
Prior	0	1,840
Revolving Loans Amortized Cost Basis	77	77
Revolving Loans Converted to Term	0	0
Total	545	1,917
Other construction loans and all land development and other land loans | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Multifamily (5 or more) residential properties
Financing Receivable, Credit Quality Indicator [Line Items]
2020	74,687	73,578
2019	55,669	40,386
2018	34,118	26,518
2017	8,316	49,383
2016	27,933	4,086
Prior	12,982	16,957
Revolving Loans Amortized Cost Basis	2,438	1,907
Revolving Loans Converted to Term	0	0
Total	216,143	212,815
Multifamily (5 or more) residential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	74,687	73,572
2019	55,663	39,633
2018	33,436	26,230
2017	7,937	49,178
2016	27,729	4,086
Prior	12,882	16,957
Revolving Loans Amortized Cost Basis	2,438	1,907
Revolving Loans Converted to Term	0	0
Total	214,772	211,563
Multifamily (5 or more) residential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	100	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	100	0
Multifamily (5 or more) residential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	6
2019	6	753
2018	682	288
2017	379	205
2016	204	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,271	1,252
Multifamily (5 or more) residential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Non-owner occupied, nonfarm nonresidential properties
Financing Receivable, Credit Quality Indicator [Line Items]
2020	195,626	161,144
2019	125,039	140,738
2018	87,676	91,957
2017	54,899	67,519
2016	47,541	46,516
Prior	140,711	122,388
Revolving Loans Amortized Cost Basis	11,570	10,683
Revolving Loans Converted to Term	0	0
Total		640,945
Non-owner occupied, nonfarm nonresidential properties | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	194,800	161,045
2019	125,039	127,518
2018	84,943	89,520
2017	52,233	55,966
2016	42,714	44,959
Prior	123,021	105,962
Revolving Loans Amortized Cost Basis	8,784	9,633
Revolving Loans Converted to Term	0	0
Total	631,534	594,603
Non-owner occupied, nonfarm nonresidential properties | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	99
2019	0	895
2018	428	2,111
2017	1,004	3,969
2016	189	835
Prior	5,556	4,137
Revolving Loans Amortized Cost Basis	2,451	450
Revolving Loans Converted to Term	0	0
Total	9,628	12,496
Non-owner occupied, nonfarm nonresidential properties | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	826	0
2019	0	12,325
2018	2,305	326
2017	1,662	7,584
2016	4,638	722
Prior	12,134	12,289
Revolving Loans Amortized Cost Basis	335	600
Revolving Loans Converted to Term	0	0
Total	21,900	33,846
Non-owner occupied, nonfarm nonresidential properties | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	$ 0	$ 0

XML

Loans - Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			$ 2,804,035
Loans	$ 3,634,792	$ 3,371,789
1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	37,822	27,768
Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	104,517	109,444
Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	826,729	777,030
Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	56,689	53,726
Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	26,536	25,507
Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			0
Loans	20,862	25,344
Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans			$ 0
Loans	49,676	42,792
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	1,117,706	1,055,812
Loans	1,117,706	1,055,812
Performing | 1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	37,822	27,768
Loans	37,822	27,768
Performing | Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	103,693	108,759
Loans	103,693	108,759
Performing | Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	823,182	772,572
Loans	823,182	772,572
Performing | Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	56,542	53,612
Loans	56,542	53,612
Performing | Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	26,523	25,501
Loans	26,523	25,501
Performing | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	20,826	25,312
Loans	20,826	25,312
Performing | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	49,118	42,288
Loans	49,118	42,288
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	5,125	5,799
Loans	5,125	5,799
Nonperforming | 1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	0	0
Loans	0	0
Nonperforming | Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	824	685
Loans	824	685
Nonperforming | Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	3,547	4,458
Loans	3,547	4,458
Nonperforming | Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	147	114
Loans	147	114
Nonperforming | Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	13	6
Loans	13	6
Nonperforming | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	36	32
Loans	36	32
Nonperforming | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	558	504
Loans	558	504
Total
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	1,122,831	1,061,611
Loans	1,122,831	1,061,611
Total | 1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	37,822	27,768
Loans	37,822	27,768
Total | Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	104,517	109,444
Loans	104,517	109,444
Total | Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	826,729	777,030
Loans	826,729	777,030
Total | Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	56,689	53,726
Loans	56,689	53,726
Total | Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	26,536	25,507
Loans	26,536	25,507
Total | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	20,862	25,344
Loans	20,862	25,344
Total | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Net loans	49,676	42,792
Loans	$ 49,676	$ 42,792

XML

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 3,634,792	$ 3,371,789
1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2020	27,539	16,081
2019	9,137	11,547
2018	857	140
2017	66	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	223	0
Revolving Loans Converted to Term	0	0
Loans	37,822	27,768
Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
2020	14,383	19,764
2019	14,621	12,823
2018	9,573	12,842
2017	10,594	9,095
2016	7,240	8,215
Prior	39,955	42,864
Revolving Loans Amortized Cost Basis	8,151	3,841
Revolving Loans Converted to Term	0	0
Loans	104,517	109,444
Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	232,685	211,910
2019	178,639	136,265
2018	111,560	94,475
2017	63,001	99,663
2016	74,394	62,373
Prior	162,781	166,817
Revolving Loans Amortized Cost Basis	3,669	5,527
Revolving Loans Converted to Term	0	0
Loans	826,729	777,030
Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	20,617	14,552
2019	11,256	12,255
2018	7,239	7,031
2017	4,407	5,660
2016	3,592	3,366
Prior	9,158	10,484
Revolving Loans Amortized Cost Basis	420	378
Revolving Loans Converted to Term	0	0
Loans	56,689	53,726
Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,313	4,088
2019	3,596	4,516
2018	3,094	3,324
2017	2,596	3,149
2016	2,977	1,301
Prior	8,960	9,129
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	26,536	25,507
Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
2020	7,058	8,965
2019	5,461	8,599
2018	4,680	4,652
2017	2,457	1,641
2016	682	764
Prior	524	723
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	20,862	25,344
Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2020	30,627	24,939
2019	11,187	11,447
2018	4,633	3,654
2017	1,476	809
2016	319	218
Prior	1,434	1,724
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	49,676	42,792
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	1,117,706	1,055,812
Performing | 1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2020	27,539	16,081
2019	9,137	11,547
2018	857	140
2017	66	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	223	0
Revolving Loans Converted to Term	0	0
Loans	37,822	27,768
Performing | Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
2020	14,383	19,764
2019	14,621	12,823
2018	9,564	12,842
2017	10,584	8,793
2016	6,863	8,182
Prior	39,527	42,514
Revolving Loans Amortized Cost Basis	8,151	3,841
Revolving Loans Converted to Term	0	0
Loans	103,693	108,759
Performing | Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	232,606	211,910
2019	178,380	136,181
2018	111,333	93,588
2017	62,850	99,520
2016	74,136	62,312
Prior	160,402	163,556
Revolving Loans Amortized Cost Basis	3,475	5,505
Revolving Loans Converted to Term	0	0
Loans	823,182	772,572
Performing | Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	20,617	14,552
2019	11,256	12,255
2018	7,239	7,031
2017	4,407	5,660
2016	3,508	3,347
Prior	9,095	10,389
Revolving Loans Amortized Cost Basis	420	378
Revolving Loans Converted to Term	0	0
Loans	56,542	53,612
Performing | Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,313	4,088
2019	3,596	4,516
2018	3,090	3,320
2017	2,592	3,149
2016	2,977	1,301
Prior	8,955	9,127
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	26,523	25,501
Performing | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
2020	7,047	8,965
2019	5,448	8,595
2018	4,668	4,652
2017	2,457	1,635
2016	682	764
Prior	524	701
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	20,826	25,312
Performing | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2020	30,423	24,857
2019	11,017	11,183
2018	4,537	3,579
2017	1,451	796
2016	316	218
Prior	1,374	1,654
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	49,118	42,288
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	5,125	5,799
Nonperforming | 1-4 Family Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	0	0
Nonperforming | Home equity lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	9	0
2017	10	302
2016	377	33
Prior	428	350
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	824	685
Nonperforming | Residential Mortgages secured by first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	79	0
2019	259	84
2018	227	887
2017	151	143
2016	258	61
Prior	2,379	3,261
Revolving Loans Amortized Cost Basis	194	22
Revolving Loans Converted to Term	0	0
Loans	3,547	4,458
Nonperforming | Residential Mortgages secured by junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	0	0
2017	0	0
2016	84	19
Prior	63	95
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	147	114
Nonperforming | Other revolving credit plans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0	0
2019	0	0
2018	4	4
2017	4	0
2016	0	0
Prior	5	2
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	13	6
Nonperforming | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
2020	11	0
2019	13	4
2018	12	0
2017	0	6
2016	0	0
Prior	0	22
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	36	32
Nonperforming | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2020	204	82
2019	170	264
2018	96	75
2017	25	13
2016	3	0
Prior	60	70
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Loans	$ 558	$ 504

XML

Loans - Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment			$ 2,804,035
Credit Card, Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment	$ 9,935	$ 8,115
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment	1,117,706	1,055,812
Performing | Credit Card, Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment	9,912	8,081
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment	5,125	5,799
Nonperforming | Credit Card, Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of recorded investment	$ 23	$ 34

XML

Loans - Purchased Credit Deteriorated Loans (Details) $ in Thousands	Jul. 17, 2020 USD ($)
Receivables [Abstract]
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

XML

Loans - Summary of Holiday's Loan Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 3,634,792	$ 3,371,789
Net loans			$ 2,804,035
Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	49,676	42,792
Net loans			$ 0
Holiday Financial Services Corporation | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	29,227	27,998
Less: unearned discount	(5,716)	(5,181)
Net loans	$ 23,511	$ 22,817

XML

Real Estate Owned - Summary of Foreclosed Assets Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Real Estate Net Of Valuation Allowance [Roll Forward]
Balance, beginning of year	$ 862	$ 1,633	$ 418
Loans transferred to real estate owned	1,470	241	2,066
Sales of real estate owned (at carrying value)	(1,625)	(1,012)	(851)
Balance, end of year	$ 707	$ 862	$ 1,633

XML

Real Estate Owned - Summary of Expenses Related to Foreclosed Real Estate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Real Estate [Abstract]
Net loss (gain) on sales	$ 32	$ 346	$ (377)
Operating expenses, net of rental income	85	240	316
Total	$ 117	$ 586	$ (61)

XML

Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Securities Available For Sale:
Total Securities Available For Sale	$ 697,191	$ 584,908
U.S. Government sponsored entities
Securities Available For Sale:
Total Securities Available For Sale	111,748	157,042
State & political subdivisions
Securities Available For Sale:
Total Securities Available For Sale	103,712	70,883
Residential & multi-family mortgage
Securities Available For Sale:
Total Securities Available For Sale	434,635	315,192
Pooled SBA
Securities Available For Sale:
Total Securities Available For Sale	19,032	25,886
Corporate notes and bonds
Securities Available For Sale:
Total Securities Available For Sale	28,064	14,926
Fair Value, Measurements, Recurring
Securities Available For Sale:
Total Securities Available For Sale	697,191	584,908
Interest rate swaps	2,124	4,017
Equity Securities:
Equity securities	10,366	6,649
LIABILITIES
Interest rate swaps	(2,512)	(4,785)
Fair Value, Measurements, Recurring | U.S. Government sponsored entities
Securities Available For Sale:
Total Securities Available For Sale	111,748	157,042
Equity Securities:
Equity securities		50
Fair Value, Measurements, Recurring | State & political subdivisions
Securities Available For Sale:
Total Securities Available For Sale	103,712	70,883
Fair Value, Measurements, Recurring | Residential & multi-family mortgage
Securities Available For Sale:
Total Securities Available For Sale	434,635	315,192
Fair Value, Measurements, Recurring | Corporate notes and bonds
Securities Available For Sale:
Total Securities Available For Sale	28,064	14,926
Fair Value, Measurements, Recurring | Pooled SBA
Securities Available For Sale:
Total Securities Available For Sale	19,032	25,886
Fair Value, Measurements, Recurring | Other
Securities Available For Sale:
Total Securities Available For Sale		979
Fair Value, Measurements, Recurring | Corporate equity securities
Equity Securities:
Equity securities	6,715	4,343
Fair Value, Measurements, Recurring | Mutual funds
Equity Securities:
Equity securities	2,566	1,283
Fair Value, Measurements, Recurring | Certificates of deposit
Equity Securities:
Equity securities	506	404
Fair Value, Measurements, Recurring | Corporate notes and bonds
Equity Securities:
Equity securities	579	569
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Securities Available For Sale:
Total Securities Available For Sale	4,995	16,018
Interest rate swaps	0	0
Equity Securities:
Equity securities	10,366	6,599
LIABILITIES
Interest rate swaps	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government sponsored entities
Securities Available For Sale:
Total Securities Available For Sale	0	0
Equity Securities:
Equity securities		0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State & political subdivisions
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential & multi-family mortgage
Securities Available For Sale:
Total Securities Available For Sale	4,995	15,039
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and bonds
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled SBA
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Securities Available For Sale:
Total Securities Available For Sale		979
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate equity securities
Equity Securities:
Equity securities	6,715	4,343
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds
Equity Securities:
Equity securities	2,566	1,283
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit
Equity Securities:
Equity securities	506	404
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and bonds
Equity Securities:
Equity securities	579	569
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Securities Available For Sale:
Total Securities Available For Sale	692,196	568,826
Interest rate swaps	2,124	4,017
Equity Securities:
Equity securities	0	50
LIABILITIES
Interest rate swaps	(2,512)	(4,785)
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities
Securities Available For Sale:
Total Securities Available For Sale	111,748	157,042
Equity Securities:
Equity securities		50
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | State & political subdivisions
Securities Available For Sale:
Total Securities Available For Sale	103,712	70,819
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential & multi-family mortgage
Securities Available For Sale:
Total Securities Available For Sale	429,640	300,153
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate notes and bonds
Securities Available For Sale:
Total Securities Available For Sale	28,064	14,926
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Pooled SBA
Securities Available For Sale:
Total Securities Available For Sale	19,032	25,886
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other
Securities Available For Sale:
Total Securities Available For Sale		0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate equity securities
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate notes and bonds
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Securities Available For Sale:
Total Securities Available For Sale	0	64
Interest rate swaps	0	0
Equity Securities:
Equity securities	0	0
LIABILITIES
Interest rate swaps	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government sponsored entities
Securities Available For Sale:
Total Securities Available For Sale	0	0
Equity Securities:
Equity securities		0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | State & political subdivisions
Securities Available For Sale:
Total Securities Available For Sale	0	64
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential & multi-family mortgage
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate notes and bonds
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Pooled SBA
Securities Available For Sale:
Total Securities Available For Sale	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other
Securities Available For Sale:
Total Securities Available For Sale		0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate equity securities
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit
Equity Securities:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate notes and bonds
Equity Securities:
Equity securities	$ 0	$ 0

XML

Fair Value - Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
State & political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 64	$ 0
Purchases	0	422
Total gains or (losses):
Included in other comprehensive income (loss)	0	0
Settlements	(64)
Transfers out of Level 3	0
Ending Balance	0	64
Transfers out of Level 3		(358)
Residential & multi-family mortgage
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	2,795
Purchases		0
Total gains or (losses):
Included in other comprehensive income (loss)		0
Ending Balance		0
Transfers out of Level 3		(2,795)
Corporate notes and bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0
Purchases	8,250
Total gains or (losses):
Included in other comprehensive income (loss)	0
Settlements	0
Transfers out of Level 3	(8,250)
Ending Balance	0	0
Transfers out of Level 3	$ 8,300	358
Multi-family mortgage		$ 2,800

XML

Fair Value - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Non Recurring - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Farmland
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	$ 920	$ 659
Farmland | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Farmland | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Farmland | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	920	659
Owner-occupied, nonfarm nonresidential properties
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	194	329
Owner-occupied, nonfarm nonresidential properties | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Owner-occupied, nonfarm nonresidential properties | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Owner-occupied, nonfarm nonresidential properties | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	194	329
Commercial and Industrial
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	3,102	3,680
Commercial and Industrial | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Commercial and Industrial | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Commercial and Industrial | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	3,102	3,680
Other construction loans and all land development and other land loans
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	248	1,790
Other construction loans and all land development and other land loans | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Other construction loans and all land development and other land loans | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Other construction loans and all land development and other land loans | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	248	1,790
Multifamily (5 or more) residential properties
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	627	0
Multifamily (5 or more) residential properties | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Multifamily (5 or more) residential properties | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Multifamily (5 or more) residential properties | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	627	0
Non-owner occupied, nonfarm nonresidential properties
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	2,889	9,622
Non-owner occupied, nonfarm nonresidential properties | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Non-owner occupied, nonfarm nonresidential properties | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	0	0
Non-owner occupied, nonfarm nonresidential properties | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens	$ 2,889	9,622
Residential Mortgages secured by first liens
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens		659
Residential Mortgages secured by first liens | Quoted Prices in Active Markets for Identical Assets (Level 1)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens		0
Residential Mortgages secured by first liens | Significant Other Observable Inputs (Level 2)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens		0
Residential Mortgages secured by first liens | Significant Unobservable Inputs (Level 3)
Collateral-dependent/Impaired loans:
Residential mortgages secured by first liens		$ 659

XML

Fair Value - Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis (Details) - Fair Value, Measurements, Non Recurring - Significant Unobservable Inputs (Level 3) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Farmland
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 920	$ 659
Farmland | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.60
Farmland | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.60
Farmland | Measurement Input, Loss Severity | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.45
Farmland | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.54
Farmland | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.47
Owner-occupied, nonfarm nonresidential properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 194	$ 329
Owner-occupied, nonfarm nonresidential properties | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0
Owner-occupied, nonfarm nonresidential properties | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.60
Owner-occupied, nonfarm nonresidential properties | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.57
Owner-occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.60
Owner-occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.90
Owner-occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.80
Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 3,102	$ 3,680
Commercial and Industrial | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0
Commercial and Industrial | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.59
Commercial and Industrial | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.42
Commercial and Industrial | Measurement Input, Loss Severity | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0
Commercial and Industrial | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		1
Commercial and Industrial | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.39
Other construction loans and all land development and other land loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 248	$ 1,790
Other construction loans and all land development and other land loans | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.25
Other construction loans and all land development and other land loans | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.25
Other construction loans and all land development and other land loans | Measurement Input, Loss Severity | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.25
Other construction loans and all land development and other land loans | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.41
Other construction loans and all land development and other land loans | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.28
Multifamily (5 or more) residential properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 627	$ 0
Multifamily (5 or more) residential properties | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0
Multifamily (5 or more) residential properties | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.57
Multifamily (5 or more) residential properties | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.26
Multifamily (5 or more) residential properties | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.58
Multifamily (5 or more) residential properties | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.58
Non-owner occupied, nonfarm nonresidential properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 2,889	$ 9,622
Non-owner occupied, nonfarm nonresidential properties | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.25
Non-owner occupied, nonfarm nonresidential properties | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.60
Non-owner occupied, nonfarm nonresidential properties | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique	0.34
Non-owner occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.25
Non-owner occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		1
Non-owner occupied, nonfarm nonresidential properties | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.29
Residential Mortgages secured by first liens
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		$ 659
Residential Mortgages secured by first liens | Measurement Input, Loss Severity | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.31
Residential Mortgages secured by first liens | Measurement Input, Loss Severity | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation technique		0.31

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Fair Value - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Total Securities Available For Sale	$ 697,191	$ 584,908
Carrying Amount
ASSETS
Cash and cash equivalents	732,198	532,694
Total Securities Available For Sale	697,191	584,908
Equity securities	10,366	6,649
Loans held for sale	849	8,514
Net loans	3,597,204	3,337,449
FHLB and other equity interests	23,276	21,018
Interest rate swaps	2,124	4,017
Accrued interest receivable	15,516	17,659
LIABILITIES
Deposits	(4,715,619)	(4,181,744)
Subordinated debentures	(104,281)	(70,620)
Interest rate swaps	(2,512)	(4,785)
Accrued interest payable	(886)	(1,096)
Fair Value
ASSETS
Cash and cash equivalents	732,198	532,694
Total Securities Available For Sale	697,191	584,908
Equity securities	10,366	6,649
Loans held for sale	858	8,617
Net loans	3,613,452	3,339,482
Interest rate swaps	2,124	4,017
Accrued interest receivable	15,516	17,659
LIABILITIES
Deposits	(4,721,017)	(4,193,200)
Subordinated debentures	(92,675)	(62,583)
Interest rate swaps	(2,512)	(4,785)
Accrued interest payable	(886)	(1,096)
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value
ASSETS
Cash and cash equivalents	732,198	532,694
Total Securities Available For Sale	4,995	16,018
Equity securities	10,366	6,599
Loans held for sale	0	0
Net loans	0	0
Interest rate swaps	0	0
Accrued interest receivable	16	61
LIABILITIES
Deposits	(4,329,167)	(3,705,200)
Subordinated debentures	0	0
Interest rate swaps	0	0
Accrued interest payable	0	0
Significant Other Observable Inputs (Level 2) | Fair Value
ASSETS
Cash and cash equivalents	0	0
Total Securities Available For Sale	692,196	568,826
Equity securities	0	50
Loans held for sale	858	8,617
Net loans	0	0
Interest rate swaps	2,124	4,017
Accrued interest receivable	2,171	2,152
LIABILITIES
Deposits	(391,850)	(488,000)
Subordinated debentures	(92,675)	(62,583)
Interest rate swaps	(2,512)	(4,785)
Accrued interest payable	(886)	(1,096)
Significant Unobservable Inputs (Level 3) | Fair Value
ASSETS
Cash and cash equivalents	0	0
Total Securities Available For Sale	0	64
Equity securities	0	0
Loans held for sale	0	0
Net loans	3,613,452	3,339,482
Interest rate swaps	0	0
Accrued interest receivable	13,329	15,446
LIABILITIES
Deposits	0	0
Subordinated debentures	0	0
Interest rate swaps	0	0
Accrued interest payable	$ 0	$ 0

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Secondary Market Mortgage Activities - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage Banking [Abstract]
Total loans serviced to others	$ 264,200,000	$ 224,300,000
Valuation allowance	$ 0	$ 0	$ 0

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Secondary Market Mortgage Activities - Summary of Secondary Market Mortgage Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage Banking [Abstract]
Loans originated for resale	$ 95,411	$ 87,528	$ 43,458
Proceeds from sales of loans held for sale	97,179	82,619	43,198
Net gains on sales of loans held for sale	2,737	2,961	990
Loan servicing fees	$ 720	$ 726	$ 634

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Secondary Market Mortgage Activities - Summary of Activity for Capital Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary Of Activity For Capitalized Mortgage Servicing Rights [Roll Forward]
Balance, beginning of year	$ 1,527	$ 1,573	$ 1,495
Additions	514	540	292
Servicing rights acquired	0	0	0
Amortization	(377)	(586)	(214)
Balance, end of year	$ 1,664	$ 1,527	$ 1,573

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Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 121,450	$ 115,121
Less: accumulated depreciation	59,791	55,057
Premises and equipment, net	61,659	60,064
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	8,798	8,016
Premises and leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	70,212	68,346
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	39,851	37,203
Construction in process
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 2,589	$ 1,556

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Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation on premises and equipment	$ 5.3	$ 4.6	$ 4.1

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Leases - Additional Information (Details)	Dec. 31, 2021 loan
Leases [Abstract]
Number of renewal options (at least)	1

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Leases - Schedule of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Operating lease assets	$ 19,928	$ 18,407
Finance lease assets	358	429
Total leased assets	20,286	18,836
Liabilities:
Operating lease liabilities	21,159	19,449
Finance lease liabilities	469	550
Total leased liabilities	21,628	19,999
Finance lease, net of accumulated amortization	$ 858	$ 787
Premises and equipment, net	Premises and equipment, net	Premises and equipment, net
Accrued interest payable and other liabilities	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities

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Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 1,801	$ 1,785	$ 1,666
Variable lease cost	55	87	98
Finance lease cost:
Amortization of leased assets	72	72	72
Interest on lease liabilities	23	27	30
Sublease income	(71)	(86)	(83)
Net lease cost	$ 1,880	$ 1,885	$ 1,783

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Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 1,804
2023	1,693
2024	1,649
2025	1,637
2026	1,605
After 2026	20,564
Total lease payments	28,952
Less: Interest	7,793
Present value of lease liabilities	21,159	$ 19,449
Finance Leases
2022	105
2023	105
2024	105
2025	105
2026	105
After 2026	0
Total lease payments	525
Less: Interest	56
Present value of lease liabilities	469	$ 550
Total
2022	1,909
2023	1,798
2024	1,754
2025	1,742
2026	1,710
After 2026	20,564
Total lease payments	29,477
Less: Interest	7,849
Present value of lease liabilities	21,628
Minimum lease payments	$ 10,400

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Leases - Schedule of Weighted Average Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Weighted-average remaining lease term (years)
Operating leases	18 years 9 months 18 days	19 years
Finance leases	5 years	6 years
Weighted-average discount rate
Operating leases	3.42%	3.46%
Finance leases	4.49%	4.49%

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Leases- Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating cash flows used by operating leases	$ 964	$ 922

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Goodwill and Intangible Assets - Summary of Change in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Balance, beginning of year	$ 43,749	$ 38,730
Acquired during the year	0	5,019
Balance, end of year	$ 43,749	$ 43,749

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($)		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2016	Dec. 31, 2013
Goodwill [Line Items]
Goodwill impairment	$ 0
Net carrying value	460,000	$ 460,000
Core Deposit | FC Banc Corp
Goodwill [Line Items]
Intangible asset						$ 4,800,000
Amortization expense		0	$ 94,000	$ 316,000
Net carrying value	0	0
Core Deposit | Lake National Bank of Mentor, Ohio
Goodwill [Line Items]
Intangible asset					$ 1,600,000
Amortization expense		0	66,000	$ 251,000
Net carrying value	0	0
Core Deposit | Bank of Akron
Goodwill [Line Items]
Intangible asset			613,000
Amortization expense		107,000	46,000
Net carrying value	$ 460,000	$ 460,000	$ 567,000

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Goodwill and Intangible Assets - Estimated Amortization Expense of Core Deposit Intangible Assets (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 96
2023	85
2024	73
2025	62
2026	51
Thereafter	93
Total	$ 460

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Deposits - Summary of Deposit Maturities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Deposits [Abstract]
2022	$ 252,340
2023	54,676
2024	34,009
2025	26,121
2026	7,258
Thereafter	12,048
Total	$ 386,452

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Deposits - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deposits [Abstract]
Certificates of deposit of $250 thousand or more	$ 116.6	$ 128.2
Brokered deposits	$ 52.9	$ 23.6

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Borrowings - Additional Information (Details)		1 Months Ended		12 Months Ended
	Oct. 15, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2021 USD ($) line_of_credit	Dec. 31, 2020 USD ($) line_of_credit	Dec. 31, 2007 USD ($) security
Debt Instrument [Line Items]
Number of unsecured lines of credit issued | line_of_credit				1	1
Pledge on certain loan amount				$ 10,000,000	$ 10,000,000
Line of credit, outstanding amount				0	0
Federal home loan balance				150,000,000
Loans pledged				1,300,000,000	1,200,000,000
Remaining borrowing capacity				932,700,000	797,400,000
Advances from federal home loan banks				0	0
Prepayments				190,400,000
Prepayments totaled				$ 7,900,000
Weighted average rate borrowing				2.20%
Naming applicable municipalities as beneficiaries				$ 10,400,000	$ 57,300,000
Unamortized debt issuance costs				$ 1,300,000
Subordinated Debt
Debt Instrument [Line Items]
Number of preferred trust securities | security						2
Floating rate trust preferred securities						$ 10,000,000
Effective percentage				1.75%	1.80%
Trust preferred securities, interest payment deferment period				5 years
Subordinated Debt | LIBOR
Debt Instrument [Line Items]
Line of credit, basis spread on variable rate				1.55%
Notes Maturing In October 2026 | Subordinated Debt
Debt Instrument [Line Items]
Floating rate trust preferred securities			$ 50,000,000
Interest rate, percentage			5.75%
Principal amount plus	100.00%
Aggregate redemption price	$ 50,700,000
Debt instrument increase accrued interest	719,000
Notes Maturing In October 2026 | Subordinated Debt | LIBOR
Debt Instrument [Line Items]
Line of credit, basis spread on variable rate			4.55%
Notes Maturing In October 2031 | Subordinated Debt
Debt Instrument [Line Items]
Floating rate trust preferred securities	$ 85,000,000	$ 85,000,000
Interest rate, percentage	3.25%	3.25%
Proceeds from issuance of subordinated long-term debt		$ 83,500,000
Notes Maturing In October 2031 | Subordinated Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Line of credit, basis spread on variable rate				2.58%
Line of Credit | Overnight Borrowing Agreements
Debt Instrument [Line Items]
Line of credit, outstanding amount				$ 0	$ 0

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Borrowings - Schedule of Debt (Details) $ in Millions	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Federal home loan balance	$ 150.0

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Employee Benefit Plans - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) hour	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee pretax Roth contribution percentage of salary		70.00%
Employees age of over with one year period		21 years
Employees age minimum period		1 year
Number of service hours | hour		1,000
Employee pretax contribution percentage		100.00%
Employee contribution		1.00%
Employee contribution percentage		3.00%
Employees compensation		50.00%
Total contributed by employee percentage		2.00%
Corporation's matching contribution and related expenses		$ 1,200	$ 1,100	$ 906
Compensation percentage in excess of specified amount		5.70%
Excess of compensation		$ 143
Salary limit		290
Recognized profit sharing expense		2,000	1,900	1,900
Obligations of other liabilities		8,800	7,000
Expenses related employee benefit plans		2,100	992	724
Obligations under survivor benefit plan		1,500	1,400
Other liabilities related to survivor benefit plan		$ 196	253	$ (1)
Employee retirement health care benefits plan		60 years
Minimum service period for participation in benefit plan		30 years
Accumulated benefit obligation		$ 1,500	$ 1,800
Weighted average discount rate net periodic benefit cost		1.55%	2.59%	3.78%
Accrued benefit obligations		2.10%	1.55%	2.59%
Expected costs of benefit		5.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Qualifying dependents age group		60 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Qualifying dependents age group		65 years
Next fiscal year estimate
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated gain to be amortized from accumulated other comprehensive income into net periodic benefit cost	$ (113)

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Employee Benefit Plans - Unfunded Post Retirement Benefits Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	$ 1,829	$ 2,030
Interest cost	28	51	$ 89
Service cost	52	61	74
Actual claims	(31)	(36)
Actuarial gain	(391)	(277)
Benefit obligation at end of year	$ 1,487	$ 1,829	$ 2,030

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Employee Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Net actuarial gain	$ 782	$ 435
Tax effect	(165)	(92)
Other comprehensive income (loss)	$ 617	$ 343

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Employee Benefit Plans - Recognized Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 52	$ 61	$ 74
Interest cost	28	51	89
Net amortization of transition obligation and actuarial loss	(43)	0	23
Net periodic benefit cost	37	112	186
Net gain	(391)	(277)	(518)
Amortization	43	0	(23)
Total recognized in other comprehensive income	(348)	(277)	(541)
Total recognized in net periodic benefit cost and other comprehensive income	$ (311)	$ (165)	$ (355)

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Deferred Compensation Plans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021
Postemployment Benefits [Abstract]
Maximum period for deferred compensation plan payment after individual's termination of service	10 years

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Deferred Compensation Plans - Summary of Changes in Deferred Compensation Plan Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Postemployment Benefits [Roll Forward]
Balance, beginning of year	$ 3,085	$ 3,234	$ 2,408
Deferrals, dividends, and changes in fair value	1,084	(70)	904
Deferred compensation payments	(494)	(79)	(78)
Balance, end of year	$ 3,675	$ 3,085	$ 3,234

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Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current – federal	$ 13,494	$ 8,681	$ 8,265
Current – state	1,268	729	499
Deferred – federal	(1,025)	(1,672)	(204)
Deferred – state	(666)	(391)	0
Income tax expense	$ 13,071	$ 7,347	$ 8,560

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Income Taxes - Reconciliation of Income Tax Attributable to Pre-tax Income at Federal Statutory Tax Rates to Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Tax at statutory rate	$ 14,863	$ 8,419	$ 10,214
Tax exempt income, net	(1,231)	(1,223)	(1,382)
Bank owned life insurance	(554)	(367)	(276)
Effect of state tax	476	576	394
Other	(483)	(58)	(390)
Income tax expense	$ 13,071	$ 7,347	$ 8,560
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Tax at statutory rate	21.00%	21.00%	21.00%
Tax exempt income, net	(1.70%)	(3.10%)	(2.80%)
Bank owned life insurance	(0.80%)	(0.90%)	(0.60%)
Effect of state tax	0.70%	1.40%	0.80%
Other	(0.70%)	(0.10%)	(0.80%)
Income tax expense	18.50%	18.30%	17.60%

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Income Taxes - Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for credit losses	$ 7,606	$ 6,751
Fair value adjustments – business combination	1,240	1,685
Deferred compensation	3,344	2,787
Net operating loss carryover	327	346
Post-retirement benefits	696	722
Unrealized loss on interest rate swap	81	161
Nonaccrual loan interest	509	478
Accrued expenses	1,718	681
Deferred fees and costs	1,259	1,613
Unrealized loss on securities available for sale	188	0
Operating lease liability	4,845	4,214
Other	383	300
Deferred tax assets	22,196	19,738
Deferred tax liabilities:
Unrealized gain on securities available for sale	0	4,077
Premises and equipment	3,093	2,997
Unrealized gain on equity securities	292	294
Intangibles – section 197	2,494	2,399
Mortgage servicing rights	366	321
Operating lease asset	4,649	4,079
Other	220	293
Deferred tax liabilities	11,114	14,460
Net deferred tax asset	$ 11,082	$ 5,278

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Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Unrecognized tax benefit	$ 0	$ 0
Net operating loss carryforwards	15,900,000
Ability to utilize carryforwards	363,000
Net operating loss carryforwards expire	9,500,000
Income tax matters accrued interest or penalties	0	0	$ 0
Expense relate to interest and penalties	$ 0	$ 0	$ 0

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Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction Loans To Principal Officers, Directors and Their Affiliates [Roll Forward]
Beginning balance	$ 37,665
New loans and advances	11,830
Effect of changes in composition of related parties	0
Repayments	(3,738)
Ending balance	45,757
Deposits	$ 23,500	$ 24,500

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Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of nonqualified options or restricted stock for key employees and independent director (in shares)	507,671
Granted (in shares)	40,332
Weighted-average grant date fair value (in dollars per share)	$ 21.61
Vested (in shares)	24,326
Number of authorized stock-based awards available for grant (in shares)	390,090
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	14,886
Weighted-average grant date fair value (in dollars per share)	$ 21.03
Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Starting period of vesting of stock based award	1 year
Aggregate percentage of stock based awards to be matured	100.00%
Independent Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Starting period of vesting of stock based award	1 year
Aggregate percentage of stock based awards to be matured	100.00%
Tranche One | Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, vesting per year	33.33%
Tranche One | Independent Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, vesting per year				33.33%
Tranche Two | Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, vesting per year	25.00%
Tranche Three | Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock incentive plan, vesting per year	20.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	55,218	36,968	40,978
Compensation expense	$ 1,400	$ 1,400	$ 1,300
Unrecognized compensation cost related to nonvested restricted stock	1,100	1,100
Fair value of shares vesting during period	835	1,100	1,500
Compensation expense restricted stock awards	1,400	1,400	1,300
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit from share-based compensation	296	296	283
Performance Based Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	378	384	221
Unrecognized compensation cost related to nonvested restricted stock	312
Fair value of shares vesting during period	223	233
Compensation expense restricted stock awards	$ 378	$ 384	$ 221
Vested (in shares)	10,587	7,109
Performance Based Restricted Stock Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Shares, granted (in shares)	18,210	18,100	16,681

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Stock-Based Compensation - Summary of Changes in Nonvested Restricted Stock Awards (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Shares
Non-vested at beginning of period (in shares) | shares	56,306
Granted (in shares) | shares	40,332
Forfeited (in shares) | shares	(2,669)
Vested (in shares) | shares	(24,326)
Non-vested at end of period (in shares) | shares	69,643
Weighted-average Grant Date Fair Value
Nonvested at beginning of period (in dollars per share) | $ / shares	$ 27.14
Granted (in dollars per share) | $ / shares	21.61
Forfeited (in dollars per share) | $ / shares	23.49
Vested (in dollars per share) | $ / shares	26.85
Nonvested at ending of period (in dollars per share) | $ / shares	$ 24.18

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Regulatory Capital Matters - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) event category	Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]
Number of capital categories provided by PCA regulation | category	5
Number of events resulting in change in Bank's capital category | event	0
Capital conservation buffer		2.5
Accumulated net earnings | $	$ 134.6

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Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Consolidated
Total Capital to Risk Weighted Assets
Total Capital to Risk Weighted Assets, Actual Amount	$ 541,651	$ 462,457
Total Capital to Risk Weighted Assets, Actual Ratio	0.1492	0.1432
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 381,093	$ 339,107
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	0.1050	0.1050
Tier 1 (Core) Capital to Risk Weighted Assets
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Amount	$ 427,988	$ 384,650
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Ratio	0.1179	0.1191
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 308,504	$ 274,516
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	0.0850	0.0850
Common equity Tier 1 to Risk Weighted Assets
Common equity Tier 1 to Risk Weighted Assets, Actual Amount	$ 350,203	$ 306,865
Common equity Tier 1 to Risk Weighted Assets, Actual Ratio	0.0965	0.0950
Common equity Tier 1 to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 254,062	$ 226,072
Common equity Tier 1 to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	7.00%	7.00%
Tier 1 (Core) Capital to Average Assets
Tier 1 (Core) Capital to Average Assets, Actual Amount	$ 427,988	$ 384,650
Tier 1 (Core) Capital to Average Assets, Actual Ratio	0.0822	0.0811
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Amount	$ 208,208	$ 189,728
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Ratio	0.0400	0.0400
Bank
Total Capital to Risk Weighted Assets
Total Capital to Risk Weighted Assets, Actual Amount	$ 475,231	$ 434,598
Total Capital to Risk Weighted Assets, Actual Ratio	0.1316	0.1352
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 379,180	$ 337,554
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	0.1050	0.1050
Total Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 361,123	$ 321,480
Total Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	0.1000	0.1000
Tier 1 (Core) Capital to Risk Weighted Assets
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Amount	$ 447,055	$ 408,693
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Ratio	0.1238	0.1271
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 306,955	$ 273,258
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	0.0850	0.0850
Tier 1 (Core) Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 288,899	$ 257,184
Tier 1 (Core) Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800	0.0800
Common equity Tier 1 to Risk Weighted Assets
Common equity Tier 1 to Risk Weighted Assets, Actual Amount	$ 439,676	$ 401,314
Common equity Tier 1 to Risk Weighted Assets, Actual Ratio	0.1218	0.1248
Common equity Tier 1 to Risk Weighted Assets, For Capital Adequacy Purposes Amount	$ 252,786	$ 225,036
Common equity Tier 1 to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	7.00%	7.00%
Common equity Tier 1 to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 234,730	$ 208,962
Common equity Tier 1 to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Tier 1 (Core) Capital to Average Assets
Tier 1 (Core) Capital to Average Assets, Actual Amount	$ 447,055	$ 408,693
Tier 1 (Core) Capital to Average Assets, Actual Ratio	0.0863	0.0866
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Amount	$ 207,109	$ 188,690
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Ratio	0.0400	0.0400
Tier 1 (Core) Capital to Average Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 258,887	$ 235,863
Tier 1 (Core) Capital to Average Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0500	0.0500

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Interest Rate Swaps - Additional Information (Details) - USD ($)		12 Months Ended
	Sep. 07, 2018	Dec. 31, 2021	Dec. 31, 2020
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivatives designated as fair value hedges		$ 0	$ 0
Accumulated other comprehensive loss estimated		278,000
Cash collateral balance		3,400,000	4,900,000
Interest Rate Swaps
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Cash collateral balance		$ 1,100,000	$ 1,100,000
Unsecured Debt
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Term of contract	5 years
Cash flow hedges	$ 10,000,000
Unsecured Debt | LIBOR Plus 155 Basis Points
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Variable interest rate on subordinate debt		1.75%
Unsecured Debt | LIBOR Plus 155 basis points at 2.98%
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Variable interest rate on subordinate debt		4.53%
Derivative fixed interest rate basis		2.98%
Unsecured Debt | LIBOR | LIBOR Plus 155 Basis Points
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivative basis spread on variable rate		1.55%
Unsecured Debt | LIBOR | LIBOR Plus 155 basis points at 2.98%
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivative basis spread on variable rate		1.55%

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Interest Rate Swaps - Amounts and Locations of Activity Related to Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Interest Rate Swaps - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Interest rate contracts	$ 301	$ (224)	$ (225)
Accrued interest payable and other liabilities
Derivative [Line Items]
Interest rate contract	(388)	(768)
Interest expense – subordinated debentures
Derivative [Line Items]
Other income	(276)	(224)	(63)
Other income
Derivative [Line Items]
Other income	$ 0	$ 0	$ 0

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Interest Rate Swaps - Amounts and Locations of Activity Related to Back-to-Back Interest Rate Swaps (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
3rd Party interest rate swaps
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Notional Amount, Asset	$ 32,768	$ 34,089
Average Maturity (in years)	5 years 9 months 18 days	6 years 8 months 12 days
Weighted Average Fixed Rate	4.12%	4.13%
Assets (Liabilities), at fair value	$ 2,124	$ 4,017
3rd Party interest rate swaps | LIBOR
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivative basis spread on variable rate	2.27%	2.27%
Customer interest rate swaps
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Notional Amount, Liability	$ (32,768)	$ (34,089)
Average Maturity (in years)	5 years 9 months 18 days	6 years 8 months 12 days
Weighted Average Fixed Rate	4.12%	4.13%
Assets (Liabilities), at fair value	$ (2,124)	$ (4,017)
Customer interest rate swaps | LIBOR
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivative basis spread on variable rate	2.27%	2.27%

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Off-Balance Sheet Activities - Schedule of Off-Balance Sheet Risks (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commitments to make loans | Fixed Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	$ 94,924	$ 52,073
Commitments to make loans | Variable Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	323,013	266,336
Unused lines of credit | Fixed Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	13,265	24,328
Unused lines of credit | Variable Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	663,903	673,919
Standby letters of credit | Fixed Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	15,063	15,301
Standby letters of credit | Variable Rate
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, amount, liability	$ 1,623	$ 1,597

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Off-Balance Sheet Activities - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amortization	$ 691	$ 634	$ 531
Capital Contributions, Small Business Investment Corporation
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Capital contributions	14,500	11,800
Small Business Investment Corporations
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Capital contributions	8,000	3,700
Capital Contributions, Low Income Housing Partnerships
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Capital contributions	5,300	6,000
Low Income Housing Partnerships
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Capital contributions	$ 2,100	$ 3,600
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Interest rate loan	0.56%	1.24%
Fixed rate loan maturities range	6 months	4 months
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Interest rate loan	9.00%	18.00%
Fixed rate loan maturities range	31 years	35 years

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Parent Company Only Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Equity securities	$ 10,366	$ 6,649
Total Assets	5,328,939	4,729,399
LIABILITIES
Subordinated debentures	20,620	20,620
Total liabilities	4,886,092	4,313,262
Stockholders' equity	442,847	416,137	$ 304,966	$ 262,830
Total Liabilities and Shareholders’ Equity	5,328,939	4,729,399
Parent Company
Assets
Cash	47,035	10,729
Equity securities	2,850	2,692
Investment in bank subsidiary	474,902	456,531
Investment in non-bank subsidiaries	20,327	15,681
Deferreds and current receivable	1,798	1,788
Other assets	1,044	1,264
Total Assets	547,956	488,685
LIABILITIES
Subordinated debentures	104,281	70,620
Other liabilities	828	1,928
Total liabilities	105,109	72,548
Stockholders' equity	442,847	416,137
Total Liabilities and Shareholders’ Equity	$ 547,956	$ 488,685

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Parent Company Only Financial Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Dividends from:
Income tax benefit	$ (13,071)	$ (7,347)	$ (8,560)
NET INCOME	57,707	32,743	40,081
Dividends on preferred stock	(4,302)	(1,147)	0
Net earnings allocated to common stock	53,405	31,596	40,081
COMPREHENSIVE INCOME	42,239	40,878	51,016
Parent Company
Dividends from:
Bank subsidiary	22,165	16,702	12,696
Non-bank subsidiaries	1,700	10,350	0
Other	210	216	208
Total income	24,075	27,268	12,904
Expenses	(6,657)	(6,838)	(5,518)
Income before income taxes and equity in undistributed net income of subsidiaries	17,418	20,430	7,386
Change in net unrealized holdings gains (losses) on equity securities not held for trading	121	(31)	24
Income tax benefit	1,381	1,306	1,177
Equity in undistributed net income of bank subsidiary	37,178	18,197	27,580
Equity in undistributed (distributions in excess) of net income of non-bank subsidiaries	1,609	(7,159)	3,914
NET INCOME	57,707	32,743	40,081
Dividends on preferred stock	(4,302)	(1,147)	0
Net earnings allocated to common stock	53,405	31,596	40,081
COMPREHENSIVE INCOME	$ 58,008	$ 32,519	$ 39,856

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Parent Company Only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]
Net income	$ 57,707	$ 32,743	$ 40,081
Adjustments to reconcile net income to net cash provided by operating activities:
Net unrealized (gains) losses on equity securities	(790)	(328)	(1,888)
Decrease in other assets	(1,056)	(6,242)	1,072
Increase in other liabilities	7,788	(3,846)	3,610
NET CASH PROVIDED BY OPERATING ACTIVITIES	58,920	28,758	52,042
Cash flows from investing activities
NET CASH USED BY INVESTING ACTIVITIES	(409,760)	(168,680)	(368,736)
Cash flows from financing activities:
Dividends paid on preferred stock	(4,302)	(1,147)	0
Proceeds from issuance of long term debt	0	231,985	30,353
Repayment of long term debt	(50,000)	(459,892)	(47,563)
Purchase of treasury stock	(1,163)	(1,307)	(1,291)
Net proceeds from the issuance of preferred stock	0	57,785	0
Net proceeds from issuance of common stock	0	3,257	1,423
NET CASH PROVIDED BY FINANCING ACTIVITIES	550,344	479,642	464,105
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	199,504	339,720	147,411
CASH AND CASH EQUIVALENTS, Beginning	532,694	192,974	45,563
CASH AND CASH EQUIVALENTS, Ending	732,198	532,694	192,974
Parent Company
Condensed Financial Statements, Captions [Line Items]
Net income	57,707	32,743	40,081
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of bank subsidiary	(37,178)	(18,197)	(27,580)
(Equity in undistributed) distributions in excess of net income of non–bank subsidiaries	(1,609)	7,159	(3,914)
Net unrealized (gains) losses on equity securities	(121)	31	(24)
Decrease in other assets	60	21	177
Increase in other liabilities	978	1,091	1,267
NET CASH PROVIDED BY OPERATING ACTIVITIES	19,837	22,848	10,007
Cash flows from investing activities
Purchase of equity securities	0	(2,000)	(36)
Outlays for business acquisition	0	(16,126)	0
Investment in bank subsidiaries	0	(41,500)	0
NET CASH USED BY INVESTING ACTIVITIES	0	(59,626)	(36)
Cash flows from financing activities:
Dividends paid on common stock	(11,550)	(10,981)	(10,358)
Dividends paid on preferred stock	(4,302)	(1,147)	0
Proceeds from issuance of long term debt	83,484	0	0
Repayment of long term debt	(50,000)	0	0
Purchase of treasury stock	(1,163)	(1,307)	(1,291)
Net proceeds from the issuance of preferred stock	0	57,785	0
Net proceeds from issuance of common stock	0	3,257	1,423
Net advance (to) from subsidiary	0	(850)	650
NET CASH PROVIDED BY FINANCING ACTIVITIES	16,469	46,757	(9,576)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	36,306	9,979	395
CASH AND CASH EQUIVALENTS, Beginning	10,729	750	355
CASH AND CASH EQUIVALENTS, Ending	$ 47,035	$ 10,729	$ 750

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Earnings Per Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Antidilutive shares excluded from the diluted earnings per share calculations (in shares)	0	0	0

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Basic earnings per common share computation
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 53,405	$ 31,596	$ 40,081
Net earnings allocated to participating securities	(183)	(100)	(147)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 53,222	$ 31,496	$ 39,934
Weighted average common shares outstanding, including shares considered participating securities (in shares)	16,875	16,048	15,219
Less: Average participating securities (in shares)	(55)	(48)	(55)
Weighted average shares (in shares)	16,820	16,000	15,164
Basic earnings per common share (in dollars per share)	$ 3.16	$ 1.97	$ 2.63
Diluted earnings per common share computation
Net earnings allocated to common stock	$ 53,222	$ 31,496	$ 39,934
Weighted average common shares outstanding for basic earnings per common share (in shares)	16,820	16,000	15,164
Add: Dilutive effects of performance based-shares (in shares)	0	0	0
Weighted average shares and dilutive potential common shares (in shares)	16,820	16,000	15,164
Diluted earnings per common share (in dollars per share)	$ 3.16	$ 1.97	$ 2.63
Distributed earnings allocated to common stock
Basic earnings per common share computation
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 11,514	$ 10,942	$ 10,317
Undistributed earnings allocated to common stock
Basic earnings per common share computation
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 41,708	$ 20,554	$ 29,617

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Other Comprehensive Income - Components of Other Comprehensive Income and Related Tax Effects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total other comprehensive income (loss)	$ (15,468)	$ 8,135	$ 10,935
Available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Before reclassifications	(19,526)	12,494	13,732
Reclassifications	(783)	(2,190)	(148)
Net unrealized gain (loss)	(20,309)	10,304	13,584
Tax effect	4,265	(2,164)	(2,852)
Total other comprehensive income (loss)	(16,044)	8,140	10,732
Unrealized gain on postretirement benefits plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Before reclassifications	391	277	518
Reclassifications	(43)	0	23
Net unrealized gain (loss)	348	277	541
Tax effect	(73)	(58)	(113)
Total other comprehensive income (loss)	275	219	428
Unrealized loss on interest rate swap
Accumulated Other Comprehensive Income (Loss) [Line Items]
Before reclassifications	105	(508)	(347)
Reclassifications	276	224	63
Net unrealized gain (loss)	381	(284)	(284)
Tax effect	(80)	60	59
Total other comprehensive income (loss)	$ 301	$ (224)	$ (225)

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Other Comprehensive Income - Summary of Change in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 416,137	$ 304,966	$ 262,830
Comprehensive Income (Loss)	(15,468)	8,135	10,935
Ending balance	442,847	416,137	304,966
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	15,074	6,939	(3,996)
Comprehensive Income (Loss)	(15,468)	8,135	10,935
Ending balance	(394)	15,074	6,939
Unrealized gains (losses) on securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	15,338	7,198	(3,534)
Comprehensive Income (Loss)	(16,044)	8,140	10,732
Ending balance	(706)	15,338	7,198
Unrealized gain on postretirement benefits plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	343	124	(304)
Comprehensive Income (Loss)	275	219	428
Ending balance	618	343	124
Unrealized loss on interest rate swap
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(607)	(383)	(158)
Comprehensive Income (Loss)	301	(224)	(225)
Ending balance	$ (306)	$ (607)	$ (383)

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Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Non-interest Income
Service charges on deposit accounts	$ 6,195	$ 5,095	$ 6,402
Wealth and asset management fees	6,740	5,497	4,627
Mortgage banking	3,147	3,354	1,412
Card processing and interchange income	7,796	5,727	4,641
Net realized gains on available-for-sale securities	783	2,190	148
Other income	8,773	6,196	8,745
Total non-interest income	$ 33,434	$ 28,059	$ 25,975