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LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Total net loans receivable at June 30, 2023 and December 31, 2022 are summarized as follows:
June 30, 2023Percentage
of Total		December 31, 2022Percentage
of Total
Farmland
$33,774 0.8 %$32,168 0.8 %
Owner-occupied, nonfarm nonresidential properties
490,728 11.0 468,493 11.0 
Agricultural production and other loans to farmers
1,135 — 1,198 — 
Commercial and Industrial
778,704 17.4 791,911 18.5 
Obligations (other than securities and leases) of states and political subdivisions
154,834 3.5 145,345 3.4 
Other loans
30,749 0.7 24,710 0.6 
Other construction loans and all land development and other land loans451,043 10.1 446,685 10.5 
Multifamily (5 or more) residential properties
276,829 6.2 257,696 6.0 
Non-owner occupied, nonfarm nonresidential properties
881,550 19.7 795,315 18.6 
1-4 Family Construction59,735 1.3 51,171 1.2 
Home equity lines of credit121,813 2.7 124,892 2.9 
Residential Mortgages secured by first liens967,807 21.7 942,531 22.0 
Residential Mortgages secured by junior liens87,985 2.0 74,638 1.7 
Other revolving credit plans41,774 0.9 36,372 0.9 
Automobile26,753 0.6 21,806 0.5 
Other consumer47,760 1.1 49,144 1.1 
Credit cards11,640 0.3 10,825 0.3 
Overdrafts221 — 278 — 
Total loans receivable$4,464,834 100.0 %$4,275,178 100.0 %
Less: Allowance for credit losses(45,541)(43,436)
Loans receivable, net$4,419,293 $4,231,742 
Net deferred loan origination fees included in the above table$3,432 $4,463 

The Corporation’s outstanding loans receivable and related unfunded commitments are primarily concentrated within Central and Northwest Pennsylvania, Central and Northeast Ohio, Western New York and Southwest 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 approved annually by the Corporation’s Board of Directors.

Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $145.6 million and $156.6 million as of June 30, 2023 and December 31, 2022, respectively.
Transactions in the allowance for credit losses for the three months ended June 30, 2023 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland
$129 $— $— $11 $140 
Owner-occupied, nonfarm nonresidential properties
2,546 — 7 598 3,151 
Agricultural production and other loans to farmers
3 — — 2 5 
Commercial and Industrial
8,943 — — (284)8,659 
Obligations (other than securities and leases) of states and political subdivisions
1,848 — — 458 2,306 
Other loans
594 — — 139 733 
Other construction loans and all land development and other land loans3,394 — — 197 3,591 
Multifamily (5 or more) residential properties
2,535 — 2 (924)1,613 
Non-owner occupied, nonfarm nonresidential properties
8,259 (248)— 966 8,977 
1-4 Family Construction398 — — 10 408 
Home equity lines of credit1,158 — 2 (191)969 
Residential Mortgages secured by first liens8,851 — 3 396 9,250 
Residential Mortgages secured by junior liens1,275 — — 303 1,578 
Other revolving credit plans830 (36)12 125 931 
Automobile330 (5)— 51 376 
Other consumer2,561 (442)31 411 2,561 
Credit cards73 (18)6 11 72 
Overdrafts254 (138)35 70 221 
Total$43,981 $(887)$98 $2,349 $45,541 
(1) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

Transactions in the allowance for credit losses for the six months ended June 30, 2023 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland
$159 $— $— $(19)$140 
Owner-occupied, nonfarm nonresidential properties
2,905 (26)15 257 3,151 
Agricultural production and other loans to farmers
6 — — (1)5 
Commercial and Industrial
9,766 (46)145 (1,206)8,659 
Obligations (other than securities and leases) of states and political subdivisions
1,863 — — 443 2,306 
Other loans
456 — — 277 733 
Other construction loans and all land development and other land loans3,253 — — 338 3,591 
Multifamily (5 or more) residential properties
2,353 (65)2 (677)1,613 
Non-owner occupied, nonfarm nonresidential properties
7,653 (248)— 1,572 8,977 
1-4 Family Construction327 — — 81 408 
Home equity lines of credit1,173 — 3 (207)969 
Residential Mortgages secured by first liens8,484 (7)3 770 9,250 
Residential Mortgages secured by junior liens1,035 — — 543 1,578 
Other revolving credit plans722 (58)17 250 931 
Automobile271 (10)— 115 376 
Other consumer2,665 (982)74 804 2,561 
Credit cards67 (80)7 78 72 
Overdrafts278 (298)79 162 221 
Total$43,436 $(1,820)$345 $3,580 $45,541 
(1) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.
Transactions in the allowance for credit losses for the three months ended June 30, 2022 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$186 $— $— $5 $191 
Owner-occupied, nonfarm nonresidential properties3,595 — 2 117 3,714 
Agricultural production and other loans to farmers10 — — (3)7 
Commercial and Industrial9,090 (14)13 466 9,555 
Obligations (other than securities and leases) of states and political subdivisions1,828 — — (163)1,665 
Other loans143 — — 24 167 
Other construction loans and all land development and other land loans2,050 — — 278 2,328 
Multifamily (5 or more) residential properties2,236 — — 41 2,277 
Non-owner occupied, nonfarm nonresidential properties
6,411 — — 337 6,748 
1-4 Family Construction210 — — 26 236 
Home equity lines of credit1,181 — 2 170 1,353 
Residential Mortgages secured by first liens6,905 — — 759 7,664 
Residential Mortgages secured by junior liens552 — — 76 628 
Other revolving credit plans547 (19)28 42 598 
Automobile254 (6)— (6)242 
Other consumer2,569 (369)19 485 2,704 
Credit cards103 (45)4 48 110 
Overdrafts247 (127)33 203 356 
Total loans$38,117 $(580)$101 $2,905 $40,543 
(1) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

Transactions in the allowance for credit losses for the six months ended June 30, 2022 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$151 $— $— $40 $191 
Owner-occupied, nonfarm nonresidential properties3,339 (21)9 387 3,714 
Agricultural production and other loans to farmers9 — — (2)7 
Commercial and Industrial8,837 (85)91 712 9,555 
Obligations (other than securities and leases) of states and political subdivisions1,649 — — 16 1,665 
Other loans149 — — 18 167 
Other construction loans and all land development and other land loans2,198 — — 130 2,328 
Multifamily (5 or more) residential properties2,289 — — (12)2,277 
Non-owner occupied, nonfarm nonresidential properties
6,481 — — 267 6,748 
1-4 Family Construction158 — — 78 236 
Home equity lines of credit1,169 — 10 174 1,353 
Residential Mortgages secured by first liens6,943 (47)12 756 7,664 
Residential Mortgages secured by junior liens546 — — 82 628 
Other revolving credit plans528 (45)34 81 598 
Automobile263 (13)— (8)242 
Other consumer2,546 (770)41 887 2,704 
Credit cards92 (59)8 69 110 
Overdrafts241 (246)74 287 356 
Total loans$37,588 $(1,286)$279 $3,962 $40,543 
(1) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.
For the three and six months ended June 30, 2023, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, including growth in new market areas. This was partially offset by improvements in the Corporation's historical loss rates, as well as the impact of net charge-offs. There is still a significant amount of uncertainty related to the domestic and global economy, tightening credit conditions, persistent inflation, and higher interest rates. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Provision for credit losses was $2.4 million and $3.7 million for the three and six months ended June 30, 2023, respectively, compared to $2.9 million and $4.5 million for the three and six months ended June 30, 2022, respectively. Included in the provision for credit losses for the three and six months ended June 30, 2023 was $56 thousand and $115 thousand, respectively, related to the allowance for unfunded commitments compared to zero and $586 thousand, provision towards the allowance for unfunded commitments for the three and six months ended June 30, 2022, respectively.

The following tables presents the amortized cost basis of loans receivable on nonaccrual status and loans receivable past due over 89 days still accruing as of June 30, 2023 and December 31, 2022, respectively:

June 30, 2023
NonaccrualNonaccrual With No Allowance for Credit LossLoans Receivable Past Due over 89 Days Still Accruing
Farmland
$996 $996 $1,104 
Owner-occupied, nonfarm nonresidential properties
2,338 1,795 — 
Commercial and Industrial
5,058 2,057 — 
Other construction loans and all land development and other land loans2,085 536 — 
Multifamily (5 or more) residential properties
310 310 — 
Non-owner occupied, nonfarm nonresidential properties
4,422 1,004 — 
Home equity lines of credit499 499 — 
Residential Mortgages secured by first liens4,699 4,271 146 
Residential Mortgages secured by junior liens94 94 — 
Other revolving credit plans49 49 49 
Automobile17 17 — 
Other consumer609 609 — 
Credit cards— — 74 
Total$21,176 $12,237 $1,373 

December 31, 2022
NonaccrualNonaccrual With No Allowance for Credit LossLoans Receivable Past Due over 89 Days Still Accruing
Farmland
$1,011 $1,011 $994 
Owner-occupied, nonfarm nonresidential properties
2,055 1,987 — 
Commercial and Industrial
5,485 2,366 71 
Other construction loans and all land development and other land loans567 567 — 
Multifamily (5 or more) residential properties
1,066 423 — 
Non-owner occupied, nonfarm nonresidential properties
5,081 2,665 — 
Home equity lines of credit475 475 — 
Residential Mortgages secured by first liens4,329 3,882 48 
Residential Mortgages secured by junior liens91 91 — 
Other revolving credit plans26 26 — 
Automobile19 19 — 
Other consumer781 781 — 
Credit cards— — 8 
Total$20,986 $14,293 $1,121 

All payments received while on nonaccrual status are applied against the principal balance of the loan. The Corporation does not recognize interest income while a loan is on nonaccrual status.
The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of June 30, 2023:
Real Estate CollateralNon-Real Estate Collateral
Farmland
$829 $— 
Owner-occupied, nonfarm nonresidential properties
1,038 4 
Commercial and Industrial
— 1,757 
Other construction loans and all land development and other land loans2,020 — 
Multifamily (5 or more) residential properties
310 — 
Non-owner occupied, nonfarm nonresidential properties
3,278 — 
Home equity lines of credit323 — 
Residential Mortgages secured by first liens1,102 — 
Total$8,900 $1,761 

The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of December 31, 2022:
Real Estate CollateralNon-Real Estate Collateral
Farmland
$829 $— 
Owner-occupied, nonfarm nonresidential properties
1,296 4 
Commercial and Industrial
— 1,904 
Other construction loans and all land development and other land loans501 — 
Multifamily (5 or more) residential properties
1,066 — 
Non-owner occupied, nonfarm nonresidential properties
5,874 — 
Home equity lines of credit335 — 
Residential Mortgages secured by first liens1,150 — 
Total$11,051 $1,908 
The following table presents the aging of the amortized cost basis in past-due loans receivable as of June 30, 2023 by class of loans:
30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past DueLoans Receivable Not Past DueTotal
Farmland
$— $183 $1,233 $1,416 $32,358 $33,774 
Owner-occupied, nonfarm nonresidential properties
— — 417 417 490,311 490,728 
Agricultural production and other loans to farmers
— — — — 1,135 1,135 
Commercial and Industrial
470 94 292 856 777,848 778,704 
Obligations (other than securities and leases) of states and political subdivisions
— — — — 154,834 154,834 
Other loans
— — — — 30,749 30,749 
Other construction loans and all land development and other land loans59 — 1,614 1,673 449,370 451,043 
Multifamily (5 or more) residential properties
— — — — 276,829 276,829 
Non-owner occupied, nonfarm nonresidential properties
221 88 1,181 1,490 880,060 881,550 
1-4 Family Construction324 — — 324 59,411 59,735 
Home equity lines of credit305 445 10 760 121,053 121,813 
Residential Mortgages secured by first liens1,382 1,351 1,806 4,539 963,268 967,807 
Residential Mortgages secured by junior liens63 — 51 114 87,871 87,985 
Other revolving credit plans41 23 67 131 41,643 41,774 
Automobile56 2 1 59 26,694 26,753 
Other consumer354 213 271 838 46,922 47,760 
Credit cards33 36 74 143 11,497 11,640 
Overdrafts— — — — 221 221 
Total$3,308 $2,435 $7,017 $12,760 $4,452,074 $4,464,834 
The following table presents the aging of the amortized cost basis in past-due loans receivable as of December 31, 2022 by class of loans:
30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past DueLoans Receivable Not Past DueTotal
Farmland
$— $— $1,136 $1,136 $31,032 $32,168 
Owner-occupied, nonfarm nonresidential properties
185 27 734 946 467,547 468,493 
Agricultural production and other loans to farmers
— — — — 1,198 1,198 
Commercial and Industrial
246 93 611 950 790,961 791,911 
Obligations (other than securities and leases) of states and political subdivisions
— — — — 145,345 145,345 
Other loans
— — — — 24,710 24,710 
Other construction loans and all land development and other land loans1,522 — 501 2,023 444,662 446,685 
Multifamily (5 or more) residential properties
706 — 90 796 256,900 257,696 
Non-owner occupied, nonfarm nonresidential properties
113 60 879 1,052 794,263 795,315 
1-4 Family Construction— — — — 51,171 51,171 
Home equity lines of credit203 10 49 262 124,630 124,892 
Residential Mortgages secured by first liens1,302 538 1,775 3,615 938,916 942,531 
Residential Mortgages secured by junior liens5 — 51 56 74,582 74,638 
Other revolving credit plans65 27 — 92 36,280 36,372 
Automobile36 — — 36 21,770 21,806 
Other consumer361 188 473 1,022 48,122 49,144 
Credit cards196 18 8 222 10,603 10,825 
Overdrafts— — — — 278 278 
Total$4,940 $961 $6,307 $12,208 $4,262,970 $4,275,178 

Loan Modifications

The Corporation adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Corporation provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.
The following table presents the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the six months ended June 30, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Payment Delay and Term ExtensionTotal Class of Financing Receivable
Owner-occupied, nonfarm nonresidential properties
$— $6,246 $— $— $— 1.3 %
Commercial and Industrial
— 7,987 583 352 117 1.2 
Other construction loans and all land development and other land loans— 1,549 — — — 0.3 
Non-owner occupied, nonfarm nonresidential properties
— — 1,523 — — 0.2 
Total$— $15,782 $2,106 $352 $117 0.4 %

The Corporation has no further loan commitments to customers whose loan receivables are included in the previous table.

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified during the six months ended June 30, 2023:

30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past Due
Other construction loans and all land development and other land loans$— $— $1,549 $1,549 
Total$— $— $1,549 $1,549 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2023:

Principal ForgivenessTerm Extension
(in years)		Interest Rate Reduction
Commercial and Industrial
$— 0.970.5 %
Non-owner occupied, nonfarm nonresidential properties
— 0.50— 
Total$— 0.650.5 %

There were no modified loans and leases that had a payment default during the six months ended June 30, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

If the Corporation determines that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off and the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

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

As of December 31, 2022, the terms of certain loans were modified as TDRs. 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 TDRs of $12.4 million as of December 31, 2022. The Corporation has allocated $2.2 million of allowance for those loans as of December 31, 2022.

There were no loans modified as TDRs during the three months ended June 30, 2022.
There was one loan modified as a TDR during the six months ended June 30, 2022:
Six Months Ended June 30, 2022
Number of
Loans		Pre-Modification
Outstanding Recorded
Investment		Post-Modification
Outstanding Recorded
Investment		Type of Modification
Non-owner occupied, nonfarm nonresidential properties
1 $1,784 $1,784 Modify Rate and Extend Amortization
Total loans1 $1,784 $1,784 

The TDR described above increased the allowance for credit losses by an immaterial amount for the three and six months ended June 30, 2022.

A loan receivable is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified as TDRs for which there was a payment default within a twelve-month cycle following the modification during the three and six months ended June 30, 2022. There were no principal balances forgiven in connection with the loans restructurings.

As discussed above, effective for January 1, 2023, the Corporation adopted prospectively Accounting Standard Update 2022-02, which eliminated the separate recognition and measurement guidance for TDRs by creditors.

Credit Quality Indicators

The Corporation categorizes loans receivable 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: A loan classified as special mention has 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: A loan classified as substandard is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. The loan has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: A loan classified as doubtful has 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 commercial credit risk profile by risk rating. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans.
June 30, 2023
Non-Pass Rated
PassSpecial MentionSubstandardDoubtfulTotal Non-PassTotal
Farmland
$32,595 $183 $996 $— $1,179 $33,774 
Owner-occupied, nonfarm nonresidential properties
451,854 26,622 12,252 — 38,874 490,728 
Agricultural production and other loans to farmers
1,135 — — — — 1,135 
Commercial and Industrial
731,135 31,257 15,063 1,249 47,569 778,704 
Obligations (other than securities and leases) of states and political subdivisions
141,355 13,479 — — 13,479 154,834 
Other loans
30,749 — — — — 30,749 
Other construction loans and all land development and other land loans444,962 3,997 2,084 — 6,081 451,043 
Multifamily (5 or more) residential properties
276,019 — 810 — 810 276,829 
Non-owner occupied, nonfarm nonresidential properties
854,144 8,407 18,999 — 27,406 881,550 
Total$2,963,948 $83,945 $50,204 $1,249 $135,398 $3,099,346 

December 31, 2022
Non-Pass Rated
PassSpecial MentionSubstandardDoubtfulTotal Non-PassTotal
Farmland
$29,706 $1,450 $1,012 $— $2,462 $32,168 
Owner-occupied, nonfarm nonresidential properties
433,467 27,796 7,230 — 35,026 468,493 
Agricultural production and other loans to farmers
1,198 — — — — 1,198 
Commercial and Industrial
765,821 14,740 10,037 1,313 26,090 791,911 
Obligations (other than securities and leases) of states and political subdivisions
145,345 — — — — 145,345 
Other loans
24,710 — — — — 24,710 
Other construction loans and all land development and other land loans443,300 1,296 2,089 — 3,385 446,685 
Multifamily (5 or more) residential properties
256,120 510 1,066 — 1,576 257,696 
Non-owner occupied, nonfarm nonresidential properties
772,450 2,791 20,074 — 22,865 795,315 
Total$2,872,117 $48,583 $41,508 $1,313 $91,404 $2,963,521 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2023. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Farmland
Risk rating
Pass$3,218 $11,779 $7,412 $1,483 $854 $7,461 $388 $— $32,595 
Special mention— — — — — 183 — — 183 
Substandard— — 347 — — 649 — — 996 
Total$3,218 $11,779 $7,759 $1,483 $854 $8,293 $388 $— $33,774 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass$43,048 $118,086 $109,495 $46,069 $47,666 $76,144 $11,346 $— $451,854 
Special mention119 3,441 696 13,617 855 4,703 3,191 — 26,622 
Substandard— — — 324 6,973 4,781 174 — 12,252 
Total$43,167 $121,527 $110,191 $60,010 $55,494 $85,628 $14,711 $— $490,728 
Current period gross write offs$— $— $— $— $— $26 $— $— $26 
Agricultural production and other loans to farmers
Risk rating
Pass$70 $45 $117 $71 $21 $173 $638 $— $1,135 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$70 $45 $117 $71 $21 $173 $638 $— $1,135 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Commercial and Industrial
Risk rating
Pass$49,964 $153,927 $187,433 $44,128 $9,569 $22,036 $264,078 $— $731,135 
Special mention— 7,505 3,223 6,362 355 31 13,781 — 31,257 
Substandard— 202 2,888 638 3,457 2,467 5,411 — 15,063 
Doubtful(1)
— — 1,249 — — — — — 1,249 
Total$49,964 $161,634 $194,793 $51,128 $13,381 $24,534 $283,270 $— $778,704 
Current period gross write offs$— $— $— $— $— $— $46 $— $46 
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass$23,256 $17,439 $32,420 $12,706 $4,335 $46,822 $4,377 $— $141,355 
Special mention— — — — — 13,479 — — 13,479 
Substandard— — — — — — — — — 
Total$23,256 $17,439 $32,420 $12,706 $4,335 $60,301 $4,377 $— $154,834 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other loans
Risk rating
Pass$250 $12,105 $5,324 $2,041 $324 $— $10,705 $— $30,749 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$250 $12,105 $5,324 $2,041 $324 $— $10,705 $— $30,749 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
(1) Consists of one loan relationship originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during 2021.
Term Loans Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Other construction loans and all land development and other land loans
Risk rating
Pass$39,127 $261,801 $93,433 $34,554 $6,558 $1,508 $7,981 $— $444,962 
Special mention— 3,997 — — — — — — 3,997 
Substandard— — 471 — 1,549 — 64 — 2,084 
Total$39,127 $265,798 $93,904 $34,554 $8,107 $1,508 $8,045 $— $451,043 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Multifamily (5 or more) residential properties
Risk rating
Pass$35,483 $108,450 $44,349 $45,547 $11,388 $29,855 $947 $— $276,019 
Special mention— — — — — — — — — 
Substandard310 — — — — 500 — — 810 
Total$35,793 $108,450 $44,349 $45,547 $11,388 $30,355 $947 $— $276,829 
Current period gross write offs$— $— $— $— $— $65 $— $— $65 
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass$139,785 $324,695 $153,944 $39,537 $56,914 $132,195 $7,074 $— $854,144 
Special mention— 379 — 6,462 157 970 439 — 8,407 
Substandard— 1,407 1,275 — 3,980 10,605 1,732 — 18,999 
Total$139,785 $326,481 $155,219 $45,999 $61,051 $143,770 $9,245 $— $881,550 
Current period gross write offs$— $— $— $— $— $— $248 $— $248 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2022. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Farmland
Risk rating
Pass$12,321 $7,635 $1,536 $871 $3,277 $3,523 $543 $— $29,706 
Special mention— — — — — 1,450 — — 1,450 
Substandard— 347 — — 142 523 — — 1,012 
Total$12,321 $7,982 $1,536 $871 $3,419 $5,496 $543 $— $32,168 
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass$116,701 $113,575 $50,226 $55,040 $25,327 $60,810 $11,788 $— $433,467 
Special mention3,402 — 15,613 872 4,097 814 2,998 — 27,796 
Substandard— — 355 1,864 862 4,149 — — 7,230 
Total$120,103 $113,575 $66,194 $57,776 $30,286 $65,773 $14,786 $— $468,493 
Agricultural production and other loans to farmers
Risk rating
Pass$105 $140 $80 $42 $179 $— $652 $— $1,198 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$105 $140 $80 $42 $179 $— $652 $— $1,198 
Commercial and Industrial
Risk rating
Pass$195,955 $213,433 $51,695 $16,730 $9,051 $19,116 $259,841 $— $765,821 
Special mention241 — 6,691 273 81 45 7,409 — 14,740 
Substandard299 1,809 689 379 324 913 5,624 — 10,037 
Doubtful(1)
— 1,313 — — — — — — 1,313 
Total$196,495 $216,555 $59,075 $17,382 $9,456 $20,074 $272,874 $— $791,911 
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass$20,840 $37,527 $13,868 $4,584 $13,518 $50,050 $4,958 $— $145,345 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$20,840 $37,527 $13,868 $4,584 $13,518 $50,050 $4,958 $— $145,345 
Other loans
Risk rating
Pass$14,248 $5,358 $2,278 $363 $— $— $2,463 $— $24,710 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$14,248 $5,358 $2,278 $363 $— $— $2,463 $— $24,710 
(1) Consists of one loan relationship originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during 2021.
Term Loans Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Other construction loans and all land development and other land loans
Risk rating
Pass$272,118 $86,894 $56,782 $6,918 $8,644 $916 $11,028 $— $443,300 
Special mention1,296 — — — — — — — 1,296 
Substandard— 2,023 — — — — 66 — 2,089 
Total$273,414 $88,917 $56,782 $6,918 $8,644 $916 $11,094 $— $446,685 
Multifamily (5 or more) residential properties
Risk rating
Pass$114,454 $49,794 $46,784 $11,854 $6,764 $23,841 $2,629 $— $256,120 
Special mention— — — — — 510 — — 510 
Substandard643 — — — 333 90 — — 1,066 
Total$115,097 $49,794 $46,784 $11,854 $7,097 $24,441 $2,629 $— $257,696 
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass$339,151 $153,613 $51,709 $66,592 $45,211 $107,988 $8,186 $— $772,450 
Special mention— 488 — 273 498 1,068 464 — 2,791 
Substandard2,227 800 — 4,090 1,314 9,587 2,056 — 20,074 
Total$341,378 $154,901 $51,709 $70,955 $47,023 $118,643 $10,706 $— $795,315 

The Corporation considers the performance of the loan portfolio and its impact on the allowance for credit losses. For 1-4 family construction, home equity lines of credit, residential mortgages secured by first liens, residential mortgages secured by junior liens, automobile, credit cards, other revolving credit plans and other consumer segments, the Corporation evaluates credit quality based on the performance status of the loan, which was previously presented, and by payment activity. Nonperforming loans include loans receivable on nonaccrual status and loans receivable past due over 89 days and still accruing interest.
June 30, 2023December 31, 2022
PerformingNonperformingTotalPerformingNonperformingTotal
1-4 Family Construction$59,735 $— $59,735 $51,171 $— $51,171 
Home equity lines of credit121,314 499 121,813 124,417 475 124,892 
Residential Mortgages secured by first liens962,962 4,845 967,807 938,154 4,377 942,531 
Residential Mortgages secured by junior liens87,891 94 87,985 74,547 91 74,638 
Other revolving credit plans41,676 98 41,774 36,346 26 36,372 
Automobile26,736 17 26,753 21,787 19 21,806 
Other consumer47,151 609 47,760 48,363 781 49,144 
Total$1,347,465 $6,162 $1,353,627 $1,294,785 $5,769 $1,300,554 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of June 30, 2023. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
1-4 Family Construction
Payment performance
Performing$10,688 $34,230 $10,657 $2,583 $719 $60 $798 $— $59,735 
Nonperforming— — — — — — — — — 
Total$10,688 $34,230 $10,657 $2,583 $719 $60 $798 $— $59,735 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Home equity lines of credit
Payment performance
Performing$10,055 $33,034 $13,182 $10,413 $7,472 $35,167 $6,932 $5,059 $121,314 
Nonperforming— — — — — 15 — 484 499 
Total$10,055 $33,034 $13,182 $10,413 $7,472 $35,182 $6,932 $5,543 $121,813 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Residential mortgages secured by first lien
Payment performance
Performing$74,701 $225,421 $211,770 $152,625 $85,141 $210,359 $2,945 $— $962,962 
Nonperforming66 97 1,003 272 549 2,703 155 — 4,845 
Total$74,767 $225,518 $212,773 $152,897 $85,690 $213,062 $3,100 $— $967,807 
Current period gross write offs$— $— $— $— $— $7 $— $— $7 
Residential mortgages secured by junior liens
Payment performance
Performing$19,220 $29,462 $15,631 $7,683 $4,325 $10,073 $1,497 $— $87,891 
Nonperforming— — — — — 50 44 — 94 
Total$19,220 $29,462 $15,631 $7,683 $4,325 $10,123 $1,541 $— $87,985 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other revolving credit plans
Payment performance
Performing$7,402 $9,693 $2,794 $7,627 $1,813 $12,347 $— $— $41,676 
Nonperforming— — 10 — 13 75 — — 98 
Total$7,402 $9,693 $2,804 $7,627 $1,826 $12,422 $— $— $41,774 
Current period gross write offs$— $— $40 $— $— $18 $— $— $58 
Automobile
Payment performance
Performing$9,891 $8,482 $3,587 $2,076 $1,637 $1,063 $— $— $26,736 
Nonperforming— — — 8 9 — — — 17 
Total$9,891 $8,482 $3,587 $2,084 $1,646 $1,063 $— $— $26,753 
Current period gross write offs$— $5 $— $— $5 $— $— $— $10 
Other consumer
Payment performance
Performing$13,160 $18,503 $8,114 $3,932 $1,759 $1,683 $— $— $47,151 
Nonperforming13 444 87 14 5 46 — — 609 
Total$13,173 $18,947 $8,201 $3,946 $1,764 $1,729 $— $— $47,760 
Current period gross write offs$2 $571 $303 $73 $23 $10 $— $— $982 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of December 31, 2022. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
1-4 Family Construction
Payment performance
Performing$30,451 $16,360 $2,577 $752 $62 $— $969 $— $51,171 
Nonperforming— — — — — — — — — 
Total$30,451 $16,360 $2,577 $752 $62 $— $969 $— $51,171 
Home equity lines of credit
Payment performance
Performing$34,738 $13,654 $12,903 $8,587 $7,924 $38,127 $8,484 $— $124,417 
Nonperforming— — — 10 — 465 — — 475 
Total$34,738 $13,654 $12,903 $8,597 $7,924 $38,592 $8,484 $— $124,892 
Residential mortgages secured by first lien
Payment performance
Performing$229,842 $222,522 $159,651 $91,238 $49,587 $181,939 $3,375 $— $938,154 
Nonperforming— 771 273 581 416 2,150 186 — 4,377 
Total$229,842 $223,293 $159,924 $91,819 $50,003 $184,089 $3,561 $— $942,531 
Residential mortgages secured by junior liens
Payment performance
Performing$31,837 $17,163 $8,326 $4,956 $3,073 $8,395 $797 $— $74,547 
Nonperforming— — — — — 47 44 — 91 
Total$31,837 $17,163 $8,326 $4,956 $3,073 $8,442 $841 $— $74,638 
Other revolving credit plans
Payment performance
Performing$10,778 $2,820 $7,911 $2,264 $2,265 $10,308 $— $— $36,346 
Nonperforming— — — 4 14 8 — — 26 
Total$10,778 $2,820 $7,911 $2,268 $2,279 $10,316 $— $— $36,372 
Automobile
Payment performance
Performing$10,146 $4,637 $2,945 $2,349 $1,117 $593 $— $— $21,787 
Nonperforming— — 10 7 2 — — — 19 
Total$10,146 $4,637 $2,955 $2,356 $1,119 $593 $— $— $21,806 
Other consumer
Payment performance
Performing$26,699 $12,120 $5,333 $2,176 $776 $1,259 $— $— $48,363 
Nonperforming403 220 85 22 6 45 — — 781 
Total$27,102 $12,340 $5,418 $2,198 $782 $1,304 $— $— $49,144 

 June 30, 2023December 31, 2022
Credit card
Payment performance
Performing$11,566 $10,817 
Nonperforming74 8 
Total$11,640 $10,825 
Current period gross write offs$80 
Holiday’s loan portfolio, included in other consumer loans above, is summarized as follows at June 30, 2023 and December 31, 2022: 
June 30, 2023December 31, 2022
Gross other consumer$30,471 $31,821 
Less: other consumer unearned discounts(5,636)(5,972)
Total other consumer loans, net of unearned discounts$24,835 $25,849