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Loans Receivable and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Loans Receivable and Allowance for Credit Losses

Total net loans receivable at December 31, 2023 and 2022 are summarized as follows:


	2023		Percentage of Total		2022		Percentage of Total
Farmland	$	31,869	0.7	%	$	32,168	0.8	%
Owner-occupied, nonfarm nonresidential properties	493,064		11.0		468,493		11.0
Agricultural production and other loans to farmers	1,652		—		1,198		—
Commercial and Industrial 1	726,442		16.3		791,911		18.5
Obligations (other than securities and leases) of states and political subdivisions	152,201		3.4		145,345		3.4
Other loans	25,507		0.6		24,710		0.6
Other construction loans and all land development and other land loans	491,539		11.0		446,685		10.5
Multifamily (5 or more) residential properties	254,342		5.7		257,696		6.0
Non-owner occupied, nonfarm nonresidential properties	896,043		20.1		795,315		18.6
1-4 Family Construction	51,207		1.1		51,171		1.2
Home equity lines of credit	130,700		2.9		124,892		2.9
Residential Mortgages secured by first liens	990,986		22.2		942,531		22.0
Residential Mortgages secured by junior liens	91,063		2.0		74,638		1.7
Other revolving credit plans	42,877		1.0		36,372		0.9
Automobile	25,315		0.6		21,806		0.5
Other consumer	51,592		1.1		49,144		1.1
Credit cards	11,785		0.3		10,825		0.3
Overdrafts	292		—		278		—
Total loans	$	4,468,476	100.0	%	$	4,275,178	100.0	%
Less: Allowance for credit losses	(45,832)				(43,436)
Loans, net	$	4,422,644			$	4,231,742

Net deferred loan origination fees (costs) included in the above loan table	$	2,448			$	4,463

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.

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 $108.7 million and $156.6 million as of December 31, 2023 and 2022, respectively.

Transactions in the allowance for credit losses for the year ended December 31, 2023 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	159	$	—	$	—	$	(33)	$	126
Owner-occupied, nonfarm nonresidential properties	2,905		(26)		29		1,041		3,949
Agricultural production and other loans to farmers	6		—		—		1		7
Commercial and Industrial	9,766		(392)		438		(379)		9,433
Obligations (other than securities and leases) of states and political subdivisions	1,863		—		—		750		2,613
Other loans	456		—		—		(69)		387
Other construction loans and all land development and other land loans	3,253		—		—		780		4,033
Multifamily (5 or more) residential properties	2,353		(65)		6		(1,264)		1,030
Non-owner occupied, nonfarm nonresidential properties	7,653		(694)		10		2,201		9,170
1-4 Family Construction	327		—		—		29		356
Home equity lines of credit	1,173		(10)		5		(337)		831
Residential Mortgages secured by first liens	8,484		(117)		3		(320)		8,050
Residential Mortgages secured by junior liens	1,035		—		—		441		1,476
Other revolving credit plans	722		(119)		30		340		973
Automobile	271		(56)		1		142		358
Other consumer	2,665		(1,982)		134		1,836		2,653
Credit cards	67		(189)		18		199		95
Overdrafts	278		(604)		139		479		292
Total loans	$	43,436	$	(4,254)	$	813	$	5,837	$	45,832

(1) Excludes provision for credit losses related to unfunded commitments. Note 18, "Off-Balance Sheet Commitments and Contingencies," in the 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.

Transactions in the allowance for credit losses for the year ended December 31, 2022 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	151	$	—	$	—	$	8	$	159
Owner-occupied, nonfarm nonresidential properties	3,339		(21)		15		(428)		2,905
Agricultural production and other loans to farmers	9		—		—		(3)		6
Commercial and Industrial	8,837		(175)		139		965		9,766
Obligations (other than securities and leases) of states and political subdivisions	1,649		—		—		214		1,863
Other loans	149		—		—		307		456
Other construction loans and all land development and other land loans	2,198		—		—		1,055		3,253
Multifamily (5 or more) residential properties	2,289		—		—		64		2,353
Non-owner occupied, nonfarm nonresidential properties	6,481		(335)		336		1,171		7,653
1-4 Family Construction	158		—		—		169		327
Home equity lines of credit	1,169		—		12		(8)		1,173
Residential Mortgages secured by first liens	6,943		(51)		28		1,564		8,484
Residential Mortgages secured by junior liens	546		—		—		489		1,035
Other revolving credit plans	528		(92)		50		236		722
Automobile	263		(28)		2		34		271
Other consumer	2,546		(1,623)		89		1,653		2,665
Credit cards	92		(99)		38		36		67
Overdrafts	241		(561)		138		460		278
Total loans	$	37,588	$	(2,985)	$	847	$	7,986	$	43,436

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 Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	221	$	—	$	—	$	(70)	$	151
Owner-occupied, nonfarm nonresidential properties	3,700		(584)		10		213		3,339
Agricultural production and other loans to farmers	24		—		—		(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		—		—		81		149
Other construction loans and all land development and other land loans	1,956		(282)		—		524		2,198
Multifamily (5 or more) residential properties	2,724		—		—		(435)		2,289
Non-owner occupied, nonfarm nonresidential properties	8,658		(49)		—		(2,128)		6,481
1-4 Family Construction	82		—		—		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)		—		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

For the year ended December 31, 2023, the allowance for credit losses increased primarily 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. The year-over-year increase in reserves experienced in 2022 was primarily due to loan growth, the impact of net charge-offs, and the provision for credit losses recorded in 2022. 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 $6.0 million for the year ended December 31, 2023, compared to $8.6 million and $6.0 million for the years ended December 31, 2022 and 2021, respectively. Included in the provision for credit losses for the year ended December 31, 2023 was $156 thousand related to the allowance for unfunded commitments compared to $603 thousand and zero provision towards the allowance for unfunded commitments for the years ended December 31, 2022 and 2021, respectively.

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, 2023 and 2022, respectively:


	December 31, 2023
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Past Due over 89 Days Still Accruing
Farmland	$	1,083	$	1,083	$	—
Owner-occupied, nonfarm nonresidential properties	2,673		1,488		—

Commercial and Industrial	7,512		4,389		—


Other construction loans and all land development and other land loans	1,653		104		—
Multifamily (5 or more) residential properties	305		305		—
Non-owner occupied, nonfarm nonresidential properties	9,076		6,716		—

Home equity lines of credit	940		940		—
Residential Mortgages secured by first liens	5,316		4,902		23
Residential Mortgages secured by junior liens	123		123		—
Other revolving credit plans	81		81		—
Automobile	79		79		—
Other consumer	798		798		—
Credit cards	—		—		32

Total loans	$	29,639	$	21,008	$	55


	December 31, 2022
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans 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 loans	567		567		—
Multifamily (5 or more) residential properties	1,066		423		—
Non-owner occupied, nonfarm nonresidential properties	5,081		2,665		—

Home equity lines of credit	475		475		—
Residential Mortgages secured by first liens	4,329		3,882		48
Residential Mortgages secured by junior liens	91		91		—
Other revolving credit plans	26		26		—
Automobile	19		19		—
Other consumer	781		781		—
Credit cards	—		—		8

Total loans	$	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 loans are on nonaccrual status.

The following tables present the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of December 31, 2023 and 2022, respectively:


	December 31, 2023
	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	736	$	—
Owner-occupied, nonfarm nonresidential properties	6,890		4

Commercial and Industrial	5,489		4,291


Other construction loans and all land development and other land loans	1,549		—
Multifamily (5 or more) residential properties	305		—
Non-owner occupied, nonfarm nonresidential properties	8,291		—

Home equity lines of credit	308		—
Residential Mortgages secured by first liens	1,070		—






Total loans	$	24,638	$	4,295


	December 31, 2022
	Real Estate Collateral		Non-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 loans	501		—
Multifamily (5 or more) residential properties	1,066		—
Non-owner occupied, nonfarm nonresidential properties	5,874		—


Home equity lines of credit	335		—
Residential Mortgages secured by first liens	1,150		—






Total loans	$	11,051	$	1,908

The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2023 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	$	—	$	182	$	129	$	311	$	31,558	$	31,869
Owner-occupied, nonfarm nonresidential properties	120		—		1,390		1,510		491,554		493,064
Agricultural production and other loans to farmers	—		—		—		—		1,652		1,652
Commercial and Industrial	64		379		314		757		725,685		726,442
Obligations (other than securities and leases) of states and political subdivisions	—		—		—		—		152,201		152,201
Other loans	—		—		—		—		25,507		25,507
Other construction loans and all land development and other land loans	—		41		1,612		1,653		489,886		491,539
Multifamily (5 or more) residential properties	—		—		305		305		254,037		254,342
Non-owner occupied, nonfarm nonresidential properties	95		299		2,031		2,425		893,618		896,043
1-4 Family Construction	—		—		—		—		51,207		51,207
Home equity lines of credit	582		682		339		1,603		129,097		130,700
Residential Mortgages secured by first liens	2,360		1,094		1,651		5,105		985,881		990,986
Residential Mortgages secured by junior liens	21		38		60		119		90,944		91,063
Other revolving credit plans	114		41		14		169		42,708		42,877
Automobile	62		5		67		134		25,181		25,315
Other consumer	452		453		354		1,259		50,333		51,592
Credit cards	110		17		32		159		11,626		11,785
Overdrafts	—		—		—		—		292		292
Total loans	$	3,980	$	3,231	$	8,298	$	15,509	$	4,452,967	$	4,468,476

The following table presents the aging of the amortized cost basis in past-due loans 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 Due		Loans Not Past Due		Total
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 loans	1,522		—		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 credit	203		10		49		262		124,630		124,892
Residential Mortgages secured by first liens	1,302		538		1,775		3,615		938,916		942,531
Residential Mortgages secured by junior liens	5		—		51		56		74,582		74,638
Other revolving credit plans	65		27		—		92		36,280		36,372
Automobile	36		—		—		36		21,770		21,806
Other consumer	361		188		473		1,022		48,122		49,144
Credit cards	196		18		8		222		10,603		10,825
Overdrafts	—		—		—		—		278		278
Total loans	$	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 December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 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 Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total Class of Financing Receivable

Owner-occupied, nonfarm nonresidential properties	$	—	$	5,934	$	—	$	—	$	—	1.2	%

Commercial and Industrial	—		7,794		524		320		—		1.2




Non-owner occupied, nonfarm nonresidential properties	—		5,911		—		—		785		0.7


Residential Mortgages secured by first liens	—		—		414		—		—		—
Residential Mortgages secured by junior liens	—		—		29		—		—		—





Total	$	—	$	19,639	$	967	$	320	$	785	0.5	%

The Corporation has zero in unfunded available credit 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 year ended December 31, 2023:


	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due

Owner-occupied, nonfarm nonresidential properties	$	5,934	$	—	$	—	$	—	$	—

Commercial and Industrial	8,638		—		—		—		—




Non-owner occupied, nonfarm nonresidential properties	6,696		—		—		—		—


Residential Mortgages secured by first liens	414		—		—		—		—
Residential Mortgages secured by junior liens	29		—		—		—		—





Total	$	21,711	$	—	$	—	$	—	$	—

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023:


	Principal Forgiveness		Weighted Average Term Extension (in years)	Weighted Average Interest Rate Reduction



Commercial and Industrial	$	—	1.00	0.5	%




Non-owner occupied, nonfarm nonresidential properties	—		0.75	—


Residential Mortgages secured by first liens	—		0.50	—
Residential Mortgages secured by junior liens	—		0.50	—





Total	$	—	0.76	0.5	%

The following table presents the amortized cost basis of loans that had a payment default during the year ended December 31, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty:


	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension






Other construction loans and all land development and other land loans	$	—	$	1,549	$	—	$	—	$	—

Non-owner occupied, nonfarm nonresidential properties	—		—		1,523		—		—









Total	$	—	$	1,549	$	1,523	$	—	$	—

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

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 loan receivables are classified as a TDR.

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 and $16.6 million as of December 31, 2022 and 2021, respectively. The Corporation has allocated $2.2 million and $2.6 million of allowance for those loans as of December 31, 2022 and 2021, respectively.

The following tables presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2022, and 2021:


	Year Ended December 31, 2022
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Type of Modification



Commercial and Industrial	1	$	96	$	96	Extend Amortization



Non-owner occupied, nonfarm nonresidential properties	1	1,784		1,784		Modify Rate and Extend Amortization









Total loans	2	$	1,880	$	1,880


	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Type of Modification


Commercial and Industrial	2	3,336		3,336		Modify Payment


Multifamily (5 or more) residential properties	1	717		717		Modify Payment

Non-owner occupied, nonfarm nonresidential properties	1	1,604		1,604		Modify Payment








Total loans	4	$	5,657	$	5,657

The TDRs described above increased the allowance for credit losses by immaterial amounts for the years ended December 31, 2022, and 2021, respectively.

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 receivable modified as TDRs for which there was a payment default within twelve months following the modification during the years ended December 31, 2022 and 2021, respectively, and no principal balances were forgiven in connection with the loan receivable 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 as of December 31, 2023 and 2022, respectively. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans.


	December 31, 2023
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	30,786	$	—	$	1,083	$	—	$	1,083	$	31,869
Owner-occupied, nonfarm nonresidential properties	461,554		20,177		11,333		—		31,510		493,064
Agricultural production and other loans to farmers	1,652		—		—		—		—		1,652
Commercial and Industrial	653,981		52,030		20,431		—		72,461		726,442
Obligations (other than securities and leases) of states and political subdivisions	139,014		13,187		—		—		13,187		152,201
Other loans	25,507		—		—		—		—		25,507
Other construction loans and all land development and other land loans	484,620		5,307		1,612		—		6,919		491,539
Multifamily (5 or more) residential properties	252,199		1,346		797		—		2,143		254,342
Non-owner occupied, nonfarm nonresidential properties	869,264		3,008		23,771		—		26,779		896,043









Total loans	$	2,918,577	$	95,055	$	59,027	$	—	$	154,082	$	3,072,659


	December 31, 2022
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
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 loans	443,300		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 loans	$	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 December 31, 2023. Current period originations may include modifications.


	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	3,153	$	11,393	$	6,845	$	1,465	$	815	$	6,813	$	302	$	—	$	30,786
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		306		—		—		777		—		—		1,083

Total	$	3,153	$	11,393	$	7,151	$	1,465	$	815	$	7,590	$	302	$	—	$	31,869
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	62,529	$	121,722	$	103,698	$	44,286	$	45,749	$	73,649	$	9,921	$	—	$	461,554
Special mention	320		1,304		1,180		13,623		407		210		3,133		—		20,177
Substandard	848		—		696		292		6,738		2,593		166		—		11,333

Total	$	63,697	$	123,026	$	105,574	$	58,201	$	52,894	$	76,452	$	13,220	$	—	$	493,064
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	—	$	26

Agricultural production and other loans to farmers
Risk rating
Pass	$	703	$	34	$	89	$	60	$	5	$	159	$	602	$	—	$	1,652
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	703	$	34	$	89	$	60	$	5	$	159	$	602	$	—	$	1,652
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Risk rating
Pass	$	78,325	$	140,178	$	141,439	$	33,475	$	6,662	$	14,709	$	239,193	$	—	$	653,981
Special mention	7,718		7,803		2,795		65		139		21		33,489		—		52,030
Substandard	—		385		4,281		396		3,476		1,655		10,238		—		20,431

Total	$	86,043	$	148,366	$	148,515	$	33,936	$	10,277	$	16,385	$	282,920	$	—	$	726,442
Current period gross write offs	$	50	$	—	$	—	$	191	$	—	$	—	$	151	$	—	$	392

Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	24,964	$	16,791	$	31,768	$	12,399	$	4,190	$	45,331	$	3,571	$	—	$	139,014
Special mention	—		—		—		—		—		13,187		—		—		13,187
Substandard	—		—		—		—		—		—		—		—		—

Total	$	24,964	$	16,791	$	31,768	$	12,399	$	4,190	$	58,518	$	3,571	$	—	$	152,201
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating
Pass	$	3,649	$	12,211	$	5,289	$	1,809	$	288	$	—	$	2,261	$	—	$	25,507
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	3,649	$	12,211	$	5,289	$	1,809	$	288	$	—	$	2,261	$	—	$	25,507
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		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	$	111,843	$	269,531	$	69,470	$	19,028	$	6,086	$	1,262	$	7,400	$	—	$	484,620
Special mention	—		5,307		—		—		—		—		—		—		5,307
Substandard	—		—		—		—		1,549		—		63		—		1,612

Total	$	111,843	$	274,838	$	69,470	$	19,028	$	7,635	$	1,262	$	7,463	$	—	$	491,539
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily (5 or more) residential properties
Risk rating
Pass	$	37,366	$	95,635	$	63,203	$	24,527	$	10,928	$	19,786	$	754	$	—	$	252,199
Special mention	1,346		—		—		—		—		—		—		—		1,346
Substandard	797		—		—		—		—		—		—		—		797

Total	$	39,509	$	95,635	$	63,203	$	24,527	$	10,928	$	19,786	$	754	$	—	$	254,342
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	65	$	—	$	—	$	65

Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	192,826	$	297,394	$	151,365	$	39,585	$	54,388	$	125,532	$	8,174	$	—	$	869,264
Special mention	—		—		—		1,887		—		688		433		—		3,008
Substandard	778		1,134		488		5,911		3,266		10,484		1,710		—		23,771

Total	$	193,604	$	298,528	$	151,853	$	47,383	$	57,654	$	136,704	$	10,317	$	—	$	896,043
Current period gross write offs	$	—	$	358	$	—	$	—	$	88	$	—	$	248	$	—	$	694

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
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
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 mention	3,402		—		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 mention	241		—		6,691		273		81		45		7,409		—		14,740
Substandard	299		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
	2022		2021		2020		2019		2018		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	$	272,118	$	86,894	$	56,782	$	6,918	$	8,644	$	916	$	11,028	$	—	$	443,300
Special mention	1,296		—		—		—		—		—		—		—		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
Substandard	643		—		—		—		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
Substandard	2,227		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.


	December 31, 2023						December 31, 2022
	Performing		Nonperforming		Total		Performing		Nonperforming		Total









1-4 Family Construction	$	51,207	$	—	$	51,207	$	51,171	$	—	$	51,171
Home equity lines of credit	129,760		940		130,700		124,417		475		124,892
Residential Mortgages secured by first liens	985,647		5,339		990,986		938,154		4,377		942,531
Residential Mortgages secured by junior liens	90,940		123		91,063		74,547		91		74,638
Other revolving credit plans	42,796		81		42,877		36,346		26		36,372
Automobile	25,236		79		25,315		21,787		19		21,806
Other consumer	50,794		798		51,592		48,363		781		49,144


Total loans	$	1,376,380	$	7,360	$	1,383,740	$	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 December 31, 2023. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	23,465	$	14,915	$	10,079	$	1,206	$	685	$	58	$	799	$	—	$	51,207
Nonperforming	—		—		—		—		—		—		—		—		—
Total	$	23,465	$	14,915	$	10,079	$	1,206	$	685	$	58	$	799	$	—	$	51,207
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity lines of credit
Payment performance
Performing	$	27,110	$	32,027	$	11,437	$	9,844	$	6,781	$	30,467	$	7,479	$	4,615	$	129,760
Nonperforming	—		—		—		—		—		14		—		926		940
Total	$	27,110	$	32,027	$	11,437	$	9,844	$	6,781	$	30,481	$	7,479	$	5,541	$	130,700
Current period gross write offs	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10

Residential mortgages secured by first lien
Payment performance
Performing	$	134,522	$	233,346	$	199,997	$	143,318	$	77,293	$	194,010	$	3,161	$	—	$	985,647
Nonperforming	497		174		787		615		492		2,736		38		—		5,339
Total	$	135,019	$	233,520	$	200,784	$	143,933	$	77,785	$	196,746	$	3,199	$	—	$	990,986
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	22	$	95	$	—	$	117

Residential mortgages secured by junior liens
Payment performance
Performing	$	28,685	$	27,032	$	14,027	$	7,102	$	3,888	$	8,833	$	1,373	$	—	$	90,940
Nonperforming	—		38		—		—		—		42		43		—		123
Total	$	28,685	$	27,070	$	14,027	$	7,102	$	3,888	$	8,875	$	1,416	$	—	$	91,063
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other revolving credit plans
Payment performance
Performing	$	8,684	$	8,027	$	2,732	$	11,274	$	1,634	$	10,445	$	—	$	—	$	42,796
Nonperforming	—		29		5		—		—		47		—		—		81
Total	$	8,684	$	8,056	$	2,737	$	11,274	$	1,634	$	10,492	$	—	$	—	$	42,877
Current period gross write offs	$	—	$	—	$	50	$	4	$	16	$	49	$	—	$	—	$	119

Automobile
Payment performance
Performing	$	12,545	$	6,800	$	2,597	$	1,472	$	1,025	$	797	$	—	$	—	$	25,236
Nonperforming	16		51		—		7		5		—		—		—		79
Total	$	12,561	$	6,851	$	2,597	$	1,479	$	1,030	$	797	$	—	$	—	$	25,315
Current period gross write offs	$	18	$	23	$	—	$	8	$	7	$	—	$	—	$	—	$	56

Other consumer
Payment performance
Performing	$	27,202	$	12,261	$	5,255	$	3,107	$	1,471	$	1,498	$	—	$	—	$	50,794
Nonperforming	283		330		116		12		6		51		—		—		798
Total	$	27,485	$	12,591	$	5,371	$	3,119	$	1,477	$	1,549	$	—	$	—	$	51,592
Current period gross write offs	$	210	$	1,164	$	467	$	96	$	33	$	12	$	—	$	—	$	1,982

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. The current period originations may include modifications, extensions and renewals.


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
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
Nonperforming	403		220		85		22		6		45		—		—		781
Total	$	27,102	$	12,340	$	5,418	$	2,198	$	782	$	1,304	$	—	$	—	$	49,144


	December 31, 2023		December 31, 2022

Credit card
Payment performance
Performing	$	11,753	$	10,817
Nonperforming	32		8
Total	$	11,785	$	10,825
Current period gross write offs	$	189

Holiday’s loan portfolio, included in other consumer loans above, is summarized as follows at December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
Gross consumer loans	$	31,242	$	31,821

Less: unearned discounts	(5,696)		(5,972)
Total consumer loans, net of unearned discounts	$	25,546	$	25,849