Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Allowance for Loan Losses

Schedule of changes in the allowance for loan losses

The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2022:

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2021	$	2,660	$	856	$	11,085	$	593	$	172	$	24,791	$	40,157
Provision (credited) charged to operations		(118)		116		(657)		(71)		62		870		202
Loans charged off		—		—		(11)		—		(116)		(2,322)		(2,449)
Recoveries of loans previously charged off		11		—		5		2		62		2,529		2,609
Balance at June 30, 2022	$	2,553	$	972	$	10,422	$	524	$	180	$	25,868	$	40,519

The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2021:

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2020	$	2,914	$	975	$	10,696	$	687	$	371	$	23,513	$	39,156
Provision (credited) charged to operations		(113)		(182)		331		(88)		(88)		(180)		(320)
Loans charged off		—		—		—		—		(81)		(2,442)		(2,523)
Recoveries of loans previously charged off		13		—		1		1		65		2,558		2,638
Balance at June 30, 2021	$	2,814	$	793	$	11,028	$	600	$	267	$	23,449	$	38,951

Schedule of balance of the allowance for loan losses and the allowance by impairment methodology

The following table presents, as of June 30, 2022, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	48	$	—	$	90	$	—	$	—	$	—	$	138
Collectively evaluated for impairment		2,505		972		10,332		524		180		25,868		40,381
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,553	$	972	$	10,422	$	524	$	180	$	25,868	$	40,519
Loans:
Individually evaluated for impairment	$	1,159	$	—	$	1,329	$	27	$	—	$	—	$	2,515
Collectively evaluated for impairment		223,944		70,261		735,366		41,667		7,805		437,065		1,516,108
Acquired loans - PCI		424		—		1,245		21		38		—		1,728
Total loans	$	225,527	$	70,261	$	737,940	$	41,715	$	7,843	$	437,065	$	1,520,351

The following table presents, as of December 31, 2021, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	63	$	—	$	592	$	—	$	—	$	—	$	655
Collectively evaluated for impairment		2,597		856		10,493		593		172		24,791		39,502
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,660	$	856	$	11,085	$	593	$	172	$	24,791	$	40,157
Loans:
Individually evaluated for impairment	$	1,585	$	—	$	3,513	$	110	$	—	$	—	$	5,208
Collectively evaluated for impairment		214,614		57,495		711,464		41,197		8,233		368,194		1,401,197
Acquired loans - PCI		817		—		2,753		38		47		—		3,655
Total loans	$	217,016	$	57,495	$	717,730	$	41,345	$	8,280	$	368,194	$	1,410,060

Schedule of loans by credit quality indicators

Loans by credit quality indicators as of June 30, 2022 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	224,086	$	484	$	626	$	331	$	225,527
Real estate – construction:
Construction lending		57,006		—		—		—		57,006
Consumer lot lending		13,255		—		—		—		13,255
Commercial, financial and agricultural:
Commercial real estate lending		547,596		1,749		6,033		—		555,378
Land acquisition and development lending		33,587		—		—		—		33,587
Builder line lending		30,201		—		—		—		30,201
Commercial business lending		118,774		—		—		—		118,774
Equity lines		41,546		—		56		113		41,715
Consumer		7,842		—		—		1		7,843
	$	1,073,893	$	2,233	$	6,715	$	445	$	1,083,286

1 At June 30, 2022, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance:
Automobiles	$	381,109	$	464	$	381,573
Marine and recreational vehicles		55,492		-		55,492
	$	436,601	$	464	$	437,065

Loans by credit quality indicators as of December 31, 2021 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	215,432	$	664	$	605	$	315	$	217,016
Real estate – construction:
Construction lending		39,252		—		—		—		39,252
Consumer lot lending		18,243		—		—		—		18,243
Commercial, financial and agricultural:
Commercial real estate lending		519,938		1,989		5,986		—		527,913
Land acquisition and development lending		27,609		—		—		—		27,609
Builder line lending		30,499		—		—		—		30,499
Commercial business lending		129,587		—		—		2,122		131,709
Equity lines		41,013		47		181		104		41,345
Consumer		8,276		—		1		3		8,280
	$	1,029,849	$	2,700	$	6,773	$	2,544	$	1,041,866

1 At December 31, 2021, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance:
Automobiles	$	321,687	$	380	$	322,067
Marine and recreational vehicles		46,127		-		46,127
	$	367,814	$	380	$	368,194