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LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2022

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Total net loans receivable at June 30, 2022 and December 31, 2021 are summarized as follows:


	June 30, 2022		Percentage of Total		December 31, 2021		Percentage of Total
Farmland	$	31,649	0.8	%	$	23,768	0.7	%
Owner-occupied, nonfarm nonresidential properties	463,922		11.9	%	434,672		12.0	%
Agricultural production and other loans to farmers	1,097		0.0	%	1,379		0.0	%
Commercial and Industrial 1	759,417		19.4	%	708,989		19.5	%
Obligations (other than securities and leases) of states and political subdivisions	143,488		3.7	%	140,887		3.9	%
Other loans	14,524		0.4	%	13,979		0.4	%
Other construction loans and all land development and other land loans	341,399		8.7	%	298,869		8.2	%
Multifamily (5 or more) residential properties	212,561		5.5	%	216,143		5.9	%
Non-owner occupied, nonfarm nonresidential properties	734,580		18.8	%	663,062		18.2	%
1-4 Family Construction	40,990		1.0	%	37,822		1.0	%
Home equity lines of credit	115,836		3.0	%	104,517		2.9	%
Residential Mortgages secured by first liens	875,974		22.4	%	826,729		22.7	%
Residential Mortgages secured by junior liens	62,212		1.6	%	56,689		1.6	%
Other revolving credit plans	28,768		0.7	%	26,536		0.7	%
Automobile	20,166		0.5	%	20,862		0.6	%
Other consumer	51,765		1.3	%	49,676		1.4	%
Credit cards	11,049		0.3	%	9,935		0.3	%
Overdrafts	356		0.0	%	278		0.0	%
Total loans receivable	$	3,909,753	100.0	%	$	3,634,792	100.0	%
Less: Allowance for credit losses	(40,543)				(37,588)
Loans receivable, net	$	3,869,210			$	3,597,204

Net deferred loan origination fees (costs) included in the above table	$	4,513			$	5,667

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 Southwestern 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.

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 Coronavirus Aid, Relief, and Economic Security Act. 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 SBA, no allowance for credit losses was required recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $2.3 million and $45.2 million as of June 30, 2022 and December 31, 2021, respectively. Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $153.2 million and $125.8 million as of June 30, 2022 and December 31, 2021, respectively.

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	$	0	$	0	$	5	$	191
Owner-occupied, nonfarm nonresidential properties	3,595		0		2		117		3,714
Agricultural production and other loans to farmers	10		0		0		(3)		7
Commercial and Industrial	9,090		(14)		13		466		9,555
Obligations (other than securities and leases) of states and political subdivisions	1,828		0		0		(163)		1,665
Other loans	143		0		0		24		167
Other construction loans and all land development and other land loans	2,050		0		0		278		2,328
Multifamily (5 or more) residential properties	2,236		0		0		41		2,277
Non-owner occupied, nonfarm nonresidential properties	6,411		0		0		337		6,748
1-4 Family Construction	210		0		0		26		236
Home equity lines of credit	1,181		0		2		170		1,353
Residential Mortgages secured by first liens	6,905		0		0		759		7,664
Residential Mortgages secured by junior liens	552		0		0		76		628
Other revolving credit plans	547		(19)		28		42		598
Automobile	254		(6)		0		(6)		242
Other consumer	2,569		(369)		19		485		2,704
Credit cards	103		(45)		4		48		110
Overdrafts	247		(127)		33		203		356
Total	$	38,117	$	(580)	$	101	$	2,905	$	40,543

(1) Excludes provision for credit losses related to unfunded commitments. Note 8, "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	$	0	$	0	$	40	$	191
Owner-occupied, nonfarm nonresidential properties	3,339		(21)		9		387		3,714
Agricultural production and other loans to farmers	9		0		0		(2)		7
Commercial and Industrial	8,837		(85)		91		712		9,555
Obligations (other than securities and leases) of states and political subdivisions	1,649		0		0		16		1,665
Other loans	149		0		0		18		167
Other construction loans and all land development and other land loans	2,198		0		0		130		2,328
Multifamily (5 or more) residential properties	2,289		0		0		(12)		2,277
Non-owner occupied, nonfarm nonresidential properties	6,481		0		0		267		6,748
1-4 Family Construction	158		0		0		78		236
Home equity lines of credit	1,169		0		10		174		1,353
Residential Mortgages secured by first liens	6,943		(47)		12		756		7,664
Residential Mortgages secured by junior liens	546		0		0		82		628
Other revolving credit plans	528		(45)		34		81		598
Automobile	263		(13)		0		(8)		242
Other consumer	2,546		(770)		41		887		2,704
Credit cards	92		(59)		8		69		110
Overdrafts	241		(246)		74		287		356
Total	$	37,588	$	(1,286)	$	279	$	3,962	$	40,543

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


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

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


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

The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.

For the three and six months ended June 30, 2022, 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, continued supply chain challenges, persistent inflation and the COVID-19 pandemic. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Provision for credit losses was $2.9 million and $4.5 million for the three and six months ended June 30, 2022, respectively, compared to $2.0 million and $4.1 million for the three and six months ended June 30, 2021. The increase in provision for the three months ended June 30, 2022 was primarily due to the growth in commercial loans. Included in the provision for credit losses for the six months ended June 30, 2022 was $586 thousand related to the allowance for unfunded commitments compared to no accrual towards the allowance for unfunded commitments for the six months ended June 30, 2021.

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, 2022 and December 31, 2021, respectively:


	June 30, 2022
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable Past Due over 89 Days Still Accruing
Farmland	$	938	$	938	$	997
Owner-occupied, nonfarm nonresidential properties	1,711		1,632		0

Commercial and Industrial	5,919		2,070		55


Other construction loans and all land development and other land loans	71		71		0
Multifamily (5 or more) residential properties	1,108		0		0
Non-owner occupied, nonfarm nonresidential properties	3,685		2,058		0

Home equity lines of credit	586		586		0
Residential Mortgages secured by first liens	4,021		3,558		5
Residential Mortgages secured by junior liens	200		200		0
Other revolving credit plans	49		49		0
Automobile	30		30		0
Other consumer	636		636		0
Credit cards	0		0		3

Total	$	18,954	$	11,828	$	1,060


	December 31, 2021
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable 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	$	19,420	$	10,593	$	168

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, 2022:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	895	$	0
Owner-occupied, nonfarm nonresidential properties	1,163		9

Commercial and Industrial	115		2,090



Multifamily (5 or more) residential properties	1,108		0
Non-owner occupied, nonfarm nonresidential properties	3,262		0


Residential Mortgages secured by first liens	888		0






Total	$	7,431	$	2,099

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, 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	$	8,118	$	2,360

The following table presents the aging of the amortized cost basis in past-due loans receivable as of June 30, 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 Receivable Not Past Due		Total
Farmland	$	148	$	0	$	997	$	1,145	$	30,504	$	31,649
Owner-occupied, nonfarm nonresidential properties	63		490		876		1,429		462,493		463,922
Agricultural production and other loans to farmers	0		0		0		0		1,097		1,097
Commercial and Industrial	133		181		502		816		758,601		759,417
Obligations (other than securities and leases) of states and political subdivisions	0		0		0		0		143,488		143,488
Other loans	0		0		0		0		14,524		14,524
Other construction loans and all land development and other land loans	0		0		71		71		341,328		341,399
Multifamily (5 or more) residential properties	357		0		90		447		212,114		212,561
Non-owner occupied, nonfarm nonresidential properties	215		0		1,680		1,895		732,685		734,580
1-4 Family Construction	0		0		0		0		40,990		40,990
Home equity lines of credit	107		344		49		500		115,336		115,836
Residential Mortgages secured by first liens	1,397		467		1,300		3,164		872,810		875,974
Residential Mortgages secured by junior liens	80		41		53		174		62,038		62,212
Other revolving credit plans	44		9		23		76		28,692		28,768
Automobile	43		4		4		51		20,115		20,166
Other consumer	288		205		294		787		50,978		51,765
Credit cards	75		13		3		91		10,958		11,049
Overdrafts	0		0		0		0		356		356
Total	$	2,950	$	1,754	$	5,942	$	10,646	$	3,899,107	$	3,909,753

The following table presents the aging of the amortized cost basis in past-due loans receivable 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 Receivable 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	$	3,237	$	1,450	$	4,990	$	9,677	$	3,625,115	$	3,634,792

Troubled Debt Restructurings

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

As of June 30, 2022 and December 31, 2021, 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 $17.8 million and $16.6 million as of June 30, 2022 and December 31, 2021, respectively. The Corporation has allocated $2.6 million and $2.6 million of allowance for those loans as of June 30, 2022 and December 31, 2021, respectively.

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	1	$	1,784	$	1,784

There was one loan modified as TDRs during the three months ended June 30, 2021.


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



Commercial and Industrial	1	$	578	$	578	Modify Payment














Total	1	$	578	$	578

There were three loans modified as TDRs during the six months ended June 30, 2021.


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



Commercial and Industrial	1	$	578	$	578	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	3	$	2,899	$	2,899

The TDRs described above increased the allowance for credit losses by an immaterial amount for the three and six months ended June 30, 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 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 and 2021, respectively. There were no principal balances forgiven in connection with the loans restructurings.

Generally, nonperforming TDRs 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 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 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, 2022
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	29,261	$	1,450	$	938	$	0	$	2,388	$	31,649
Owner-occupied, nonfarm nonresidential properties	449,366		6,406		8,150		0		14,556		463,922
Agricultural production and other loans to farmers	1,097		0		0		0		0		1,097
Commercial and Industrial	740,370		6,554		11,137		1,356		19,047		759,417
Obligations (other than securities and leases) of states and political subdivisions	143,488		0		0		0		0		143,488
Other loans	14,524		0		0		0		0		14,524
Other construction loans and all land development and other land loans	339,750		1,578		71		0		1,649		341,399
Multifamily (5 or more) residential properties	211,353		100		1,108		0		1,208		212,561
Non-owner occupied, nonfarm nonresidential properties	704,941		6,610		23,029		0		29,639		734,580









Total	$	2,634,150	$	22,698	$	44,433	$	1,356	$	68,487	$	2,702,637


	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	$	2,424,318	$	30,132	$	45,919	$	1,379	$	77,430	$	2,501,748

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, 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
Farmland
Risk rating
Pass	$	8,911	$	7,782	$	1,610	$	3,149	$	3,497	$	3,892	$	420	$	0	$	29,261
Special mention	0		0		0		0		0		1,450		0		0		1,450
Substandard	0		388		0		0		0		550		0		0		938
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	8,911	$	8,170	$	1,610	$	3,149	$	3,497	$	5,892	$	420	$	0	$	31,649
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	67,952	$	116,666	$	74,850	$	72,416	$	26,633	$	71,231	$	19,618	$	0	$	449,366
Special mention	0		237		0		888		4,193		1,078		10		0		6,406
Substandard	0		156		386		2,044		821		4,743		0		0		8,150
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	67,952	$	117,059	$	75,236	$	75,348	$	31,647	$	77,052	$	19,628	$	0	$	463,922
Agricultural production and other loans to farmers
Risk rating
Pass	$	129	$	151	$	91	$	70	$	192	$	0	$	464	$	0	$	1,097
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	$	129	$	151	$	91	$	70	$	192	$	0	$	464	$	0	$	1,097
Commercial and Industrial
Risk rating
Pass	$	117,219	$	236,523	$	75,375	$	21,326	$	11,010	$	21,573	$	257,344	$	0	$	740,370
Special mention	0		0		159		431		340		183		5,441		0		6,554
Substandard	0		2,748		984		436		358		1,046		5,565		0		11,137
Doubtful(1)	0		1,356		0		0		0		0		0		0		1,356
Total	$	117,219	$	240,627	$	76,518	$	22,193	$	11,708	$	22,802	$	268,350	$	0	$	759,417
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	11,108	$	37,217	$	16,428	$	4,748	$	13,747	$	55,509	$	4,731	$	0	$	143,488
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	$	11,108	$	37,217	$	16,428	$	4,748	$	13,747	$	55,509	$	4,731	$	0	$	143,488
Other loans
Risk rating
Pass	$	2,160	$	5,484	$	2,505	$	400	$	0	$	0	$	3,975	$	0	$	14,524
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	$	2,160	$	5,484	$	2,505	$	400	$	0	$	0	$	3,975	$	0	$	14,524

(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
	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	$	107,639	$	96,680	$	108,607	$	7,398	$	9,137	$	2,063	$	8,226	$	0	$	339,750
Special mention	0		1,511		0		67		0		0		0		0		1,578
Substandard	0		0		0		0		0		0		71		0		71
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	107,639	$	98,191	$	108,607	$	7,465	$	9,137	$	2,063	$	8,297	$	0	$	341,399
Multifamily (5 or more) residential properties
Risk rating
Pass	$	38,463	$	53,374	$	54,210	$	29,892	$	6,623	$	26,335	$	2,456	$	0	$	211,353
Special mention	0		0		0		0		0		0		100		0		100
Substandard	0		0		0		661		357		90		0		0		1,108
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	38,463	$	53,374	$	54,210	$	30,553	$	6,980	$	26,425	$	2,556	$	0	$	212,561
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	207,920	$	164,540	$	62,917	$	81,646	$	48,194	$	131,397	$	8,327	$	0	$	704,941
Special mention	0		0		0		417		518		5,224		451		0		6,610
Substandard	0		810		0		2,277		1,651		16,196		2,095		0		23,029
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	207,920	$	165,350	$	62,917	$	84,340	$	50,363	$	152,817	$	10,873	$	0	$	734,580

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, 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


	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 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, 2022						December 31, 2021
	Performing		Nonperforming		Total		Performing		Nonperforming		Total









1-4 Family Construction	$	40,990	$	0	$	40,990	$	37,822	$	0	$	37,822
Home equity lines of credit	115,250		586		115,836		103,693		824		104,517
Residential Mortgages secured by first liens	871,948		4,026		875,974		823,182		3,547		826,729
Residential Mortgages secured by junior liens	62,012		200		62,212		56,542		147		56,689
Other revolving credit plans	28,719		49		28,768		26,523		13		26,536
Automobile	20,136		30		20,166		20,826		36		20,862
Other consumer	51,129		636		51,765		49,118		558		49,676


Total	$	1,190,184	$	5,527	$	1,195,711	$	1,117,706	$	5,125	$	1,122,831

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, 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	$	10,338	$	22,977	$	6,740	$	740	$	64	$	0	$	131	$	0	$	40,990
Nonperforming	0		0		0		0		0		0		0		0		0
Total	$	10,338	$	22,977	$	6,740	$	740	$	64	$	0	$	131	$	0	$	40,990
Home equity lines of credit
Payment performance
Performing	$	19,051	$	16,290	$	12,999	$	8,529	$	8,637	$	40,985	$	8,759	$	0	$	115,250
Nonperforming	0		0		0		10		8		568		0		0		586
Total	$	19,051	$	16,290	$	12,999	$	8,539	$	8,645	$	41,553	$	8,759	$	0	$	115,836
Residential mortgages secured by first lien
Payment performance
Performing	$	121,438	$	226,101	$	165,399	$	99,774	$	54,696	$	201,139	$	3,401	$	0	$	871,948
Nonperforming	0		619		281		405		128		2,404		189		0		4,026
Total	$	121,438	$	226,720	$	165,680	$	100,179	$	54,824	$	203,543	$	3,590	$	0	$	875,974
Residential mortgages secured by junior liens
Payment performance
Performing	$	13,080	$	18,915	$	9,713	$	5,919	$	3,477	$	10,243	$	665	$	0	$	62,012
Nonperforming	0		0		0		3		0		152		45		0		200
Total	$	13,080	$	18,915	$	9,713	$	5,922	$	3,477	$	10,395	$	710	$	0	$	62,212
Other revolving credit plans
Payment performance
Performing	$	4,003	$	4,197	$	4,268	$	3,030	$	2,318	$	10,903	$	0	$	0	$	28,719
Nonperforming	0		0		0		5		20		24		0		0		49
Total	$	4,003	$	4,197	$	4,268	$	3,035	$	2,338	$	10,927	$	0	$	0	$	28,768
Automobile
Payment performance
Performing	$	4,469	$	5,696	$	4,080	$	3,324	$	1,752	$	815	$	0	$	0	$	20,136
Nonperforming	0		0		16		9		5		0		0		0		30
Total	$	4,469	$	5,696	$	4,096	$	3,333	$	1,757	$	815	$	0	$	0	$	20,166
Other consumer
Payment performance
Performing	$	16,282	$	21,765	$	7,565	$	3,084	$	1,005	$	1,428	$	0	$	0	$	51,129
Nonperforming	40		420		54		40		6		76		0		0		636
Total	$	16,322	$	22,185	$	7,619	$	3,124	$	1,011	$	1,504	$	0	$	0	$	51,765

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, 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


	June 30, 2022		December 31, 2021

Credit card
Payment performance
Performing	$	11,046	$	9,912
Nonperforming	3		23
Total	$	11,049	$	9,935

Holiday’s loan portfolio, included in other consumer loans above, is summarized as follows at June 30, 2022 and December 31, 2021:


	June 30, 2022		December 31, 2021
Gross other consumer	$	30,058	$	29,227
Less: other consumer unearned discounts	(5,762)		(5,716)
Total other consumer loans, net of unearned discounts	$	24,296	$	23,511