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LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2023

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

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


	March 31, 2023		Percentage of Total		December 31, 2022		Percentage of Total
Farmland	$	34,080	0.8	%	$	32,168	0.8	%
Owner-occupied, nonfarm nonresidential properties	478,465		11.1	%	468,493		11.0	%
Agricultural production and other loans to farmers	1,057		—	%	1,198		—	%
Commercial and Industrial	753,437		17.5	%	791,911		18.5	%
Obligations (other than securities and leases) of states and political subdivisions	138,897		3.2	%	145,345		3.4	%
Other loans	22,340		0.5	%	24,710		0.6	%
Other construction loans and all land development and other land loans	435,241		10.1	%	446,685		10.5	%
Multifamily (5 or more) residential properties	265,034		6.2	%	257,696		6.0	%
Non-owner occupied, nonfarm nonresidential properties	841,486		19.6	%	795,315		18.6	%
1-4 Family Construction	54,804		1.3	%	51,171		1.2	%
Home equity lines of credit	124,308		2.9	%	124,892		2.9	%
Residential Mortgages secured by first liens	949,691		22.1	%	942,531		22.0	%
Residential Mortgages secured by junior liens	79,125		1.8	%	74,638		1.7	%
Other revolving credit plans	38,241		0.9	%	36,372		0.9	%
Automobile	24,706		0.6	%	21,806		0.5	%
Other consumer	48,009		1.1	%	49,144		1.1	%
Credit cards	12,122		0.3	%	10,825		0.3	%
Overdrafts	254		—	%	278		—	%
Total loans receivable	$	4,301,297	100.0	%	$	4,275,178	100.0	%
Less: Allowance for credit losses	(43,981)				(43,436)
Loans receivable, net	$	4,257,316			$	4,231,742

Net deferred loan origination fees included in the above table	$	4,198			$	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 $148.1 million and $156.6 million as of March 31, 2023 and December 31, 2022, respectively.

Transactions in the allowance for credit losses for the three months ended March 31, 2023 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	159	$	—	$	—	$	(30)	$	129
Owner-occupied, nonfarm nonresidential properties	2,905		(26)		8		(341)		2,546
Agricultural production and other loans to farmers	6		—		—		(3)		3
Commercial and Industrial	9,766		(46)		145		(922)		8,943
Obligations (other than securities and leases) of states and political subdivisions	1,863		—		—		(15)		1,848
Other loans	456		—		—		138		594
Other construction loans and all land development and other land loans	3,253		—		—		141		3,394
Multifamily (5 or more) residential properties	2,353		(65)		—		247		2,535
Non-owner occupied, nonfarm nonresidential properties	7,653		—		—		606		8,259
1-4 Family Construction	327		—		—		71		398
Home equity lines of credit	1,173		—		1		(16)		1,158
Residential Mortgages secured by first liens	8,484		(7)		—		374		8,851
Residential Mortgages secured by junior liens	1,035		—		—		240		1,275
Other revolving credit plans	722		(22)		5		125		830
Automobile	271		(5)		—		64		330
Other consumer	2,665		(540)		43		393		2,561
Credit cards	67		(62)		1		67		73
Overdrafts	278		(160)		44		92		254
Total	$	43,436	$	(933)	$	247	$	1,231	$	43,981

(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 March 31, 2022 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	151	$	—	$	—	$	35	$	186
Owner-occupied, nonfarm nonresidential properties	3,339		(21)		7		270		3,595
Agricultural production and other loans to farmers	9		—		—		1		10
Commercial and Industrial	8,837		(71)		78		246		9,090
Obligations (other than securities and leases) of states and political subdivisions	1,649		—		—		179		1,828
Other loans	149		—		—		(6)		143
Other construction loans and all land development and other land loans	2,198		—		—		(148)		2,050
Multifamily (5 or more) residential properties	2,289		—		—		(53)		2,236
Non-owner occupied, nonfarm nonresidential properties	6,481		—		—		(70)		6,411
1-4 Family Construction	158		—		—		52		210
Home equity lines of credit	1,169		—		8		4		1,181
Residential Mortgages secured by first liens	6,943		(47)		12		(3)		6,905
Residential Mortgages secured by junior liens	546		—		—		6		552
Other revolving credit plans	528		(26)		6		39		547
Automobile	263		(7)		—		(2)		254
Other consumer	2,546		(401)		22		402		2,569
Credit cards	92		(14)		4		21		103
Overdrafts	241		(119)		41		84		247
Total loans	$	37,588	$	(706)	$	178	$	1,057	$	38,117

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 months ended March 31, 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, 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 $1.3 million for the three months ended March 31, 2023, compared to $1.6 million for the three months ended March 31, 2022. Included in the provision for credit losses for the three months ended March 31, 2023 was $59 thousand related to the allowance for unfunded commitments compared to a $586 thousand provision towards the allowance for unfunded commitments for the three months ended March 31, 2022.

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 March 31, 2023 and December 31, 2022, respectively:


	March 31, 2023
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable Past Due over 89 Days Still Accruing
Farmland	$	1,000	$	1,000	$	992
Owner-occupied, nonfarm nonresidential properties	2,215		2,153		—

Commercial and Industrial	5,152		2,059		—


Other construction loans and all land development and other land loans	545		545		—
Multifamily (5 or more) residential properties	972		343		—
Non-owner occupied, nonfarm nonresidential properties	5,481		2,633		—

Home equity lines of credit	525		525		—
Residential Mortgages secured by first liens	4,327		3,891		—
Residential Mortgages secured by junior liens	97		97		—
Other revolving credit plans	41		41		—
Automobile	15		15		—
Other consumer	619		619		—
Credit cards	—		—		83

Total	$	20,989	$	13,921	$	1,075


	December 31, 2022
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans 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 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	$	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 March 31, 2023:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	829	—
Owner-occupied, nonfarm nonresidential properties	1,053		4

Commercial and Industrial	—		1,826


Other construction loans and all land development and other land loans	480		—
Multifamily (5 or more) residential properties	972		—
Non-owner occupied, nonfarm nonresidential properties	5,185		—

Home equity lines of credit	331		—
Residential Mortgages secured by first liens	1,133		—






Total	$	9,983	$	1,830

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 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	$	11,051	$	1,908

The following table presents the aging of the amortized cost basis in past-due loans receivable as of March 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 Receivable Not Past Due		Total
Farmland	$	185	$	—	$	1,124	$	1,309	$	32,771	$	34,080
Owner-occupied, nonfarm nonresidential properties	1,508		24		287		1,819		476,646		478,465
Agricultural production and other loans to farmers	—		—		—		—		1,057		1,057
Commercial and Industrial	—		213		230		443		752,994		753,437
Obligations (other than securities and leases) of states and political subdivisions	—		—		—		—		138,897		138,897
Other loans	—		—		—		—		22,340		22,340
Other construction loans and all land development and other land loans	171		1,538		—		1,709		433,532		435,241
Multifamily (5 or more) residential properties	—		—		25		25		265,009		265,034
Non-owner occupied, nonfarm nonresidential properties	222		—		685		907		840,579		841,486
1-4 Family Construction	—		—		—		—		54,804		54,804
Home equity lines of credit	217		—		89		306		124,002		124,308
Residential Mortgages secured by first liens	1,501		777		1,500		3,778		945,913		949,691
Residential Mortgages secured by junior liens	—		—		51		51		79,074		79,125
Other revolving credit plans	38		26		19		83		38,158		38,241
Automobile	57		—		—		57		24,649		24,706
Other consumer	310		189		384		883		47,126		48,009
Credit cards	22		20		83		125		11,997		12,122
Overdrafts	—		—		—		—		254		254
Total	$	4,231	$	2,787	$	4,477	$	11,495	$	4,289,802	$	4,301,297

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 Due		Loans Receivable 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	$	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 March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 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	$	—	$	98	$	—	$	—	$	—	—	%

Commercial and Industrial	—		2,573		612		371		122		0.5


Other construction loans and all land development and other land loans	—		1,538		—		—		—		0.4

Non-owner occupied, nonfarm nonresidential properties	—		—		1,562		—		—		0.2









Total	$	—	$	4,209	$	2,174	$	371	$	122	0.2	%

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 three months ended March 31, 2023:


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

Owner-occupied, nonfarm nonresidential properties	$	98	$	—	$	—	$	98




Other construction loans and all land development and other land loans	—		1,538		—		1,538











Total	$	98	$	1,538	$	—	$	1,636

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


	Principal Forgiveness		Term Extension (in years)	Interest Rate Reduction



Commercial and Industrial	$	—	0.97	0.5	%




Non-owner occupied, nonfarm nonresidential properties	—		0.50	—









Total	$	—	0.65	0.5	%

There were no modified loans and leases that had a payment default during the three months ended March 31, 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 was one loan modified as a TDR during the three months ended March 31, 2022:


	Three Months Ended March 31, 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 loans	1	$	1,784	$	1,784

The TDR described above increased the allowance for credit losses by an immaterial amount for the three months ended March 31, 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 months ended March 31, 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.


	March 31, 2023
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	31,639	$	1,441	$	1,000	$	—	$	2,441	$	34,080
Owner-occupied, nonfarm nonresidential properties	443,727		27,718		7,020		—		34,738		478,465
Agricultural production and other loans to farmers	1,057		—		—		—		—		1,057
Commercial and Industrial	714,047		18,506		19,598		1,286		39,390		753,437
Obligations (other than securities and leases) of states and political subdivisions	138,897		—		—		—		—		138,897
Other loans	22,340		—		—		—		—		22,340
Other construction loans and all land development and other land loans	430,118		3,040		2,083		—		5,123		435,241
Multifamily (5 or more) residential properties	263,557		—		1,477		—		1,477		265,034
Non-owner occupied, nonfarm nonresidential properties	819,238		1,942		20,306		—		22,248		841,486









Total	$	2,864,620	$	52,647	$	51,484	$	1,286	$	105,417	$	2,970,037


	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	$	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 March 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	$	2,521	$	12,052	$	7,506	$	1,531	$	864	$	6,719	$	446	$	—	$	31,639
Special mention	—		—		—		—		—		1,441		—		—		1,441
Substandard	—		—		347		—		—		653		—		—		1,000

Total	$	2,521	$	12,052	$	7,853	$	1,531	$	864	$	8,813	$	446	$	—	$	34,080
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	25,539	$	115,564	$	112,643	$	47,101	$	53,801	$	81,445	$	7,634	$	—	$	443,727
Special mention	—		3,826		—		15,165		863		4,785		3,079		—		27,718
Substandard	—		—		—		340		1,803		4,877		—		—		7,020

Total	$	25,539	$	119,390	$	112,643	$	62,606	$	56,467	$	91,107	$	10,713	$	—	$	478,465
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	—	$	26

Agricultural production and other loans to farmers
Risk rating
Pass	$	—	$	47	$	134	$	77	$	37	$	176	$	586	$	—	$	1,057
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	—	$	47	$	134	$	77	$	37	$	176	$	586	$	—	$	1,057
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Risk rating
Pass	$	32,586	$	161,387	$	195,788	$	47,017	$	14,068	$	21,422	$	241,779	$	—	$	714,047
Special mention	—		418		425		6,666		248		33		10,716		—		18,506
Substandard	—		7,257		4,591		662		367		1,318		5,403		—		19,598
Doubtful(1)	—		—		1,286		—		—		—		—		—		1,286
Total	$	32,586	$	169,062	$	202,090	$	54,345	$	14,683	$	22,773	$	257,898	$	—	$	753,437
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	46	$	—	$	46

Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	4,367	$	18,004	$	32,739	$	12,923	$	4,522	$	61,993	$	4,349	$	—	$	138,897
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	4,367	$	18,004	$	32,739	$	12,923	$	4,522	$	61,993	$	4,349	$	—	$	138,897
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating
Pass	$	53	$	12,358	$	5,342	$	2,165	$	349	$	—	$	2,073	$	—	$	22,340
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	53	$	12,358	$	5,342	$	2,165	$	349	$	—	$	2,073	$	—	$	22,340
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
	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	$	28,853	$	243,719	$	84,462	$	53,929	$	6,738	$	1,620	$	10,797	$	—	$	430,118
Special mention	—		3,040		—		—		—		—		—		—		3,040
Substandard	—		—		480		—		1,538		—		65		—		2,083

Total	$	28,853	$	246,759	$	84,942	$	53,929	$	8,276	$	1,620	$	10,862	$	—	$	435,241
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily (5 or more) residential properties
Risk rating
Pass	$	9,491	$	116,809	$	47,242	$	46,246	$	11,454	$	30,054	$	2,261	$	—	$	263,557
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		629		—		—		—		848		—		—		1,477

Total	$	9,491	$	117,438	$	47,242	$	46,246	$	11,454	$	30,902	$	2,261	$	—	$	265,034
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	65	$	—	$	—	$	65

Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	82,060	$	328,110	$	150,844	$	50,011	$	57,170	$	145,602	$	5,441	$	—	$	819,238
Special mention	—		355		—		—		159		986		442		—		1,942
Substandard	—		2,182		1,281		—		4,034		10,755		2,054		—		20,306

Total	$	82,060	$	330,647	$	152,125	$	50,011	$	61,363	$	157,343	$	7,937	$	—	$	841,486
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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.


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









1-4 Family Construction	$	54,804	$	—	$	54,804	$	51,171	$	—	$	51,171
Home equity lines of credit	123,783		525		124,308		124,417		475		124,892
Residential Mortgages secured by first liens	945,364		4,327		949,691		938,154		4,377		942,531
Residential Mortgages secured by junior liens	79,028		97		79,125		74,547		91		74,638
Other revolving credit plans	38,200		41		38,241		36,346		26		36,372
Automobile	24,691		15		24,706		21,787		19		21,806
Other consumer	47,390		619		48,009		48,363		781		49,144


Total	$	1,313,260	$	5,624	$	1,318,884	$	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 March 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
1-4 Family Construction
Payment performance
Performing	$	3,242	$	33,078	$	14,202	$	2,623	$	736	$	61	$	862	$	—	$	54,804
Nonperforming	—		—		—		—		—		—		—		—		—
Total	$	3,242	$	33,078	$	14,202	$	2,623	$	736	$	61	$	862	$	—	$	54,804
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity lines of credit
Payment performance
Performing	$	4,235	$	34,955	$	13,286	$	11,614	$	8,112	$	38,650	$	8,487	$	4,444	$	123,783
Nonperforming	—		—		—		—		—		16		—		509		525
Total	$	4,235	$	34,955	$	13,286	$	11,614	$	8,112	$	38,666	$	8,487	$	4,953	$	124,308
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential mortgages secured by first lien
Payment performance
Performing	$	30,741	$	227,287	$	218,134	$	156,198	$	89,310	$	220,960	$	2,734	$	—	$	945,364
Nonperforming	70		—		840		195		568		2,465		189		—		4,327
Total	$	30,811	$	227,287	$	218,974	$	156,393	$	89,878	$	223,425	$	2,923	$	—	$	949,691
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7

Residential mortgages secured by junior liens
Payment performance
Performing	$	6,614	$	31,176	$	16,534	$	8,055	$	4,753	$	10,715	$	1,181	$	—	$	79,028
Nonperforming	—		—		—		—		—		54		43		—		97
Total	$	6,614	$	31,176	$	16,534	$	8,055	$	4,753	$	10,769	$	1,224	$	—	$	79,125
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other revolving credit plans
Payment performance
Performing	$	2,437	$	10,519	$	2,683	$	7,908	$	2,441	$	12,212	$	—	$	—	$	38,200
Nonperforming	—		—		15		—		3		23		—		—		41
Total	$	2,437	$	10,519	$	2,698	$	7,908	$	2,444	$	12,235	$	—	$	—	$	38,241
Current period gross write offs	$	—	$	—	$	5	$	—	$	—	$	17	$	—	$	—	$	22

Automobile
Payment performance
Performing	$	5,411	$	9,363	$	4,026	$	2,502	$	1,983	$	1,406	$	—	$	—	$	24,691
Nonperforming	—		—		—		9		5		1		—		—		15
Total	$	5,411	$	9,363	$	4,026	$	2,511	$	1,988	$	1,407	$	—	$	—	$	24,706
Current period gross write offs	$	—	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	5

Other consumer
Payment performance
Performing	$	6,186	$	22,750	$	10,041	$	4,565	$	1,961	$	1,887	$	—	$	—	$	47,390
Nonperforming	—		403		112		41		14		49		—		—		619
Total	$	6,186	$	23,153	$	10,153	$	4,606	$	1,975	$	1,936	$	—	$	—	$	48,009
Current period gross write offs	$	—	$	279	$	199	$	47	$	12	$	3	$	—	$	—	$	540

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
	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


	March 31, 2023		December 31, 2022

Credit card
Payment performance
Performing	$	12,039	$	10,817
Nonperforming	83		8
Total	$	12,122	$	10,825
Current period gross write offs	$	62

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


	March 31, 2023		December 31, 2022
Gross other consumer	$	29,908	$	31,821
Less: other consumer unearned discounts	(5,459)		(5,972)
Total other consumer loans, net of unearned discounts	$	24,449	$	25,849