XML 24 R13.htm IDEA: XBRL DOCUMENT

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2025

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Total net loans receivable at June 30, 2025 and December 31, 2024 are summarized as follows:


	June 30, 2025		Percentage of Total		December 31, 2024		Percentage of Total
Farmland	$	29,087	0.61	%	$	31,099	0.67	%
Owner-occupied, nonfarm nonresidential properties	520,722		11.00		515,208		11.18
Agricultural production and other loans to farmers	6,244		0.13		6,492		0.14
Commercial and Industrial	709,896		15.00		718,775		15.60
Obligations (other than securities and leases) of states and political subdivisions	134,062		2.83		140,430		3.05
Other loans	46,680		0.99		28,110		0.61
Other construction loans and all land development and other land loans	298,037		6.30		282,912		6.14
Multifamily (5 or more) residential properties	476,987		10.08		411,146		8.92
Non-owner occupied, nonfarm nonresidential properties	1,059,307		22.38		1,033,541		22.42
1-4 Family Construction	13,913		0.29		26,431		0.57
Home equity lines of credit	184,415		3.90		166,327		3.61
Residential Mortgages secured by first liens	1,017,418		21.49		1,012,746		21.97
Residential Mortgages secured by junior liens	110,990		2.35		106,462		2.31
Other revolving credit plans	41,784		0.88		41,095		0.89
Automobile	18,882		0.40		20,961		0.45
Other consumer	50,974		1.08		53,821		1.17
Credit cards	13,867		0.29		13,143		0.29
Overdrafts	155		—		257		0.01
Total loans receivable	$	4,733,420	100.00	%	$	4,608,956	100.00	%
Less: Allowance for credit losses	(48,329)				(47,357)
Loans receivable, net	$	4,685,091			$	4,561,599

Net deferred loan origination fees included in the above table	$	155			$	49

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 $78.9 million and $79.9 million as of June 30, 2025 and December 31, 2024, respectively.

Transactions in the allowance for credit losses for the three months ended June 30, 2025 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	161	$	—	$	—	$	(4)	$	157
Owner-occupied, nonfarm nonresidential properties	5,827		(1,493)		15		178		4,527
Agricultural production and other loans to farmers	39		—		—		(2)		37
Commercial and Industrial	7,210		(74)		—		1,207		8,343
Obligations (other than securities and leases) of states and political subdivisions	1,371		—		—		(43)		1,328
Other loans	326		—		—		88		414
Other construction loans and all land development and other land loans	2,569		—		—		166		2,735
Multifamily (5 or more) residential properties	3,092		(1,072)		—		585		2,605
Non-owner occupied, nonfarm nonresidential properties	10,172		—		—		217		10,389
1-4 Family Construction	122		—		—		(22)		100
Home equity lines of credit	1,564		—		10		163		1,737
Residential Mortgages secured by first liens	9,099		(8)		1		770		9,862
Residential Mortgages secured by junior liens	1,451		—		—		121		1,572
Other revolving credit plans	855		(22)		2		197		1,032
Automobile	262		(5)		—		(10)		247
Other consumer	2,921		(604)		18		609		2,944
Credit cards	125		(15)		25		10		145
Overdrafts	191		(105)		24		45		155
Total loans	$	47,357	$	(3,398)	$	95	$	4,275	$	48,329

(1) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," to 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, 2025 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	167	$	—	$	—	$	(10)	$	157
Owner-occupied, nonfarm nonresidential properties	5,696		(1,516)		29		318		4,527
Agricultural production and other loans to farmers	37		—		—		—		37
Commercial and Industrial	7,759		(724)		—		1,308		8,343
Obligations (other than securities and leases) of states and political subdivisions	1,369		—		—		(41)		1,328
Other loans	329		—		—		85		414
Other construction loans and all land development and other land loans	2,571		—		—		164		2,735
Multifamily (5 or more) residential properties	2,969		(1,072)		—		708		2,605
Non-owner occupied, nonfarm nonresidential properties	10,110		—		—		279		10,389
1-4 Family Construction	198		—		—		(98)		100
Home equity lines of credit	1,340		—		10		387		1,737
Residential Mortgages secured by first liens	8,958		(42)		1		945		9,862
Residential Mortgages secured by junior liens	1,343		—		—		229		1,572
Other revolving credit plans	960		(25)		3		94		1,032
Automobile	275		(5)		—		(23)		247
Other consumer	2,892		(1,171)		30		1,193		2,944
Credit cards	127		(137)		29		126		145
Overdrafts	257		(203)		51		50		155
Total loans	$	47,357	$	(4,895)	$	153	$	5,714	$	48,329

Transactions in the allowance for credit losses for the three months ended June 30, 2024 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	135	$	—	$	—	$	19	$	154
Owner-occupied, nonfarm nonresidential properties	4,473		(103)		8		622		5,000
Agricultural production and other loans to farmers	8		—		—		—		8
Commercial and Industrial	8,973		(1,693)		19		(186)		7,113
Obligations (other than securities and leases) of states and political subdivisions	2,537		—		—		17		2,554
Other loans	378		—		—		25		403
Other construction loans and all land development and other land loans	4,255		—		—		(1,141)		3,114
Multifamily (5 or more) residential properties	1,067		—		—		343		1,410
Non-owner occupied, nonfarm nonresidential properties	8,785		(349)		—		1,282		9,718
1-4 Family Construction	303		—		—		(156)		147
Home equity lines of credit	897		—		2		136		1,035
Residential Mortgages secured by first liens	8,368		—		—		566		8,934
Residential Mortgages secured by junior liens	1,431		—		—		167		1,598
Other revolving credit plans	854		(84)		17		147		934
Automobile	304		(14)		1		(4)		287
Other consumer	2,711		(526)		26		591		2,802
Credit cards	98		(11)		3		13		103
Overdrafts	255		(121)		21		63		218
Total loans	$	45,832	$	(2,901)	$	97	$	2,504	$	45,532

Transactions in the allowance for credit losses for the six months ended June 30, 2024 were as follows:


	Beginning Allowance		(Charge-offs)		Recoveries		Provision (Benefit) for Credit Losses on Loans Receivable(1)		Ending Allowance
Farmland	$	138	$	—	$	—	$	16	$	154
Owner-occupied, nonfarm nonresidential properties	4,131		(699)		17		1,551		5,000
Agricultural production and other loans to farmers	7		—		—		1		8
Commercial and Industrial	9,500		(1,764)		48		(671)		7,113
Obligations (other than securities and leases) of states and political subdivisions	2,627		—		—		(73)		2,554
Other loans	389		—		—		14		403
Other construction loans and all land development and other land loans	2,830		—		—		284		3,114
Multifamily (5 or more) residential properties	1,251		—		—		159		1,410
Non-owner occupied, nonfarm nonresidential properties	9,783		(349)		—		284		9,718
1-4 Family Construction	191		—		—		(44)		147
Home equity lines of credit	844		—		3		188		1,035
Residential Mortgages secured by first liens	8,274		(64)		—		724		8,934
Residential Mortgages secured by junior liens	1,487		—		—		111		1,598
Other revolving credit plans	977		(99)		20		36		934
Automobile	360		(24)		4		(53)		287
Other consumer	2,656		(1,043)		53		1,136		2,802
Credit cards	95		(40)		8		40		103
Overdrafts	292		(265)		46		145		218
Total loans	$	45,832	$	(4,347)	$	199	$	3,848	$	45,532

) Excludes provision for credit losses related to unfunded commitments. Note 9, "Off-Balance Sheet Commitments and Contingencies," to the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

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

For the three and six months ended June 30, 2025, the allowance for credit losses increased $972 thousand, primarily driven by growth in the Corporation's loan portfolio. Significant uncertainty persists regarding the domestic and global economy due to changes to U.S. tariffs and corresponding policy changes by U.S. trading partners, continued elevated interest rates, fluctuating levels of consumer confidence, and geopolitical conflicts. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Provision for credit losses was $4.3 million and $5.9 million for the three and six months ended June 30, 2025, respectively, compared to $2.6 million and $3.9 million for the three and six months ended June 30, 2024, respectively. Included in the provision for credit losses for the three and six months ended June 30, 2025 was a provision of $63 thousand and $180 thousand, respectively, related to the allowance for unfunded commitments compared to $87 thousand and $63 thousand provision, related to the allowance for unfunded commitments for the three and six months ended June 30, 2024, respectively.

The following tables present the amortized cost basis of loans receivable on nonaccrual status and loans receivable past due over 89 days still accruing as of June 30, 2025 and December 31, 2024, respectively:


	June 30, 2025
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable Past Due over 89 Days Still Accruing
Farmland	$	518	$	518	$	—
Owner-occupied, nonfarm nonresidential properties	2,553		1,820		—

Commercial and Industrial	9,326		9,144		—


Other construction loans and all land development and other land loans	1,436		35		—
Multifamily (5 or more) residential properties	199		199		—
Non-owner occupied, nonfarm nonresidential properties	4,060		4,060		—

Home equity lines of credit	1,571		1,084		—
Residential Mortgages secured by first liens	7,767		7,767		—
Residential Mortgages secured by junior liens	290		290		—
Other revolving credit plans	89		89		—
Automobile	79		79		—
Other consumer	621		621		—
Credit cards	—		—		256

Total	$	28,509	$	25,706	$	256


	December 31, 2024
	Nonaccrual		Nonaccrual With No Allowance for Credit Loss		Loans Receivable Past Due over 89 Days Still Accruing
Farmland	$	522	$	522	$	—
Owner-occupied, nonfarm nonresidential properties	5,896		1,392		—

Commercial and Industrial	10,682		10,111		—


Other construction loans and all land development and other land loans	1,482		36		—
Multifamily (5 or more) residential properties	20,658		266		491
Non-owner occupied, nonfarm nonresidential properties	5,913		5,913		—

Home equity lines of credit	837		837		—
Residential Mortgages secured by first liens	9,093		8,311		—
Residential Mortgages secured by junior liens	271		271		—
Other revolving credit plans	154		154		—
Automobile	66		66		—
Other consumer	749		749		—
Credit cards	—		—		162

Total	$	56,323	$	28,628	$	653

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, 2025:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	352	$	—
Owner-occupied, nonfarm nonresidential properties	1,822		—

Commercial and Industrial	288		2,001


Other construction loans and all land development and other land loans	1,401		—
Multifamily (5 or more) residential properties	199		—
Non-owner occupied, nonfarm nonresidential properties	3,596		—

Home equity lines of credit	776		—
Residential Mortgages secured by first liens	598		—






Total	$	9,032	$	2,001

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, 2024:


	Real Estate Collateral		Non-Real Estate Collateral
Farmland	$	352	$	—
Owner-occupied, nonfarm nonresidential properties	4,503		—

Commercial and Industrial	258		2,553


Other construction loans and all land development and other land loans	1,446		—
Multifamily (5 or more) residential properties	20,658		—
Non-owner occupied, nonfarm nonresidential properties	5,224		—

Home equity lines of credit	290		—
Residential Mortgages secured by first liens	1,411		—






Total	$	34,142	$	2,553

The following table presents the aging of the amortized cost basis in past-due loans receivable as of June 30, 2025 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	$	86	$	—	$	166	$	252	$	28,835	$	29,087
Owner-occupied, nonfarm nonresidential properties	1,198		21		1,568		2,787		517,935		520,722
Agricultural production and other loans to farmers	—		—		—		—		6,244		6,244
Commercial and Industrial	569		1,220		6,088		7,877		702,019		709,896
Obligations (other than securities and leases) of states and political subdivisions	—		—		—		—		134,062		134,062
Other loans	—		—		—		—		46,680		46,680
Other construction loans and all land development and other land loans	—		99		1,401		1,500		296,537		298,037
Multifamily (5 or more) residential properties	—		—		199		199		476,788		476,987
Non-owner occupied, nonfarm nonresidential properties	222		—		—		222		1,059,085		1,059,307
1-4 Family Construction	—		—		—		—		13,913		13,913
Home equity lines of credit	969		102		1,006		2,077		182,338		184,415
Residential Mortgages secured by first liens	3,740		1,847		4,884		10,471		1,006,947		1,017,418
Residential Mortgages secured by junior liens	400		194		38		632		110,358		110,990
Other revolving credit plans	75		11		44		130		41,654		41,784
Automobile	57		44		28		129		18,753		18,882
Other consumer	437		274		285		996		49,978		50,974
Credit cards	151		34		256		441		13,426		13,867
Overdrafts	—		—		—		—		155		155
Total	$	7,904	$	3,846	$	15,963	$	27,713	$	4,705,707	$	4,733,420

The following table presents the aging of the amortized cost basis in past-due loans receivable as of December 31, 2024 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	$	—	$	—	$	—	$	—	$	31,099	$	31,099
Owner-occupied, nonfarm nonresidential properties	77		1,479		5,030		6,586		508,622		515,208
Agricultural production and other loans to farmers	—		—		—		—		6,492		6,492
Commercial and Industrial	704		185		6,632		7,521		711,254		718,775
Obligations (other than securities and leases) of states and political subdivisions	—		—		—		—		140,430		140,430
Other loans	—		—		—		—		28,110		28,110
Other construction loans and all land development and other land loans	—		—		1,482		1,482		281,430		282,912
Multifamily (5 or more) residential properties	—		20,392		757		21,149		389,997		411,146
Non-owner occupied, nonfarm nonresidential properties	—		—		—		—		1,033,541		1,033,541
1-4 Family Construction	216		—		—		216		26,215		26,431
Home equity lines of credit	1,006		387		323		1,716		164,611		166,327
Residential Mortgages secured by first liens	2,908		1,910		5,795		10,613		1,002,133		1,012,746
Residential Mortgages secured by junior liens	224		35		64		323		106,139		106,462
Other revolving credit plans	351		4		100		455		40,640		41,095
Automobile	135		3		—		138		20,823		20,961
Other consumer	601		271		358		1,230		52,591		53,821
Credit cards	97		115		162		374		12,769		13,143
Overdrafts	—		—		—		—		257		257
Total	$	6,319	$	24,781	$	20,703	$	51,803	$	4,557,153	$	4,608,956

Loan Modifications

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

In some cases, the Corporation provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.

The following table presents the amortized cost basis of loans at June 30, 2025 that were both experiencing financial difficulty and modified during the three months ended June 30, 2025, 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	$	—	$	696	$	—	$	—	$	—	0.1	%

Commercial and Industrial	—		6,801		—		—		—		1.0




Non-owner occupied, nonfarm nonresidential properties	—		3,596		—		—		—		0.3









Total	$	—	$	11,093	$	—	$	—	$	—	0.2	%

The following table presents the amortized cost basis of loans at June 30, 2025 that were both experiencing financial difficulty and modified during the six months ended June 30, 2025, 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	$	—	$	696	$	—	$	—	$	—	0.1	%

Commercial and Industrial	—		7,011		163		—		—		1.0


Other construction loans and all land development and other land loans	—		—		10,112		—		—		3.4

Non-owner occupied, nonfarm nonresidential properties	—		3,596		1,962		—		—		0.5









Total	$	—	$	11,303	$	12,237	$	—	$	—	0.5	%

The following table presents the amortized cost basis of loans at June 30, 2024 that were both experiencing financial difficulty and modified during the three months ended June 30, 2024, 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
Farmland	$	—	$	1,040	$	—	$	—	$	—	3.2	%
Owner-occupied, nonfarm nonresidential properties	—		5,263		—		—		—		1.0

Commercial and Industrial	—		37		—		—		—		—

Non-owner occupied, nonfarm nonresidential properties	—		5,715		—		—		—		0.6













Total	$	—	$	12,055	$	—	$	—	$	—	0.3	%

The following table presents the amortized cost basis of loans at June 30, 2024 that were both experiencing financial difficulty and modified during the six months ended June 30, 2024, 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
Farmland	$	—	$	1,040	$	—	$	—	$	—	3.2	%
Owner-occupied, nonfarm nonresidential properties	—		5,552		—		—		—		1.0

Commercial and Industrial	—		37		466		—		—		0.1

Non-owner occupied, nonfarm nonresidential properties	—		5,715		—		—		—		0.6













Total	$	—	$	12,344	$	466	$	—	$	—	0.3	%

The Corporation had no unfunded available credit to customers whose loan receivables are included in the previous tables.

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 twelve months ended June 30, 2025:


	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	$	696	$	—	$	—	$	—	$	—

Commercial and Industrial	7,109		—		65		—		65


Other construction loans and all land development and other land loans	10,112		—		—		—		—

Non-owner occupied, nonfarm nonresidential properties	5,558		—		—		—		—









Total	$	23,475	$	—	$	65	$	—	$	65

The following table presents the performance of such loans that have been modified during the twelve months ended June 30, 2024:


	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due
Farmland	$	1,040	$	—	$	—	$	—	$	—
Owner-occupied, nonfarm nonresidential properties	5,264		—		—		288		288

Commercial and Industrial	503		—		—		—		—




Non-owner occupied, nonfarm nonresidential properties	5,715		—		—		—		—


Residential Mortgages secured by first liens	387		—		—		—		—
Residential Mortgages secured by junior liens	28		—		—		—		—





Total	$	12,937	$	—	$	—	$	288	$	288

There was no principal forgiveness, term extension or interest rate reductions for the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended June 30, 2025.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2025:


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



Commercial and Industrial	$	—	0.96	—	%


Other construction loans and all land development and other land loans	—		0.75	—

Non-owner occupied, nonfarm nonresidential properties	—		0.50	—









Total	$	—	0.71	—	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2024:


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



Commercial and Industrial	$	—	1.00	—	%














Total	$	—	1.00	—	%

There were no loans that had a payment default during the three months ended June 30, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

The following table presents the amortized cost basis of loans that had a payment default during the three months ended June 30, 2024 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

Owner-occupied, nonfarm nonresidential properties	$	—	$	288	$	—	$	—	$	—
















Total	$	—	$	288	$	—	$	—	$	—

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.

Credit Quality Indicators

The Corporation categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually to classify the loans as to credit risk.

The Corporation uses the following definitions for risk ratings:

Special Mention: A loan classified as special mention has a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation's credit position at some future date.

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

Doubtful: A loan classified as doubtful has all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables represent the Corporation's commercial credit risk profile by risk rating. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans.


	June 30, 2025
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	23,499	$	—	$	5,588	$	—	$	5,588	$	29,087
Owner-occupied, nonfarm nonresidential properties	499,461		2,347		18,914		—		21,261		520,722
Agricultural production and other loans to farmers	6,244		—		—		—		—		6,244
Commercial and Industrial	644,173		7,427		58,296		—		65,723		709,896
Obligations (other than securities and leases) of states and political subdivisions	134,062		—		—		—		—		134,062
Other loans	45,830		850		—		—		850		46,680
Other construction loans and all land development and other land loans	286,523		10,113		1,401		—		11,514		298,037
Multifamily (5 or more) residential properties	470,834		—		6,153		—		6,153		476,987
Non-owner occupied, nonfarm nonresidential properties	1,038,487		956		19,864		—		20,820		1,059,307









Total	$	3,149,113	$	21,693	$	110,216	$	—	$	131,909	$	3,281,022


	December 31, 2024
			Non-Pass Rated
	Pass		Special Mention		Substandard		Doubtful		Total Non-Pass		Total
Farmland	$	25,171	$	5,267	$	661	$	—	$	5,928	$	31,099
Owner-occupied, nonfarm nonresidential properties	491,798		1,289		22,121		—		23,410		515,208
Agricultural production and other loans to farmers	6,492		—		—		—		—		6,492
Commercial and Industrial	654,139		4,321		60,315		—		64,636		718,775
Obligations (other than securities and leases) of states and political subdivisions	140,430		—		—		—		—		140,430
Other loans	28,110		—		—		—		—		28,110
Other construction loans and all land development and other land loans	281,466		—		1,446		—		1,446		282,912
Multifamily (5 or more) residential properties	385,946		—		25,200		—		25,200		411,146
Non-owner occupied, nonfarm nonresidential properties	1,008,507		4,947		20,087		—		25,034		1,033,541









Total	$	3,022,059	$	15,824	$	129,830	$	—	$	145,654	$	3,167,713

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, 2025. Current period originations may include modifications.


	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	1,830	$	128	$	1,594	$	6,594	$	6,276	$	6,796	$	281	$	—	$	23,499
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		166		—		4,942		—		480		—		—		5,588

Total	$	1,830	$	294	$	1,594	$	11,536	$	6,276	$	7,276	$	281	$	—	$	29,087
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	29,289	$	76,582	$	57,787	$	109,727	$	91,857	$	120,638	$	13,581	$	—	$	499,461
Special mention	54		—		612		241		246		443		751		—		2,347
Substandard	—		14,708		1,947		269		696		1,122		172		—		18,914

Total	$	29,343	$	91,290	$	60,346	$	110,237	$	92,799	$	122,203	$	14,504	$	—	$	520,722
Current period gross write offs	$	—	$	—	$	—	$	1,516	$	—	$	—	$	—	$	—	$	1,516

Agricultural production and other loans to farmers
Risk rating
Pass	$	86	$	4,910	$	442	$	10	$	12	$	174	$	610	$	—	$	6,244
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	86	$	4,910	$	442	$	10	$	12	$	174	$	610	$	—	$	6,244
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Risk rating
Pass	$	69,485	$	114,292	$	31,212	$	83,703	$	48,492	$	38,440	$	258,549	$	—	$	644,173
Special mention	—		252		65		2,238		1,621		35		3,216		—		7,427
Substandard	2,443		206		3,429		10,923		1,138		1,708		38,449		—		58,296

Total	$	71,928	$	114,750	$	34,706	$	96,864	$	51,251	$	40,183	$	300,214	$	—	$	709,896
Current period gross write offs	$	—	$	—	$	32	$	—	$	25	$	—	$	637	$	30	$	724

Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	1,567	$	6,225	$	23,748	$	15,228	$	29,753	$	53,240	$	4,301	$	—	$	134,062
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	1,567	$	6,225	$	23,748	$	15,228	$	29,753	$	53,240	$	4,301	$	—	$	134,062
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating
Pass	$	21,100	$	1,441	$	3,341	$	12,134	$	4,548	$	1,454	$	1,812	$	—	$	45,830
Special mention	—		—		—		—		—		—		850		—		850
Substandard	—		—		—		—		—		—		—		—		—

Total	$	21,100	$	1,441	$	3,341	$	12,134	$	4,548	$	1,454	$	2,662	$	—	$	46,680
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		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	$	55,463	$	94,544	$	44,067	$	82,259	$	2,869	$	2,033	$	5,288	$	—	$	286,523
Special mention	10,113		—		—		—		—		—		—		—		10,113
Substandard	—		—		—		—		—		1,401		—		—		1,401

Total	$	65,576	$	94,544	$	44,067	$	82,259	$	2,869	$	3,434	$	5,288	$	—	$	298,037
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily (5 or more) residential properties
Risk rating
Pass	$	108,929	$	43,072	$	56,094	$	169,191	$	50,892	$	40,112	$	2,544	$	—	$	470,834
Special mention	—		—		—		—		—		—		—		—		—
Substandard	5,765		189		199		—		—		—		—		—		6,153

Total	$	114,694	$	43,261	$	56,293	$	169,191	$	50,892	$	40,112	$	2,544	$	—	$	476,987
Current period gross write offs	$	—	$	—	$	—	$	1,072	$	—	$	—	$	—	$	—	$	1,072

Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	51,144	$	143,975	$	193,582	$	326,182	$	179,086	$	136,802	$	7,716	$	—	$	1,038,487
Special mention	—		—		—		209		—		330		417		—		956
Substandard	—		13,308		753		463		—		5,340		—		—		19,864

Total	$	51,144	$	157,283	$	194,335	$	326,854	$	179,086	$	142,472	$	8,133	$	—	$	1,059,307
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, 2024. Current period originations may include modifications.


	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Farmland
Risk rating
Pass	$	265	$	3,165	$	6,756	$	6,477	$	1,436	$	6,662	$	410	$	—	$	25,171
Special mention	—		—		5,267		—		—		—		—		—		5,267
Substandard	170		—		—		—		—		491		—		—		661

Total	$	435	$	3,165	$	12,023	$	6,477	$	1,436	$	7,153	$	410	$	—	$	31,099
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass	$	74,692	$	62,609	$	114,980	$	98,469	$	39,931	$	90,249	$	10,868	$	—	$	491,798
Special mention	—		—		—		254		—		527		508		—		1,289
Substandard	14,181		1,114		4,370		696		—		1,507		253		—		22,121

Total	$	88,873	$	63,723	$	119,350	$	99,419	$	39,931	$	92,283	$	11,629	$	—	$	515,208
Current period gross write offs	$	—	$	—	$	750	$	—	$	—	$	698	$	—	$	—	$	1,448

Agricultural production and other loans to farmers
Risk rating
Pass	$	5,072	$	473	$	18	$	26	$	40	$	148	$	715	$	—	$	6,492
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	5,072	$	473	$	18	$	26	$	40	$	148	$	715	$	—	$	6,492
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Risk rating
Pass	$	148,569	$	44,080	$	104,613	$	63,646	$	24,511	$	18,771	$	249,949	$	—	$	654,139
Special mention	7		55		139		424		61		32		3,603		—		4,321
Substandard	845		5,145		10,988		1,461		49		1,935		39,892		—		60,315

Total	$	149,421	$	49,280	$	115,740	$	65,531	$	24,621	$	20,738	$	293,444	$	—	$	718,775
Current period gross write offs	$	—	$	301	$	116	$	537	$	1	$	43	$	1,428	$	—	$	2,426

Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass	$	7,999	$	24,754	$	15,756	$	30,419	$	11,411	$	45,882	$	4,209	$	—	$	140,430
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	7,999	$	24,754	$	15,756	$	30,419	$	11,411	$	45,882	$	4,209	$	—	$	140,430
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating
Pass	$	2,134	$	3,382	$	12,291	$	4,602	$	1,341	$	274	$	4,086	$	—	$	28,110
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total	$	2,134	$	3,382	$	12,291	$	4,602	$	1,341	$	274	$	4,086	$	—	$	28,110
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		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	$	112,919	$	58,596	$	99,268	$	3,141	$	749	$	1,875	$	4,918	$	—	$	281,466
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		1,446		—		—		1,446

Total	$	112,919	$	58,596	$	99,268	$	3,141	$	749	$	3,321	$	4,918	$	—	$	282,912
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	11	$	11

Multifamily (5 or more) residential properties
Risk rating
Pass	$	46,905	$	49,880	$	173,994	$	67,500	$	20,706	$	25,037	$	1,924	$	—	$	385,946
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		2,107		20,392		—		2,701		—		—		—		25,200

Total	$	46,905	$	51,987	$	194,386	$	67,500	$	23,407	$	25,037	$	1,924	$	—	$	411,146
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass	$	141,083	$	190,123	$	320,047	$	183,621	$	38,309	$	127,515	$	7,809	$	—	$	1,008,507
Special mention	1,962		—		212		2,003		—		349		421		—		4,947
Substandard	11,469		762		689		—		5,225		1,942		—		—		20,087

Total	$	154,514	$	190,885	$	320,948	$	185,624	$	43,534	$	129,806	$	8,230	$	—	$	1,033,541
Current period gross write offs	$	—	$	—	$	33	$	296	$	—	$	625	$	20	$	—	$	974

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, 2025						December 31, 2024
	Performing		Nonperforming		Total		Performing		Nonperforming		Total
1-4 Family Construction	$	13,913	$	—	$	13,913	$	26,431	$	—	$	26,431
Home equity lines of credit	182,844		1,571		184,415		165,490		837		166,327
Residential Mortgages secured by first liens	1,009,651		7,767		1,017,418		1,003,653		9,093		1,012,746
Residential Mortgages secured by junior liens	110,700		290		110,990		106,191		271		106,462
Other revolving credit plans	41,695		89		41,784		40,941		154		41,095
Automobile	18,803		79		18,882		20,895		66		20,961
Other consumer	50,353		621		50,974		53,072		749		53,821
Total	$	1,427,959	$	10,417	$	1,438,376	$	1,416,673	$	11,170	$	1,427,843

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, 2025. Current period originations may include modifications.


	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	1,288	$	11,545	$	601	$	435	$	—	$	44	$	—	$	—	$	13,913
Nonperforming	—		—		—		—		—		—		—		—		—
Total	$	1,288	$	11,545	$	601	$	435	$	—	$	44	$	—	$	—	$	13,913
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity lines of credit
Payment performance
Performing	$	24,564	$	44,561	$	24,787	$	27,830	$	8,514	$	36,004	$	10,038	$	6,546	$	182,844
Nonperforming	—		—		48		—		—		66		—		1,457		1,571
Total	$	24,564	$	44,561	$	24,835	$	27,830	$	8,514	$	36,070	$	10,038	$	8,003	$	184,415
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential mortgages secured by first lien
Payment performance
Performing	$	61,650	$	105,942	$	128,949	$	214,251	$	166,069	$	330,491	$	2,299	$	—	$	1,009,651
Nonperforming	38		—		2,443		1,621		882		2,783		—		—		7,767
Total	$	61,688	$	105,942	$	131,392	$	215,872	$	166,951	$	333,274	$	2,299	$	—	$	1,017,418
Current period gross write offs	$	—	$	—	$	—	$	—	$	32	$	10	$	—	$	—	$	42

Residential mortgages secured by junior liens
Payment performance
Performing	$	12,767	$	30,641	$	20,509	$	21,189	$	10,758	$	13,474	$	1,362	$	—	$	110,700
Nonperforming	—		18		70		32		119		13		38		—		290
Total	$	12,767	$	30,659	$	20,579	$	21,221	$	10,877	$	13,487	$	1,400	$	—	$	110,990
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other revolving credit plans
Payment performance
Performing	$	2,980	$	7,653	$	6,118	$	6,562	$	2,797	$	15,585	$	—	$	—	$	41,695
Nonperforming	—		—		3		24		6		56		—		—		89
Total	$	2,980	$	7,653	$	6,121	$	6,586	$	2,803	$	15,641	$	—	$	—	$	41,784
Current period gross write offs	$	—	$	—	$	4	$	4	$	—	$	17	$	—	$	—	$	25

Automobile
Payment performance
Performing	$	2,744	$	4,873	$	6,597	$	2,877	$	677	$	1,035	$	—	$	—	$	18,803
Nonperforming	—		11		28		37		—		3		—		—		79
Total	$	2,744	$	4,884	$	6,625	$	2,914	$	677	$	1,038	$	—	$	—	$	18,882
Current period gross write offs	$	—	$	—	$	5	$	—	$	—	$	—	$	—	$	—	$	5

Other consumer
Payment performance
Performing	$	11,130	$	20,545	$	9,515	$	3,681	$	1,620	$	3,862	$	—	$	—	$	50,353
Nonperforming	—		290		188		52		76		15		—		—		621
Total	$	11,130	$	20,835	$	9,703	$	3,733	$	1,696	$	3,877	$	—	$	—	$	50,974
Current period gross write offs	$	—	$	559	$	463	$	102	$	34	$	13	$	—	$	—	$	1,171

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, 2024.


	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family Construction
Payment performance
Performing	$	21,411	$	3,717	$	1,254	$	—	$	—	$	49	$	—	$	—	$	26,431
Nonperforming	—		—		—		—		—		—		—		—		—
Total	$	21,411	$	3,717	$	1,254	$	—	$	—	$	49	$	—	$	—	$	26,431
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity lines of credit
Payment performance
Performing	$	44,573	$	28,211	$	30,557	$	9,440	$	8,106	$	30,649	$	7,993	$	5,961	$	165,490
Nonperforming	—		50		—		—		—		—		—		787		837
Total	$	44,573	$	28,261	$	30,557	$	9,440	$	8,106	$	30,649	$	7,993	$	6,748	$	166,327
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential mortgages secured by first lien
Payment performance
Performing	$	106,278	$	135,898	$	224,633	$	177,756	$	128,924	$	226,926	$	3,238	$	—	$	1,003,653
Nonperforming	363		2,494		1,657		1,305		839		2,435		—		—		9,093
Total	$	106,641	$	138,392	$	226,290	$	179,061	$	129,763	$	229,361	$	3,238	$	—	$	1,012,746
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	79	$	—	$	—	$	79

Residential mortgages secured by junior liens
Payment performance
Performing	$	32,777	$	22,256	$	22,931	$	11,769	$	5,695	$	9,465	$	1,298	$	—	$	106,191
Nonperforming	19		40		34		123		—		16		39		—		271
Total	$	32,796	$	22,296	$	22,965	$	11,892	$	5,695	$	9,481	$	1,337	$	—	$	106,462
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other revolving credit plans
Payment performance
Performing	$	10,454	$	5,556	$	6,898	$	2,163	$	5,366	$	10,504	$	—	$	—	$	40,941
Nonperforming	—		—		27		6		—		121		—		—		154
Total	$	10,454	$	5,556	$	6,925	$	2,169	$	5,366	$	10,625	$	—	$	—	$	41,095
Current period gross write offs	$	—	$	9	$	—	$	41	$	25	$	81	$	—	$	—	$	156

Automobile
Payment performance
Performing	$	5,794	$	8,504	$	3,975	$	1,149	$	664	$	809	$	—	$	—	$	20,895
Nonperforming	—		15		47		—		4		—		—		—		66
Total	$	5,794	$	8,519	$	4,022	$	1,149	$	668	$	809	$	—	$	—	$	20,961
Current period gross write offs	$	22	$	93	$	7	$	14	$	6	$	4	$	—	$	—	$	146

Other consumer
Payment performance
Performing	$	27,727	$	13,090	$	5,344	$	2,432	$	2,162	$	2,317	$	—	$	—	$	53,072
Nonperforming	219		368		82		67		8		5		—		—		749
Total	$	27,946	$	13,458	$	5,426	$	2,499	$	2,170	$	2,322	$	—	$	—	$	53,821
Current period gross write offs	$	133	$	1,141	$	630	$	154	$	24	$	12	$	—	$	—	$	2,094


	June 30, 2025		December 31, 2024

Credit card
Payment performance
Performing	$	13,611	$	12,981
Nonperforming	256		162
Total	$	13,867	$	13,143
Current period gross write offs	$	137	$	143

Holiday's loan portfolio, included in other consumer loans above, is summarized as follows at June 30, 2025 and December 31, 2024:


	June 30, 2025		December 31, 2024
Gross other consumer	$	18,871	$	27,261
Less: other consumer unearned discounts	(2,767)		(4,772)
Total other consumer loans, net of unearned discounts	$	16,104	$	22,489