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Loans | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
Loans | Loans: Loan balances were as follows:
(In Thousands of Dollars) |  | September 30, 2023 |  |  | December 31, 2022 |
Commercial real estate |  |  |  |  |  |
Owner occupied |  | $ | 371,356 |  |  | $ | 330,768 |
Non-owner occupied |  |  | 711,391 |  |  |  | 563,652 |
Farmland |  |  | 200,148 |  |  |  | 188,850 |
Other |  |  | 213,100 |  |  |  | 133,630 |
Commercial |  |  |  |  |  |
Commercial and industrial |  |  | 357,691 |  |  |  | 293,643 |
Agricultural |  |  | 61,590 |  |  |  | 58,087 |
Residential real estate |  |  |  |  |  |
1-4 family residential |  |  | 842,729 |  |  |  | 475,791 |
Home equity lines of credit |  |  | 140,772 |  |  |  | 132,179 |
Consumer |  |  |  |  |  |
Indirect |  |  | 228,377 |  |  |  | 197,125 |
Direct |  |  | 24,900 |  |  |  | 16,421 |
Other |  |  | 7,859 |  |  |  | 7,714 |
Total loans |  | $ | 3,159,913 |  |  | $ | 2,397,860 |
Net deferred loan costs |  |  | 8,641 |  |  |  | 6,890 |
Allowance for credit losses |  |  | (34,753 | ) |  |  | (26,978 | )
Net loans |  | $ | 3,133,801 |  |  | $ | 2,377,772 |
Allowance for credit loss activity The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2023 and 2022: Three Months Ended September 30, 2023
(In Thousands of Dollars) |  | Commercial Real Estate |  |  | Commercial |  |  | Residential Real Estate |  |  | Consumer |  |  | Total |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 18,537 |  |  | $ | 5,295 |  |  | $ | 6,866 |  |  | $ | 4,259 |  |  | $ | 34,957 |
PCD ACL on loans acquired |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
(Credit) Provision for credit losses |  |  | 182 |  |  |  | (45 | ) |  |  | 13 |  |  |  | 32 |  |  |  | 182 |
Loans charged off |  |  | (3 | ) |  |  | (154 | ) |  |  | (157 | ) |  |  | (211 | ) |  |  | (525 | )
Recoveries |  |  | 0 |  |  |  | 6 |  |  |  | 12 |  |  |  | 121 |  |  |  | 139 |
Total ending allowance balance |  | $ | 18,716 |  |  | $ | 5,102 |  |  | $ | 6,734 |  |  | $ | 4,201 |  |  | $ | 34,753 |
Nine Months Ended September 30, 2023
(In Thousands of Dollars) |  | Commercial Real Estate |  |  | Commercial |  |  | Residential Real Estate |  |  | Consumer |  |  | Total |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 14,840 |  |  | $ | 4,186 |  |  | $ | 4,374 |  |  | $ | 3,578 |  |  | $ | 26,978 |
PCD ACL on loans acquired |  |  | 850 |  |  |  | 138 |  |  |  | 11 |  |  |  | 0 |  |  |  | 999 |
Provision for credit losses |  |  | 3,185 |  |  |  | 1,638 |  |  |  | 2,542 |  |  |  | 867 |  |  |  | 8,232 |
Loans charged off |  |  | (160 | ) |  |  | (888 | ) |  |  | (251 | ) |  |  | (666 | ) |  |  | (1,965 | )
Recoveries |  |  | 1 |  |  |  | 28 |  |  |  | 58 |  |  |  | 422 |  |  |  | 509 |
Total ending allowance balance |  | $ | 18,716 |  |  | $ | 5,102 |  |  | $ | 6,734 |  |  | $ | 4,201 |  |  | $ | 34,753 |
Three Months Ended September 30, 2022
(In Thousands of Dollars) |  | Commercial Real Estate |  |  | Commercial |  |  | Residential Real Estate |  |  | Consumer |  |  | Total |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 14,859 |  |  | $ | 3,893 |  |  | $ | 4,915 |  |  | $ | 3,787 |  |  | $ | 27,454 |
(Credit) Provision for credit losses |  |  | (47 | ) |  |  | 260 |  |  |  | 2 |  |  |  | 218 |  |  |  | 433 |
Loans charged off |  |  | 0 |  |  |  | (473 | ) |  |  | (9 | ) |  |  | (301 | ) |  |  | (783 | )
Recoveries |  |  | 1 |  |  |  | 2 |  |  |  | 41 |  |  |  | 134 |  |  |  | 178 |
Total ending allowance balance |  | $ | 14,813 |  |  | $ | 3,682 |  |  | $ | 4,949 |  |  | $ | 3,838 |  |  | $ | 27,282 |
Nine Months Ended September 30, 2022
(In Thousands of Dollars) |  | Commercial Real Estate |  |  | Commercial |  |  | Residential Real Estate |  |  | Consumer |  |  | Total |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 15,879 |  |  | $ | 4,949 |  |  | $ | 4,870 |  |  | $ | 3,688 |  |  | $ | 29,386 |
(Credit) Provision for credit losses |  |  | (1,068 | ) |  |  | 601 |  |  |  | 53 |  |  |  | 399 |  |  |  | (15 | )
Loans charged off |  |  | 0 |  |  |  | (1,878 | ) |  |  | (43 | ) |  |  | (630 | ) |  |  | (2,551 | )
Recoveries |  |  | 2 |  |  |  | 10 |  |  |  | 69 |  |  |  | 381 |  |  |  | 462 |
Total ending allowance balance |  | $ | 14,813 |  |  | $ | 3,682 |  |  | $ | 4,949 |  |  | $ | 3,838 |  |  | $ | 27,282 |
The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to September 30, 2023. As of September 30, 2023, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from September 30, 2022 to September 30, 2023 is largely attributed to the Emlenton merger. The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2023:
(In Thousands of Dollars) |  | Nonaccrual with no allowance for credit loss |  |  | Nonaccrual with an allowance for credit loss |  |  | Loans past due over 89 days still accruing |
September 30, 2023 |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | 671 |  |  | $ | 460 |  |  | $ | 0 |
Non-owner occupied |  |  | 1,848 |  |  |  | 4,876 |  |  |  | 0 |
Farmland |  |  | 2,006 |  |  |  | 11 |  |  |  | 0 |
Other |  |  | 0 |  |  |  | 90 |  |  |  | 0 |
Commercial |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 321 |  |  |  | 1,472 |  |  |  | 0 |
Agricultural |  |  | 213 |  |  |  | 272 |  |  |  | 0 |
Residential real estate |  |  |  |  |  |  |  |  |
1-4 family residential |  |  | 382 |  |  |  | 3,526 |  |  |  | 1,020 |
Home equity lines of credit |  |  | 264 |  |  |  | 228 |  |  |  | 188 |
Consumer |  |  |  |  |  |  |  |  |
Indirect |  |  | 25 |  |  |  | 225 |  |  |  | 117 |
Direct |  |  | 65 |  |  |  | 66 |  |  |  | 17 |
Other |  |  | 0 |  |  |  | 5 |  |  |  | 0 |
Total loans |  | $ | 5,795 |  |  | $ | 11,231 |  |  | $ | 1,342 |
The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022:
|  | December 31, 2022 |
(In Thousands of Dollars) |  | Nonaccrual |  |  | Loans Past Due 90 Days or More Still Accruing |
Commercial real estate |  |  |  |  |  |
Owner occupied |  | $ | 993 |  |  | $ | 0 |
Non-owner occupied |  |  | 3,031 |  |  |  | 0 |
Farmland |  |  | 2,183 |  |  |  | 0 |
Other |  |  | 33 |  |  |  | 0 |
Commercial |  |  |  |  |  |
Commercial and industrial |  |  | 3,840 |  |  |  | 50 |
Agricultural |  |  | 299 |  |  |  | 0 |
Residential real estate |  |  |  |  |  |
1-4 family residential |  |  | 2,703 |  |  |  | 310 |
Home equity lines of credit |  |  | 735 |  |  |  | 58 |
Consumer |  |  |  |  |  |
Indirect |  |  | 313 |  |  |  | 62 |
Direct |  |  | 179 |  |  |  | 12 |
Other |  |  | 2 |  |  |  | 0 |
Total loans |  | $ | 14,311 |  |  | $ | 492 |
The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023:
(In Thousands of Dollars) |  | Real Estate |  |  | Business Assets |  |  | Vehicles |  |  | Cash |
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | 793 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Non-owner occupied |  |  | 4,956 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Farmland |  |  | 2,006 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 0 |  |  |  | 1,144 |  |  |  | 0 |  |  |  | 0 |
Agricultural |  |  | 0 |  |  |  | 213 |  |  |  | 0 |  |  |  | 0 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential |  |  | 3,288 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Home equity lines of credit |  |  | 397 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Indirect |  |  | 0 |  |  |  | 0 |  |  |  | 59 |  |  |  | 0 |
Direct |  |  | 0 |  |  |  | 0 |  |  |  | 22 |  |  |  | 66 |
Other |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total loans |  | $ | 11,440 |  |  | $ | 1,357 |  |  | $ | 81 |  |  | $ | 66 |
The following tables present the aging of the recorded investment in past due loans as of September 30, 2023 and December 31, 2022 by class of loans.
(In Thousands of Dollars) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or More Past Due and Nonaccrual |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Total |
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | 475 |  |  | $ | 294 |  |  | $ | 1,131 |  |  | $ | 1,900 |  |  | $ | 369,200 |  |  | $ | 371,100 |
Non-owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 6,724 |  |  |  | 6,724 |  |  |  | 704,160 |  |  |  | 710,884 |
Farmland |  |  | 900 |  |  |  | 0 |  |  |  | 2,017 |  |  |  | 2,917 |  |  |  | 197,009 |  |  |  | 199,926 |
Other |  |  | 0 |  |  |  | 0 |  |  |  | 90 |  |  |  | 90 |  |  |  | 212,572 |  |  |  | 212,662 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 660 |  |  |  | 289 |  |  |  | 1,793 |  |  |  | 2,742 |  |  |  | 356,323 |  |  |  | 359,065 |
Agricultural |  |  | 328 |  |  |  | 10 |  |  |  | 485 |  |  |  | 823 |  |  |  | 61,501 |  |  |  | 62,324 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential |  |  | 7,204 |  |  |  | 875 |  |  |  | 4,928 |  |  |  | 13,007 |  |  |  | 829,480 |  |  |  | 842,487 |
Home equity lines of credit |  |  | 373 |  |  |  | 0 |  |  |  | 680 |  |  |  | 1,053 |  |  |  | 139,751 |  |  |  | 140,804 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect |  |  | 1,471 |  |  |  | 267 |  |  |  | 367 |  |  |  | 2,105 |  |  |  | 234,415 |  |  |  | 236,520 |
Direct |  |  | 126 |  |  |  | 34 |  |  |  | 148 |  |  |  | 308 |  |  |  | 24,616 |  |  |  | 24,924 |
Other |  |  | 7 |  |  |  | 1 |  |  |  | 5 |  |  |  | 13 |  |  |  | 7,845 |  |  |  | 7,858 |
Total loans |  | $ | 11,544 |  |  | $ | 1,770 |  |  | $ | 18,368 |  |  | $ | 31,682 |  |  | $ | 3,136,872 |  |  | $ | 3,168,554 |
(In Thousands of Dollars) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or More Past Due and Nonaccrual |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Total |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | 159 |  |  | $ | 0 |  |  | $ | 993 |  |  | $ | 1,152 |  |  | $ | 329,305 |  |  | $ | 330,457 |
Non-owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 3,031 |  |  |  | 3,031 |  |  |  | 560,013 |  |  |  | 563,044 |
Farmland |  |  | 0 |  |  |  | 0 |  |  |  | 2,183 |  |  |  | 2,183 |  |  |  | 186,399 |  |  |  | 188,582 |
Other |  |  | 0 |  |  |  | 0 |  |  |  | 33 |  |  |  | 33 |  |  |  | 133,288 |  |  |  | 133,321 |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 1,034 |  |  |  | 185 |  |  |  | 3,890 |  |  |  | 5,109 |  |  |  | 289,297 |  |  |  | 294,406 |
Agricultural |  |  | 104 |  |  |  | 20 |  |  |  | 299 |  |  |  | 423 |  |  |  | 58,166 |  |  |  | 58,589 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential |  |  | 4,247 |  |  |  | 1,775 |  |  |  | 3,013 |  |  |  | 9,035 |  |  |  | 466,313 |  |  |  | 475,348 |
Home equity lines of credit |  |  | 115 |  |  |  | 92 |  |  |  | 793 |  |  |  | 1,000 |  |  |  | 131,209 |  |  |  | 132,209 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect |  |  | 1,267 |  |  |  | 298 |  |  |  | 375 |  |  |  | 1,940 |  |  |  | 202,683 |  |  |  | 204,623 |
Direct |  |  | 234 |  |  |  | 70 |  |  |  | 191 |  |  |  | 495 |  |  |  | 15,962 |  |  |  | 16,457 |
Other |  |  | 0 |  |  |  | 5 |  |  |  | 2 |  |  |  | 7 |  |  |  | 7,707 |  |  |  | 7,714 |
Total loans |  | $ | 7,160 |  |  | $ | 2,445 |  |  | $ | 14,803 |  |  | $ | 24,408 |  |  | $ | 2,380,342 |  |  | $ | 2,404,750 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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