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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2021

Allowance for Loan Losses

Allowance for Loan Losses

NOTE 5: Allowance for Loan Losses

Changes in the allowance for loan losses for the years ended December 31, 2021, 2020 and 2019 were as follows:


		Real Estate						Commercial,
		Residential			Real Estate			Financial &			Equity						Consumer
(Dollars in thousands)		Mortgage			Construction			Agricultural			Lines			Consumer			Finance			Total
Balance at December 31, 2018		$	2,246		$	727		$	6,688		$	1,106		$	257		$	22,999		$	34,023
Provision charged to operations			(146)			(46)			458			(235)			329			8,155			8,515
Loans charged off			(46)			—			(29)			(138)			(349)			(13,991)			(14,553)
Recoveries of loans previously charged off			26			—			4			—			228			4,630			4,888
Balance at December 31, 2019			2,080			681			7,121			733			465			21,793			32,873
Provision charged to operations			808			294			3,589			(47)			(34)			6,470			11,080
Loans charged off			(62)			—			(18)			—			(231)			(9,331)			(9,642)
Recoveries of loans previously charged off			88			—			4			1			171			4,581			4,845
Balance at December 31, 2020			2,914			975			10,696			687			371			23,513			39,156
Provision charged to operations			(279)			(119)			385			(95)			(137)			820			575
Loans charged off			—			—			—			—			(184)			(4,381)			(4,565)
Recoveries of loans previously charged off			25			—			4			1			122			4,839			4,991
Balance at December 31, 2021		$	2,660		$	856		$	11,085		$	593		$	172		$	24,791		$	40,157

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


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

The following table presents, as of December 31, 2020, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.


		Real Estate						Commercial,
		Residential			Real Estate			Financial &			Equity						Consumer
(Dollars in thousands)		Mortgage			Construction			Agricultural			Lines			Consumer			Finance			Total
Allowance balance attributable to loans:
Individually evaluated for impairment		$	77		$	—		$	674		$	—		$	128		$	—		$	879
Collectively evaluated for impairment			2,837			975			10,022			687			243			23,513			38,277
Acquired loans - PCI			—			—			—			—			—			—			—
Total allowance		$	2,914		$	975		$	10,696		$	687		$	371		$	23,513		$	39,156
Loans:
Individually evaluated for impairment		$	2,210		$	—		$	3,825		$	111		$	132		$	—		$	6,278
Collectively evaluated for impairment			214,615			62,147			691,632			48,275			10,848			312,252			1,339,769
Acquired loans - PCI			1,473			—			4,758			80			48			—			6,359
Total loans		$	218,298		$	62,147		$	700,215		$	48,466		$	11,028		$	312,252		$	1,352,406

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

Special

Substandard

(Dollars in thousands)

Pass

Mention

Substandard

Nonaccrual

Total¹

Real estate – residential mortgage

$

215,432

$

664

$

605

$

315

$

217,016

Real estate – construction:

Construction lending

39,252

—

—

—

39,252

Consumer lot lending

18,243

—

—

—

18,243

Commercial, financial and agricultural:

Commercial real estate lending

519,938

1,989

5,986

—

527,913

Land acquisition and development lending

27,609

—

—

—

27,609

Builder line lending

30,499

—

—

—

30,499

Commercial business lending

129,587

—

—

2,122

131,709

Equity lines

41,013

47

181

104

41,345

Consumer

8,276

—

1

3

8,280

$

1,029,849

$

2,700

$

6,773

$

2,544

$

1,041,866

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


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

Loans by credit quality indicators as of December 31, 2020 were as follows:


					Special						Substandard
(Dollars in thousands)		Pass			Mention			Substandard			Nonaccrual			Total¹
Real estate – residential mortgage		$	215,712		$	1,715		$	595		$	276		$	218,298
Real estate – construction:
Construction lending			49,659			—			—			—			49,659
Consumer lot lending			12,488			—			—			—			12,488
Commercial, financial and agricultural:
Commercial real estate lending			415,506			15,507			10,890			—			441,903
Land acquisition and development lending			37,724			—			—			—			37,724
Builder line lending			18,194			—			—			—			18,194
Commercial business lending			196,743			3,124			99			2,428			202,394
Equity lines			48,140			132			3			191			48,466
Consumer			10,832			48			41			107			11,028
		$	1,004,998		$	20,526		$	11,628		$	3,002		$	1,040,154

1	At December 31, 2020, the Corporation did not have any loans classified as Doubtful or Loss.


					Non-
(Dollars in thousands)		Performing			Performing			Total
Consumer finance:
Automobiles		$	272,304		$	402		$	272,706
Marine and recreational vehicles			39,546			-			39,546
		$	311,850		$	402		$	312,252