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Allowance for Loan Losses

9 Months Ended

Sep. 30, 2022

Allowance for Loan Losses

Allowance for Loan Losses

NOTE 4: Allowance for Loan Losses

The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 2022:

Real Estate

Commercial,

Residential

Real Estate

Financial &

Equity

Consumer

(Dollars in thousands)

Mortgage

Construction

Agricultural

Lines

Consumer

Finance

Total

Allowance for loan losses:

Balance at December 31, 2021

$

2,660

$

856

$

11,085

$

593

$

172

$

24,791

$

40,157

Provision (credited) charged to operations

(6)

(62)

(623)

(60)

83

2,070

1,402

Loans charged off

—

—

(11)

—

(193)

(4,115)

(4,319)

Recoveries of loans previously charged off

16

—

13

2

93

3,516

3,640

Balance at September 30, 2022

$

2,670

$

794

$

10,464

$

535

$

155

$

26,262

$

40,880

The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 2021:


		Real Estate						Commercial,
		Residential			Real Estate			Financial &			Equity						Consumer
(Dollars in thousands)		Mortgage			Construction			Agricultural			Lines			Consumer			Finance			Total
Allowance for loan losses:
Balance at December 31, 2020		$	2,914		$	975		$	10,696		$	687		$	371		$	23,513		$	39,156
Provision (credited) charged to operations			(99)			(183)			422			(90)			(160)			220			110
Loans charged off			—			—			—			—			(128)			(3,443)			(3,571)
Recoveries of loans previously charged off			19			—			2			1			93			3,637			3,752
Balance at September 30, 2021		$	2,834		$	792		$	11,120		$	598		$	176		$	23,927		$	39,447

The following table presents, as of September 30, 2022, 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		$	46		$	—		$	105		$	—		$	—		$	—		$	151
Collectively evaluated for impairment			2,624			794			10,359			535			155			26,262			40,729
Acquired loans - PCI			—			—			—			—			—			—			—
Total allowance		$	2,670		$	794		$	10,464		$	535		$	155		$	26,262		$	40,880
Loans:
Individually evaluated for impairment		$	907		$	—		$	1,329		$	28		$	—		$	—		$	2,264
Collectively evaluated for impairment			242,000			59,644			745,073			43,232			7,835			465,713			1,563,497
Acquired loans - PCI			315			—			1,085			15			26			—			1,441
Total loans		$	243,222		$	59,644		$	747,487		$	43,275		$	7,861		$	465,713		$	1,567,202

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

Loans by credit quality indicators as of September 30, 2022 were as follows:

Special

Substandard

(Dollars in thousands)

Pass

Mention

Substandard

Nonaccrual

Total¹

Real estate – residential mortgage

$

241,592

$

469

$

841

$

320

$

243,222

Real estate – construction:

Construction lending

48,911

—

—

—

48,911

Consumer lot lending

10,733

—

—

—

10,733

Commercial, financial and agricultural:

Commercial real estate lending

559,515

692

5,899

1,329

567,435

Land acquisition and development lending

35,380

—

—

—

35,380

Builder line lending

29,189

—

—

—

29,189

Commercial business lending

115,483

—

—

—

115,483

Equity lines

43,156

3

5

111

43,275

Consumer

7,859

1

—

1

7,861

$

1,091,818

$

1,165

$

6,745

$

1,761

$

1,101,489

1	At September 30, 2022, the Corporation did not have any loans classified as Doubtful or Loss.


					Non-
(Dollars in thousands)		Performing			Performing			Total
Consumer finance:
Automobiles		$	404,165		$	543		$	404,708
Marine and recreational vehicles			61,005			—			61,005
		$	465,170		$	543		$	465,713

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