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Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for Credit Losses

Schedule of changes in the allowance for credit and loan losses

Consumer

(Dollars in thousands)

Commercial

Consumer

Finance

Total

Allowance for credit losses:

Balance at December 31, 2022

11,219

3,330

25,969

40,518

Impact of ASC 326 adoption on non-PCD loans

(617)

406

(113)

Impact of ASC 326 adoption on PCD loans

595

—

604

Provision charged to operations

233

117

1,600

1,950

Loans charged off

(16)

(89)

(3,108)

(3,213)

Recoveries of loans previously charged off

1,008

1,088

Balance at March 31, 2023

11,449

3,510

25,875

40,834


	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		(38)		37		(636)		(49)		8		350		(328)
Loans charged off		—		—		(11)		—		(48)		(1,313)		(1,372)
Recoveries of loans previously charged off		6		—		2		—		32		1,271		1,311
Balance at March 31, 2022	$	2,628	$	893	$	10,440	$	544	$	164	$	25,099	$	39,768

Schedule of breakdown of provision for credit losses


	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Provision for credit losses:
Provision (recovery) for loans	$	1,950	$	(328)
Provision for unfunded commitments		100		—
Total	$	2,050	$	(328)

Schedule of loans by credit quality indicators


													Revolving				Revolving
	Term Loans Amortized Cost Basis by Origination Year												Loans				Loans
													Amortized				Converted
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Total		to Term
Commercial real estate:
Loan Rating
Pass	$	38,598	$	127,916	$	153,349	$	86,593	$	42,784	$	158,278	$	—	$	607,518	$	—
Special Mention		—		—		—		—		—		1,024		—		1,024		—
Substandard		—		—		5,814		—		—		264		—		6,078		—
Total	$	38,598	$	127,916	$	159,163	$	86,593	$	42,784	$	159,566	$	—	$	614,620	$	—

Commercial business:
Loan Rating
Pass	$	3,737	$	21,039	$	19,697	$	14,620	$	15,926	$	16,243	$	23,388	$	114,650	$	—
Substandard		72		—		—		—		—		—		—		72		—
Total	$	3,809	$	21,039	$	19,697	$	14,620	$	15,926	$	16,243	$	23,388	$	114,722	$	—

Construction - commercial real estate:
Loan Rating
Pass	$	2,731	$	12,088	$	6,507	$	32,475	$	—	$	—	$	—	$	53,801	$	—
Total	$	2,731	$	12,088	$	6,507	$	32,475	$	—	$	—	$	—	$	53,801	$	—

Land acquisition and development:
Loan Rating
Pass	$	—	$	17,477	$	11,621	$	9,975	$	—	$	1,141	$	—	$	40,214	$	—
Total	$	—	$	17,477	$	11,621	$	9,975	$	—	$	1,141	$	—	$	40,214	$	—

Builder lines:
Loan Rating
Pass	$	3,947	$	23,251	$	5,066	$	—	$	404	$	—	$	—	$	32,668	$	—
Total	$	3,947	$	23,251	$	5,066	$	—	$	404	$	—	$	—	$	32,668	$	—

Construction - consumer real estate:
Loan Rating
Pass	$	610	$	10,793	$	1,149	$	—	$	—	$	—	$	—	$	12,552	$	—
Total	$	610	$	10,793	$	1,149	$	—	$	—	$	—	$	—	$	12,552	$	—

Residential mortgage:
Loan Rating
Pass	$	20,088	$	98,376	$	47,269	$	45,164	$	12,461	$	53,566	$	—	$	276,924	$	—
Special Mention		—		—		—		—		—		246		—		246		—
Substandard		—		—		—		105		—		677		—		782		—
Substandard Nonaccrual		—		—		—		—		—		154		—		154		—
Total	$	20,088	$	98,376	$	47,269	$	45,269	$	12,461	$	54,643	$	—	$	278,106	$	—

Equity lines:
Loan Rating
Pass	$	—	$	—	$	—	$	70	$	—	$	1,060	$	42,164	$	43,294	$	101
Special Mention		—		—		36		—		—		—		—		36		—
Substandard		—		—		—		—		5		—		—		5		—
Substandard Nonaccrual		—		—		—		—		—		108		—		108		—
Total	$	—	$	—	$	36	$	70	$	5	$	1,168	$	42,164	$	43,443	$	101

Other consumer:
Loan Rating
Pass	$	864	$	4,005	$	979	$	552	$	359	$	1,106	$	46	$	7,911	$	—
Total	$	864	$	4,005	$	979	$	552	$	359	$	1,106	$	46	$	7,911	$	—

Total:
Loan Rating
Pass	$	70,575	$	314,945	$	245,637	$	189,449	$	71,934	$	231,394	$	65,598	$	1,189,532	$	101
Special Mention		—		—		36		—		—		1,270		—		1,306		—
Substandard		72		—		5,814		105		5		941		—		6,937		—
Substandard Nonaccrual		—		—		—		—		—		262		—		262		—
Total	$	70,647	$	314,945	$	251,487	$	189,554	$	71,939	$	233,867	$	65,598	$	1,198,037	$	101

Revolving

Term Loans Amortized Cost Basis by Origination Year

Loans

Amortized

Converted

(Dollars in thousands)

2023

2022

2021

2020

2019

Prior

Cost Basis

Total

to Term

Consumer finance - automobiles:

Credit rating

Very good

2,369

16,535

6,155

1,599

547

—

27,288

—

Good

9,673

55,759

21,174

5,085

1,987

792

—

94,470

—

Fairly good

13,069

70,481

36,142

9,404

6,831

3,670

—

139,597

—

Fair

7,722

48,092

29,599

10,493

8,258

4,754

—

108,918

—

Marginal

2,083

11,971

11,021

4,794

4,845

4,363

—

39,077

—

Total

34,916

202,838

104,091

31,375

22,468

13,662

—

409,350

—

Consumer finance - marine and recreational vehicles:

Credit rating

Very good

1,446

17,371

11,459

11,807

3,121

3,108

—

48,312

—

Good

3,358

9,101

1,811

1,657

494

541

—

16,962

—

Fairly good

149

274

—

534

—

Total

4,953

26,746

13,309

13,497

3,615

3,688

—

65,808

—

Total:

Credit rating

Very good

3,815

33,906

17,614

13,406

3,668

3,191

—

75,600

—

Good

13,031

64,860

22,985

6,742

2,481

1,333

—

111,432

—

Fairly good

13,218

70,755

36,181

9,437

6,831

3,709

—

140,131

—

Fair

7,722

48,092

29,599

10,493

8,258

4,754

—

108,918

—

Marginal

2,083

11,971

11,021

4,794

4,845

4,363

—

39,077

—

Total

39,869

229,584

117,400

44,872

26,083

17,350

—

475,158

—


													Revolving				Revolving
	Current Period Gross Charge-offs by Origination Year												Loans				Loans
													Amortized				Converted
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Total		to Term
Commercial business	$	—	$	16	$	—	$	—	$	—	$	—	$	—	$	16	$	—
Construction - consumer real estate		—		—		—		—		—		—		8		8		—
Other consumer¹		81		—		—		—		—		—		—		81		—
Consumer finance - automobiles		—		1,384		938		320		135		285		—		3,062		—
Consumer finance - marine and recreational vehicles		—		46		—		—		—		—		—		46		—
Total	$	81	$	1,446	$	938	$	320	$	135	$	285	$	8	$	3,213	$	—

1	Gross charge-offs of other consumer loans for the three months ended March 31, 2023 included $81,000 of demand deposit overdrafts that originated in 2023.


			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total¹
Residential mortgage	$	264,891	$	518	$	702	$	156	$	266,267
Real estate – construction:
Construction - commercial real estate		49,136		—		—		—		49,136
Construction - consumer real estate		10,539		—		—		—		10,539
Commercial, financial and agricultural:
Commercial real estate		585,707		738		5,856		—		592,301
Land acquisition and development		37,537		—		—		—		37,537
Builder lines		34,538		—		—		—		34,538
Commercial business		118,605		—		—		—		118,605
Equity lines		43,147		40		5		108		43,300
Other consumer		8,747		191		—		—		8,938
	$	1,152,847	$	1,487	$	6,563	$	264	$	1,161,161

1	At December 31, 2022, the Corporation did not have any loans classified as Doubtful or Loss.


			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance:
Automobiles	$	410,270	$	842	$	411,112
Marine and recreational vehicles		63,362		83		63,445
	$	473,632	$	925	$	474,557

Schedule of balance of the allowance for loan losses and the allowance by impairment methodology

The following table presents, as of December 31, 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	$	51	$	—	$	—	$	—	$	—	$	—	$	51
Collectively evaluated for impairment		2,571		788		10,431		497		211		25,969		40,467
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,622	$	788	$	10,431	$	497	$	211	$	25,969	$	40,518
Loans:
Individually evaluated for impairment	$	797	$	—	$	—	$	26	$	—	$	—	$	823
Collectively evaluated for impairment		265,170		59,675		781,867		43,259		8,912		474,557		1,633,440
Acquired loans - PCI		300		—		1,114		15		26		—		1,455
Total loans	$	266,267	$	59,675	$	782,981	$	43,300	$	8,938	$	474,557	$	1,635,718