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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 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)

98

406

(113)

Impact of ASC 326 adoption on PCD loans

595

9

—

604

Provision charged to operations

432

219

2,700

3,351

Loans charged off

(16)

(157)

(5,934)

(6,107)

Recoveries of loans previously charged off

125

104

2,046

2,275

Balance at June 30, 2023

$

11,738

$

3,603

$

25,187

$

40,528


		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			(118)			116			(657)			(71)			62			870			202
Loans charged off			—			—			(11)			—			(116)			(2,322)			(2,449)
Recoveries of loans previously charged off			11			—			5			2			62			2,529			2,609
Balance at June 30, 2022		$	2,553		$	972		$	10,422		$	524		$	180		$	25,868		$	40,519

Schedule of breakdown of provision for credit losses


		Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)		2023			2022			2023			2022
Provision for credit losses:
Provision for loans		$	1,401		$	530		$	3,351		$	202
Provision for unfunded commitments			299			—			399			—
Total		$	1,700		$	530		$	3,750		$	202

Schedule of loans by credit quality indicators


																				Revolving			Revolving
		Term Loans Recorded Balance by Origination Year																		Loans			Loans
																				Recorded			Converted
(Dollars in thousands)		2023			2022			2021			2020			2019			Prior			Balance			to Term			Total
Commercial real estate:
Loan Rating
Pass		$	52,621		$	125,117		$	151,434		$	102,745		$	39,879		$	151,039		$	—		$	122		$	622,957
Special Mention			—			—			—			—			—			1,014			—			—			1,014
Substandard			—			—			5,783			—			—			—			—			—			5,783
Substandard Nonaccrual			—			—			—			—			—			264			—			—			264
Total		$	52,621		$	125,117		$	157,217		$	102,745		$	39,879		$	152,317		$	—		$	122		$	630,018

Commercial business:
Loan Rating
Pass		$	11,826		$	19,822		$	19,342		$	14,198		$	15,861		$	15,002		$	18,580		$	89		$	114,720
Special Mention			—			—			—			—			—			369			—			2,348			2,717
Substandard			68			—			—			—			—			—			—			—			68
Total		$	11,894		$	19,822		$	19,342		$	14,198		$	15,861		$	15,371		$	18,580		$	2,437		$	117,505

Construction - commercial real estate:
Loan Rating
Pass		$	11,722		$	19,456		$	7,179		$	15,263		$	—		$	—		$	—		$	—		$	53,620
Total		$	11,722		$	19,456		$	7,179		$	15,263		$	—		$	—		$	—		$	—		$	53,620

Land acquisition and development:
Loan Rating
Pass		$	—		$	13,107		$	9,306		$	9,991		$	—		$	703		$	—		$	—		$	33,107
Total		$	—		$	13,107		$	9,306		$	9,991		$	—		$	703		$	—		$	—		$	33,107

Builder lines:
Loan Rating
Pass		$	10,906		$	13,183		$	5,217		$	—		$	404		$	—		$	147		$	—		$	29,857
Total		$	10,906		$	13,183		$	5,217		$	—		$	404		$	—		$	147		$	—		$	29,857

Construction - consumer real estate:
Loan Rating
Pass		$	2,798		$	7,254		$	1,490		$	—		$	—		$	—		$	—		$	—		$	11,542
Total		$	2,798		$	7,254		$	1,490		$	—		$	—		$	—		$	—		$	—		$	11,542

Residential mortgage:
Loan Rating
Pass		$	32,483		$	95,925		$	46,248		$	43,763		$	12,240		$	50,495		$	—		$	—		$	281,154
Special Mention			—			—			—			—			—			117			—			—			117
Substandard			—			—			—			104			—			587			—			—			691
Substandard Nonaccrual			—			—			—			—			—			149			—			—			149
Total		$	32,483		$	95,925		$	46,248		$	43,867		$	12,240		$	51,348		$	—		$	—		$	282,111

Equity lines:
Loan Rating
Pass		$	—		$	—		$	35		$	71		$	—		$	904		$	44,072		$	216		$	45,298
Substandard			—			—			—			—			5			—			—			—			5
Substandard Nonaccrual			—			—			—			—			—			107			—			—			107
Total		$	—		$	—		$	35		$	71		$	5		$	1,011		$	44,072		$	216		$	45,410

Other consumer:
Loan Rating
Pass		$	2,966		$	3,504		$	820		$	445		$	298		$	713		$	43		$	3		$	8,792
Total		$	2,966		$	3,504		$	820		$	445		$	298		$	713		$	43		$	3		$	8,792

Total:
Loan Rating
Pass		$	125,322		$	297,368		$	241,071		$	186,476		$	68,682		$	218,856		$	62,842		$	430		$	1,201,047
Special Mention			—			—			—			—			—			1,500			—			2,348			3,848
Substandard			68			—			5,783			104			5			587			—			—			6,547
Substandard Nonaccrual			—			—			—			—			—			520			—			—			520
Total		$	125,390		$	297,368		$	246,854		$	186,580		$	68,687		$	221,463		$	62,842		$	2,778		$	1,211,962

Revolving

Term Loans Recorded Balance by Origination Year

Loans

Revolving

Converted

(Dollars in thousands)

2023

2022

2021

2020

2019

Prior

Loans

to Term

Total

Consumer finance - automobiles:

Credit rating

Very good

$

4,412

$

15,021

$

5,475

$

1,370

$

429

$

50

$

—

$

—

$

26,757

Good

19,020

50,982

19,170

4,450

1,669

603

—

—

95,894

Fairly good

25,949

65,156

32,484

8,148

5,768

2,802

—

—

140,307

Fair

18,049

44,159

26,862

9,189

6,950

3,658

—

—

108,867

Marginal

4,091

10,673

9,824

4,205

4,122

3,270

—

—

36,185

Total

$

71,521

$

185,991

$

93,815

$

27,362

$

18,938

$

10,383

$

—

$

—

$

408,010

Consumer finance - marine and recreational vehicles:

Credit rating

Very good

$

3,653

$

16,490

$

10,832

$

11,005

$

2,799

$

2,821

$

—

$

—

$

47,600

Good

5,702

8,683

1,782

1,595

460

511

—

—

18,733

Fairly good

307

270

38

32

—

38

—

—

685

Total

$

9,662

$

25,443

$

12,652

$

12,632

$

3,259

$

3,370

$

—

$

—

$

67,018

Total:

Credit rating

Very good

$

8,065

$

31,511

$

16,307

$

12,375

$

3,228

$

2,871

$

—

$

—

$

74,357

Good

24,722

59,665

20,952

6,045

2,129

1,114

—

—

114,627

Fairly good

26,256

65,426

32,522

8,180

5,768

2,840

—

—

140,992

Fair

18,049

44,159

26,862

9,189

6,950

3,658

—

—

108,867

Marginal

4,091

10,673

9,824

4,205

4,122

3,270

—

—

36,185

Total

$

81,183

$

211,434

$

106,467

$

39,994

$

22,197

$

13,753

$

—

$

—

$

475,028


																							Revolving
		Current Period Gross Charge-offs by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2023			2022			2021			2020			2019			Prior			Loans			to Term			Total
Commercial business		$	—		$	16		$	—		$	—		$	—		$	—		$	—		$	—		$	16
Equity lines			—			—			—			—			—			8			—			—			8
Other consumer¹			140			7			—			—			2			—			—			—			149
Consumer finance - automobiles			83			2,789			1,739			430			312			460			—			—			5,813
Consumer finance - marine and recreational vehicles			—			56			—			49			2			14			—			—			121
Total		$	223		$	2,868		$	1,739		$	479		$	316		$	482		$	—		$	—		$	6,107

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2023 included $139,000 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