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Loans | 9 Months Ended
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Sep. 30, 2023
Loans |
Loans | ​ NOTE 3: Loans ​ On January 1, 2023, the Corporation adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update see Note 1. All loan information presented as of September 30, 2023 is in accordance with ASC 326. All loan information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. ​ The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Corporation has elected to exclude accrued interest receivable, totaling $7.19 million at September 30, 2023, from the recorded balance of loans. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31,
(Dollars in thousands) |  | 2023 |  | 2022
Commercial real estate | ​ | $ | 645,467 | ​ | $ | 592,301
Commercial business | ​ |  | 118,641 | ​ |  | 118,605
Construction - commercial real estate | ​ |  | 62,994 | ​ |  | 49,136
Land acquisition and development | ​ |  | 28,400 | ​ |  | 37,537
Builder lines | ​ |  | 30,787 | ​ |  | 34,538
Construction - consumer real estate | ​ | ​ | 12,046 | ​ | ​ | 10,539
Residential mortgage | ​ | ​ | 290,325 | ​ | ​ | 266,267
Equity lines | ​ | ​ | 48,027 | ​ | ​ | 43,300
Other consumer | ​ | ​ | 9,867 | ​ | ​ | 8,938
Consumer finance - automobiles | ​ | ​ | 403,154 | ​ | ​ | 411,112
Consumer finance - marine and recreational vehicles | ​ |  | 68,021 | ​ |  | 63,445
Subtotal | ​ |  | 1,717,729 | ​ |  | 1,635,718
Less allowance for credit losses | ​ |  | (40,248) | ​ |  | (40,518)
Loans, net | ​ | $ | 1,677,481 | ​ | $ | 1,595,200
​ Other consumer loans included $207,000 and $284,000 of demand deposit overdrafts at September 30, 2023 and December 31, 2022, respectively. ​ The following table shows the aging of the Corporation’s loan portfolio, by class, at September 30, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 30-59 | ​ | 60-89 | ​ | 90+ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 90+ Days
​ | ​ | Days | ​ | Days | ​ | Days | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Past Due and
(Dollars in thousands) |  | Past Due | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | Current1 | ​ | Total Loans | ​ | Accruing
Commercial real estate | ​ | $ | 614 | ​ | $ | — | ​ | $ | 424 | ​ | $ | 1,038 | ​ | $ | 644,429 | ​ | $ | 645,467 | ​ | $ | 160
Commercial business | ​ |  | 52 | ​ | ​ | 30 | ​ | ​ | — | ​ | ​ | 82 | ​ | ​ | 118,559 | ​ | ​ | 118,641 | ​ | ​ | —
Construction - commercial real estate | ​ |  | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 62,994 | ​ | ​ | 62,994 | ​ | ​ | —
Land acquisition and development | ​ |  | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 28,400 | ​ | ​ | 28,400 | ​ | ​ | —
Builder lines | ​ |  | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 30,787 | ​ | ​ | 30,787 | ​ | ​ | —
Construction - consumer real estate | ​ | ​ | 282 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 282 | ​ | ​ | 11,764 | ​ | ​ | 12,046 | ​ | ​ | —
Residential mortgage | ​ | ​ | 633 | ​ | ​ | 71 | ​ | ​ | 280 | ​ | ​ | 984 | ​ | ​ | 289,341 | ​ | ​ | 290,325 | ​ | ​ | 280
Equity lines | ​ | ​ | 268 | ​ | ​ | 9 | ​ | ​ | 51 | ​ | ​ | 328 | ​ | ​ | 47,699 | ​ | ​ | 48,027 | ​ | ​ | —
Other consumer | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,867 | ​ | ​ | 9,867 | ​ | ​ | —
Consumer finance - automobiles | ​ | ​ | 12,233 | ​ | ​ | 2,121 | ​ | ​ | 831 | ​ | ​ | 15,185 | ​ | ​ | 387,969 | ​ | ​ | 403,154 | ​ | ​ | —
Consumer finance - marine and recreational vehicles | ​ |  | 301 | ​ | ​ | — | ​ | ​ | 80 | ​ | ​ | 381 | ​ | ​ | 67,640 | ​ | ​ | 68,021 | ​ | ​ | —
Total | ​ | $ | 14,383 | ​ | $ | 2,231 | ​ | $ | 1,666 | ​ | $ | 18,280 | ​ | $ | 1,699,449 | ​ | $ | 1,717,729 | ​ | $ | 440
1 | For the purposes of the table above, “Current” includes loans that are 1-29 days past due. |
​ The table above includes nonaccrual loans that are current of $141,000, 60-89 days past due of $9,000 and 90+ days past due of $1.23 million. ​ The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of September 30, 2023 and December 31, 2022. The Corporation recognized no interest income on loans on nonaccrual status as of September 30, 2023 and had no reversals and $14,000 of reversals of interest income upon placing loans on nonaccrual status during the three and nine months ended September 30, 2023, respectively. All nonaccrual loans at September 30, 2023 had an allowance for credit losses. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31,
(Dollars in thousands) |  | 2023 | ​ | 2022
Commercial real estate | ​ | $ | 264 | ​ | $ | —
Residential mortgage | ​ | ​ | 141 | ​ | ​ | 156
Equity lines | ​ | ​ | 60 | ​ | ​ | 108
Consumer finance - automobiles | ​ | ​ | 831 | ​ | ​ | 842
Consumer finance - marine and recreational vehicles | ​ | ​ | 80 | ​ | ​ | 83
Total | ​ | $ | 1,376 | ​ | $ | 1,189
​ Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported. ​ The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2023 | ​ | ​ | ​ | Nine Months Ended September 30, 2023 | ​
​ | ​ | ​ | ​ | % of Total | ​ | ​ | ​ | ​ | ​ | % of Total | ​
​ | ​ | ​ | ​ | Class of | ​ | ​ | ​ | ​ | ​ | Class of | ​
​ | ​ | Amortized | ​ | Financing | ​ | ​ | ​ | Amortized | ​ | Financing | ​
(Dollars in thousands) |  | Cost | ​ | Receivable | ​ | ​ | ​ | Cost | ​ | Receivable | ​
Term Extension | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial real estate | ​ | $ | 969 | ​ | ​ | 0.2 | % | ​ | ​ | $ | 969 | ​ | ​ | 0.2 | %
Residential mortgage | ​ | ​ | 71 | ​ | ​ | 0.0 | ​ | ​ | ​ | ​ | 71 | ​ | ​ | 0.0 | ​
Total Term Extension | ​ | $ | 1,040 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,040 | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Combination Term Extension and Interest Rate Reduction | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial real estate | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ​ | ​ | 45 | ​ | ​ | 0.0 | ​
Total Combination Term Extension and Interest Rate Reduction | ​ | $ | — | ​ | ​ | ​ | ​ | ​ | ​ | $ | 45 | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total | ​ | $ | 1,040 | ​ | ​ | 0.1 | % | ​ | ​ | $ | 1,085 | ​ | ​ | 0.1 | %
​ The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2023 | ​ | ​ | Nine Months Ended September 30, 2023
​ | ​ | Weighted- | ​ | Weighted- | ​ | ​ | Weighted- | ​ | Weighted-
​ | ​ | Average | ​ | Average | ​ | ​ | Average | ​ | Average
​ | ​ | Interest Rate | ​ | Term Extension | ​ | ​ | Interest Rate | ​ | Term Extension
(Dollars in thousands) |  | Reduction | ​ | (in years) | ​ | ​ | Reduction | ​ | (in years)
Commercial real estate | ​ | ​ | — | % | ​ | 2.0 | ​ |  | ​ | 0.75 | % | ​ | 2.1
Residential mortgage | ​ | ​ | — | ​ | ​ | 10.0 | ​ | ​ | ​ | — | ​ | ​ | 10.0
Total | ​ | ​ | — | % | ​ | 2.5 | ​ | ​ | ​ | 0.75 | % | ​ | 2.6
​ The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the three and nine months ended September 30, 2023 of modified loans that were modified during the previous twelve months and all were current as of September 30, 2023. ​ Prior to the adoption of ASC 326 ​ Loans acquired in business combinations are recorded in the Consolidated Balance Sheets at fair value at the acquisition date under the acquisition method of accounting. The outstanding principal balance and the carrying amount at December 31, 2022 of loans acquired in business combinations were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022 | ​
​ |  | Acquired Loans - |  | Acquired Loans - |  | ​ | ​ |
​ | ​ | Purchased | ​ | Purchased | ​ | Acquired Loans - |
(Dollars in thousands) | ​ | Credit Impaired | ​ | Performing | ​ | Total |
Outstanding principal balance | ​ | $ | 4,522 | ​ | $ | 38,157 | ​ | $ | 42,679 | ​
Carrying amount | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Real estate – residential mortgage | ​ | $ | 300 | ​ | $ | 8,587 | ​ | $ | 8,887 | ​
Real estate – construction | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​
Commercial, financial and agricultural1 | ​ |  | 1,114 | ​ |  | 23,023 | ​ |  | 24,137 | ​
Equity lines | ​ |  | 15 | ​ |  | 5,047 | ​ |  | 5,062 | ​
Consumer | ​ |  | 26 | ​ |  | 755 | ​ |  | 781 | ​
Total acquired loans | ​ | $ | 1,455 | ​ | $ | 37,412 | ​ | $ | 38,867 | ​
1 | Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.
​ The following table presents a summary of the change in the accretable yield of loans classified as PCI: ​
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Nine Months Ended | ​
(Dollars in thousands) |  | September 30, 2022 |
Accretable yield, balance at beginning of period | ​ | $ | 3,111 | ​
Accretion | ​ |  | (1,270) | ​
Reclassification of nonaccretable difference due to improvement in expected cash flows | ​ |  | 1,603 | ​
Other changes, net | ​ |  | 178 | ​
Accretable yield, balance at end of period | ​ | $ | 3,622 | ​
​ The past due status of loans as of December 31, 2022 was as follows: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | 90+ Days |
​ | ​ | 30 - 59 Days | ​ | 60 - 89 Days | ​ | 90+ Days | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Past Due and |
(Dollars in thousands) | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | PCI | ​ | Current1 | ​ | Total Loans | ​ | Accruing |
Residential mortgage | ​ | $ | 1,649 | ​ | $ | 452 | ​ | $ | 20 | ​ | $ | 2,121 | ​ | $ | 300 | ​ | $ | 263,846 | ​ | $ | 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 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ | ​ | 1,114 | ​ |  | 591,187 | ​ |  | 592,301 | ​ |  | — | ​
Land acquisition and development | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ | ​ | — | ​ |  | 37,537 | ​ |  | 37,537 | ​ |  | — | ​
Builder lines | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ | ​ | — | ​ |  | 34,538 | ​ |  | 34,538 | ​ |  | — | ​
Commercial business | ​ |  | — | ​ |  | 1 | ​ |  | — | ​ |  | 1 | ​ | ​ | — | ​ |  | 118,604 | ​ |  | 118,605 | ​ |  | — | ​
Equity lines | ​ |  | — | ​ |  | 39 | ​ |  | — | ​ |  | 39 | ​ | ​ | 15 | ​ |  | 43,246 | ​ |  | 43,300 | ​ |  | — | ​
Other consumer | ​ |  | 9 | ​ |  | — | ​ |  | 191 | ​ |  | 200 | ​ | ​ | 26 | ​ |  | 8,712 | ​ |  | 8,938 | ​ |  | 191 | ​
Consumer finance: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Automobiles | ​ | ​ | 10,557 | ​ | ​ | 1,570 | ​ | ​ | 842 | ​ | ​ | 12,969 | ​ | ​ | — | ​ | ​ | 398,143 | ​ | ​ | 411,112 | ​ | ​ | — | ​
Marine and recreational vehicles | ​ |  | 114 | ​ |  | 35 | ​ |  | 83 | ​ |  | 232 | ​ | ​ | — | ​ |  | 63,213 | ​ |  | 63,445 | ​ |  | — | ​
Total | ​ | $ | 12,329 | ​ | $ | 2,097 | ​ | $ | 1,136 | ​ | $ | 15,562 | ​ | $ | 1,455 | ​ | $ | 1,618,701 | ​ | $ | 1,635,718 | ​ | $ | 191 | ​
1For the purposes of the table above, “Current” includes loans that are 1-29 days past due. ​ The table above includes nonaccrual loans that are current of $244,000 and 90+ days past due of $945,000. ​ There were no loan modifications during the three and nine months ended September 30, 2022 that were classified as TDRs. There were no TDR payment defaults during the three and nine months ended September 30, 2022. ​ Impaired loans, which included TDRs of $823,000, and the related allowance at December 31, 2022 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
​ | ​ | ​ | ​ | Recorded | ​ | Recorded | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | ​ | ​ | Investment | ​ | Investment | ​ | ​ | ​ | Average | ​ | ​ |
​ | ​ | Unpaid | ​ | in Loans | ​ | in Loans | ​ | ​ | ​ | Balance- | ​ | Interest | ​
​ | ​ | Principal | ​ | without | ​ | with | ​ | Related | ​ | Impaired | ​ | Income | ​
(Dollars in thousands) | ​ | Balance | ​ | Specific Reserve | ​ | Specific Reserve | ​ | Allowance | ​ | Loans | ​ | Recognized |
Real estate – residential mortgage | ​ | $ | 797 | ​ | $ | 36 | ​ | $ | 761 | ​ | $ | 51 | ​ | $ | 806 | ​ | $ | 35 | ​
Equity lines | ​ |  | 26 | ​ |  | 26 | ​ |  | — | ​ |  | — | ​ |  | 28 | ​ |  | 2 | ​
Total | ​ | $ | 823 | ​ | $ | 62 | ​ | $ | 761 | ​ | $ | 51 | ​ | $ | 834 | ​ | $ | 37 | ​
​ ​ ​ ​ ​

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + 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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