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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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

839

362

4,250

5,451

Loans charged off

(16)

(240)

(9,306)

(9,562)

Recoveries of loans previously charged off

144

136

3,070

3,350

Balance at September 30, 2023

$

12,164

$

3,695

$

24,389

$

40,248


		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

Schedule of breakdown of provision for credit losses


		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)		2023			2022			2023			2022
Provision for credit losses:
Provision for loans		$	2,100		$	1,200		$	5,451		$	1,402
Provision for unfunded commitments			(50)			—			349			—
Total		$	2,050		$	1,200		$	5,800		$	1,402

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		$	64,729		$	124,701		$	155,982		$	107,937		$	38,611		$	146,396		$	—		$	119		$	638,475
Special Mention			—			—			5,763			—			—			965			—			—			6,728
Substandard Nonaccrual			—			—			—			—			—			264			—			—			264
Total		$	64,729		$	124,701		$	161,745		$	107,937		$	38,611		$	147,625		$	—		$	119		$	645,467

Commercial business:
Loan Rating
Pass		$	17,317		$	19,330		$	18,728		$	14,045		$	15,376		$	14,196		$	19,496		$	88		$	118,576
Special Mention			65			—			—			—			—			—			—			—			65
Total		$	17,382		$	19,330		$	18,728		$	14,045		$	15,376		$	14,196		$	19,496		$	88		$	118,641

Construction - commercial real estate:
Loan Rating
Pass		$	23,177		$	30,632		$	1,150		$	8,035		$	—		$	—		$	—		$	—		$	62,994
Total		$	23,177		$	30,632		$	1,150		$	8,035		$	—		$	—		$	—		$	—		$	62,994

Land acquisition and development:
Loan Rating
Pass		$	1,049		$	6,062		$	10,969		$	9,992		$	—		$	328		$	—		$	—		$	28,400
Total		$	1,049		$	6,062		$	10,969		$	9,992		$	—		$	328		$	—		$	—		$	28,400

Builder lines:
Loan Rating
Pass		$	16,390		$	9,202		$	4,585		$	—		$	404		$	—		$	206		$	—		$	30,787
Total		$	16,390		$	9,202		$	4,585		$	—		$	404		$	—		$	206		$	—		$	30,787

Construction - consumer real estate:
Loan Rating
Pass		$	5,543		$	5,735		$	768		$	—		$	—		$	—		$	—		$	—		$	12,046
Total		$	5,543		$	5,735		$	768		$	—		$	—		$	—		$	—		$	—		$	12,046

Residential mortgage:
Loan Rating
Pass		$	48,024		$	93,630		$	45,721		$	42,276		$	11,828		$	48,123		$	—		$	—		$	289,602
Special Mention			—			—			4			—			—			96			—			—			100
Substandard			—			—			—			104			—			378			—			—			482
Substandard Nonaccrual			—			—			—			—			—			141			—			—			141
Total		$	48,024		$	93,630		$	45,725		$	42,380		$	11,828		$	48,738		$	—		$	—		$	290,325

Equity lines:
Loan Rating
Pass		$	—		$	—		$	35		$	70		$	—		$	878		$	46,680		$	299		$	47,962
Substandard			—			—			—			—			5			—			—			—			5
Substandard Nonaccrual			—			—			—			—			—			9			—			51			60
Total		$	—		$	—		$	35		$	70		$	5		$	887		$	46,680		$	350		$	48,027

Other consumer:
Loan Rating
Pass		$	4,856		$	3,061		$	717		$	329		$	227		$	627		$	50		$	—		$	9,867
Total		$	4,856		$	3,061		$	717		$	329		$	227		$	627		$	50		$	—		$	9,867

Total:
Loan Rating
Pass		$	181,085		$	292,353		$	238,655		$	182,684		$	66,446		$	210,548		$	66,432		$	506		$	1,238,709
Special Mention			65			—			5,767			—			—			1,061			—			—			6,893
Substandard			—			—			—			104			5			378			—			—			487
Substandard Nonaccrual			—			—			—			—			—			414			—			51			465
Total		$	181,150		$	292,353		$	244,422		$	182,788		$	66,451		$	212,401		$	66,432		$	557		$	1,246,554

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

$

7,814

$

13,655

$

4,904

$

1,170

$

338

$

34

$

—

$

—

$

27,915

Good

26,830

46,654

17,211

3,913

1,391

456

—

—

96,455

Fairly good

36,253

60,018

29,527

7,068

4,816

2,061

—

—

139,743

Fair

24,257

40,299

24,503

7,973

5,854

2,676

—

—

105,562

Marginal

5,538

9,690

8,647

3,733

3,410

2,461

—

—

33,479

Total

$

100,692

$

170,316

$

84,792

$

23,857

$

15,809

$

7,688

$

—

$

—

$

403,154

Consumer finance - marine and recreational vehicles:

Credit rating

Very good

$

6,475

$

15,774

$

10,291

$

10,386

$

2,654

$

2,556

$

—

$

—

$

48,136

Good

6,942

8,280

1,712

1,461

425

466

—

—

19,286

Fairly good

267

225

38

31

—

38

—

—

599

Total

$

13,684

$

24,279

$

12,041

$

11,878

$

3,079

$

3,060

$

—

$

—

$

68,021

Total:

Credit rating

Very good

$

14,289

$

29,429

$

15,195

$

11,556

$

2,992

$

2,590

$

—

$

—

$

76,051

Good

33,772

54,934

18,923

5,374

1,816

922

—

—

115,741

Fairly good

36,520

60,243

29,565

7,099

4,816

2,099

—

—

140,342

Fair

24,257

40,299

24,503

7,973

5,854

2,676

—

—

105,562

Marginal

5,538

9,690

8,647

3,733

3,410

2,461

—

—

33,479

Total

$

114,376

$

194,595

$

96,833

$

35,735

$

18,888

$

10,748

$

—

$

—

$

471,175


																							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			199			25			—			3			2			3			—			—			232
Consumer finance - automobiles			490			4,396			2,628			583			477			567			—			—			9,141
Consumer finance - marine and recreational vehicles			—			82			—			40			6			37			—			—			165
Total		$	689		$	4,519		$	2,628		$	626		$	485		$	615		$	—		$	—		$	9,562

1	Gross charge-offs of other consumer loans for the nine months ended September 30, 2023 included $199,000 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