Loans | LOANS Total net loans at March 31, 2021 and December 31, 2020 are summarized as follows: March 31, 2021 Percentage December 31, 2020 Percentage Farmland $ 24,066 0.7 % $ 23,316 0.7 % Owner-occupied, nonfarm nonresidential properties 408,355 12.0 % 407,924 12.1 % Agricultural production and other loans to farmers 3,519 0.1 % 2,664 0.1 % Commercial and Industrial 690,927 20.3 % 663,550 19.7 % Obligations (other than securities and leases) of states and political subdivisions 130,859 3.8 % 132,818 3.9 % Other loans 11,413 0.3 % 11,961 0.4 % Other construction loans and all land development and other land loans 221,012 6.5 % 205,734 6.1 % Multifamily (5 or more) residential properties 235,702 6.9 % 212,815 6.3 % Non-owner occupied, nonfarm nonresidential properties 622,765 18.3 % 640,945 19.0 % 1-4 Family Construction 23,667 0.7 % 27,768 0.8 % Home equity lines of credit 105,754 3.1 % 109,444 3.2 % Residential Mortgages secured by first liens 771,564 22.7 % 777,030 23.0 % Residential Mortgages secured by junior liens 53,014 1.6 % 53,726 1.6 % Other revolving credit plans 25,966 0.8 % 25,507 0.8 % Automobile 24,171 0.7 % 25,344 0.8 % Other consumer 40,120 1.2 % 42,792 1.3 % Credit cards 7,875 0.2 % 8,115 0.2 % Overdrafts 235 0.0 % 336 0.0 % Total loans $ 3,400,984 100.0 % $ 3,371,789 100.0 % Less: Allowance for credit losses (35,555) (34,340) Loans, net $ 3,365,429 $ 3,337,449 Net deferred loan origination fees (costs) included in the above loan table $ 10,889 $ 8,789 The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, and western New York. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors. As a result of the adoption of ASC 326 effective January 1, 2020, there is a lack of comparability in both the allowance and provisions for credit losses for the periods presented. Beginning with the quarter ended December 31, 2020, the Corporation adopted ASC 326 and subsequent results are presented using the current expected credit losses (“CECL”) methodology. Prior to the quarter ended December 31, 2020, the results are reported in accordance with the incurred loss methodology and have not been restated. Transactions in the allowance for credit losses for the three months ended March 31, 2021 were as follows: Beginning (Charge-offs) Recoveries Provision (Benefit) for Credit Loss Expense Ending Allowance Farmland $ 221 $ 0 $ 0 $ 3 $ 224 Owner-occupied, nonfarm nonresidential properties 3,700 (531) 2 (236) 2,935 Agricultural production and other loans to farmers 24 0 0 4 28 Commercial and Industrial 6,233 (56) 5 297 6,479 Obligations (other than securities and leases) of states and political subdivisions 998 0 0 717 1,715 Other loans 68 0 0 5 73 Other construction loans and all land development and other land loans 1,956 0 0 50 2,006 Multifamily (5 or more) residential properties 2,724 0 0 30 2,754 Non-owner occupied, nonfarm nonresidential properties 8,658 0 0 2,668 11,326 1-4 Family Construction 82 0 0 (15) 67 Home equity lines of credit 985 0 0 (142) 843 Residential Mortgages secured by first liens 4,539 (28) 31 (992) 3,550 Residential Mortgages secured by junior liens 241 0 0 (17) 224 Other revolving credit plans 507 (6) 2 24 527 Automobile 132 (5) 0 55 182 Other consumer 2,962 (315) 48 (321) 2,374 Credit cards 66 (33) 8 24 65 Overdrafts 244 (84) 55 (32) 183 Total loans $ 34,340 $ (1,058) $ 151 $ 2,122 $ 35,555 The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. For the three months ended March 31, 2021, the allowance for credit losses increased due to the addition of $2,349 in specific reserves related to three commercial loan relationships, partially offset by net charge offs of $907, which were primarily impacted by one commercial loan relationship. The Corporation did not have any significant changes in their assumptions to the key drivers of the allowance for credit losses during the period. Transactions in the allowance for loan losses for the three months ended March 31, 2020 under the incurred loss methodology were as follows: Commercial, Industrial Commercial Residential Consumer Credit Overdrafts Total Allowance for loan losses, January 1, 2020 $ 8,287 $ 6,952 $ 1,499 $ 2,411 $ 84 $ 240 $ 19,473 Charge-offs (25) 0 (143) (592) (31) (119) (910) Recoveries 18 172 3 43 1 36 273 Provision (benefit) for loan losses 2,252 368 99 276 58 26 3,079 Allowance for loan losses, March 31, 2020 $ 10,532 $ 7,492 $ 1,458 $ 2,138 $ 112 $ 183 $ 21,915 The following table presents information for impaired loans for the three months ended March 31, 2020: Three months ended March 31, 2020 Average Interest Cash Basis With an allowance recorded: Commercial, industrial and agricultural $ 4,272 $ 17 $ 17 Commercial mortgage 4,331 37 37 Residential real estate 463 5 5 With no related allowance recorded: Commercial, industrial and agricultural 7,161 42 42 Commercial mortgage 9,598 158 158 Residential real estate 0 0 0 Total $ 25,825 $ 259 $ 259 The following tables presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of March 31, 2021 and December 31, 2020, respectively: March 31, 2021 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 1,843 $ 50 $ 0 Owner-occupied, nonfarm nonresidential properties 1,482 1,179 0 Commercial and Industrial 6,477 587 884 Obligations (other than securities and leases) of states and political subdivisions 706 0 0 Other construction loans and all land development and other land loans 1,892 77 0 Multifamily (5 or more) residential properties 994 0 0 Non-owner occupied, nonfarm nonresidential properties 13,980 489 0 Home equity lines of credit 754 754 0 Residential Mortgages secured by first liens 3,283 3,283 76 Residential Mortgages secured by junior liens 100 100 0 Other revolving credit plans 17 17 0 Automobile 7 7 0 Other consumer 347 347 0 Credit cards 0 0 27 Total loans $ 31,882 $ 6,890 $ 987 December 31, 2020 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 1,844 $ 51 $ 0 Owner-occupied, nonfarm nonresidential properties 1,781 909 0 Commercial and Industrial 6,657 464 0 Other construction loans and all land development and other land loans 2,349 77 0 Multifamily (5 or more) residential properties 288 0 0 Non-owner occupied, nonfarm nonresidential properties 11,932 394 0 Home equity lines of credit 685 685 0 Residential Mortgages secured by first liens 4,175 3,495 283 Residential Mortgages secured by junior liens 114 114 0 Other revolving credit plans 6 6 0 Automobile 32 32 0 Other consumer 496 496 8 Credit cards 0 0 34 Total loans $ 30,359 $ 6,723 $ 325 All payments received while on nonaccrual status are applied against the principal balance of the loan. The Corporation does not recognize interest income while loans are on nonaccrual status. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2021: Real Estate Collateral Non-Real Estate Collateral Farmland $ 1,793 $ 0 Owner-occupied, nonfarm nonresidential properties 267 36 Commercial and Industrial 398 5,492 Obligations (other than securities and leases) of states and political subdivisions 706 0 Other construction loans and all land development and other land loans 1,815 0 Multifamily (5 or more) residential properties 994 0 Non-owner occupied, nonfarm nonresidential properties 11,747 158 Residential Mortgages secured by first liens 451 0 Total loans $ 18,171 $ 5,686 The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2020: Real Estate Collateral Non-Real Estate Collateral Farmland $ 1,793 $ 0 Owner-occupied, nonfarm nonresidential properties 285 587 Commercial and Industrial 594 5,600 Other construction loans and all land development and other land loans 2,272 0 Multifamily (5 or more) residential properties 288 0 Non-owner occupied, nonfarm nonresidential properties 9,072 880 Residential Mortgages secured by first liens 1,135 0 Total loans $ 15,439 $ 7,067 The following table presents the aging of the amortized cost basis in past-due loans as of March 31, 2021 by class of loans: 30 - 59 60 - 89 Greater Than 89 Total Past Due Loans Not Past Due Total Farmland $ 193 $ 0 $ 1,211 $ 1,404 $ 22,662 $ 24,066 Owner-occupied, nonfarm nonresidential properties 334 0 991 1,325 407,030 408,355 Agricultural production and other loans to farmers 0 0 0 0 3,519 3,519 Commercial and Industrial 1,064 1,045 4,281 6,390 684,537 690,927 Obligations (other than securities and leases) of states and political subdivisions 0 0 0 0 130,859 130,859 Other loans 0 0 0 0 11,413 11,413 Other construction loans and all land development and other land loans 0 0 1,453 1,453 219,559 221,012 Multifamily (5 or more) residential properties 209 0 0 209 235,493 235,702 Non-owner occupied, nonfarm nonresidential properties 0 312 10,233 10,545 612,220 622,765 1-4 Family Construction 0 0 0 0 23,667 23,667 Home equity lines of credit 33 178 98 309 105,445 105,754 Residential Mortgages secured by first liens 1,365 462 1,381 3,208 768,356 771,564 Residential Mortgages secured by junior liens 0 93 21 114 52,900 53,014 Other revolving credit plans 0 8 13 21 25,945 25,966 Automobile 55 0 5 60 24,111 24,171 Other consumer 211 99 166 476 39,644 40,120 Credit cards 17 26 27 70 7,805 7,875 Overdrafts 0 0 0 0 235 235 Total loans $ 3,481 $ 2,223 $ 19,880 $ 25,584 $ 3,375,400 $ 3,400,984 The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2020 by class of loans: 30 - 59 60 - 89 Greater Than 89 Total Past Due Loans Not Past Due Total Farmland $ 195 $ 0 $ 1,211 $ 1,406 $ 21,910 $ 23,316 Owner-occupied, nonfarm nonresidential properties 10 885 732 1,627 406,297 407,924 Agricultural production and other loans to farmers 0 0 0 0 2,664 2,664 Commercial and Industrial 476 335 3,887 4,698 658,852 663,550 Obligations (other than securities and leases) of states and political subdivisions 0 0 0 0 132,818 132,818 Other loans 0 0 0 0 11,961 11,961 Other construction loans and all land development and other land loans 0 0 1,917 1,917 203,817 205,734 Multifamily (5 or more) residential properties 0 0 0 0 212,815 212,815 Non-owner occupied, nonfarm nonresidential properties 314 156 10,184 10,654 630,291 640,945 1-4 Family Construction 0 0 0 0 27,768 27,768 Home equity lines of credit 166 235 486 887 108,557 109,444 Residential Mortgages secured by first liens 2,834 629 1,911 5,374 771,656 777,030 Residential Mortgages secured by junior liens 8 0 66 74 53,652 53,726 Other revolving credit plans 36 19 0 55 25,452 25,507 Automobile 73 0 9 82 25,262 25,344 Other consumer 246 132 245 623 42,169 42,792 Credit cards 72 39 34 145 7,970 8,115 Overdrafts 0 0 0 0 336 336 Total loans $ 4,430 $ 2,430 $ 20,682 $ 27,542 $ 3,344,247 $ 3,371,789 Troubled Debt Restructurings In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring. As of March 31, 2021 and December 31, 2020, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan; or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. The Corporation had an amortized cost in troubled debt restructurings of $17,105 and $15,088 as of March 31, 2021 and December 31, 2020, respectively. The Corporation has allocated $1,385 and $779 of allowance for those loans as of March 31, 2021 and December 31, 2020, respectively. The following table presents loans modified as TDRs during the three months ended March 31, 2021: Three Months Ended March 31, 2021 Number of Pre-Modification Post-Modification Multifamily (5 or more) residential properties 1 $ 717 $ 717 Non-owner occupied, nonfarm nonresidential properties 1 1,604 1,604 Total loans 2 $ 2,321 $ 2,321 There were no loans modified as troubled debt restructurings during the three months ended March 31, 2020. The troubled debt restructurings described above increased the allowance for credit losses by zero and zero during the three months ended March 31, 2021 and March 31, 2020, respectively. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the three months ended March 31, 2021 and March 31, 2020. There were no principal balances forgiven in connection with the loan restructurings. Generally, nonperforming troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Credit Quality Indicators The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually to classify the loans as to credit risk. The Corporation uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following tables detail the amortized cost of loans, by year of origination (for term loans) and by risk grade within each portfolio segment as of March 31, 2021. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Farmland Risk rating Pass $ 2,340 $ 1,609 $ 4,018 $ 3,686 $ 3,623 $ 5,112 $ 680 $ 0 $ 21,068 Special mention 0 1,156 0 0 0 0 0 0 1,156 Substandard 0 0 0 0 49 1,793 0 0 1,842 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 2,340 $ 2,765 $ 4,018 $ 3,686 $ 3,672 $ 6,905 $ 680 $ 0 $ 24,066 Owner-occupied, nonfarm nonresidential properties Risk rating Pass $ 21,542 $ 92,037 $ 97,475 $ 48,063 $ 54,569 $ 71,633 $ 8,211 $ 0 $ 393,530 Special mention 0 0 863 65 146 1,595 77 0 2,746 Substandard 0 996 2,401 2,006 384 6,035 257 0 12,079 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 21,542 $ 93,033 $ 100,739 $ 50,134 $ 55,099 $ 79,263 $ 8,545 $ 0 $ 408,355 Agricultural production and other loans to farmers Risk rating Pass $ 785 $ 217 $ 142 $ 599 $ 0 $ 53 $ 1,723 $ 0 $ 3,519 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 0 0 0 0 0 0 0 0 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 785 $ 217 $ 142 $ 599 $ 0 $ 53 $ 1,723 $ 0 $ 3,519 Commercial and Industrial Risk rating Pass $ 160,165 $ 209,202 $ 46,734 $ 35,707 $ 23,364 $ 28,812 $ 164,494 $ 0 $ 668,478 Special mention 0 110 980 3,544 223 1,223 939 0 7,019 Substandard 70 786 1,949 1,214 144 5,613 5,654 0 15,430 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 160,235 $ 210,098 $ 49,663 $ 40,465 $ 23,731 $ 35,648 $ 171,087 $ 0 $ 690,927 Obligations (other than securities and leases) of states and political subdivisions Risk rating Pass $ 69 $ 10,596 $ 12,163 $ 34,411 $ 20,742 $ 43,512 $ 8,660 $ 0 $ 130,153 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 706 0 0 0 0 0 0 706 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 69 $ 11,302 $ 12,163 $ 34,411 $ 20,742 $ 43,512 $ 8,660 $ 0 $ 130,859 Other loans Risk rating Pass $ 11 $ 7,855 $ 699 $ 366 $ 0 $ 0 $ 2,482 $ 0 $ 11,413 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 0 0 0 0 0 0 0 0 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 11 $ 7,855 $ 699 $ 366 $ 0 $ 0 $ 2,482 $ 0 $ 11,413 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Other construction loans and all land development and other land loans Risk rating Pass $ 9,167 $ 127,040 $ 54,770 $ 18,002 $ 1,035 $ 1,648 $ 3,088 $ 0 $ 214,750 Special mention 0 1,340 666 29 2,774 0 0 0 4,809 Substandard 0 0 0 0 0 1,376 77 0 1,453 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 9,167 $ 128,380 $ 55,436 $ 18,031 $ 3,809 $ 3,024 $ 3,165 $ 0 $ 221,012 Multifamily (5 or more) residential properties Risk rating Pass $ 45,945 $ 70,202 $ 33,892 $ 14,010 $ 48,845 $ 19,039 $ 2,566 $ 0 $ 234,499 Special mention 0 0 0 0 0 0 0 0 0 Substandard 717 6 0 276 204 0 0 0 1,203 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 46,662 $ 70,208 $ 33,892 $ 14,286 $ 49,049 $ 19,039 $ 2,566 $ 0 $ 235,702 Non-owner occupied, nonfarm nonresidential properties Risk rating Pass $ 15,475 $ 141,872 $ 124,898 $ 87,695 $ 50,563 $ 147,584 $ 9,371 $ 0 $ 577,458 Special mention 3,727 91 754 1,201 3,660 1,668 450 0 11,551 Substandard 1,604 0 12,294 326 7,552 11,382 598 0 33,756 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 20,806 $ 141,963 $ 137,946 $ 89,222 $ 61,775 $ 160,634 $ 10,419 $ 0 $ 622,765 The following tables detail the amortized cost of loans, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2020. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Farmland Risk rating Pass $ 1,617 $ 4,448 $ 3,767 $ 3,648 $ 894 $ 5,280 $ 662 $ 0 $ 20,316 Special mention 1,156 0 0 0 0 0 0 0 1,156 Substandard 0 0 0 51 582 1,211 0 0 1,844 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 2,773 $ 4,448 $ 3,767 $ 3,699 $ 1,476 $ 6,491 $ 662 $ 0 $ 23,316 Owner-occupied, nonfarm nonresidential properties Risk rating Pass $ 86,694 $ 109,228 $ 52,818 $ 56,948 $ 26,119 $ 50,839 $ 9,253 $ 0 $ 391,899 Special mention 0 452 74 541 318 1,310 131 0 2,826 Substandard 1,021 2,449 2,438 938 3,675 2,430 248 0 13,199 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 87,715 $ 112,129 $ 55,330 $ 58,427 $ 30,112 $ 54,579 $ 9,632 $ 0 $ 407,924 Agricultural production and other loans to farmers Risk rating Pass $ 267 $ 155 $ 601 $ 0 $ 54 $ 0 $ 1,587 $ 0 $ 2,664 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 0 0 0 0 0 0 0 0 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 267 $ 155 $ 601 $ 0 $ 54 $ 0 $ 1,587 $ 0 $ 2,664 Commercial and Industrial Risk rating Pass $ 318,323 $ 54,620 $ 46,854 $ 32,426 $ 7,197 $ 7,265 $ 170,386 $ 0 $ 637,071 Special mention 127 1,017 3,489 712 300 1,033 4,690 0 11,368 Substandard 801 1,916 1,212 112 37 4,858 6,175 0 15,111 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 319,251 $ 57,553 $ 51,555 $ 33,250 $ 7,534 $ 13,156 $ 181,251 $ 0 $ 663,550 Obligations (other than securities and leases) of states and political subdivisions Risk rating Pass $ 10,722 $ 12,279 $ 35,176 $ 20,891 $ 19,365 $ 24,789 $ 8,888 $ 0 $ 132,110 Special mention 0 0 0 0 0 0 0 0 0 Substandard 708 0 0 0 0 0 0 0 708 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 11,430 $ 12,279 $ 35,176 $ 20,891 $ 19,365 $ 24,789 $ 8,888 $ 0 $ 132,818 Other loans Risk rating Pass $ 7,268 $ 1,237 $ 386 $ 0 $ 0 $ 0 $ 3,070 $ 0 $ 11,961 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 0 0 0 0 0 0 0 0 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 7,268 $ 1,237 $ 386 $ 0 $ 0 $ 0 $ 3,070 $ 0 $ 11,961 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Other construction loans and all land development and other land loans Risk rating Pass $ 119,380 $ 52,078 $ 19,977 $ 2,300 $ 28 $ 1,895 $ 2,548 $ 0 $ 198,206 Special mention 1,417 672 29 3,303 0 190 0 0 5,611 Substandard 0 0 0 0 0 1,840 77 0 1,917 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 120,797 $ 52,750 $ 20,006 $ 5,603 $ 28 $ 3,925 $ 2,625 $ 0 $ 205,734 Multifamily (5 or more) residential properties Risk rating Pass $ 73,572 $ 39,633 $ 26,230 $ 49,178 $ 4,086 $ 16,957 $ 1,907 $ 0 $ 211,563 Special mention 0 0 0 0 0 0 0 0 0 Substandard 6 753 288 205 0 0 0 0 1,252 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 73,578 $ 40,386 $ 26,518 $ 49,383 $ 4,086 $ 16,957 $ 1,907 $ 0 $ 212,815 Non-owner occupied, nonfarm nonresidential properties Risk rating Pass $ 161,045 $ 127,518 $ 89,520 $ 55,966 $ 44,959 $ 105,962 $ 9,633 $ 0 $ 594,603 Special mention 99 895 2,111 3,969 835 4,137 450 0 12,496 Substandard 0 12,325 326 7,584 722 12,289 600 0 33,846 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 161,144 $ 140,738 $ 91,957 $ 67,519 $ 46,516 $ 122,388 $ 10,683 $ 0 $ 640,945 The Corporation considers the performance of the loan portfolio and its impact on the allowance for credit losses. For 1-4 family construction, home equity lines of credit, residential mortgages secured by first liens, residential mortgages secured by junior liens, automobile, credit cards, other revolving credit plans and other consumer segments, the Corporation evaluates credit quality based on the performance status the loan, which was previously presented, and by payment activity. Nonperforming loans include loans on nonaccrual status and loans past due over 89 days and still accruing interest. The following tables detail the amortized cost of loans, by year of origination (for term loans) and by payment activity within each portfolio segment as of March 31, 2021. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total 1-4 Family Construction Payment performance Performing $ 1,764 $ 14,202 $ 7,632 $ 69 $ 0 $ 0 $ 0 $ 0 $ 23,667 Nonperforming 0 0 0 0 0 0 0 0 0 Total $ 1,764 $ 14,202 $ 7,632 $ 69 $ 0 $ 0 $ 0 $ 0 $ 23,667 Home equity lines of credit Payment performance Performing $ 1,096 $ 20,280 $ 11,732 $ 11,636 $ 7,955 $ 47,750 $ 4,551 $ 0 $ 105,000 Nonperforming 0 0 0 0 399 355 0 0 754 Total $ 1,096 $ 20,280 $ 11,732 $ 11,636 $ 8,354 $ 48,105 $ 4,551 $ 0 $ 105,754 Residential mortgages secured by first lien Payment performance Performing $ 40,254 $ 202,846 $ 127,240 $ 85,003 $ 93,825 $ 215,258 $ 3,779 $ 0 $ 768,205 Nonperforming 0 156 83 51 212 2,796 61 0 3,359 Total $ 40,254 $ 203,002 $ 127,323 $ 85,054 $ 94,037 $ 218,054 $ 3,840 $ 0 $ 771,564 Residential mortgages secured by junior liens Payment performance Performing $ 3,303 $ 14,238 $ 11,113 $ 6,337 $ 5,118 $ 12,403 $ 402 $ 0 $ 52,914 Nonperforming 0 0 0 0 0 100 0 0 100 Total $ 3,303 $ 14,238 $ 11,113 $ 6,337 $ 5,118 $ 12,503 $ 402 $ 0 $ 53,014 Other revolving credit plans Payment performance Performing $ 2,305 $ 3,262 $ 4,424 $ 3,461 $ 2,953 $ 9,544 $ 0 $ 0 $ 25,949 Nonperforming 0 0 0 12 0 5 0 0 17 Total $ 2,305 $ 3,262 $ 4,424 $ 3,473 $ 2,953 $ 9,549 $ 0 $ 0 $ 25,966 Automobile Payment performance Performing $ 1,806 $ 8,221 $ 7,633 $ 3,981 $ 1,331 $ 1,192 $ 0 $ 0 $ 24,164 Nonperforming 0 0 0 0 5 2 0 0 7 Total $ 1,806 $ 8,221 $ 7,633 $ 3,981 $ 1,336 $ 1,194 $ 0 $ 0 $ 24,171 Other consumer Payment performance Performing $ 5,045 $ 20,619 $ 9,051 $ 2,763 $ 623 $ 1,672 $ 0 $ 0 $ 39,773 Nonperforming 0 82 147 46 4 68 0 0 347 Total $ 5,045 $ 20,701 $ 9,198 $ 2,809 $ 627 $ 1,740 $ 0 $ 0 $ 40,120 The following tables detail the amortized cost of loans, by year of origination (for term loans) and by payment activity within each portfolio segment as of December 31, 2020. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total 1-4 Family Construction Payment performance Performing $ 16,081 $ 11,547 $ 140 $ 0 $ 0 $ 0 $ 0 $ 0 $ 27,768 Nonperforming 0 0 0 0 0 0 0 0 0 Total $ 16,081 $ 11,547 $ 140 $ 0 $ 0 $ 0 $ 0 $ 0 $ 27,768 Home equity lines of credit Payment performance Performing $ 19,764 $ 12,823 $ 12,842 $ 8,793 $ 8,182 $ 42,514 $ 3,841 $ 0 $ 108,759 Nonperforming 0 0 0 302 33 350 0 0 685 Total $ 19,764 $ 12,823 $ 12,842 $ 9,095 $ 8,215 $ 42,864 $ 3,841 $ 0 $ 109,444 Residential mortgages secured by first lien Payment performance Performing $ 211,910 $ 136,181 $ 93,588 $ 99,520 $ 62,312 $ 163,556 $ 5,505 $ 0 $ 772,572 Nonperforming 0 84 887 143 61 3,261 22 0 4,458 Total $ 211,910 $ 136,265 $ 94,475 $ 99,663 $ 62,373 $ 166,817 $ 5,527 $ 0 $ 777,030 Residential mortgages secured by junior liens Payment performance Performing $ 14,552 $ 12,255 $ 7,031 $ 5,660 $ 3,347 $ 10,389 $ 378 $ 0 $ 53,612 Nonperforming 0 0 0 0 19 95 0 0 114 Total $ 14,552 $ 12,255 $ 7,031 $ 5,660 $ 3,366 $ 10,484 $ 378 $ 0 $ 53,726 Other revolving credit plans Payment performance Performing $ 4,088 $ 4,516 $ 3,320 $ 3,149 $ 1,301 $ 9,127 $ 0 $ 0 $ 25,501 Nonperforming 0 0 4 0 0 2 0 0 6 Total $ 4,088 $ 4,516 $ 3,324 $ 3,149 $ 1,301 $ 9,129 $ 0 $ 0 $ 25,507 Automobile Payment performance Performing $ 8,965 $ 8,595 $ 4,652 $ 1,635 $ 764 $ 701 $ 0 $ 0 $ 25,312 Nonperforming 0 4 0 6 0 22 0 0 32 Total $ 8,965 $ 8,599 $ 4,652 $ 1,641 $ 764 $ 723 $ 0 $ 0 $ 25,344 Other consumer Payment performance Performing $ 24,857 $ 11,183 $ 3,579 $ 796 $ 218 $ 1,655 $ 0 $ 0 $ 42,288 Nonperforming 82 264 75 13 0 70 0 0 504 Total $ 24,939 $ 11,447 $ 3,654 $ 809 $ 218 $ 1,725 $ 0 $ 0 $ 42,792 March 31, 2021 December 31, 2020 Consumer Consumer Credit card Payment performance Performing $ 7,848 $ 8,081 Nonperforming 27 34 Total $ 7,875 $ 8,115 Purchased Credit Deteriorated Loans The Corporation has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows: July 17, 2020 Purchase price of loans at acquisition $ 21,768 Allowance for credit losses at acquisition 980 Non-credit discount / (premium) at acquisition 1,063 Par value of acquired loans at acquisition $ 23,811 The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”) are considered to be subprime loans. Holiday is a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio. Holiday’s loan portfolio, included in consumer loans above, is summarized as follows at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Gross consumer loans $ 25,999 $ 27,998 Less: unearned discounts (4,753) (5,181) Total consumer loans, net of unearned discounts $ 21,246 $ 22,817 |