Loans | LOANS Total net loans at September 30, 2021 and December 31, 2020 are summarized as follows: September 30, 2021 Percentage December 31, 2020 Percentage Farmland $ 23,417 0.7 % $ 23,316 0.7 % Owner-occupied, nonfarm nonresidential properties 421,439 12.0 % 407,924 12.1 % Agricultural production and other loans to farmers 1,387 0.0 % 2,664 0.1 % Commercial and Industrial 1 663,769 18.9 % 663,550 19.7 % Obligations (other than securities and leases) of states and political subdivisions 139,253 4.0 % 132,818 3.9 % Other loans 12,087 0.3 % 11,961 0.4 % Other construction loans and all land development and other land loans 280,262 8.0 % 205,734 6.1 % Multifamily (5 or more) residential properties 213,906 6.1 % 212,815 6.3 % Non-owner occupied, nonfarm nonresidential properties 645,951 18.4 % 640,945 19.0 % 1-4 Family Construction 31,775 0.9 % 27,768 0.8 % Home equity lines of credit 107,225 3.1 % 109,444 3.2 % Residential Mortgages secured by first liens 810,190 23.1 % 777,030 23.0 % Residential Mortgages secured by junior liens 57,342 1.6 % 53,726 1.6 % Other revolving credit plans 26,226 0.7 % 25,507 0.8 % Automobile 22,311 0.6 % 25,344 0.8 % Other consumer 45,003 1.3 % 42,792 1.3 % Credit cards 9,313 0.3 % 8,115 0.2 % Overdrafts 269 0.0 % 336 0.0 % Total loans $ 3,511,125 100.0 % $ 3,371,789 100.0 % Less: Allowance for credit losses (37,230) (34,340) Loans, net $ 3,473,895 $ 3,337,449 Net deferred loan origination fees (costs) included in the above loan table $ 7,872 $ 8,789 1 PPP loans, net of deferred PPP processing fees, both those disbursed in 2020 and those disbursed in 2021, are included in the Commercial and Industrial classification. 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 were reported in accordance with the incurred loss methodology and have not been restated. PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no required allowance for credit losses was recorded against the PPP loans, net of deferred PPP processing fees, outstanding of $85,354 and $222,972 as of September 30, 2021 and 2020, respectively. Transactions in the allowance for credit losses for the three months ended September 30, 2021 were as follows: Beginning (Charge-offs) Recoveries Provision (Benefit) for Credit Loss Expense Ending Allowance Farmland $ 124 $ 0 $ 0 $ (26) $ 98 Owner-occupied, nonfarm nonresidential properties 2,880 0 3 154 3,037 Agricultural production and other loans to farmers 12 0 0 (5) 7 Commercial and Industrial 7,312 (23) 52 989 8,330 Obligations (other than securities and leases) of states and political subdivisions 2,325 (157) 0 (289) 1,879 Other loans 117 0 0 (15) 102 Other construction loans and all land development and other land loans 2,364 (282) 0 287 2,369 Multifamily (5 or more) residential properties 2,314 0 0 (219) 2,095 Non-owner occupied, nonfarm nonresidential properties 10,162 (18) 0 (2,865) 7,279 1-4 Family Construction 110 0 0 116 226 Home equity lines of credit 1,029 (7) 1 197 1,220 Residential Mortgages secured by first liens 4,398 (5) 2 2,030 6,425 Residential Mortgages secured by junior liens 408 (3) 0 144 549 Other revolving credit plans 459 (5) 4 70 528 Automobile 241 (12) 0 49 278 Other consumer 2,402 (268) 25 331 2,490 Credit cards 68 (5) 6 43 112 Overdrafts 183 (127) 41 109 206 Total loans $ 36,908 $ (912) $ 134 $ 1,100 $ 37,230 Transactions in the allowance for credit losses for the nine months ended September 30, 2021 were as follows: Beginning (Charge-offs) Recoveries Provision (Benefit) for Credit Loss Expense Ending Allowance Farmland $ 221 $ 0 $ 0 $ (123) $ 98 Owner-occupied, nonfarm nonresidential properties 3,700 (531) 8 (140) 3,037 Agricultural production and other loans to farmers 24 0 0 (17) 7 Commercial and Industrial 6,233 (93) 72 2,118 8,330 Obligations (other than securities and leases) of states and political subdivisions 998 (407) 0 1,288 1,879 Other loans 68 0 0 34 102 Other construction loans and all land development and other land loans 1,956 (282) 0 695 2,369 Multifamily (5 or more) residential properties 2,724 0 0 (629) 2,095 Non-owner occupied, nonfarm nonresidential properties 8,658 (18) 0 (1,361) 7,279 1-4 Family Construction 82 0 0 144 226 Home equity lines of credit 985 (7) 3 239 1,220 Residential Mortgages secured by first liens 4,539 (75) 34 1,927 6,425 Residential Mortgages secured by junior liens 241 (3) 0 311 549 Other revolving credit plans 507 (28) 9 40 528 Automobile 132 (17) 3 160 278 Other consumer 2,962 (829) 120 237 2,490 Credit cards 66 (77) 17 106 112 Overdrafts 244 (318) 120 160 206 Total loans $ 34,340 $ (2,685) $ 386 $ 5,189 $ 37,230 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 and nine months ended September 30, 2021, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, changes in historical loss rates and quantitative inputs including the unemployment forecast and prepayment speeds, coupled with qualitative adjustments in the Corporation's residential and consumer loan portfolios, growth in new market areas, as well as continued uncertainty with the pandemic and economic environment, partially offset by the impact of net charge-offs and improvements or resolutions in the Corporation's individually evaluated loans. Transactions in the allowance for loan losses for the three months ended September 30, 2020 were as follows: Commercial, Industrial Commercial Residential Consumer Credit Overdrafts Total Allowance for loan losses, July 1, 2020 $ 9,802 $ 9,628 $ 2,676 $ 2,140 $ 114 $ 169 $ 24,529 Charge-offs (62) (522) (69) (305) (48) (102) (1,108) Recoveries 15 3 64 45 2 31 160 Provision for loan losses (106) 2,052 941 329 75 15 3,306 Allowance for loan losses, September 30, 2020 $ 9,649 $ 11,161 $ 3,612 $ 2,209 $ 143 $ 113 $ 26,887 Transactions in the allowance for loan losses for the nine months ended September 30, 2020 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 (2,710) (522) (231) (1,310) (120) (316) (5,209) Recoveries 40 177 67 126 13 135 558 Provision for loan losses 4,032 4,554 2,277 982 166 54 12,065 Allowance for loan losses, September 30, 2020 $ 9,649 $ 11,161 $ 3,612 $ 2,209 $ 143 $ 113 $ 26,887 The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been recorded as charge-offs. Three months ended September 30, 2020 Nine months ended September 30, 2020 Average Interest Cash Basis Average Interest Cash Basis With an allowance recorded: Commercial, industrial and agricultural $ 2,409 $ 33 $ 33 $ 3,341 $ 78 $ 78 Commercial mortgage $ 4,002 $ 0 $ 0 4,166 41 41 Residential real estate $ 819 $ 11 $ 11 641 16 16 With no related allowance recorded: Commercial, industrial and agricultural $ 5,623 $ 51 $ 51 6,392 142 142 Commercial mortgage $ 14,758 $ 59 $ 59 12,178 283 283 Residential real estate $ 112 $ 4 $ 4 56 6 6 Total $ 27,723 $ 158 $ 158 $ 26,774 $ 566 $ 566 The following tables presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2021 and December 31, 2020, respectively: September 30, 2021 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 992 $ 992 $ 0 Owner-occupied, nonfarm nonresidential properties 1,344 1,244 0 Commercial and Industrial 5,796 1,249 0 Obligations (other than securities and leases) of states and political subdivisions 269 269 0 Other construction loans and all land development and other land loans 516 77 0 Multifamily (5 or more) residential properties 1,155 5 0 Non-owner occupied, nonfarm nonresidential properties 5,390 3,763 0 Home equity lines of credit 780 780 39 Residential Mortgages secured by first liens 3,098 3,098 652 Residential Mortgages secured by junior liens 157 157 0 Other revolving credit plans 9 9 0 Other consumer 498 498 0 Credit cards 0 0 33 Total loans $ 20,004 $ 12,141 $ 724 December 31, 2020 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 1,844 $ 633 $ 0 Owner-occupied, nonfarm nonresidential properties 1,781 967 0 Commercial and Industrial 6,657 959 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 9,466 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 $ 16,930 $ 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 September 30, 2021: Real Estate Collateral Non-Real Estate Collateral Farmland $ 945 $ 0 Owner-occupied, nonfarm nonresidential properties 218 17 Commercial and Industrial 0 2,415 Obligations (other than securities and leases) of states and political subdivisions 269 0 Other construction loans and all land development and other land loans 439 0 Multifamily (5 or more) residential properties 1,150 0 Non-owner occupied, nonfarm nonresidential properties 3,410 0 Residential Mortgages secured by first liens 441 0 Total loans $ 6,872 $ 2,432 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 September 30, 2021 by class of loans: 30 - 59 60 - 89 Greater Than 89 Total Past Due Loans Not Past Due Total Farmland $ 163 $ 388 $ 0 $ 551 $ 22,866 $ 23,417 Owner-occupied, nonfarm nonresidential properties 533 0 826 1,359 420,080 421,439 Agricultural production and other loans to farmers 0 0 0 0 1,387 1,387 Commercial and Industrial 370 25 212 607 663,162 663,769 Obligations (other than securities and leases) of states and political subdivisions 0 0 0 0 139,253 139,253 Other loans 0 0 0 0 12,087 12,087 Other construction loans and all land development and other land loans 0 0 77 77 280,185 280,262 Multifamily (5 or more) residential properties 0 0 209 209 213,697 213,906 Non-owner occupied, nonfarm nonresidential properties 0 0 1,827 1,827 644,124 645,951 1-4 Family Construction 0 0 0 0 31,775 31,775 Home equity lines of credit 385 38 152 575 106,650 107,225 Residential Mortgages secured by first liens 1,350 592 1,841 3,783 806,407 810,190 Residential Mortgages secured by junior liens 25 0 11 36 57,306 57,342 Other revolving credit plans 100 7 0 107 26,119 26,226 Automobile 24 5 0 29 22,282 22,311 Other consumer 290 163 217 670 44,333 45,003 Credit cards 55 1 33 89 9,224 9,313 Overdrafts 0 0 0 0 269 269 Total loans $ 3,295 $ 1,219 $ 5,405 $ 9,919 $ 3,501,206 $ 3,511,125 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 September 30, 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 $15,302 and $15,088 as of September 30, 2021 and December 31, 2020, respectively. The Corporation has allocated $1,181 and $779 of allowance for those loans as of September 30, 2021 and December 31, 2020, respectively. There were no loans modified as troubled debt restructurings during the three months ended September 30, 2021. There were three loans modified as troubled debt restructurings during the nine months ended September 30, 2021: Nine Months Ended September 30, 2021 Number of Pre-Modification Post-Modification Commercial and Industrial 1 $ 578 $ 578 Multifamily (5 or more) residential properties 1 717 717 Non-owner occupied, nonfarm nonresidential properties 1 1,604 1,604 Total loans 3 $ 2,899 $ 2,899 There was one loan modified as a troubled debt restructuring during the three months ended September 30, 2020. Three months ended September 30, 2020 Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial mortgages 1 $ 46 $ 46 Total 1 $ 46 $ 46 There were ten loans modified as troubled debt restructurings during the nine months ended September 30, 2020. Nine months ended September 30, 2020 Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, industrial and agricultural 8 $ 1,593 $ 1,593 Commercial mortgages 1 46 46 Residential real estate 1 116 116 Total 10 $ 1,755 $ 1,755 The troubled debt restructurings described above increased the allowance for credit losses by an immaterial amount for the three and nine months ended September 30, 2021 and 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 and nine months ended September 30, 2021 and September 30, 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 represent the Corporation's credit risk profile by risk rating. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans. September 30, 2021 Non-Pass Rated Pass Special Mention Substandard Doubtful Total Non-Pass Total Farmland $ 20,911 $ 1,514 $ 992 $ 0 $ 2,506 $ 23,417 Owner-occupied, nonfarm nonresidential properties 404,770 6,574 10,095 0 16,669 421,439 Agricultural production and other loans to farmers 1,387 0 0 0 0 1,387 Commercial and Industrial 640,507 8,724 13,115 1,423 23,262 663,769 Obligations (other than securities and leases) of states and political subdivisions 138,984 0 269 0 269 139,253 Other loans 12,087 0 0 0 0 12,087 Other construction loans and all land development and other land loans 275,222 4,495 545 0 5,040 280,262 Multifamily (5 or more) residential properties 212,750 0 1,156 0 1,156 213,906 Non-owner occupied, nonfarm nonresidential properties 612,906 7,434 25,611 0 33,045 645,951 Total loans $ 2,319,524 $ 28,741 $ 51,783 $ 1,423 $ 81,947 $ 2,401,471 December 31, 2020 Non-Pass Rated Pass Special Mention Substandard Doubtful Total Non-Pass Total Farmland $ 20,316 $ 1,156 $ 1,844 $ 0 $ 3,000 $ 23,316 Owner-occupied, nonfarm nonresidential properties 391,899 2,826 13,199 0 16,025 407,924 Agricultural production and other loans to farmers 2,664 0 0 0 0 2,664 Commercial and Industrial 637,071 11,368 15,111 0 26,479 663,550 Obligations (other than securities and leases) of states and political subdivisions 132,110 0 708 0 708 132,818 Other loans 11,961 0 0 0 0 11,961 Other construction loans and all land development and other land loans 198,206 5,611 1,917 0 7,528 205,734 Multifamily (5 or more) residential properties 211,563 0 1,252 0 1,252 212,815 Non-owner occupied, nonfarm nonresidential properties 594,603 12,496 33,846 0 46,342 640,945 Total loans $ 2,200,393 $ 33,457 $ 67,877 $ 0 $ 101,334 $ 2,301,727 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 September 30, 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 $ 7,400 $ 1,744 $ 3,291 $ 3,633 $ 588 $ 3,668 $ 587 $ 0 $ 20,911 Special mention 0 0 0 0 394 1,120 0 0 1,514 Substandard 0 0 0 0 47 945 0 0 992 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 7,400 $ 1,744 $ 3,291 $ 3,633 $ 1,029 $ 5,733 $ 587 $ 0 $ 23,417 Owner-occupied, nonfarm nonresidential properties Risk rating Pass $ 94,875 $ 87,579 $ 80,317 $ 34,805 $ 43,282 $ 55,306 $ 8,606 $ 0 $ 404,770 Special mention 0 0 911 4,332 139 1,182 10 0 6,574 Substandard 525 902 2,258 650 358 5,214 188 0 10,095 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 95,400 $ 88,481 $ 83,486 $ 39,787 $ 43,779 $ 61,702 $ 8,804 $ 0 $ 421,439 Agricultural production and other loans to farmers Risk rating Pass $ 133 $ 128 $ 80 $ 200 $ 0 $ 11 $ 835 $ 0 $ 1,387 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 $ 133 $ 128 $ 80 $ 200 $ 0 $ 11 $ 835 $ 0 $ 1,387 Commercial and Industrial Risk rating Pass $ 279,839 $ 91,409 $ 38,688 $ 17,815 $ 13,268 $ 6,183 $ 193,305 $ 0 $ 640,507 Special mention 0 384 861 967 175 874 5,463 0 8,724 Substandard 621 810 1,907 472 102 3,632 5,571 0 13,115 Doubtful 0 0 0 0 0 1,423 0 0 1,423 Total $ 280,460 $ 92,603 $ 41,456 $ 19,254 $ 13,545 $ 12,112 $ 204,339 $ 0 $ 663,769 Obligations (other than securities and leases) of states and political subdivisions Risk rating Pass $ 27,893 $ 16,938 $ 8,910 $ 22,504 $ 20,303 $ 37,882 $ 4,554 $ 0 $ 138,984 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 269 0 0 0 0 0 0 269 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 27,893 $ 17,207 $ 8,910 $ 22,504 $ 20,303 $ 37,882 $ 4,554 $ 0 $ 139,253 Other loans Risk rating Pass $ 594 $ 7,456 $ 596 $ 2 $ 0 $ 0 $ 3,439 $ 0 $ 12,087 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 $ 594 $ 7,456 $ 596 $ 2 $ 0 $ 0 $ 3,439 $ 0 $ 12,087 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 $ 61,332 $ 154,174 $ 41,789 $ 11,252 $ 882 $ 1,035 $ 4,758 $ 0 $ 275,222 Special mention 1,500 0 656 0 2,339 0 0 0 4,495 Substandard 0 0 0 29 439 0 77 0 545 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 62,832 $ 154,174 $ 42,445 $ 11,281 $ 3,660 $ 1,035 $ 4,835 $ 0 $ 280,262 Multifamily (5 or more) residential properties Risk rating Pass $ 59,809 $ 58,167 $ 32,515 $ 8,303 $ 38,416 $ 13,188 $ 2,352 $ 0 $ 212,750 Special mention 0 0 0 0 0 0 0 0 0 Substandard 0 6 693 253 204 0 0 0 1,156 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 59,809 $ 58,173 $ 33,208 $ 8,556 $ 38,620 $ 13,188 $ 2,352 $ 0 $ 213,906 Non-owner occupied, nonfarm nonresidential properties Risk rating Pass $ 131,098 $ 135,960 $ 88,632 $ 66,343 $ 49,630 $ 131,164 $ 10,079 $ 0 $ 612,906 Special mention 0 0 433 1,017 191 5,343 450 0 7,434 Substandard 834 0 3,867 1,667 7,155 11,748 340 0 25,611 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 131,932 $ 135,960 $ 92,932 $ 69,027 $ 56,976 $ 148,255 $ 10,869 $ 0 $ 645,951 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 of 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. September 30, 2021 December 31, 2020 Performing Nonperforming Total Performing Nonperforming Total 1-4 Family Construction $ 31,775 $ 0 $ 31,775 $ 27,768 $ 0 $ 27,768 Home equity lines of credit 106,445 780 107,225 108,759 685 109,444 Residential Mortgages secured by first liens 807,092 3,098 810,190 772,572 4,458 777,030 Residential Mortgages secured by junior liens 57,185 157 57,342 53,612 114 53,726 Other revolving credit plans 26,217 9 26,226 25,501 6 25,507 Automobile 22,311 0 22,311 25,312 32 25,344 Other consumer 44,505 498 45,003 42,288 504 42,792 Total loans $ 1,095,530 $ 4,542 $ 1,100,072 $ 1,055,812 $ 5,799 $ 1,061,611 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 September 30, 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 $ 19,385 $ 10,746 $ 1,279 $ 67 $ 0 $ 0 $ 298 $ 0 $ 31,775 Nonperforming 0 0 0 0 0 0 0 0 0 Total $ 19,385 $ 10,746 $ 1,279 $ 67 $ 0 $ 0 $ 298 $ 0 $ 31,775 Home equity lines of credit Payment performance Performing $ 12,717 $ 17,171 $ 10,366 $ 10,216 $ 7,147 $ 41,470 $ 7,358 $ 0 $ 106,445 Nonperforming 0 0 0 0 385 395 0 0 780 Total $ 12,717 $ 17,171 $ 10,366 $ 10,216 $ 7,532 $ 41,865 $ 7,358 $ 0 $ 107,225 Residential mortgages secured by first lien Payment performance Performing $ 179,087 $ 183,988 $ 118,206 $ 69,709 $ 78,933 $ 173,295 $ 3,874 $ 0 $ 807,092 Nonperforming 0 149 155 31 193 2,529 41 0 3,098 Total $ 179,087 $ 184,137 $ 118,361 $ 69,740 $ 79,126 $ 175,824 $ 3,915 $ 0 $ 810,190 Residential mortgages secured by junior liens Payment performance Performing $ 16,814 $ 12,542 $ 8,181 $ 4,828 $ 4,128 $ 9,983 $ 709 $ 0 $ 57,185 Nonperforming 0 0 0 0 87 70 0 0 157 Total $ 16,814 $ 12,542 $ 8,181 $ 4,828 $ 4,215 $ 10,053 $ 709 $ 0 $ 57,342 Other revolving credit plans Payment performance Performing $ 3,372 $ 3,538 $ 3,963 $ 3,062 $ 3,007 $ 9,275 $ 0 $ 0 $ 26,217 Nonperforming 0 0 0 4 0 5 0 0 9 Total $ 3,372 $ 3,538 $ 3,963 $ 3,066 $ 3,007 $ 9,280 $ 0 $ 0 $ 26,226 Automobile Payment performance Performing $ 6,278 $ 6,272 $ 5,326 $ 2,848 $ 834 $ 753 $ 0 $ 0 $ 22,311 Nonperforming 0 0 0 0 0 0 0 0 0 Total $ 6,278 $ 6,272 $ 5,326 $ 2,848 $ 834 $ 753 $ 0 $ 0 $ 22,311 Other consumer Payment performance Performing $ 21,705 $ 13,573 $ 5,673 $ 1,729 $ 381 $ 1,444 $ 0 $ 0 $ 44,505 Nonperforming 86 162 134 42 12 62 0 0 498 Total $ 21,791 $ 13,735 $ 5,807 $ 1,771 $ 393 $ 1,506 $ 0 $ 0 $ 45,003 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 perf |