Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses Total net loans receivable at December 31, 2022 and 2021 are summarized as follows: 2022 Percentage 2021 Percentage Farmland $ 32,168 0.8 % $ 23,768 0.7 % Owner-occupied, nonfarm nonresidential properties 468,493 11.0 434,672 12.0 Agricultural production and other loans to farmers 1,198 — 1,379 — Commercial and Industrial 1 791,911 18.5 708,989 19.5 Obligations (other than securities and leases) of states and political subdivisions 145,345 3.4 140,887 3.9 Other loans 24,710 0.6 13,979 0.4 Other construction loans and all land development and other land loans 446,685 10.5 298,869 8.2 Multifamily (5 or more) residential properties 257,696 6.0 216,143 5.9 Non-owner occupied, nonfarm nonresidential properties 795,315 18.6 663,062 18.2 1-4 Family Construction 51,171 1.2 37,822 1.0 Home equity lines of credit 124,892 2.9 104,517 2.9 Residential Mortgages secured by first liens 942,531 22.0 826,729 22.7 Residential Mortgages secured by junior liens 74,638 1.7 56,689 1.6 Other revolving credit plans 36,372 0.9 26,536 0.7 Automobile 21,806 0.5 20,862 0.6 Other consumer 49,144 1.1 49,676 1.4 Credit cards 10,825 0.3 9,935 0.3 Overdrafts 278 — 278 — Total loans $ 4,275,178 100.0 % $ 3,634,792 100.0 % Less: Allowance for credit losses (43,436) (37,588) Loans, net $ 4,231,742 $ 3,597,204 Net deferred loan origination fees (costs) included in the above loan table $ 4,463 $ 5,667 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 receivable and related unfunded commitments are primarily concentrated within Central and Northwest Pennsylvania, Central and Northeast Ohio, Western New York and Southwest Virginia. 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 approved annually by the Corporation’s Board of Directors. During the second quarter of 2020, the Corporation began originating loans to qualified small businesses under the Paycheck Protection Program ("PPP") administered by the Small Business Administration ("SBA") under the provisions of the Coronavirus Aid, Relief, and Economic Security Act. 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 $159 thousand and $45.2 million as of December 31, 2022 and 2021, respectively. Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $156.6 million and $125.8 million as of December 31, 2022 and 2021, respectively. Transactions in the allowance for credit losses for the year ended December 31, 2022 were as follows: Beginning (Charge-offs) Recoveries Provision (Benefit) for Credit Losses on Loans Receivable (1) Ending Allowance Farmland $ 151 $ — $ — $ 8 $ 159 Owner-occupied, nonfarm nonresidential properties 3,339 (21) 15 (428) 2,905 Agricultural production and other loans to farmers 9 — — (3) 6 Commercial and Industrial 8,837 (175) 139 965 9,766 Obligations (other than securities and leases) of states and political subdivisions 1,649 — — 214 1,863 Other loans 149 — — 307 456 Other construction loans and all land development and other land loans 2,198 — — 1,055 3,253 Multifamily (5 or more) residential properties 2,289 — — 64 2,353 Non-owner occupied, nonfarm nonresidential properties 6,481 (335) 336 1,171 7,653 1-4 Family Construction 158 — — 169 327 Home equity lines of credit 1,169 — 12 (8) 1,173 Residential Mortgages secured by first liens 6,943 (51) 28 1,564 8,484 Residential Mortgages secured by junior liens 546 — — 489 1,035 Other revolving credit plans 528 (92) 50 236 722 Automobile 263 (28) 2 34 271 Other consumer 2,546 (1,623) 89 1,653 2,665 Credit cards 92 (99) 38 36 67 Overdrafts 241 (561) 138 460 278 Total loans $ 37,588 $ (2,985) $ 847 $ 7,986 $ 43,436 (1) Excludes provision for credit losses related to unfunded commitments. Note 20, "Off-Balance Sheet Commitments and Contingencies," in the consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation. 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 year ended December 31, 2022, the allowance for credit losses increased due to the growth in the Corporation's loan portfolio, including growth in new market areas. This was partially offset by improvements in the Corporation's historical loss rates, as well as the impact of net charge-offs. There is still a significant amount of uncertainty related to the domestic and global economy, continued supply chain challenges, persistent inflation and the COVID-19 pandemic. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available. Transactions in the allowance for credit losses for the year ended December 31, 2021 were as follows: Beginning (Charge-offs) Recoveries Provision (Benefit) for Credit Losses on Loans Receivable (1) Ending Allowance Farmland $ 221 $ — $ — $ (70) $ 151 Owner-occupied, nonfarm nonresidential properties 3,700 (584) 10 213 3,339 Agricultural production and other loans to farmers 24 — — (15) 9 Commercial and Industrial 6,233 (163) 203 2,564 8,837 Obligations (other than securities and leases) of states and political subdivisions 998 (407) 30 1,028 1,649 Other loans 68 — — 81 149 Other construction loans and all land development and other land loans 1,956 (282) — 524 2,198 Multifamily (5 or more) residential properties 2,724 — — (435) 2,289 Non-owner occupied, nonfarm nonresidential properties 8,658 (49) — (2,128) 6,481 1-4 Family Construction 82 — — 76 158 Home equity lines of credit 985 (7) 5 186 1,169 Residential Mortgages secured by first liens 4,539 (79) 47 2,436 6,943 Residential Mortgages secured by junior liens 241 (3) — 308 546 Other revolving credit plans 507 (41) 13 49 528 Automobile 132 (26) 3 154 263 Other consumer 2,962 (1,193) 140 637 2,546 Credit cards 66 (112) 18 120 92 Overdrafts 244 (438) 160 275 241 Total loans $ 34,340 $ (3,384) $ 629 $ 6,003 $ 37,588 (1) Excludes provision for credit losses related to unfunded commitments. Note 20, "Off-Balance Sheet Commitments and Contingencies," in the consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation. Transactions in the allowance for credit losses for the year ended December 31, 2020 were as follows: Beginning Impact of ASC 326 Adoption Initial Allowance on Loans Purchased with Credit Deterioration (Charge-offs) Recoveries Provision (Benefit) for Credit Losses on Loans Receivable (1) Ending Allowance (After ASC 326 Adoption) Farmland $ 190 $ 61 $ — $ — $ — $ (30) $ 221 Owner-occupied, nonfarm nonresidential properties 2,390 (754) 82 (61) 12 2,031 3,700 Agricultural production and other loans to farmers 25 5 — — — (6) 24 Commercial and Industrial 4,105 (631) 216 (2,779) 39 5,283 6,233 Obligations (other than securities and leases) of states and political subdivisions 1,022 (231) — — — 207 998 Other loans 41 8 — — — 19 68 Other construction loans and all land development and other land loans 2,327 780 228 — 125 (1,504) 1,956 Multifamily (5 or more) residential properties 1,087 312 24 — — 1,301 2,724 Non-owner occupied, nonfarm nonresidential properties 3,980 2,547 335 (1,522) 52 3,266 8,658 1-4 Family Construction 56 (35) — — — 61 82 Home equity lines of credit 180 421 22 (6) 1 367 985 Residential Mortgages secured by first liens 1,220 1,100 73 (285) 65 2,366 4,539 Residential Mortgages secured by junior liens 114 135 — (158) 2 148 241 Other revolving credit plans 296 378 — (137) 21 (51) 507 Automobile 156 (96) — (29) 2 99 132 Other consumer 1,960 1,021 — (1,513) 130 1,364 2,962 Credit cards 84 (58) — (153) 14 179 66 Overdrafts 240 — — (435) 185 254 244 Total loans $ 19,473 $ 4,963 $ 980 $ (7,078) $ 648 $ 15,354 $ 34,340 (1) Excludes provision for credit losses related to unfunded commitments. Note 20, "Off-Balance Sheet Commitments and Contingencies," in the consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation. The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2022 and 2021, respectively: December 31, 2022 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 1,011 $ 1,011 $ 994 Owner-occupied, nonfarm nonresidential properties 2,055 1,987 — Commercial and Industrial 5,485 2,366 71 Other construction loans and all land development and other land loans 567 567 — Multifamily (5 or more) residential properties 1,066 423 — Non-owner occupied, nonfarm nonresidential properties 5,081 2,665 — Home equity lines of credit 475 475 — Residential Mortgages secured by first liens 4,329 3,882 48 Residential Mortgages secured by junior liens 91 91 — Other revolving credit plans 26 26 — Automobile 19 19 — Other consumer 781 781 — Credit cards — — 8 Total loans $ 20,986 $ 14,293 $ 1,121 December 31, 2021 Nonaccrual Nonaccrual With No Allowance for Credit Loss Loans Past Due over 89 Days Still Accruing Farmland $ 965 $ 965 $ — Owner-occupied, nonfarm nonresidential properties 850 762 — Commercial and Industrial 7,060 1,653 8 Other construction loans and all land development and other land loans 516 77 — Multifamily (5 or more) residential properties 1,270 5 — Non-owner occupied, nonfarm nonresidential properties 3,771 2,143 — Home equity lines of credit 824 824 — Residential Mortgages secured by first liens 3,410 3,410 137 Residential Mortgages secured by junior liens 147 147 — Other revolving credit plans 13 13 — Automobile 36 36 — Other consumer 558 558 — Credit cards — — 23 Total loans $ 19,420 $ 10,593 $ 168 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 tables present the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of December 31, 2022 and 2021, respectively: December 31, 2022 Real Estate Collateral Non-Real Estate Collateral Farmland $ 829 $ — Owner-occupied, nonfarm nonresidential properties 1,296 4 Commercial and Industrial — 1,904 Other construction loans and all land development and other land loans 501 — Multifamily (5 or more) residential properties 1,066 — Non-owner occupied, nonfarm nonresidential properties 5,874 — Home equity lines of credit 335 — Residential Mortgages secured by first liens 1,150 — Total loans $ 11,051 $ 1,908 December 31, 2021 Real Estate Collateral Non-Real Estate Collateral Farmland $ 920 $ — Owner-occupied, nonfarm nonresidential properties 194 9 Commercial and Industrial 1,488 2,351 Other construction loans and all land development and other land loans 438 — Multifamily (5 or more) residential properties 1,265 — Non-owner occupied, nonfarm nonresidential properties 3,378 — Residential Mortgages secured by first liens 435 — Total loans $ 8,118 $ 2,360 The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2022 by class of loans: 30 - 59 60 - 89 Greater Than 89 Total Past Due Loans Not Past Due Total Farmland $ — $ — $ 1,136 $ 1,136 $ 31,032 $ 32,168 Owner-occupied, nonfarm nonresidential properties 185 27 734 946 467,547 468,493 Agricultural production and other loans to farmers — — — — 1,198 1,198 Commercial and Industrial 246 93 611 950 790,961 791,911 Obligations (other than securities and leases) of states and political subdivisions — — — — 145,345 145,345 Other loans — — — — 24,710 24,710 Other construction loans and all land development and other land loans 1,522 — 501 2,023 444,662 446,685 Multifamily (5 or more) residential properties 706 — 90 796 256,900 257,696 Non-owner occupied, nonfarm nonresidential properties 113 60 879 1,052 794,263 795,315 1-4 Family Construction — — — — 51,171 51,171 Home equity lines of credit 203 10 49 262 124,630 124,892 Residential Mortgages secured by first liens 1,302 538 1,775 3,615 938,916 942,531 Residential Mortgages secured by junior liens 5 — 51 56 74,582 74,638 Other revolving credit plans 65 27 — 92 36,280 36,372 Automobile 36 — — 36 21,770 21,806 Other consumer 361 188 473 1,022 48,122 49,144 Credit cards 196 18 8 222 10,603 10,825 Overdrafts — — — — 278 278 Total loans $ 4,940 $ 961 $ 6,307 $ 12,208 $ 4,262,970 $ 4,275,178 The following table presents the aging of the amortized cost basis in past-due loans as of December 31, 2021 by class of loans. 30 - 59 60 - 89 Greater Than 89 Total Past Due Loans Not Past Due Total Farmland $ 348 $ — $ — $ 348 $ 23,420 $ 23,768 Owner-occupied, nonfarm nonresidential properties 278 18 414 710 433,962 434,672 Agricultural production and other loans to farmers — — — — 1,379 1,379 Commercial and Industrial 377 13 333 723 708,266 708,989 Obligations (other than securities and leases) of states and political subdivisions — — — — 140,887 140,887 Other loans — — — — 13,979 13,979 Other construction loans and all land development and other land loans — — 77 77 298,792 298,869 Multifamily (5 or more) residential properties — 10 209 219 215,924 216,143 Non-owner occupied, nonfarm nonresidential properties — — 1,792 1,792 661,270 663,062 1-4 Family Construction — — — — 37,822 37,822 Home equity lines of credit 506 50 172 728 103,789 104,517 Residential Mortgages secured by first liens 1,286 1,145 1,647 4,078 822,651 826,729 Residential Mortgages secured by junior liens 32 24 1 57 56,632 56,689 Other revolving credit plans 56 17 4 77 26,459 26,536 Automobile 45 3 23 71 20,791 20,862 Other consumer 283 158 295 736 48,940 49,676 Credit cards 26 12 23 61 9,874 9,935 Overdrafts — — — — 278 278 Total loans $ 3,237 $ 1,450 $ 4,990 $ 9,677 $ 3,625,115 $ 3,634,792 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 loan receivables are classified as a TDR. During the years ended December 31, 2022 and 2021, the terms of certain loans were modified as TDRs. 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 $12.4 million and $16.6 million as of December 31, 2022 and 2021, respectively. The Corporation has allocated $2.2 million and $2.6 million of allowance for those loans as of December 31, 2022 and 2021, respectively. The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 Number of Pre-Modification Post-Modification Type of Modification Commercial and Industrial 1 $ 96 $ 96 Extend Amortization Non-owner occupied, nonfarm nonresidential properties 1 1,784 1,784 Modify Rate and Extend Amortization Total loans 2 $ 1,880 $ 1,880 Year Ended December 31, 2021 Number of Pre-Modification Post-Modification Type of Modification Commercial and Industrial 2 $ 3,336 $ 3,336 Modify Payment Multifamily (5 or more) residential properties 1 717 717 Modify Payment Non-owner occupied, nonfarm nonresidential properties 1 1,604 1,604 Modify Payment Total loans 4 $ 5,657 $ 5,657 Year Ended December 31, 2020 Number of Pre-Modification Post-Modification Type of Modification Owner-occupied, nonfarm nonresidential properties 1 $ 260 $ 260 Modify Payment Commercial and Industrial 6 1,140 1,140 Modify Payment Other construction loans and all land development and other land loans 1 46 46 Modify Rate and Extend Amortization Non-owner occupied, nonfarm nonresidential properties 1 3,684 3,684 Modify Rate and Modify Payment Residential Mortgages secured by first liens 2 309 309 Modify Payment Total loans 11 $ 5,439 $ 5,439 The TDRs described above increased the allowance for credit losses by immaterial amounts for the years ended December 31, 2022, 2021, and 2020, respectively. A loan receivable is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans receivable modified as TDRs for which there was a payment default within twelve months following the modification during the years ended December 31, 2022, 2021 and 2020, respectively, and no principal balances were forgiven in connection with the loan receivable 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. Generally, nonperforming TDRs 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 receivable 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: A loan classified as special mention has 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: A loan classified as substandard is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. The loan has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Doubtful: A loan classified as doubtful has 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 commercial credit risk profile by risk rating as of December 31, 2022 and 2021, respectively. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans. December 31, 2022 Non-Pass Rated Pass Special Mention Substandard Doubtful Total Non-Pass Total Farmland $ 29,706 $ 1,450 $ 1,012 $ — $ 2,462 $ 32,168 Owner-occupied, nonfarm nonresidential properties 433,467 27,796 7,230 — 35,026 468,493 Agricultural production and other loans to farmers 1,198 — — — — 1,198 Commercial and Industrial 765,821 14,740 10,037 1,313 26,090 791,911 Obligations (other than securities and leases) of states and political subdivisions 145,345 — — — — 145,345 Other loans 24,710 — — — — 24,710 Other construction loans and all land development and other land loans 443,300 1,296 2,089 — 3,385 446,685 Multifamily (5 or more) residential properties 256,120 510 1,066 — 1,576 257,696 Non-owner occupied, nonfarm nonresidential properties 772,450 2,791 20,074 — 22,865 795,315 Total loans $ 2,872,117 $ 48,583 $ 41,508 $ 1,313 $ 91,404 $ 2,963,521 December 31, 2021 Non-Pass Rated Pass Special Mention Substandard Doubtful Total Non-Pass Total Farmland $ 21,286 $ 1,514 $ 968 $ — $ 2,482 $ 23,768 Owner-occupied, nonfarm nonresidential properties 419,368 6,723 8,581 — 15,304 434,672 Agricultural production and other loans to farmers 1,379 — — — — 1,379 Commercial and Industrial 687,010 7,946 12,654 1,379 21,979 708,989 Obligations (other than securities and leases) of states and political subdivisions 140,887 — — — — 140,887 Other loans 13,979 — — — — 13,979 Other construction loans and all land development and other land loans 294,103 4,221 545 — 4,766 298,869 Multifamily (5 or more) residential properties 214,772 100 1,271 — 1,371 216,143 Non-owner occupied, nonfarm nonresidential properties 631,534 9,628 21,900 — 31,528 663,062 Total loans $ 2,424,318 $ 30,132 $ 45,919 $ 1,379 $ 77,430 $ 2,501,748 The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2022. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Farmland Risk rating Pass $ 12,321 $ 7,635 $ 1,536 $ 871 $ 3,277 $ 3,523 $ 543 $ — $ 29,706 Special mention — — — — — 1,450 — — 1,450 Substandard — 347 — — 142 523 — — 1,012 Doubtful — — — — — — — — — Total $ 12,321 $ 7,982 $ 1,536 $ 871 $ 3,419 $ 5,496 $ 543 $ — $ 32,168 Owner-occupied, nonfarm nonresidential properties Risk rating Pass $ 116,701 $ 113,575 $ 50,226 $ 55,040 $ 25,327 $ 60,810 $ 11,788 $ — $ 433,467 Special mention 3,402 — 15,613 872 4,097 814 2,998 — 27,796 Substandard — — 355 1,864 862 4,149 — — 7,230 Doubtful — — — — — — — — — Total $ 120,103 $ 113,575 $ 66,194 $ 57,776 $ 30,286 $ 65,773 $ 14,786 $ — $ 468,493 Agricultural production and other loans to farmers Risk rating Pass $ 105 $ 140 $ 80 $ 42 $ 179 $ — $ 652 $ — $ 1,198 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 105 $ 140 $ 80 $ 42 $ 179 $ — $ 652 $ — $ 1,198 Commercial and Industrial Risk rating Pass $ 195,955 $ 213,433 $ 51,695 $ 16,730 $ 9,051 $ 19,116 $ 259,841 $ — $ 765,821 Special mention 241 — 6,691 273 81 45 7,409 — 14,740 Substandard 299 1,809 689 379 324 913 5,624 — 10,037 Doubtful (1) — 1,313 — — — — — — 1,313 Total $ 196,495 $ 216,555 $ 59,075 $ 17,382 $ 9,456 $ 20,074 $ 272,874 $ — $ 791,911 Obligations (other than securities and leases) of states and political subdivisions Risk rating Pass $ 20,840 $ 37,527 $ 13,868 $ 4,584 $ 13,518 $ 50,050 $ 4,958 $ — $ 145,345 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 20,840 $ 37,527 $ 13,868 $ 4,584 $ 13,518 $ 50,050 $ 4,958 $ — $ 145,345 Other loans Risk rating Pass $ 14,248 $ 5,358 $ 2,278 $ 363 $ — $ — $ 2,463 $ — $ 24,710 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 14,248 $ 5,358 $ 2,278 $ 363 $ — $ — $ 2,463 $ — $ 24,710 (1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period. Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 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 $ 272,118 $ 86,894 $ 56,782 $ 6,918 $ 8,644 $ 916 $ 11,028 $ — $ 443,300 Special mention 1,296 0 — — — — — — 1,296 Substandard — 2,023 — — — — 66 — 2,089 Doubtful — — — — — — — — — Total $ 273,414 $ 88,917 $ 56,782 $ 6,918 $ 8,644 $ 916 $ 11,094 $ — $ 446,685 Multifamily (5 or more) residential properties Risk rating Pass $ 114,454 $ 49,794 $ 46,784 $ 11,854 $ 6,764 $ 23,841 $ 2,629 $ — $ 256,120 Special mention — — — — — 510 — — 510 Substandard 643 — — — 333 90 — — 1,066 Doubtful — — — — — — — — — Total $ 115,097 $ 49,794 $ 46,784 $ 11,854 $ 7,097 $ 24,441 $ 2,629 $ — $ 257,696 Non-owner occupied, nonfarm nonresidential properties Risk rating Pass $ 339,151 $ 153,613 $ 51,709 $ 66,592 $ 45,211 $ 107,988 $ 8,186 $ — $ 772,450 Special mention — 488 — 273 498 1,068 464 — 2,791 Substandard 2,227 800 — 4,090 1,314 9,587 2,056 — 20,074 Doubtful — — — — — — — — — Total $ 341,378 $ 154,901 $ 51,709 $ 70,955 $ 47,023 $ 118,643 $ 10,706 $ — $ 795,315 The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 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 $ 8,203 $ 1,690 $ 3,276 $ 3,547 $ 564 $ 3,545 $ 461 $ — $ 21,286 Special mention — — — — 394 1,120 — — 1,514 Substandard 388 — — — 48 532 — — 968 Doubtful — — — — — — — — — Total $ 8,591 $ 1,690 $ 3,276 $ 3,547 $ 1,006 $ 5,197 $ 461 $ — $ 23,768 Owner-occupied, nonfarm nonresidential properties Risk rating Pass $ 135,095 $ 78,068 $ 78,621 $ 29,100 $ 40,677 $ 50,079 $ 7,728 $ — $ 419,368 Special mention 243 — 903 4,287 135 1,145 10 — 6,723 Substandard 687 416 2,190 868 250 4,152 18 — 8,581 Doubtful — — — — — — — — — Total $ 136,025 $ 78,484 $ 81,714 $ 34,255 $ 41,062 $ 55,376 $ 7,756 $ — $ 434,672 Agricultural production and other loans to farmers Risk rating Pass $ 211 $ 103 $ 76 $ 198 $ — $ — $ 791 $ — $ 1,379 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful (1) — — — — — — — — — Total $ 211 $ 103 $ 76 $ 198 $ — $ — $ 791 $ — $ 1,379 Commercial and Industrial Risk rating Pass $ 313,983 $ 84,815 $ 31,375 $ 16,577 $ 12,389 $ 6,777 $ 221,094 $ — $ 687,010 Special mention — 363 793 381 82 844 5,483 — 7,946 Substandard 1,991 800 1,862 452 29 2,016 5,504 — 12,654 Doubtful 1,379 — — — — — — — 1,379 Total $ 317,353 $ 85,978 $ 34,030 $ 17,410 $ 12,500 $ 9,637 $ 232,081 $ — $ 708,989 Obligations (other than securities and leases) of states and political subdivisions Risk rating Pass $ 36,853 $ 16,688 $ 8,774 $ 16,957 $ 20,071 $ 36,764 $ 4,780 $ — $ 140,887 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 36,853 $ 16,688 $ 8,774 $ 16,957 $ 20,071 $ 36,764 $ 4,780 $ — $ 140,887 Other loans Risk rating Pass $ 5,851 $ 5,305 $ 552 $ 3 $ — $ — $ 2,268 $ — $ 13,979 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total $ 5,851 $ 5,305 $ 552 $ 3 $ — $ — $ 2,268 $ — $ 13,979 (1) Consists of one loan relationship that was originated in 2015 and modified in 2021. The modification met the requirements to disclose the loan relationship as a new loan during the current period. 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 $ 98,406 $ 168,372 $ 8,752 $ 11,141 $ 853 $ 898 $ 5,681 $ — $ 294,103 Special mention 1,500 — 650 — 2,071 — — — 4,221 Substandard — — — 29 439 — 77 — 545 Doubtful — — — — — — — — — Total $ 99,906 $ 168,372 $ 9,402 $ 11,170 $ 3,363 $ 898 $ 5,758 $ — $ 298,869 Multifamily (5 or more) residential properties Risk rating Pass $ 74,687 $ 55,663 $ 33,436 $ 7,937 $ 27,729 $ 12,882 $ 2,438 $ — $ 214,772 Special mention — — — — — 100 — — 100 Substandard — 6 682 379 204 — — — 1,271 Doubtful — — — — — — — — — Total $ 74,687 $ 55,669 $ 34,118 $ 8,316 $ 27,933 $ 12,982 $ 2,438 $ — $ 216,143 Non-owner occupied, nonfarm nonresidential properties Risk rating Pass $ 194,800 $ 125,039 $ 84,943 $ 52,233 $ 42,714 $ 123,021 $ 8,784 $ — $ 631,534 Special mention — — 428 1,004 189 5,556 2,451 — 9,628 Substandard 826 — 2,305 1,662 4,638 12,134 335 — 21,900 Doubtful — — — — — — — — — Total $ 195,626 $ 125,039 $ 87,676 $ 54,899 $ 47,541 $ 140,711 $ 11,570 $ — $ 663,062 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 receivable on nonaccrual status and loans receivable past due over 89 days and still accruing interest. December 31, 2022 December 31, 2021 Performing Nonperforming Total Performing Nonperforming Total 1-4 Family Construction $ 51,171 $ — $ 51,171 $ 37,822 $ — $ 37,822 Home equity lines of credit 124,417 475 124,892 103,693 824 104,517 Residential Mortgages secured by first liens 938,154 4,377 942,531 823,182 3,547 826,729 Residential Mortgages secured by junior liens 74,547 91 74,638 56,542 147 56,689 Other revolving credit plans 36,346 26 36,372 26,523 13 26,536 Automobile 21,787 19 21,806 20,826 36 20,862 Other consumer 48,363 781 49,144 49,118 558 49,676 Total loans $ 1,294,785 $ 5,769 $ 1,300,554 $ 1,117,706 $ 5,125 $ 1,122,831 The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of December 31, 2022. The current period originations may include modifications, extensions and renewals. Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total 1-4 Family Construction Payment performance Performing $ 30,451 $ 16,360 $ 2,577 $ 752 $ 62 $ — $ 969 $ — $ 51,171 Nonperforming — — — — — — — — — Total $ 30,451 $ 16,360 $ 2,577 $ 752 $ 62 $ — $ 969 $ — $ 51,171 Home equity lines of credit Payment performance Performing $ 34,738 $ 13,654 $ 12,903 $ 8,587 $ 7,924 $ 38,127 $ 8,484 $ — $ 124,417 Nonperforming — — — 10 — 465 — — 475 Total $ 34,738 $ 13,654 $ 12,903 $ 8,597 $ 7,924 $ 38,592 $ 8,484 $ — $ 124,892 Residential mortgages secured by first lien Payment performance Performing $ 229,842 $ 222,522 $ 159,651 $ 91,238 $ 49,587 $ 181,939 $ 3,375 $ — $ 938,154 Nonperforming — 771 273 581 416 2,150 186 — 4,377 Total $ 229,842 $ 223,293 $ 159,924 $ 91,819 $ 50,003 $ 184,089 $ 3,561 $ — $ 942,531 Residential mortgages secured by junior liens Payment performance Performing $ 31,837 $ 17,163 $ 8,326 $ 4,956 $ 3,073 $ 8,395 $ 797 $ — $ 74,547 Nonperforming — — — — — 47 44 — 91 Total $ 31,837 $ 17,163 $ 8,326 $ 4,956 $ 3,073 $ 8,442 $ 841 $ — $ 74,638 Other revolving credit plans Payment performance Performing $ 10,778 $ 2,820 $ 7,911 $ 2,264 $ 2,265 $ 10,308 $ — $ — $ 36,346 Nonperforming — — — 4 14 8 — — 26 Total $ 10,778 $ 2,820 $ 7,911 $ 2,268 $ 2,279 $ 10,316 $ — $ — $ 36,372 Automobile Payment performance Performing $ 10,146 $ 4,637 $ 2,945 $ 2,349 $ 1,117 $ 593 $ — $ — $ 21,787 Nonperforming — — 10 7 2 — — — 19 Total $ 10,146 $ 4,637 $ 2,955 $ 2,356 $ 1,119 $ 593 $ — $ — $ 21,806 |