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Loans & Leases and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Loans & Leases and Allowance for Credit Losses [Abstract]  
Allocation of Allowance for Credit Losses by Portfolio Segment and by Impairment Methodology
The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands):

September 30, 2018
 
Commercial Real
Estate
  
Agricultural
Real Estate
  
Real Estate
Construction
  
Residential 1st
Mortgages
  
Home Equity
Lines & Loans
  
Agricultural
  
Commercial
  
Consumer &
Other
  
Leases
  
Unallocated
  
Total
 
                                  
Year-To-Date Allowance for Credit Losses:
                               
Beginning Balance- January 1, 2018
 
$
10,922
  
$
12,085
  
$
1,846
  
$
815
  
$
2,324
  
$
8,159
  
$
9,197
  
$
209
  
$
3,363
  
$
1,422
  
$
50,342
 
Charge-Offs
  
-
   
-
   
-
   
(12
)
  
(14
)
  
-
   
(613
)
  
(84
)
  
-
   
-
   
(723
)
Recoveries
  
-
   
-
   
-
   
12
   
4
   
40
   
19
   
40
   
-
   
-
   
115
 
Provision
  
(31
)
  
1,422
   
(372
)
  
59
   
284
   
4
   
1,029
   
142
   
430
   
366
   
3,333
 
Ending Balance- September 30, 2018
 
$
10,891
  
$
13,507
  
$
1,474
  
$
874
  
$
2,598
  
$
8,203
  
$
9,632
  
$
307
  
$
3,793
  
$
1,788
  
$
53,067
 
Third Quarter Allowance for Credit Losses:
                                     
Beginning Balance- July 1, 2018
 
$
10,783
  
$
13,314
  
$
1,616
  
$
864
  
$
2,548
  
$
7,658
  
$
9,436
  
$
270
  
$
3,400
  
$
1,248
  
$
51,137
 
Charge-Offs
  
-
   
-
   
-
   
-
   
(10
)
  
-
   
(599
)
  
(25
)
  
-
   
-
   
(634
)
Recoveries
  
-
   
-
   
-
   
6
   
2
   
27
   
16
   
13
   
-
   
-
   
64
 
Provision
  
108
   
193
   
(142
)
  
4
   
58
   
518
   
779
   
49
   
393
   
540
   
2,500
 
Ending Balance- September 30, 2018
 
$
10,891
  
$
13,507
  
$
1,474
  
$
874
  
$
2,598
  
$
8,203
  
$
9,632
  
$
307
  
$
3,793
  
$
1,788
  
$
53,067
 
Ending Balance Individually Evaluated for Impairment
  
314
   
-
   
-
   
121
   
15
   
-
   
192
   
7
   
-
   
-
   
649
 
Ending Balance Collectively Evaluated for Impairment
  
10,577
   
13,507
   
1,474
   
753
   
2,583
   
8,203
   
9,440
   
300
   
3,793
   
1,788
   
52,418
 
Loans & Leases:
                                            
Ending Balance
 
$
767,410
  
$
553,608
  
$
92,521
  
$
263,549
  
$
38,490
  
$
287,821
  
$
304,333
  
$
7,723
  
$
101,147
  
$
-
  
$
2,416,602
 
Ending Balance Individually Evaluated for Impairment
  
4,713
   
7,238
   
-
   
2,426
   
305
   
-
   
1,670
   
7
   
-
   
-
   
16,359
 
Ending Balance Collectively Evaluated for Impairment
 
$
762,697
  
$
546,370
  
$
92,521
  
$
261,123
  
$
38,185
  
$
287,821
  
$
302,663
  
$
7,716
  
$
101,147
  
$
-
  
$
2,400,243
 

December 31, 2017
 
Commercial Real
Estate
  
Agricultural
Real Estate
  
Real Estate
Construction
  
Residential 1st
Mortgages
  
Home Equity
Lines & Loans
  
Agricultural
  
Commercial
  
Consumer &
Other
  
Leases
  
Unallocated
  
Total
 
                                  
Year-To-Date Allowance for Credit Losses:
                               
Beginning Balance- January 1, 2017
 
$
11,110
  
$
9,450
  
$
3,223
  
$
865
  
$
2,140
  
$
7,381
  
$
8,515
  
$
200
  
$
3,586
  
$
1,449
  
$
47,919
 
Charge-Offs
  
(109
)
  
-
   
-
   
(53
)
  
(3
)
  
(374
)
  
-
   
(146
)
  
-
   
-
   
(685
)
Recoveries
  
109
   
-
   
-
   
40
   
8
   
17
   
8
   
76
   
-
   
-
   
258
 
Provision
  
(188
)
  
2,635
   
(1,377
)
  
(37
)
  
179
   
1,135
   
674
   
79
   
(223
)
  
(27
)
  
2,850
 
Ending Balance- December 31, 2017
 
$
10,922
  
$
12,085
  
$
1,846
  
$
815
  
$
2,324
  
$
8,159
  
$
9,197
  
$
209
  
$
3,363
  
$
1,422
  
$
50,342
 
Ending Balance Individually Evaluated for Impairment
  
366
   
-
   
-
   
73
   
17
   
-
   
220
   
8
   
-
   
-
   
684
 
Ending Balance Collectively Evaluated for Impairment
  
10,556
   
12,085
   
1,846
   
742
   
2,307
   
8,159
   
8,977
   
201
   
3,363
   
1,422
   
49,658
 
Loans & Leases:
                                            
Ending Balance
 
$
684,961
  
$
499,231
  
$
100,206
  
$
260,751
  
$
34,525
  
$
273,582
  
$
265,703
  
$
6,656
  
$
89,680
  
$
-
  
$
2,215,295
 
Ending Balance Individually Evaluated for Impairment
  
4,822
   
-
   
-
   
2,373
   
340
   
-
   
1,734
   
10
   
-
   
-
   
9,279
 
Ending Balance Collectively Evaluated for Impairment
 
$
680,139
  
$
499,231
  
$
100,206
  
$
258,378
  
$
34,185
  
$
273,582
  
$
263,969
  
$
6,646
  
$
89,680
  
$
-
  
$
2,206,016
 

September 30, 2017
 
Commercial Real
Estate
  
Agricultural
Real Estate
  
Real Estate
Construction
  
Residential 1st
Mortgages
  
Home Equity
Lines & Loans
  
Agricultural
  
Commercial
  
Consumer &
Other
  
Leases
  
Unallocated
  
Total
 
                                  
Year-To-Date Allowance for Credit Losses:
                               
Beginning Balance- January 1, 2017
 
$
11,110
  
$
9,450
  
$
3,223
  
$
865
  
$
2,140
  
$
7,381
  
$
8,515
  
$
200
  
$
3,586
  
$
1,449
  
$
47,919
 
Charge-Offs
  
(109
)
  
-
   
-
   
-
   
-
   
(7
)
  
-
   
(114
)
  
-
   
-
   
(230
)
Recoveries
  
110
   
-
   
-
   
37
   
6
   
-
   
6
   
46
   
-
   
-
   
205
 
Provision
  
(14
)
  
1,946
   
(473
)
  
95
   
115
   
(14
)
  
539
   
77
   
(392
)
  
971
   
2,850
 
Ending Balance- September 30, 2017
 
$
11,097
  
$
11,396
  
$
2,750
  
$
997
  
$
2,261
  
$
7,360
  
$
9,060
  
$
209
  
$
3,194
  
$
2,420
  
$
50,744
 
Third Quarter Allowance for Credit Losses:
                                     
Beginning Balance- July 1, 2017
 
$
11,242
  
$
10,265
  
$
2,687
  
$
872
  
$
2,170
  
$
7,236
  
$
9,544
  
$
205
  
$
2,952
  
$
1,891
  
$
49,064
 
Charge-Offs
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
(54
)
  
-
   
-
   
(54
)
Recoveries
  
99
   
-
   
-
   
18
   
1
   
-
   
2
   
14
   
-
   
-
   
134
 
Provision
  
(244
)
  
1,131
   
63
   
107
   
90
   
124
   
(486
)
  
44
   
242
   
529
   
1,600
 
Ending Balance- September 30, 2017
 
$
11,097
  
$
11,396
  
$
2,750
  
$
997
  
$
2,261
  
$
7,360
  
$
9,060
  
$
209
  
$
3,194
  
$
2,420
  
$
50,744
 
Ending Balance Individually Evaluated for Impairment
  
385
   
-
   
-
   
61
   
17
   
69
   
231
   
5
   
-
   
-
   
768
 
Ending Balance Collectively Evaluated for Impairment
  
10,712
   
11,396
   
2,750
   
936
   
2,244
   
7,291
   
8,829
   
204
   
3,194
   
2,420
   
49,976
 
Loans & Leases:
                                            
Ending Balance
 
$
683,037
  
$
470,738
  
$
162,167
  
$
257,920
  
$
33,350
  
$
259,127
  
$
257,951
  
$
7,312
  
$
85,177
  
$
-
  
$
2,216,779
 
Ending Balance Individually Evaluated for Impairment
  
4,855
   
-
   
-
   
1,887
   
369
   
368
   
1,752
   
7
   
-
   
-
   
9,238
 
Ending Balance Collectively Evaluated for Impairment
 
$
678,182
  
$
470,738
  
$
162,167
  
$
256,033
  
$
32,981
  
$
258,759
  
$
256,199
  
$
7,305
  
$
85,177
  
$
-
  
$
2,207,541
 
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings
The following tables show the loan & lease portfolio allocated by management’s internal risk ratings at the dates indicated (in thousands):

September 30, 2018
 
Pass
  
Special
Mention
  
Substandard
  
Total Loans
& Leases
 
Loans & Leases:
            
Commercial Real Estate
 
$
764,839
  
$
2,571
  
$
-
  
$
767,410
 
Agricultural Real Estate
  
537,027
   
3,271
   
13,310
   
553,608
 
Real Estate Construction
  
92,521
   
-
   
-
   
92,521
 
Residential 1st Mortgages
  
262,946
   
-
   
603
   
263,549
 
Home Equity Lines & Loans
  
38,443
   
-
   
47
   
38,490
 
Agricultural
  
281,698
   
4,635
   
1,488
   
287,821
 
Commercial
  
303,507
   
171
   
655
   
304,333
 
Consumer & Other
  
7,552
   
-
   
171
   
7,723
 
Leases
  
101,147
   
-
   
-
   
101,147
 
Total
 
$
2,389,680
  
$
10,648
  
$
16,274
  
$
2,416,602
 

December 31, 2017
 
Pass
  
Special
Mention
  
Substandard
  
Total Loans
 
Loans & Leases:
            
Commercial Real Estate
 
$
677,636
  
$
6,843
  
$
482
  
$
684,961
 
Agricultural Real Estate
  
488,672
   
6,529
   
4,030
   
499,231
 
Real Estate Construction
  
90,728
   
9,478
   
-
   
100,206
 
Residential 1st Mortgages
  
259,795
   
41
   
915
   
260,751
 
Home Equity Lines and Loans
  
34,476
   
-
   
49
   
34,525
 
Agricultural
  
264,425
   
6,439
   
2,718
   
273,582
 
Commercial
  
260,565
   
4,610
   
528
   
265,703
 
Consumer & Other
  
6,498
   
-
   
158
   
6,656
 
Leases
  
87,497
   
2,183
   
-
   
89,680
 
Total
 
$
2,170,292
  
$
36,123
  
$
8,880
  
$
2,215,295
 

September 30, 2017
 
Pass
  
Special
Mention
  
Substandard
  
Total Loans
&Leases
 
Loans & Leases:
            
Commercial Real Estate
 
$
678,083
  
$
4,458
  
$
496
  
$
683,037
 
Agricultural Real Estate
  
465,427
   
1,281
   
4,030
   
470,738
 
Real Estate Construction
  
152,989
   
9,178
   
-
   
162,167
 
Residential 1st Mortgages
  
256,906
   
43
   
971
   
257,920
 
Home Equity Lines & Loans
  
33,297
   
-
   
53
   
33,350
 
Agricultural
  
250,372
   
5,331
   
3,424
   
259,127
 
Commercial
  
253,144
   
4,184
   
623
   
257,951
 
Consumer & Other
  
7,142
   
-
   
170
   
7,312
 
Leases
  
82,889
   
2,288
   
-
   
85,177
 
Total
 
$
2,180,249
  
$
26,763
  
$
9,767
  
$
2,216,779
 
Aging Analysis of Loan & Lease Portfolio by Time Past Due
The following tables show an aging analysis of the loan & lease portfolio by the time past due at the dates indicated
(in thousands):

September 30, 2018
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
90 Days and
Still Accruing
  
Nonaccrual
  
Total Past
Due
  
Current
  
Total
Loans & Leases
 
Loans & Leases:
                     
Commercial Real Estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
767,410
  
$
767,410
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
-
   
553,608
   
553,608
 
Real Estate Construction
  
-
   
-
   
-
   
-
   
-
   
92,521
   
92,521
 
Residential 1st Mortgages
  
167
   
-
   
-
   
-
   
167
   
263,382
   
263,549
 
Home Equity Lines & Loans
  
-
   
-
   
-
   
-
   
-
   
38,490
   
38,490
 
Agricultural
  
150
   
-
   
-
   
-
   
150
   
287,671
   
287,821
 
Commercial
  
21
   
-
   
-
   
-
   
21
   
304,312
   
304,333
 
Consumer & Other
  
17
   
-
   
-
       
17
   
7,706
   
7,723
 
Leases
  
-
   
-
   
-
       
-
   
101,147
   
101,147
 
Total
 
$
355
  
$
-
  
$
-
  
$
-
  
$
355
  
$
2,416,247
  
$
2,416,602
 

December 31, 2017
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
90 Days and
Still Accruing
  
Nonaccrual
  
Total Past
Due
  
Current
  
Total
Loans & Leases
 
Loans & Leases:
                     
Commercial Real Estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
684,961
  
$
684,961
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
-
   
499,231
   
499,231
 
Real Estate Construction
  
-
   
-
   
-
   
-
   
-
   
100,206
   
100,206
 
Residential 1st Mortgages
  
448
   
-
   
-
   
-
   
448
   
260,303
   
260,751
 
Home Equity Lines and Loans
  
10
   
-
   
-
   
-
   
10
   
34,515
   
34,525
 
Agricultural
  
-
   
-
   
-
   
-
   
-
   
273,582
   
273,582
 
Commercial
  
180
   
-
   
-
   
-
   
180
   
265,523
   
265,703
 
Consumer & Other
  
7
   
-
   
-
   
-
   
7
   
6,649
   
6,656
 
Leases
  
-
   
-
   
-
   
-
   
-
   
89,680
   
89,680
 
Total
 
$
645
  
$
-
  
$
-
  
$
-
  
$
645
  
$
2,214,650
  
$
2,215,295
 

September 30, 2017
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
90 Days and
Still Accruing
  
Nonaccrual
  
Total Past
Due
  
Current
  
Total
Loans & Leases
 
Loans & Leases:
                     
Commercial Real Estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
683,037
  
$
683,037
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
-
   
470,738
   
470,738
 
Real Estate Construction
  
-
   
-
   
-
   
-
   
-
   
162,167
   
162,167
 
Residential 1st Mortgages
  
-
   
-
   
-
   
-
   
-
   
257,920
   
257,920
 
Home Equity Lines & Loans
  
-
   
-
   
-
   
-
   
-
   
33,350
   
33,350
 
Agricultural
  
-
   
-
   
-
   
-
   
-
   
259,127
   
259,127
 
Commercial
  
-
   
3
   
-
   
-
   
3
   
257,948
   
257,951
 
Consumer & Other
  
16
   
-
   
-
   
4
   
20
   
7,292
   
7,312
 
Leases
  
-
   
-
   
-
   
-
   
-
   
85,177
   
85,177
 
Total
 
$
16
  
$
3
  
$
-
  
$
4
  
$
23
  
$
2,216,756
  
$
2,216,779
 
Impaired Loans & Leases
The following tables show information related to impaired loans & leases for the periods indicated (in thousands):

September 30, 2018
          
Three Months Ended September 30, 2018
  
Nine Months Ended September 30, 2018
 
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
                     
Commercial Real Estate
 
$
98
  
$
98
  
$
-
  
$
99
  
$
2
  
$
101
  
$
6
 
Agricultural Real Estate
  
7,239
   
7,238
   
-
   
3,620
   
6
   
804
   
6
 
Residential 1st Mortgages
  
-
   
-
   
-
   
-
   
-
   
553
   
8
 
  
$
7,337
  
$
7,336
  
$
-
  
$
3,719
  
$
8
  
$
1,458
  
$
20
 
With an allowance recorded:
                            
Commercial Real Estate
 
$
2,920
  
$
2,910
  
$
314
  
$
2,929
  
$
24
  
$
2,950
  
$
72
 
Residential 1st Mortgages
  
1,562
   
1,739
   
77
   
1,630
   
12
   
989
   
32
 
Home Equity Lines & Loans
  
75
   
85
   
4
   
76
   
1
   
76
   
3
 
Commercial
  
1,675
   
1,670
   
192
   
1,986
   
14
   
1,879
   
44
 
Consumer & Other
  
7
   
7
   
7
   
7
   
-
   
8
   
-
 
  
$
6,239
  
$
6,411
  
$
594
  
$
6,628
  
$
51
   
5,902
  
$
151
 
Total
 
$
13,576
  
$
13,747
  
$
594
  
$
10,347
  
$
59
  
$
7,360
  
$
171
 

December 31, 2017
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
               
Commercial Real Estate
 
$
104
  
$
104
  
$
-
  
$
107
  
$
11
 
Agricultural Real Estate
  
-
   
-
   
-
   
488
   
-
 
Residential 1st Mortgages
  
911
   
1,012
   
-
   
532
   
11
 
Home Equity Lines and Loans
  
-
   
-
   
-
   
16
   
-
 
Agricultural
  
-
   
-
   
-
   
30
   
-
 
  
$
1,015
  
$
1,116
  
$
-
  
$
1,173
  
$
22
 
With an allowance recorded:
                    
Commercial Real Estate
 
$
2,973
  
$
2,961
  
$
366
  
$
2,999
  
$
104
 
Residential 1st Mortgages
  
508
   
571
   
25
   
469
   
16
 
Home Equity Lines and Loans
  
73
   
89
   
4
   
74
   
3
 
Agricultural
  
-
   
-
   
-
   
409
   
21
 
Commercial
  
1,741
   
1,734
   
220
   
1,693
   
59
 
Consumer & Other
  
8
   
9
   
8
   
11
   
-
 
  
$
5,303
  
$
5,364
  
$
623
  
$
5,655
  
$
203
 
Total
 
$
6,318
  
$
6,480
  
$
623
  
$
6,828
  
$
225
 

           
Three Months Ended September 30, 2017
  
Nine Months Ended September 30, 2017
 
September 30, 2017
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
                     
Commercial Real Estate
 
$
106
  
$
107
  
$
-
  
$
107
  
$
2
  
$
121
  
$
9
 
Agricultural Real Estate
  
-
   
-
   
-
   
488
   
-
   
868
   
-
 
Residential 1st Mortgages
  
399
   
456
   
-
   
403
   
3
   
415
   
6
 
Home Equity Lines & Loans
  
-
   
-
   
-
   
-
   
-
   
21
   
-
 
Agricultural
  
-
   
-
   
-
   
30
   
-
   
40
   
-
 
Commercial
  
-
   
-
   
-
   
-
   
-
   
504
   
-
 
  
$
505
  
$
563
  
$
-
  
$
1,028
  
$
5
  
$
1,969
  
$
15
 
With an allowance recorded:
                            
Commercial Real Estate
 
$
2,991
  
$
2,977
  
$
384
  
$
3,000
  
$
25
   
2,509
  
$
80
 
Residential 1st Mortgages
  
519
   
574
   
26
   
472
   
3
   
442
   
12
 
Home Equity Lines & Loans
  
83
   
90
   
4
   
67
   
-
   
76
   
2
 
Agricultural
  
367
   
367
   
69
   
499
   
7
   
588
   
21
 
Commercial
  
1,760
   
1,752
   
234
   
1,696
   
14
   
1,624
   
44
 
Consumer & Other
  
4
   
11
   
4
   
14
   
-
   
12
   
-
 
  
$
5,724
  
$
5,771
  
$
721
  
$
5,748
  
$
49
   
5,251
  
$
159
 
Total
 
$
6,229
  
$
6,334
  
$
721
  
$
6,776
  
$
54
  
$
7,220
  
$
174
 
Loans & Leases by Class Modified as Troubled Debt Restructured Loans
The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2018 (in thousands):

  
Three Months Ended September 30, 2018
  
Nine Months Ended September 30, 2018
 
Troubled Debt Restructurings
 
Number of
Loans
  
Pre- Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
  
Number of
Loans
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
 
Agricultural Real Estate
  
1
  
$
7,239
  
$
7,239
   
1
  
$
7,239
  
$
7,239
 
Residential 1st Mortgages
  
-
   
-
   
-
   
1
   
175
   
163
 
Total
  
1
  
$
7,239
  
$
7,239
   
2
  
$
7,414
  
$
7,402
 

The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2017 (in thousands):

  
December 31, 2017
 
Troubled Debt Restructurings
 
Number of
Loans
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
 
Residential 1st Mortgages
  
2
   
673
   
630
 
Home Equity Lines and Loans
  
1
   
32
   
32
 
Commercial
  
2
   
138
   
138
 
Consumer & Other
  
1
   
9
   
8
 
Total
  
6
  
$
852
  
$
808
 

The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2017 (in thousands):

  
Three Months Ended September 30, 2017
  
Nine Months Ended September 30, 2017
 
Troubled Debt Restructurings
 
Number of
Loans
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
  
Number of
Loans
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
 
Residential 1st Mortgages
  
1
  
$
112
  
$
112
   
1
  
$
112
  
$
112
 
Home Equity Lines & Loans
  
1
   
32
   
32
   
1
   
32
   
32
 
Commercial
  
2
   
138
   
138
   
2
   
138
   
138
 
Total
  
4
  
$
282
  
$
282
   
4
  
$
282
  
$
282