XML 38 R22.htm IDEA: XBRL DOCUMENT v3.19.3
Loans & Leases and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019
 
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, 2019
 
$
11,609
  
$
14,092
  
$
1,249
  
$
880
  
$
2,761
  
$
8,242
  
$
11,656
  
$
494
  
$
4,022
  
$
261
  
$
55,266
 
Charge-Offs
  
-
   
-
   
-
   
-
   
-
   
-
   
(592
)
  
(62
)
  
-
   
-
   
(654
)
Recoveries
  
-
   
-
   
-
   
8
   
20
   
34
   
40
   
40
   
-
   
-
   
142
 
Provision
  
(847
)
  
731
   
480
   
(33
)
  
(79
)
  
(431
)
  
601
   
3
   
(969
)
  
744
   
200
 
Ending Balance- September 30, 2019
 
$
10,762
  
$
14,823
  
$
1,729
  
$
855
  
$
2,702
  
$
7,845
  
$
11,705
  
$
475
  
$
3,053
  
$
1,005
  
$
54,954
 
Third Quarter Allowance for Credit Losses:
                                     
Beginning Balance- July 1, 2019
 
$
10,680
  
$
14,572
  
$
1,697
  
$
864
  
$
2,743
  
$
7,481
  
$
12,267
  
$
464
  
$
3,100
  
$
1,257
  
$
55,125
 
Charge-Offs
  
-
   
-
   
-
   
-
   
-
   
-
   
(213
)
  
(22
)
  
-
   
-
   
(235
)
Recoveries
  
-
   
-
   
-
   
2
   
9
   
23
   
17
   
13
   
-
   
-
   
64
 
Provision
  
82
   
251
   
32
   
(11
)
  
(50
)
  
341
   
(366
)
  
20
   
(47
)
  
(252
)
  
-
 
Ending Balance- September 30, 2019
 
$
10,762
  
$
14,823
  
$
1,729
  
$
855
  
$
2,702
  
$
7,845
  
$
11,705
  
$
475
  
$
3,053
  
$
1,005
  
$
54,954
 
Ending Balance Individually Evaluated for Impairment
  
253
   
-
   
-
   
121
   
12
   
95
   
147
   
5
   
-
   
-
   
633
 
Ending Balance Collectively Evaluated for Impairment
  
10,509
   
14,823
   
1,729
   
734
   
2,690
   
7,750
   
11,558
   
470
   
3,053
   
1,005
   
54,321
 
Loans & Leases:
                                            
Ending Balance
 
$
816,668
  
$
617,310
  
$
98,662
  
$
255,394
  
$
39,490
  
$
289,182
  
$
381,774
  
$
16,871
  
$
101,771
  
$
-
  
$
2,617,122
 
Ending Balance Individually Evaluated for Impairment
  
4,563
   
5,678
   
-
   
2,422
   
237
   
192
   
1,538
   
5
   
-
   
-
   
14,635
 
Ending Balance Collectively Evaluated for Impairment
 
$
812,105
  
$
611,632
  
$
98,662
  
$
252,972
  
$
39,253
  
$
288,990
  
$
380,236
  
$
16,866
  
$
101,771
  
$
-
  
$
2,602,487
 

December 31, 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
  
-
   
-
   
-
   
(31
)
  
(8
)
  
-
   
(613
)
  
(115
)
  
-
   
-
   
(767
)
Recoveries
  
2
   
-
   
-
   
15
   
6
   
61
   
20
   
54
   
-
   
-
   
158
 
Provision
  
685
   
2,007
   
(597
)
  
81
   
439
   
22
   
3,052
   
346
   
659
   
(1,161
)
  
5,533
 
Ending Balance- December 31, 2018
 
$
11,609
  
$
14,092
  
$
1,249
  
$
880
  
$
2,761
  
$
8,242
  
$
11,656
  
$
494
  
$
4,022
  
$
261
  
$
55,266
 
Ending Balance Individually Evaluated for Impairment
  
234
   
-
   
-
   
125
   
15
   
-
   
185
   
6
   
-
   
-
   
565
 
Ending Balance Collectively Evaluated for Impairment
  
11,375
   
14,092
   
1,249
   
755
   
2,746
   
8,242
   
11,471
   
488
   
4,022
   
261
   
54,701
 
Loans & Leases:
                                            
Ending Balance
 
$
826,549
  
$
584,625
  
$
98,568
  
$
259,736
  
$
40,789
  
$
290,463
  
$
343,834
  
$
19,412
  
$
107,265
  
$
-
  
$
2,571,241
 
Ending Balance Individually Evaluated for Impairment
  
4,676
   
7,238
   
-
   
2,491
   
297
   
-
   
1,639
   
6
   
-
   
-
   
16,347
 
Ending Balance Collectively Evaluated for Impairment
  
821,873
   
577,387
   
98,568
   
257,245
   
40,492
   
290,463
   
342,195
   
19,406
   
107,265
   
-
   
2,554,894
 

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
 
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, 2019
 
Pass
  
Special
Mention
  
Substandard
  
Total Loans
& Leases
 
Loans & Leases:
            
Commercial Real Estate
 
$
814,560
  
$
2,108
  
$
-
  
$
816,668
 
Agricultural Real Estate
  
602,781
   
2,491
   
12,038
   
617,310
 
Real Estate Construction
  
98,662
   
-
   
-
   
98,662
 
Residential 1st Mortgages
  
254,594
   
-
   
800
   
255,394
 
Home Equity Lines & Loans
  
39,374
   
-
   
116
   
39,490
 
Agricultural
  
284,211
   
4,168
   
803
   
289,182
 
Commercial
  
377,779
   
2,839
   
1,156
   
381,774
 
Consumer & Other
  
16,436
   
-
   
435
   
16,871
 
Leases
  
101,771
   
-
   
-
   
101,771
 
Total
 
$
2,590,168
  
$
11,606
  
$
15,348
  
$
2,617,122
 

December 31, 2018
 
Pass
  
Special
Mention
  
Substandard
  
Total Loans
& Leases
 
Loans & Leases:
            
Commercial Real Estate
 
$
823,983
  
$
2,566
  
$
-
  
$
826,549
 
Agricultural Real Estate
  
566,612
   
4,703
   
13,310
   
584,625
 
Real Estate Construction
  
98,568
   
-
   
-
   
98,568
 
Residential 1st Mortgages
  
259,208
   
-
   
528
   
259,736
 
Home Equity Lines & Loans
  
40,744
   
-
   
45
   
40,789
 
Agricultural
  
284,561
   
5,433
   
469
   
290,463
 
Commercial
  
343,085
   
163
   
586
   
343,834
 
Consumer & Other
  
19,229
   
-
   
183
   
19,412
 
Leases
  
107,265
   
-
   
-
   
107,265
 
Total
 
$
2,543,255
  
$
12,865
  
$
15,121
  
$
2,571,241
 

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
 
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, 2019
 
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
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
816,668
  
$
816,668
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
-
   
617,310
   
617,310
 
Real Estate Construction
  
-
   
-
   
-
   
-
   
-
   
98,662
   
98,662
 
Residential 1st Mortgages
  
-
   
-
   
-
   
-
   
-
   
255,394
   
255,394
 
Home Equity Lines & Loans
  
-
   
84
   
-
   
-
   
84
   
39,406
   
39,490
 
Agricultural
  
250
   
-
   
-
   
-
   
250
   
288,932
   
289,182
 
Commercial
  
258
   
-
   
-
   
-
   
258
   
381,516
   
381,774
 
Consumer & Other
  
9
   
60
   
-
   
-
   
69
   
16,802
   
16,871
 
Leases
  
-
   
-
   
-
   
-
   
-
   
101,771
   
101,771
 
Total
 
$
517
  
$
144
  
$
-
  
$
-
  
$
661
  
$
2,616,461
  
$
2,617,122
 

December 31, 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
 
$
-
  
$
731
  
$
-
  
$
-
  
$
731
  
$
825,818
  
$
826,549
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
-
   
584,625
   
584,625
 
Real Estate Construction
  
327
   
-
   
-
   
-
   
327
   
98,241
   
98,568
 
Residential 1st Mortgages
  
367
   
-
   
-
   
-
   
367
   
259,369
   
259,736
 
Home Equity Lines & Loans
  
-
   
-
   
-
   
-
   
-
   
40,789
   
40,789
 
Agricultural
  
-
   
-
   
-
   
-
   
-
   
290,463
   
290,463
 
Commercial
  
-
   
-
   
-
   
-
   
-
   
343,834
   
343,834
 
Consumer & Other
  
13
   
-
   
-
   
-
   
13
   
19,399
   
19,412
 
Leases
  
-
   
-
   
-
   
-
   
-
   
107,265
   
107,265
 
Total
 
$
707
  
$
731
  
$
-
  
$
-
  
$
1,438
  
$
2,569,803
  
$
2,571,241
 

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
 
Impaired Loans & Leases
The following tables show information related to impaired loans & leases for the periods indicated (in thousands):

           
Three Months Ended
September 30, 2019
  
Nine Months Ended
September 30, 2019
 
September 30, 2019
 
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
 
$
89
  
$
89
  
$
-
  
$
90
  
$
2
  
$
92
  
$
6
 
Agricultural Real Estate
  
5,678
   
5,678
   
-
   
5,691
   
89
   
6,467
   
290
 
Commercial
  
-
   
-
   
-
   
16
   
-
   
11
   
1
 
 
 
$
5,767
  
$
5,767
  
$
-
  
$
5,797
  
$
91
  
$
6,570
  
$
297
 
With an allowance recorded:
                            
Commercial Real Estate
 
$
2,840
  
$
2,840
  
$
253
  
$
2,853
  
$
24
  
$
2,873
  
$
71
 
Residential 1st Mortgages
  
1,601
   
1,810
   
80
   
1,608
   
18
   
1,620
   
56
 
Home Equity Lines & Loans
  
70
   
80
   
4
   
71
   
1
   
72
   
3
 
Agricultural
  
192
   
192
   
95
   
195
   
2
   
165
   
4
 
Commercial
  
1,538
   
1,538
   
147
   
1,545
   
13
   
1,580
   
40
 
Consumer & Other
  
5
   
6
   
5
   
6
   
-
   
6
   
-
 
  
$
6,246
  
$
6,466
  
$
584
  
$
6,278
  
$
58
   
6,316
  
$
174
 
Total
 
$
12,013
  
$
12,233
  
$
584
  
$
12,075
  
$
149
  
$
12,886
  
$
471
 

December 31, 2018
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
               
Commercial Real Estate
 
$
95
  
$
96
  
$
-
  
$
99
  
$
8
 
Agricultural Real Estate
  
7,239
   
7,238
   
-
   
3,620
   
119
 
Residential 1st Mortgages
  
-
   
-
   
-
   
226
   
8
 
 
 
$
7,334
  
$
7,334
  
$
-
  
$
3,945
  
$
135
 
With an allowance recorded:
                    
Commercial Real Estate
 
$
2,902
  
$
2,892
  
$
234
  
$
2,929
  
$
96
 
Residential 1st Mortgages
  
1,640
   
1,838
   
82
   
1,371
   
48
 
Home Equity Lines & Loans
  
74
   
84
   
4
   
76
   
4
 
Commercial
  
1,644
   
1,639
   
185
   
1,834
   
58
 
Consumer & Other
  
6
   
7
   
6
   
7
   
-
 
  
$
6,266
  
$
6,460
  
$
511
  
$
6,217
  
$
206
 
Total
 
$
13,600
  
$
13,794
  
$
511
  
$
10,162
  
$
341
 


          
Three Months Ended
September 30, 2018
  
Nine Months Ended
September 30, 2018
 
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
 
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, 2019 (in thousands):

  
Three Months Ended September 30, 2019
  
Nine Months Ended September 30, 2019
 
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
  
-
  
$
-
  
$
-
   
1
  
$
201
  
$
201
 
Total
  
-
  
$
-
  
$
-
   
1
  
$
201
  
$
201
 

The following table presents loans by class modified as troubled debt restructured loans for the year ended December 31, 2018 (in thousands):

  
Year ended December 31, 2018
 
Troubled Debt Restructurings
 
Number of
Loans
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
 
Agricultural Real Estate
  
1
  
$
7,239
  
$
7,239
 
Residential 1st Mortgages
  
2
   
286
   
255
 
Total
  
3
  
$
7,525
  
$
7,494
 

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