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Loans & Leases and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Loans & Leases and Allowance for Credit Losses [Abstract]  
Loans and Leases
Loans & Leases consisted of the following:

(in thousands)
  
June 30, 2020
    
December 31, 2019
    
June 30, 2019
  
Commercial Real Estate
  
$
873,922
    
$
846,486
    
$
821,472
  
Agricultural Real Estate
    
635,077
      
625,767
      
605,776
  
Real Estate Construction
    
166,548
      
115,644
      
93,539
  
Residential 1st Mortgages
    
272,209
      
255,253
      
257,408
  
Home Equity Lines and Loans
    
37,966
      
39,270
      
40,210
  
Agricultural
    
261,986
      
292,904
      
284,858
  
Commercial
    
369,817
      
384,795
      
382,192
  
Consumer & Other (1)
    
361,035
      
15,422
      
17,844
  
Leases
    
103,229
      
104,470
      
102,300
  
Total Gross Loans & Leases
    
3,081,789
      
2,680,011
      
2,605,599
  
Less: Unearned Income
    
17,277
      
6,984
      
6,701
  
Subtotal
    
3,064,512
      
2,673,027
      
2,598,898
  
Less: Allowance for Credit Losses
    
55,058
      
55,012
      
55,125
  
Net Loans & Leases
  
$
3,009,454
    
$
2,618,015
    
$
2,543,773
  

(1) Includes CARES Act Small Business Admistration Paycheck Protection Program loans.
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):

June 30, 2020
  
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, 2020
  
$
11,053
    
$
15,128
    
$
1,949
    
$
855
    
$
2,675
    
$
8,076
    
$
11,466
    
$
456
    
$
3,162
    
$
192
    
$
55,012
  
Charge-Offs
    
-
      
-
      
-
      
-
      
(7
)
    
-
      
(426
)
    
(29
)
    
-
      
-
      
(462
)
Recoveries
    
-
      
-
      
-
      
46
      
34
      
30
      
80
      
18
      
-
      
-
      
208
  
Provision
    
10,370
      
(6,107
)
    
(497
)
    
870
      
(463
)
    
(3,316
)
    
(1,077
)
    
(86
)
    
(362
)
    
968
      
300
  
Ending Balance- June 30, 2020
  
$
21,423
    
$
9,021
    
$
1,452
    
$
1,771
    
$
2,239
    
$
4,790
    
$
10,043
    
$
359
    
$
2,800
    
$
1,160
    
$
55,058
  
Second Quarter Allowance for Credit Losses:
                                                                                  
Beginning Balance- April 1, 2020
  
$
11,122
    
$
14,469
    
$
1,927
    
$
1,037
    
$
2,783
    
$
6,959
    
$
12,214
    
$
382
    
$
3,188
    
$
743
    
$
54,824
  
Charge-Offs
    
-
      
-
      
-
      
-
      
(7
)
    
-
      
(182
)
    
(8
)
    
-
      
-
      
(197
)
Recoveries
    
-
      
-
      
-
      
26
      
13
      
3
      
79
      
10
      
-
      
-
      
131
  
Provision
    
10,301
      
(5,448
)
    
(475
)
    
708
      
(550
)
    
(2,172
)
    
(2,068
)
    
(25
)
    
(388
)
    
417
      
300
  
Ending Balance- June 30, 2020
  
$
21,423
    
$
9,021
    
$
1,452
    
$
1,771
    
$
2,239
    
$
4,790
    
$
10,043
    
$
359
    
$
2,800
    
$
1,160
    
$
55,058
  
Ending Balance Individually Evaluated for Impairment
    
6
      
-
      
-
      
121
      
8
      
79
      
-
      
25
      
-
      
-
      
239
  
Ending Balance Collectively Evaluated for Impairment
    
21,417
      
9,021
      
1,452
      
1,650
      
2,231
      
4,711
      
10,043
      
334
      
2,800
      
1,160
      
54,819
  
Loans & Leases:
                                                                                        
Ending Balance
  
$
855,762
    
$
635,077
    
$
166,548
    
$
272,209
    
$
37,966
    
$
261,986
    
$
369,817
    
$
361,035
    
$
104,112
    
$
-
    
$
3,064,512
  
Ending Balance Individually Evaluated for Impairment
    
1,663
      
5,629
      
-
      
2,411
      
168
      
473
      
10
      
195
      
-
      
-
      
10,549
  
Ending Balance Collectively Evaluated for Impairment
  
$
854,099
    
$
629,448
    
$
166,548
    
$
269,798
    
$
37,798
    
$
261,513
    
$
369,807
    
$
360,840
    
$
104,112
    
$
-
    
$
3,053,963
  

December 31, 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
)
    
(83
)
    
-
      
-
      
(675
)
Recoveries
    
-
      
-
      
-
      
13
      
28
      
38
      
90
      
52
      
-
      
-
      
221
  
Provision
    
(556
)
    
1,036
      
700
      
(38
)
    
(114
)
    
(204
)
    
312
      
(7
)
    
(860
)
    
(69
)
    
200
  
Ending Balance- December 31, 2019
  
$
11,053
    
$
15,128
    
$
1,949
    
$
855
    
$
2,675
    
$
8,076
    
$
11,466
    
$
456
    
$
3,162
    
$
192
    
$
55,012
  
Ending Balance Individually Evaluated for Impairment
    
234
      
-
      
-
      
118
      
12
      
99
      
137
      
61
      
-
      
-
      
661
  
Ending Balance Collectively Evaluated for Impairment
    
10,819
      
15,128
      
1,949
      
737
      
2,663
      
7,977
      
11,329
      
395
      
3,162
      
192
      
54,351
  
Loans & Leases:
                                                                                        
Ending Balance
  
$
838,570
    
$
625,767
    
$
115,644
    
$
255,253
    
$
39,270
    
$
292,904
    
$
384,795
    
$
15,422
    
$
105,402
    
$
-
    
$
2,673,027
  
Ending Balance Individually Evaluated for Impairment
    
4,524
      
5,654
      
-
      
2,368
      
229
      
188
      
1,528
      
200
      
-
      
-
      
14,691
  
Ending Balance Collectively Evaluated for Impairment
  
$
834,046
    
$
620,113
    
$
115,644
    
$
252,885
    
$
39,041
    
$
292,716
    
$
383,267
    
$
15,222
    
$
105,402
    
$
-
    
$
2,658,336
  


June 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
    
-
      
-
      
-
      
-
      
-
      
-
      
(379
)
    
(39
)
    
-
      
-
      
(418
)
Recoveries
    
-
      
-
      
-
      
6
      
11
      
11
      
23
      
26
      
-
      
-
      
77
  
Provision
    
(929
)
    
480
      
448
      
(22
)
    
(29
)
    
(772
)
    
967
      
(17
)
    
(922
)
    
996
      
200
  
Ending Balance- June 30, 2019
  
$
10,680
    
$
14,572
    
$
1,697
    
$
864
    
$
2,743
    
$
7,481
    
$
12,267
    
$
464
    
$
3,100
    
$
1,257
    
$
55,125
  
Second Quarter Allowance for Credit Losses:
                                                                                  
Beginning Balance- April 1, 2019
  
$
11,400
    
$
14,493
    
$
1,207
    
$
863
    
$
2,738
    
$
7,448
    
$
11,933
    
$
467
    
$
4,008
    
$
350
    
$
54,907
  
Charge-Offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(18
)
    
-
      
-
      
(18
)
Recoveries
    
-
      
-
      
-
      
3
      
5
      
4
      
12
      
12
      
-
      
-
      
36
  
Provision
    
(720
)
    
79
      
490
      
(2
)
    
-
      
29
      
322
      
3
      
(908
)
    
907
      
200
  
Ending Balance- June 30, 2019
  
$
10,680
    
$
14,572
    
$
1,697
    
$
864
    
$
2,743
    
$
7,481
    
$
12,267
    
$
464
    
$
3,100
    
$
1,257
    
$
55,125
  
Ending Balance Individually Evaluated for Impairment
    
201
      
-
      
-
      
122
      
12
      
99
      
158
      
6
      
-
      
-
      
598
  
Ending Balance Collectively Evaluated for Impairment
    
10,479
      
14,572
      
1,697
      
742
      
2,731
      
7,382
      
12,109
      
458
      
3,100
      
1,257
      
54,527
  
Loans & Leases:
                                                                                        
Ending Balance
  
$
813,750
    
$
605,776
    
$
93,539
    
$
257,408
    
$
40,210
    
$
284,858
    
$
382,192
    
$
17,844
    
$
103,321
    
$
-
    
$
2,598,898
  
Ending Balance Individually Evaluated for Impairment
    
4,601
      
5,702
      
-
      
2,444
      
247
      
196
      
1,579
      
6
      
-
      
-
      
14,775
  
Ending Balance Collectively Evaluated for Impairment
  
$
809,149
    
$
600,074
    
$
93,539
    
$
254,964
    
$
39,963
    
$
284,662
    
$
380,613
    
$
17,838
    
$
103,321
    
$
-
    
$
2,584,123
  
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):

June 30, 2020
  
Pass
    
Special
Mention
    
Substandard
    
Total Loans
& Leases
  
Loans & Leases:
                        
Commercial Real Estate
  
$
843,952
    
$
7,300
    
$
4,510
    
$
855,762
  
Agricultural Real Estate
    
620,754
      
1,530
      
12,793
      
635,077
  
Real Estate Construction
    
166,548
      
-
      
-
      
166,548
  
Residential 1st Mortgages
    
271,507
      
-
      
702
      
272,209
  
Home Equity Lines & Loans
    
37,780
      
-
      
186
      
37,966
  
Agricultural
    
261,085
      
-
      
901
      
261,986
  
Commercial
    
366,204
      
2,309
      
1,304
      
369,817
  
Consumer & Other
    
360,352
      
-
      
683
      
361,035
  
Leases
    
104,112
      
-
      
-
      
104,112
  
Total
  
$
3,032,294
    
$
11,139
    
$
21,079
    
$
3,064,512
  


December 31, 2019
  
Pass
    
Special
Mention
    
Substandard
    
Total Loans
  
Loans & Leases:
                        
Commercial Real Estate
  
$
831,941
    
$
6,629
    
$
-
    
$
838,570
  
Agricultural Real Estate
    
611,792
      
1,136
      
12,839
      
625,767
  
Real Estate Construction
    
115,644
      
-
      
-
      
115,644
  
Residential 1st Mortgages
    
254,459
      
-
      
794
      
255,253
  
Home Equity Lines and Loans
    
39,092
      
-
      
178
      
39,270
  
Agricultural
    
289,276
      
2,617
      
1,011
      
292,904
  
Commercial
    
380,650
      
3,239
      
906
      
384,795
  
Consumer & Other
    
14,934
      
-
      
488
      
15,422
  
Leases
    
105,402
      
-
      
-
      
105,402
  
Total
  
$
2,643,190
    
$
13,621
    
$
16,216
    
$
2,673,027
  

June 30, 2019
  
Pass
    
Special
Mention
    
Substandard
    
Total Loans
& Leases
  
Loans & Leases:
                        
Commercial Real Estate
  
$
811,627
    
$
2,123
    
$
-
    
$
813,750
  
Agricultural Real Estate
    
591,191
      
2,523
      
12,062
      
605,776
  
Real Estate Construction
    
93,539
      
-
      
-
      
93,539
  
Residential 1st Mortgages
    
257,102
      
-
      
306
      
257,408
  
Home Equity Lines & Loans
    
40,178
      
-
      
32
      
40,210
  
Agricultural
    
278,794
      
5,254
      
810
      
284,858
  
Commercial
    
377,794
      
3,212
      
1,186
      
382,192
  
Consumer & Other
    
17,660
      
-
      
184
      
17,844
  
Leases
    
103,321
      
-
      
-
      
103,321
  
Total
  
$
2,571,206
    
$
13,112
    
$
14,580
    
$
2,598,898
  
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):

June 30, 2020
  
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
  
$
-
    
$
258
    
$
-
    
$
-
    
$
258
    
$
855,504
    
$
855,762
  
Agricultural Real Estate
    
-
      
-
      
-
      
-
      
-
      
635,077
      
635,077
  
Real Estate Construction
    
-
      
-
      
-
      
-
      
-
      
166,548
      
166,548
  
Residential 1st Mortgages
    
-
      
-
      
-
      
-
      
-
      
272,209
      
272,209
  
Home Equity Lines & Loans
    
-
      
-
      
-
      
-
      
-
      
37,966
      
37,966
  
Agricultural
    
-
      
-
      
-
      
473
      
473
      
261,513
      
261,986
  
Commercial
    
-
      
-
      
-
      
-
      
-
      
369,817
      
369,817
  
Consumer & Other
    
97
      
-
      
-
      
-
      
97
      
360,938
      
361,035
  
Leases
    
-
      
-
      
-
      
-
      
-
      
104,112
      
104,112
  
Total
  
$
97
    
$
258
    
$
-
    
$
473
    
$
828
    
$
3,063,684
    
$
3,064,512
  


December 31, 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
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
838,570
    
$
838,570
  
Agricultural Real Estate
    
-
      
-
      
-
      
-
      
-
      
625,767
      
625,767
  
Real Estate Construction
    
240
      
-
      
-
      
-
      
240
      
115,404
      
115,644
  
Residential 1st Mortgages
    
-
      
-
      
-
      
-
      
-
      
255,253
      
255,253
  
Home Equity Lines and Loans
    
-
      
-
      
-
      
-
      
-
      
39,270
      
39,270
  
Agricultural
    
-
      
-
      
-
      
-
      
-
      
292,904
      
292,904
  
Commercial
    
77
      
-
      
-
      
-
      
77
      
384,718
      
384,795
  
Consumer & Other
    
35
      
-
      
-
      
-
      
35
      
15,387
      
15,422
  
Leases
    
-
      
-
      
-
      
-
      
-
      
105,402
      
105,402
  
Total
  
$
352
    
$
-
    
$
-
    
$
-
    
$
352
    
$
2,672,675
    
$
2,673,027
  

June 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
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
813,750
    
$
813,750
  
Agricultural Real Estate
    
-
      
-
      
-
      
-
      
-
      
605,776
      
605,776
  
Real Estate Construction
    
-
      
-
      
-
      
-
      
-
      
93,539
      
93,539
  
Residential 1st Mortgages
    
8
      
-
      
-
      
-
      
8
      
257,400
      
257,408
  
Home Equity Lines & Loans
    
-
      
-
      
-
      
-
      
-
      
40,210
      
40,210
  
Agricultural
    
-
      
-
      
-
      
-
      
-
      
284,858
      
284,858
  
Commercial
    
75
      
150
      
-
      
-
      
225
      
381,967
      
382,192
  
Consumer & Other
    
18
      
-
      
-
      
-
      
18
      
17,826
      
17,844
  
Leases
    
-
      
-
      
-
      
-
      
-
      
103,321
      
103,321
  
Total
  
$
101
    
$
150
    
$
-
    
$
-
    
$
251
    
$
2,598,647
    
$
2,598,898
  
Impaired Loans & Leases
The following tables show information related to impaired loans & leases for the periods indicated (in thousands):

                    
Three Months Ended
June 30, 2020
    
Six Months Ended
June 30, 2020
  
June 30, 2020
  
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
  
$
-
    
$
-
    
$
-
    
$
1,444
    
$
2
    
$
1,466
    
$
31
  
Agricultural Real Estate
    
5,629
      
5,629
      
-
      
5,629
      
87
      
5,636
      
176
  
Commercial
    
-
      
-
      
-
      
754
      
1
      
754
      
16
  
   
$
5,629
    
$
5,629
    
$
-
    
$
7,827
    
$
90
    
$
7,856
    
$
223
  
With an allowance recorded:
                                                        
Commercial Real Estate
  
$
84
    
$
84
    
$
6
    
$
42
    
$
1
    
$
727
    
$
1
  
Agricultural Real Estate
    
-
      
-
      
-
      
275
      
-
      
275
      
-
  
Residential 1st Mortgages
    
1,702
      
1,921
      
85
      
1,626
      
21
      
1,591
      
40
  
Home Equity Lines & Loans
    
67
      
77
      
3
      
67
      
1
      
68
      
2
  
Agricultural
    
473
      
487
      
79
      
329
      
43
      
257
      
45
  
Commercial
    
10
      
10
      
-
      
11
      
2
      
390
      
2
  
Consumer & Other
    
195
      
196
      
25
      
196
      
3
      
197
      
7
  
   
$
2,531
    
$
2,775
    
$
198
    
$
2,546
    
$
71
    
$
3,505
    
$
97
  
Total
  
$
8,160
    
$
8,404
    
$
198
    
$
10,373
    
$
161
    
$
11,361
    
$
320
  


December 31, 2019
  
Recorded
Investment
    
Unpaid
Principal
Balance
    
Related
Allowance
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
With no related allowance recorded:
                              
Commercial Real Estate
  
$
86
    
$
86
    
$
-
    
$
90
    
$
8
  
Agricultural Real Estate
    
5,654
      
5,654
      
-
      
6,069
      
379
  
Commercial
    
-
      
-
      
-
      
8
      
1
  
   
$
5,740
    
$
5,740
    
$
-
    
$
6,167
    
$
388
  
With an allowance recorded:
                                        
Commercial Real Estate
  
$
2,822
    
$
2,822
    
$
234
    
$
2,853
    
$
94
  
Residential 1st Mortgages
    
1,562
      
1,770
      
74
      
1,601
      
73
  
Home Equity Lines and Loans
    
68
      
79
      
7
      
71
      
4
  
Agricultural
    
188
      
188
      
99
      
195
      
6
  
Commercial
    
1,528
      
1,528
      
137
      
1,554
      
53
  
Consumer & Other
    
200
      
200
      
61
      
54
      
-
  
   
$
6,368
    
$
6,587
    
$
612
    
$
6,328
    
$
230
  
Total
  
$
12,108
    
$
12,327
    
$
612
    
$
12,495
    
$
618
  

                   
Three Months Ended
June 30, 2019
    
Six Months Ended
June 30, 2019
  
June 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
  
$
91
    
$
91
    
$
-
    
$
92
    
$
2
    
$
93
    
$
4
  
Agricultural Real Estate
    
5,702
      
5,702
      
-
      
6,471
      
128
      
6,855
      
201
  
Commercial
    
32
      
32
      
-
      
16
      
1
      
8
      
1
  
   
$
5,825
    
$
5,825
    
$
-
    
$
6,579
    
$
131
    
$
6,956
    
$
206
  
With an allowance recorded:
                                          
Commercial Real Estate
  
$
2,857
    
$
2,857
    
$
201
    
$
2,874
    
$
24
    
$
2,884
    
$
47
  
Residential 1st Mortgages
    
1,614
      
1,820
      
81
      
1,620
      
17
      
1,627
      
38
  
Home Equity Lines & Loans
    
71
      
82
      
3
      
72
      
1
      
73
      
2
  
Agricultural
    
196
      
196
      
98
      
199
      
2
      
150
      
2
  
Commercial
    
1,548
      
1,548
      
158
      
1,574
      
13
      
1,597
      
27
  
Consumer & Other
    
6
      
6
      
6
      
6
      
-
      
6
      
-
  
   
$
6,292
    
$
6,509
    
$
547
    
$
6,345
    
$
57
    
$
6,337
    
$
116
  
Total
  
$
12,117
    
$
12,334
    
$
547
    
$
12,924
    
$
188
    
$
13,293
    
$
322
  
Loans & Leases by Class Modified as Troubled Debt Restructured Loans
The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2019 (in thousands):

  
Year ended December 31, 2019
  
Troubled Debt Restructurings
  
Number of
Loans
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
Agricultural
    
1
    
$
201
    
$
201
  
Consumer & Other
    
1
      
195
      
195
  
Total
    
2
    
$
396
    
$
396
  
The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and six-month periods ended June 30, 2019 (in thousands):

  
Three Months Ended
June 30, 2019
    
Six Months Ended
June 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