Loans & Leases

12 Months Ended

Dec. 31, 2020

5. Loans & Leases

Loans & leases as of December 31 consisted of the following:

(in thousands)	2020		2019
Commercial Real Estate	$	971,326	$	846,486
Agricultural Real Estate		643,014		625,767
Real Estate Construction		185,741		115,644
Residential 1st Mortgages		299,379		255,253
Home Equity Lines and Loans		34,239		39,270
Agricultural		264,372		292,904
Commercial		374,816		384,795
Consumer & Other ⁽¹⁾		235,529		15,422
Leases		103,117		104,470
Total Gross Loans & Leases		3,111,533		2,680,011
Less: Unearned Income		11,941		6,984
Subtotal		3,099,592		2,673,027
Less: Allowance for Credit Losses		58,862		55,012
Loans & Leases, Net	$	3,040,730	$	2,618,015

(1) Includes CARES Act Small Business Administration Paycheck Protection Program loans of $224,309 as of December 31, 2020.

Paycheck Protection Program (“PPP”) … Under the CARES Act and H.R. 133 (see “Note 2 – Risks and Uncertainties”) the Small Business Administration (“SBA”) was directed by Congress to provide loans to small businesses with less than 500 employees to assist these businesses in meeting their payroll and other financial obligations during the COVID-19 pandemic. These government guaranteed loans are made with an interest rate of 1%, a risk weight of 0% under risk-based capital rules, have a term of 2 years, and under certain conditions the SBA will forgive them. The Bank actively participated in the PPP, and since April 2020, the Bank has funded $347.4 million of loans for 1,540 small business customers.

At December 31, 2020, the portion of loans that were approved for pledging as collateral on borrowing lines with the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) were $808.9 million and $706.2 million, respectively. The borrowing capacity on these loans was $630.5 million from FHLB and $438.1 million from the FRB.