Loans & Leases

6 Months Ended

Jun. 30, 2021

5. Loans & Leases

Loans & Leases consisted of the following:

(in thousands)	June 30, 2021		December 31, 2020		June 30, 2020
Commercial Real Estate	$	1,033,747	$	971,326	$	873,922
Agricultural Real Estate		630,515		643,014		635,077
Real Estate Construction		170,933		185,741		166,548
Residential 1st Mortgages		304,859		299,379		272,209
Home Equity Lines and Loans		32,026		34,239		37,966
Agricultural		236,436		264,372		261,986
Commercial		361,432		374,816		369,817
Consumer & Other⁽¹⁾		177,042		235,529		361,035
Leases		99,502		103,117		103,229
Total Gross Loans & Leases		3,046,492		3,111,533		3,081,789
Less: Unearned Income		13,296		11,941		17,277
Subtotal		3,033,196		3,099,592		3,064,512
Less: Allowance for Credit Losses		60,229		58,862		55,058
Net Loans & Leases	$	2,972,967	$	3,040,730	$	3,009,454

(1)	Includes CARES Act Small Business Administration Paycheck Protection Program loans of $167,700, 224,309 and 347,400 as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

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 two to five 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 $494.9 million of loans for over 2,000 small business customers.

At June 30, 2021, 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 $993.7 million and $687.4 million, respectively. The borrowing capacity on these loans was $716 million from FHLB and $429.2 million from the FRB.