Loans & Leases

9 Months Ended

Sep. 30, 2021

5. Loans & Leases

Loans & Leases consisted of the following:

(in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Commercial Real Estate	$	1,126,230	$	971,326	$	887,999
Agricultural Real Estate		656,337		643,014		639,172
Real Estate Construction		178,451		185,741		186,623
Residential 1st Mortgages		309,728		299,379		293,489
Home Equity Lines & Loans		31,664		34,239		35,875
Agricultural		235,085		264,372		252,031
Commercial		394,326		374,816		367,052
Consumer & Other⁽¹⁾		129,665		235,529		359,697
Leases		90,022		103,117		105,511
Total Gross Loans & Leases		3,151,508		3,111,533		3,127,449
Less: Unearned Income		11,707		11,941		15,518
Subtotal		3,139,801		3,099,592		3,111,931
Less: Allowance for Credit Losses		60,303		58,862		56,798
Net Loans & Leases	$	3,079,498	$	3,040,730	$	3,055,133

(1)	Includes CARES Act Small Business Administration Paycheck Protection Program loans of $121,182, $224,309 and $347,180 as of September 30, 2021, December 31, 2020 and September 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 September 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 $1 billion and $742.4 million, respectively. The borrowing capacity on these loans were $749.5 million from FHLB and $467.8 million from the FRB.