XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.1
Loans and Leases (Tables)
 3 Months Ended
Mar. 31, 2022
Loans and Leases [Abstract]  
Components of Loans and Leases
Loans and leases as of the dates indicated consisted of the following:
(Dollars in thousands)
  
March 31,
2022
    
December 31,
2021
  
Loans and leases held-for-investment, net
            
Real estate:
            
Commercial
  
$
1,172,804
    
$
1,167,516
  
Agricultural
    
695,565
      
672,830
  
Residential and home equity
    
359,214
      
350,581
  
Construction
    
204,794
      
177,163
  
Total real estate
    
2,432,377
      
2,368,090
  
Commercial & industrial
    
437,199
      
427,799
  
Agricultural(1)
    
251,469
      
276,684
  
Commercial leases
    
92,445
      
96,971
  
Consumer and other(2)
    
33,255
      
78,367
  
Total gross loans and leases
    
3,246,745
      
3,247,911
  
Unearned income
    
(9,126
)
    
(10,734
)
Total net loans and leases
    
3,237,619
      
3,237,177
  
Allowance for credit losses
    
(61,032
)
    
(61,007
)
Total loans and leases held-for-investment, net
  
$
3,176,587
    
$
3,176,170
  

(1)
The reduction in Agricultural loans is the result of the seasonal cycle, with the first quarter being outside the growing period.

(2)
Includes SBA PPP loans.
Aging Analysis of Loan and Lease Portfolio

The following tables show an aging analysis of the loan & lease portfolio, including unearned income, by the time past due for the periods indicated:
   
March 31, 2022
  
(Dollars in thousands)
  
Current
    
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-
accrual
    
Total Past
Due
    
Total
  
Loans and leases held-for-investment, net
                                    
Real estate:
                                    
Commercial
  
$
1,162,528
    
$
1,251
    
$
-
    
$
437
    
$
1,688
    
$
1,164,216
  
Agricultural
    
695,565
      
-
      
-
      
-
      
-
      
695,565
  
Residential and home equity
    
358,849
      
365
      
-
      
-
      
365
      
359,214
  
Construction
    
204,794
      
-
      
-
      
-
      
-
      
204,794
  
Total real estate
    
2,421,736
      
1,616
      
-
      
437
      
2,053
      
2,423,789
  
Commercial & Industrial
    
437,199
      
-
      
-
      
-
      
-
      
437,199
  
Agricultural
    
250,669
      
800
      
-
      
-
      
800
      
251,469
  
Commercial leases
    
91,907
      
-
      
-
      
-
      
-
      
91,907
  
Consumer and other
    
33,208
      
47
      
-
      
-
      
47
      
33,255
  
Total loans and leases, net
  
$
3,234,719
    
$
2,463
    
$
-
    
$
437
    
$
2,900
    
$
3,237,619
  


   
December 31, 2021
  
(Dollars in thousands)
  
Current
    
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-
ccrual
    
Total Past
Due
    
Total
  
Loans and leases held-for-investment, net
                                    
Real estate:
                                    
Commercial
  
$
1,156,879
    
$
459
    
$
-
    
$
-
    
$
459
    
$
1,157,338
  
Agricultural
    
672,812
      
-
      
-
      
18
      
18
      
672,830
  
Residential and home equity
    
350,492
      
89
      
-
      
-
      
89
      
350,581
  
Construction
    
177,163
      
-
      
-
      
-
      
-
      
177,163
  
Total real estate
    
2,357,346
      
548
      
-
      
18
      
566
      
2,357,912
  
Commercial & Industrial
    
427,799
      
-
      
-
      
-
      
-
      
427,799
  
Agricultural
    
276,186
      
-
      
-
      
498
      
498
      
276,684
  
Commercial leases
    
96,415
      
-
      
-
      
-
      
-
      
96,415
  
Consumer and other
    
78,363
      
4
      
-
      
-
      
4
      
78,367
  
Total loans and leases, net
  
$
3,236,109
    
$
552
    
$
-
    
$
516
    
$
1,068
    
$
3,237,177
  
Non-accrual Loans

Non-accrual loans are summarized as follows:
(Dollars in thousands)
  
March 31,
2022
    
December 31,
2021
 
Non-accrual loans and leases:
            
Non-accrual loans and leases, not TDRs
            
Real estate:
            
Commercial
  
$
437
    
$
-
  
Agricultural
    
-
      
18
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
437
      
18
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
437
      
18
  
Non-accrual loans and leases, are TDRs
                
Real estate:
                
Commercial
  
$
-
    
$
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
-
      
498
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
-
      
498
  
Total non-accrual loans and leases
  
$
437
    
$
516
  
Troubled Debt Restructured Loans by Loan Category

The following table lists total troubled debt restructured loans that the Company is either accruing or not accruing interest by loan category:
(Dollars in thousands)
  
March 31,
2022
   
December 31,
2021
 
Troubled debt restructured loans and leases:
            
Accruing TDR loans and leases
            
Real estate:
            
Commercial
  
$
-
    
$
41
  
Agricultural
    
-
      
-
  
Residential and home equity
    
1,347
      
1,522
  
Construction
    
-
      
-
  
Total real estate
    
1,347
      
1,563
  
Commercial & Industrial
    
255
      
260
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
1
      
1
  
Subtotal
    
1,603
      
1,824
  
Non-accruing TDR loans and leases
                
Real estate:
                
Commercial
    
-
      
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
-
      
498
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
-
      
498
  
Total TDR loans and leases
  
$
1,603
    
$
2,322
  



The below table summarize TDRs outstanding as of March 31, 2022, by year of occurrence:
   
March 31, 2022
  
(Dollars in thousands)
  
# of
Accruing
TDR
    
$ of
Accruing
TDR
    
# of Non-
Accruing
TDR
    
$ of Non-
Accruing
TDR
    
# of Total
TDR
    
$ of Total
TDR
  
Loan and lease TDRs
                                    
2022
    
-
    
$
-
      
-
    
$
-
      
-
    
$
-
  
2021
    
1
      
48
      
-
      
-
      
1
      
48
  
2020
    
5
      
468
      
-
      
-
      
5
      
468
  
2019
    
-
      
-
      
-
      
-
      
-
      
-
  
Thereafter
    
9
      
1,087
      
-
      
-
      
9
      
1,087
  
Total
    
15
    
$
1,603
      
-
    
$
-
      
15
    
$
1,603
  
Outstanding Loan Balances Category by Credit Quality Indicators

Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows:
   
March 31, 2022
  
(Dollars in thousands)
  
Pass
    
Special
Mention
    
Sub-
standard
    
Doubtful
    
Total Loans
& Leases
    
Total
Allowance
for Credit
Losses
  
Loans and leases held-for-investment, net
                                    
Real estate:
                                    
Commercial
  
$
1,153,584
    
$
6,878
    
$
3,754
    
$
-
    
$
1,164,216
    
$
17,920
  
Agricultural
    
683,415
      
5,996
      
6,154
      
-
      
695,565
      
14,591
  
Residential and home equity
    
358,847
      
-
      
367
      
-
      
359,214
      
6,759
  
Construction
    
204,794
      
-
      
-
      
-
      
204,794
      
3,777
  
Total real estate
    
2,400,640
      
12,874
      
10,275
      
-
      
2,423,789
      
43,047
  
Commercial & Industrial
    
427,109
      
9,437
      
653
      
-
      
437,199
      
10,361
  
Agricultural
    
249,972
      
1,477
      
20
      
-
      
251,469
      
5,737
  
Commercial leases
    
91,772
      
135
      
-
      
-
      
91,907
      
1,466
  
Consumer and other
    
33,081
      
-
      
174
      
-
      
33,255
      
421
  
Total loans and leases, net
  
$
3,202,574
    
$
23,923
    
$
11,122
    
$
-
    
$
3,237,619
    
$
61,032
  


   
December 31, 2021
  
(Dollars in thousands)
  
Pass
    
Special
Mention
    
Sub-
standard
    
Doubtful
    
Total Loans
& Leases
    
Total
Allowance
for Credit
Losses
  
Loans and leases held-for-investment, net
                                    
Real estate:
                                    
Commercial
  
$
1,142,175
    
$
6,903
    
$
8,260
    
$
-
    
$
1,157,338
    
$
28,536
  
Agricultural
    
663,157
      
3,292
      
6,381
      
-
      
672,830
      
9,613
  
Residential and home equity
    
350,148
      
-
      
433
      
-
      
350,581
      
2,847
  
Construction
    
177,163
      
-
      
-
      
-
      
177,163
      
1,456
  
Total real estate
    
2,332,643
      
10,195
      
15,074
      
-
      
2,357,912
      
42,452
  
Commercial & Industrial
    
417,806
      
9,321
      
672
      
-
      
427,799
      
11,489
  
Agricultural
    
275,206
      
958
      
520
      
-
      
276,684
      
5,465
  
Commercial leases
    
96,415
      
-
      
-
      
-
      
96,415
      
938
  
Consumer and other
    
78,181
      
-
      
186
      
-
      
78,367
      
663
  
Total loans and leases, net
  
$
3,200,251
    
$
20,474
    
$
16,452
    
$
-
    
$
3,237,177
    
$
61,007
  



The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable as of March 31, 2022:
   
March 31, 2022
  
   
Term Loans Amortized Cost Basis by Origination Year
              
(Dollars in thousands)
  
2022
    
2021
    
2020
    
2019
    
2018
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Total
  
Net loans and leases held-for-investment
                                                
Real estate:
                                                
Commercial
                                                
Pass
  
$
25,293
    
$
247,149
    
$
164,009
    
$
82,890
    
$
95,039
    
$
254,266
    
$
284,938
    
$
1,153,584
  
Special mention
    
-
      
-
      
-
      
-
      
3,888
      
840
      
2,150
      
6,878
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
3,104
      
650
      
3,754
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total commercial
  
$
25,293
    
$
247,149
    
$
164,009
    
$
82,890
    
$
98,927
    
$
258,210
    
$
287,738
    
$
1,164,216
  
                                                                 
Agricultural real estate
                                                                
Pass
  
$
12,121
    
$
43,482
    
$
58,501
    
$
15,393
    
$
56,374
    
$
159,386
    
$
338,158
    
$
683,415
  
Special mention
    
-
      
-
      
2,382
      
2,636
      
143
      
-
      
835
      
5,996
  
Substandard
    
-
      
-
      
-
      
-
      
118
      
6,036
      
-
      
6,154
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total agricultural real estate
  
$
12,121
    
$
43,482
    
$
60,883
    
$
18,029
    
$
56,635
    
$
165,422
    
$
338,993
    
$
695,565
  
                                                                 
Residential and home equity
                                                                
Pass
  
$
21,332
    
$
101,603
    
$
93,842
    
$
16,431
    
$
7,719
    
$
88,166
    
$
29,754
    
$
358,847
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
220
      
147
      
367
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total residential and home equity
  
$
21,332
    
$
101,603
    
$
93,842
    
$
16,431
    
$
7,719
    
$
88,386
    
$
29,901
    
$
359,214
  
                                                                 
Construction
                                                                
Pass
  
$
-
    
$
-
    
$
-
    
$
2,275
    
$
-
    
$
122
    
$
202,397
    
$
204,794
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
2,275
    
$
-
    
$
122
    
$
202,397
    
$
204,794
  
                                                                 
Total real estate
  
$
58,746
    
$
392,234
    
$
318,734
    
$
119,625
    
$
163,281
    
$
512,140
    
$
859,029
    
$
2,423,789
  
                                                                 
Commercial & industrial
                                                                
Pass
  
$
4,368
    
$
45,633
    
$
16,791
    
$
15,010
    
$
11,515
    
$
9,983
    
$
323,809
    
$
427,109
  
Special mention
    
-
      
82
      
-
      
-
      
-
      
4
      
9,351
      
9,437
  
Substandard
    
-
      
-
      
-
      
-
      
38
      
31
      
584
      
653
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total commercial & industrial
  
$
4,368
    
$
45,715
    
$
16,791
    
$
15,010
    
$
11,553
    
$
10,018
    
$
333,744
    
$
437,199
  
                                                                 
Agriculture
                                                                
Pass
  
$
1,236
    
$
4,736
    
$
1,353
    
$
1,624
    
$
834
    
$
2,358
    
$
237,831
    
$
249,972
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
98
      
1,379
      
1,477
  
Substandard
    
-
      
-
      
-
      
15
      
5
      
-
      
-
      
20
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agriculture
  
$
1,236
    
$
4,736
    
$
1,353
    
$
1,639
    
$
839
    
$
2,456
    
$
239,210
    
$
251,469
  
                                                                 
Commercial leases
                                                                
Pass
  
$
3,635
    
$
14,816
    
$
14,904
    
$
9,041
    
$
22,133
    
$
27,243
    
$
-
    
$
91,772
  
Special mention
    
-
      
-
      
-
      
135
      
-
      
-
      
-
      
135
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total commercial leases
  
$
3,635
    
$
14,816
    
$
14,904
    
$
9,176
    
$
22,133
    
$
27,243
    
$
-
    
$
91,907
  
                                                                 
Consumer and other
                                                                
Pass
  
$
612
    
$
26,679
    
$
967
    
$
425
    
$
656
    
$
2,870
    
$
872
    
$
33,081
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
47
      
127
      
174
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total consumer and other
  
$
612
    
$
26,679
    
$
967
    
$
425
    
$
656
    
$
2,917
    
$
999
    
$
33,255
  
                                                                 
Total net loans and leases
  
$
68,597
    
$
484,180
    
$
352,749
    
$
145,875
    
$
198,462
    
$
554,774
    
$
1,432,982
    
$
3,237,619
  
Amortized Cost of Collateral Dependent Loans by Class

The following tables provide amortized cost basis for collateral dependent loans as of March 31, 2022 and December 31, 2021, respectively:
   
March 31, 2022
  
(Dollars in thousands)
  
Real Estate
    
Vehicles
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
1
    
$
-
    
$
1
  
Agricultural
    
5,560
      
-
      
5,560
  
Residential and home equity
    
235
      
-
      
235
  
Construction
    
-
      
-
      
-
  
Total real estate
    
5,796
      
-
      
5,796
  
Commercial & Industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
-
      
-
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
169
      
169
  
Total gross loans and leases
  
$
5,796
    
$
169
    
$
5,965
  


   
December 31, 2021
  
(Dollars in thousands)
  
Real Estate
    
Vehicles
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
5
    
$
-
    
$
5
  
Agricultural
    
5,587
      
-
      
5,587
  
Residential and home equity
    
330
      
-
      
330
  
Construction
    
-
      
-
      
-
  
Total real estate
    
5,922
      
-
      
5,922
  
Commercial & Industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
-
      
-
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
173
      
173
  
Total gross loans and leases
  
$
5,922
    
$
173
    
$
6,095
  
Changes in Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:
   
For the Three Months Ended March 31, 2022
  
(Dollars in thousands)
  
Commercial &
Agricultural
R/E
    
Construction
    
Residential &
Home Equity
    
Commercial
&
Agricultural
    
Commercial
Leases
    
Consumer
& Other
    
Total
  
Allowance for credit losses:
                                          
Balance at beginning of period, prior to adoption of ASC 326
   $ 38,149     $ 1,456     $ 2,847     $ 16,954     $ 938     $ 663     $ 61,007  
Impact of adopting ASC 326
     (6,190 )     1,855       3,032       826       629       (152 )     -  
Provision / (recapture) for credit losses
     552       466       866       (1,700 )     (101 )     (83 )     -  
Charge-offs
     -       -       -       -       -       (9 )     (9 )
Recoveries
     -       -       14       18       -       2       34  
Net (charge-offs) / recoveries
     -       -       14       18       -       (7 )     25  
Balance at end of period
   $ 32,511     $ 3,777     $ 6,759     $ 16,098     $ 1,466     $ 421     $ 61,032  



   
For the Three Months Ended March 31, 2021
  
(Dollars in thousands)
  
Commercial &
Agricultural
R/E
    
Construction
    
Residential &
Home Equity
    
Commercial
&
Agricultural
    
Commercial
Leases
    
Consumer
& Other
    
Total
  
Allowance for credit losses:
                                          
Balance at beginning of period
   $ 36,312     $ 1,643     $ 2,984     $ 14,775     $ 1,731    
$
1,417
    
$
58,862
  
Provision / (recapture) for credit losses
     1,802       4       (135 )     (584 )     (57 )     220      
1,250
  
Charge-offs
     -       -       -       -       -       (8 )    
(8
)
Recoveries
     -       -       32       32       -       7      
71
  
Net (charge-offs) / recoveries
     -       -       32       32       -       (1 )    
63
  
Balance at end of period
   $ 38,114     $ 1,647     $ 2,881     $ 14,223     $ 1,674     $ 1,636     $ 60,175