XML 42 R28.htm IDEA: XBRL DOCUMENT v3.22.4
Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Loans and Leases [Abstract]  
Components of Loans and Leases
Loans and leases as of the dates indicated consisted of the following:
   
December 31,
  
(Dollars in thousands)
  
2022
    
2021
  
Loans and leases held-for-investment, net
            
Real estate:
            
Commercial
  
$
1,328,691
    
$
1,167,516
  
Agricultural
    
726,938
      
672,830
  
Residential and home equity
    
387,753
      
350,581
  
Construction
    
166,538
      
177,163
  
Total real estate
    
2,609,920
      
2,368,090
  
Commercial & industrial
     478,758       427,799  
Agricultural
    
314,525
      
276,684
  
Commercial leases
    
112,629
      
96,971
  
Consumer and other(1)
    
5,886
      
78,367
  
Total gross loans and leases
    
3,521,718
      
3,247,911
  
Unearned income
    
(9,357
)
    
(10,734
)
Total net loans and leases
    
3,512,361
      
3,237,177
  
Allowance for credit losses
    
(66,885
)
    
(61,007
)
Total loans and leases held-for-investment, net
  
$
3,445,476
    
$
3,176,170
  

(1) Includes SBA PPP loans of $0 and $70,765 as of December 31, 2022 and December 31, 2021, respectively.
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 at December 31, 2022 and 2021:
 
  
December 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
  
$
1,319,911
    
$
-
    
$
-
    
$
403
    
$
403
    
$
1,320,314
  
Agricultural
    
726,938
      
-
      
-
      
-
      
-
      
726,938
  
Residential and home equity
    
387,753
      
-
      
-
      
-
      
-
      
387,753
  
Construction
    
166,370
      
-
      
-
      
168
      
168
      
166,538
  
Total real estate
    
2,600,972
      
-
      
-
      
571
      
571
      
2,601,543
  
Commercial & industrial
    
478,758
      
-
      
-
      
-
      
-
      
478,758
  
Agricultural
    
314,525
      
-
      
-
      
-
      
-
      
314,525
  
Commercial leases
    
111,649
      
-
      
-
      
-
      
-
      
111,649
  
Consumer and other
    
5,789
      
97
      
-
      
-
      
97
      
5,886
  
Total loans and leases, net
  
$
3,511,693
    
$
97
    
$
-
    
$
571
    
$
668
    
$
3,512,361
  


 
  
December 31, 2021
  
(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
  
$
1,156,879
    
$
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:
 
  
December 31,
  
(Dollars in thousands)
  
2022
    
2021
  
Non-accrual loans and leases:
            
Non-accrual loans and leases, not TDRs
            
Real estate:
            
Commercial
  
$
403
    
$
-
  
Agricultural
    
-
      
18
  
Residential and home equity
    
-
      
-
  
Construction
    
168
      
-
  
Total real estate
    
571
      
18
  
Commercial & industrial
    
-
      
-
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
571
      
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
  
$
571
    
$
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:
 
  
December 31,
  
(Dollars in thousands)
  
2022
    
2021
  
Troubled debt restructured loans and leases:
            
Accruing TDR loans and leases
            
Real estate:
            
Commercial
   $
-
     $
41
  
Agricultural
    
-
      
-
  
Residential and home equity
    
1,305
      
1,522
  
Construction
    
-
       -
 
Total real estate
    
1,305
      
1,563
  
Commercial & industrial
    
6
      
260
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
1
  
Subtotal
    
1,311
      
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
  
$
1,311
    
$
2,322
  


The following table summarizes TDRs outstanding by year of occurrence:


   
Year Ended December 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
    
-
      
-
      
-
      
-
      
-
      
-
  
2020
    
4
      
257
      
-
      
-
      
4
      
257
  
2019
    
-
      
-
      
-
      
-
      
-
      
-
  
Prior
    
8
      
1,054
      
-
      
-
      
8
      
1,054
  
Total
    
12
    
$
1,311
      
-
    
$
-
      
12
    
$
1,311
  

   
Year Ended December 31, 2021
  
(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
                                    
2021
    
1
    
$
49
      
-
    
$
-
      
1
    
$
49
  
2020
    
5
      
476
      
2
      
498
      
7
      
974
  
2019
    
-
      
-
      
-
      
-
      
-
      
-
  
2018
    
1
      
84
      
-
      
-
      
1
      
84
  
Prior
    
10
      
1,215
      
-
      
-
      
10
      
1,215
  
Total
    
17
    
$
1,824
      
2
    
$
498
      
19
    
$
2,322
  
Outstanding Loan Balances Category by Credit Quality Indicators and Vintage Year by Class of Financing Receivable and Current Period Gross Charge-Offs by Year of Origination

Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows:
 
  
December 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
  
$
1,314,377
    
$
5,535
    
$
402
    
$
-
    
$
1,320,314
    
$
18,055
  
Agricultural
    
709,927
      
10,891
      
6,120
      
-
      
726,938
      
14,496
  
Residential and home equity
    
387,371
      
-
      
382
      
-
      
387,753
      
7,508
  
Construction
    
166,370
      
-
      
168
      
-
      
166,538
      
3,026
  
Total real estate
    
2,578,045
      
16,426
      
7,072
      
-
      
2,601,543
      
43,085
  
Commercial & industrial
    
478,437
      
63
      
258
      
-
      
478,758
      
11,503
  
Agricultural
    
308,830
      
5,682
      
13
      
-
      
314,525
      
10,202
  
Commercial leases
    
111,568
      
81
      
-
      
-
      
111,649
      
1,924
  
Consumer and other
    
5,650
      
-
      
236
      
-
      
5,886
      
171
  
Total loans and leases, net
  
$
3,482,530
    
$
22,252
    
$
7,579
    
$
-
    
$
3,512,361
    
$
66,885
  


 
  
December 31, 2021
  
(Dollars in thousands)
  
Pass
    
Special
Mention
    
Sub-
standard
    
Doubtful
    
Total Loans
& Leases
    
Total
Allowance
for Loan
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 and current period gross charge-offs by year of origination as follows:

   
December 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
  
$
194,698
    
$
234,478
    
$
150,203
    
$
71,333
    
$
85,132
    
$
218,261
    
$
360,272
    
$
1,314,377
  
Special mention
    
-
      
-
      
-
      
-
      
3,820
      
1,115
      
600
      
5,535
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
402
      
-
      
402
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial
  
$
194,698
    
$
234,478
    
$
150,203
    
$
71,333
    
$
88,952
    
$
219,778
    
$
360,872
    
$
1,320,314
  
Commercial
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
170
    
$
-
    
$
-
    
$
-
    
$
-
    
$
170
  
                                                                 
Agricultural
                                                                
Pass
  
$
67,044
    
$
42,546
    
$
54,893
    
$
15,074
    
$
50,186
    
$
144,052
    
$
336,132
    
$
709,927
  
Special mention
    
-
      
-
      
-
      
2,636
      
-
      
-
      
8,255
      
10,891
  
Substandard
    
-
      
-
      
-
      
-
      
111
      
6,009
      
-
      
6,120
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
67,044
    
$
42,546
    
$
54,893
    
$
17,710
    
$
50,297
    
$
150,061
    
$
344,387
    
$
726,938
  
Agricultural
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                 
Residential and home equity
                                                                
Pass
  
$
66,847
    
$
96,354
    
$
86,545
    
$
14,530
    
$
6,632
    
$
76,155
    
$
40,308
    
$
387,371
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
300
      
82
      
382
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Residential and home equity
  
$
66,847
    
$
96,354
    
$
86,545
    
$
14,530
    
$
6,632
    
$
76,455
    
$
40,390
    
$
387,753
  
Residential and home equity
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
25
    
$
-
    
$
25
  
                                                                 
Construction
                                                                
Pass
  
$
2,000
    
$
1
    
$
-
    
$
1,575
    
$
-
    
$
31
    
$
162,763
    
$
166,370
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
168
      
168
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
2,000
    
$
1
    
$
-
    
$
1,575
    
$
-
    
$
31
    
$
162,931
    
$
166,538
  
Construction
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                 
Total Real estate
  
$
330,589
    
$
373,379
    
$
291,641
    
$
105,148
    
$
145,881
    
$
446,325
    
$
908,580
    
$
2,601,543
  
                                                                 
Commercial & industrial
                                                                
Pass
  
$
34,410
    
$
36,846
    
$
12,325
    
$
8,245
    
$
7,167
    
$
5,679
    
$
373,765
    
$
478,437
  
Special mention
    
-
      
63
      
-
      
-
      
-
      
-
      
-
      
63
  
Substandard
    
-
      
-
      
-
      
-
      
1
      
5
      
252
      
258
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial & industrial
  
$
34,410
    
$
36,909
    
$
12,325
    
$
8,245
    
$
7,168
    
$
5,684
    
$
374,017
    
$
478,758
  
Commercial & industrial
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
246
    
$
78
    
$
-
    
$
-
    
$
324
  
 
                                                                
Agricultural
                                                                
Pass
  
$
5,378
    
$
3,083
    
$
989
    
$
1,515
    
$
636
    
$
2,071
    
$
295,158
    
$
308,830
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
5,682
      
5,682
  
Substandard
    
-
      
-
      
-
      
11
      
2
      
-
      
-
      
13
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
5,378
    
$
3,083
    
$
989
    
$
1,526
    
$
638
    
$
2,071
    
$
300,840
    
$
314,525
  
Agricultural
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                
Commercial leases
                                                                
Pass
  
$
35,689
    
$
15,874
    
$
13,050
    
$
5,904
    
$
20,560
    
$
20,491
    
$
-
    
$
111,568
  
Special mention
    
-
      
-
      
-
      
81
      
-
      
-
      
-
      
81
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
35,689
    
$
15,874
    
$
13,050
    
$
5,985
    
$
20,560
    
$
20,491
    
$
-
    
$
111,649
  
Commercial leases
                                                                
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                
Consumer and other
                                                                
Pass
  
$
1,476
    
$
634
    
$
275
    
$
176
    
$
315
    
$
1,769
    
$
1,005
    
$
5,650
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
236
      
-
      
-
      
-
      
-
      
-
      
-
      
236
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Consumer and other
  
$
1,712
    
$
634
    
$
275
    
$
176
    
$
315
    
$
1,769
    
$
1,005
    
$
5,886
  
Consumer and other
                                                                
Current-period gross charge-offs
  
$
40
    
$
6
    
$
7
    
$
1
    
$
4
    
$
4
    
$
-
    
$
62
  
                                                                 
Total net loans and leases
  
$
407,778
    
$
429,879
    
$
318,280
    
$
121,080
    
$
174,562
    
$
476,340
    
$
1,584,442
    
$
3,512,361
  
Summary of Changes in Loans to Certain Directors and Executive Officers A summary of the changes in those loans is as follows:

 
December 31,
  
(Dollars in thousands)
2022
  
2021
  
         
Balance at beginning of the period
  
$
18,128
    
$
11,682
  
New loans or advances during year
    
523
      
7,254
  
Repayments
    
(1,130
)
    
(808
)
Balance at end of period
  
$
17,521
    
$
18,128
  
Changes in Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:


 
  
Year Ended December 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 year
  
$
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
    
762
      
(285
)
    
1,523
      
4,001
      
357
      
(301
)
    
6,057
  
Charge-offs
    
(170
)
    
-
      
(25
)
    
(324
)
    
-
      
(62
)
    
(581
)
Recoveries
    
-
      
-
      
131
      
248
      
-
      
23
      
402
  
Net (charge-offs) / recoveries
    
(170
)
    
-
      
106
      
(76
)
    
-
      
(39
)
    
(179
)
Balance at end of year
  
$
32,551
    
$
3,026
    
$
7,508
    
$
21,705
    
$
1,924
    
$
171
    
$
66,885
  


 
  
Year Ended December 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 year
  
$
36,312
    
$
1,643
    
$
2,984
    
$
14,775
    
$
1,731
    
$
1,417
    
$
58,862
  
Provision / (recapture) for credit losses
    
1,837
      
(187
)
    
(235
)
    
2,025
      
(793
)
    
(737
)
    
1,910
  
Charge-offs
    
-
      
-
      
-
      
-
      
-
      
(44
)
    
(44
)
Recoveries
    
-
      
-
      
98
      
154
      
-
      
27
      
279
  
Net (charge-offs) / recoveries
    
-
      
-
      
98
      
154
      
-
      
(17
)
    
235
  
Balance at end of year
  
$
38,149
    
$
1,456
    
$
2,847
    
$
16,954
    
$
938
    
$
663
    
$
61,007
  


 
  
Year Ended December 31, 2020
  
(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 year
  
$
26,181
    
$
1,949
    
$
3,530
    
$
19,542
    
$
3,162
    
$
648
    
$
55,012
  
Provision / (recapture) for credit losses
    
10,050
      
(306
)
    
(669
)
    
(3,946
)
    
(1,431
)
    
802

   
4,500
  
Charge-offs
    
-
      
-
      
(7
)
    
(1,101
)
    
-
      
(66
)
    
(1,174
)
Recoveries
    
81
      
-
      
130
      
280
      
-
      
33
      
524
  
Net (charge-offs) / recoveries
    
81
      
-
      
123
      
(821
)
    
-
      
(33
)
    
(650
)
Balance at end of year
  
$
36,312
    
$
1,643
    
$
2,984
    
$
14,775
    
$
1,731
    
$
1,417
    
$
58,862
  
Amortized Cost of Collateral Dependent Loans by Class The following table presents the amortized cost basis of collateral dependent loans by collateral type as of December 31, 2022:

   
December 31, 2022
  
(Dollars in thousands)
  
Real Estate
    
Vehicles and
Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
1,114
    
$
-
    
$
1,114
  
Agricultural
    
11,035
      
-
      
11,035
  
Residential and home equity
    
2,153
      
-
      
2,153
  
Construction
    
-
      
-
      
-
  
Total Real estate
    
14,302
      
-
      
14,302
  
Commercial & industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
13
      
13
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
158
      
158
  
Total gross loans and leases
  
$
14,302
    
$
171
    
$
14,473