Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2020

Provision for Loan and Lease Losses [Abstract]

Impaired Financing Receivables

Impaired Loans

(dollars in thousands, unaudited)

	June 30, 2020
	Unpaid Principal Balance(1)		Recorded Investment(2)		Related Allowance		Average Recorded Investment		Interest Income Recognized(3)
With an allowance recorded
Real estate:
Other construction/land	$	690		571		173		586		21
1-4 family - closed-end		3,379		3,379		71		3,406		58
Equity lines		3,909		3,856		317		3,971		69
Multi-family residential		344		344		18		347		12
Commercial real estate- owner occupied		757		757		11		763		18
Commercial real estate- non-owner occupied		—		—		—		—		—
Farmland		237		237		3		237		—
Total real estate		9,316		9,144		593		9,310		178
Agricultural		2		2		—		4		—
Commercial and industrial		1,282		1,262		671		1,297		9
Consumer loans		382		344		95		361		15
Subtotal		10,982		10,752		1,359		10,972		202
With no related allowance recorded
Real estate:
Other construction/land		—		—		—		—		1
1-4 family - closed-end		826		826		—		845		—
Equity lines		300		300		—		304		2
Commercial real estate- owner occupied		2,029		1,910		—		1,937		—
Commercial real estate- non-owner occupied		627		627		—		634		—
Farmland		465		465		—		467		—
Total real estate		4,247		4,128		—		4,187		3
Agricultural		—		—		—		—		—
Commercial and industrial		142		121		—		206		—
Consumer loans		9		—		—		1		—
Subtotal		4,398		4,249		—		4,394		3
Total	$	15,380	$	15,001	$	1,359	$	15,366	$	205

(1) Contractual principal balance due from customer.

(2) Principal balance on Company’s books, less any direct charge offs.

(3) Interest income is recognized on performing balances on a regular accrual basis.

Impaired Loans

(dollars in thousands, unaudited)

	December 31, 2019
	Unpaid Principal Balance(1)		Recorded Investment(2)		Related Allowance		Average Recorded Investment		Interest Income Recognized(3)
With an allowance recorded
Real estate:
Other construction/land	$	656	$	537	$	157	$	563	$	32
1-4 family - closed-end		2,298		2,298		58		2,365		146
Equity lines		4,173		4,120		252		4,185		200
Multi-family residential		353		353		17		361		23
Commercial real estate- owner occupied		593		593		6		606		38
Commercial real estate- non-owner occupied		—		—		—		—		—
Farmland		237		237		3		256		—
Total real estate		8,310		8,138		493		8,336		439
Agricultural		5		5		1		6		—
Commercial and industrial		915		896		219		1,140		29
Consumer loans		464		425		114		469		35
Subtotal		9,694		9,464		827		9,951		503
With no related allowance recorded
Real estate:
1-4 family - closed-end	$	755	$	722	$	—	$	726	$	—
Equity lines		326		301		—		310		5
Multi-family residential		—		—		—		—		—
Commercial real estate- owner occupied		1,560		1,440		—		1,477		—
Commercial real estate- non-owner occupied		3,295		2,105		—		3,267		—
Farmland		22		22		—		25		—
Total real estate		6,010		4,607		—		6,382		9
Agricultural		—		—		—		—		—
Commercial and industrial		102		81		—		162		—
Consumer loans		9		—		—		140		15
Subtotal		6,121		4,688		—		6,684		24
Total	$	15,815	$	14,152	$	827	$	16,635	$	527

(1) Contractual principal balance due from customer.

(2) Principal balance on Company’s books, less any direct charge offs.

(3) Interest income is recognized on performing balances on a regular accrual basis.

Allowance for Credit Losses on Financing Receivables

Allowance for Credit Losses and Recorded Investment in Financing Receivables

(dollars in thousands, unaudited)

		Three months ended June 30, 2020
		Real Estate		Agricultural Products		Commercial and Industrial (1)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	7,315	$	235	$	2,754	$	1,137	$	12	$	11,453
Charge-offs		—		—		(67)		(286)		—		(353)
Recoveries		3		—		20		237		—		260
Provision		1,532		(3)		908		(239)		2		2,200
Ending balance	$	8,850	$	232	$	3,615	$	849	$	14	$	13,560
	Six months ended June 30, 2020
	Real Estate		Agricultural Products		Commercial and Industrial (1)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,635	$	193	$	2,685	$	1,278	$	132	$	9,923
Charge-offs		—		—		(92)		(903)		—		(995)
Recoveries		74		—		48		510		—		632
Provision		3,141		39		974		(36)		(118)		4,000
Ending balance	$	8,850	$	232	$	3,615	$	849	$	14	$	13,560
Reserves:
Specific	$	593	$	—	$	671	$	95	$	—	$	1,359
General		8,257		232		2,944		754		14		12,201
Ending balance	$	8,850	$	232	$	3,615	$	849	$	14	$	13,560
Loans evaluated for impairment:
Individually	$	13,272	$	2	$	1,383	$	344	$	—	$	15,001
Collectively		1,584,417		48,514		558,243		5,922		—		2,197,096
Ending balance	$	1,597,689	$	48,516	$	559,626	$	6,266	$	—	$	2,212,097
		Year ended December 31, 2019
	Real Estate		Agricultural Products		Commercial and Industrial (1)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,831	$	256	$	2,394	$	1,239	$	30	$	9,750
Charge-offs		(1,190)		—		(1,274)		(2,409)		—		(4,873)
Recoveries		647		—		690		1,159		—		2,496
Provision		347		(63)		875		1,289		102		2,550
Ending balance	$	5,635	$	193	$	2,685	$	1,278	$	132	$	9,923
Reserves:
Specific	$	493	$	1	$	219	$	114	$	—	$	827
General		5,142		192		2,466		1,164		132		9,096
Ending balance	$	5,635	$	193	$	2,685	$	1,278	$	132	$	9,923
Loans evaluated for impairment:
Individually	$	12,746	$	5	$	977	$	425	$	—	$	14,153
Collectively		1,389,368		48,031		303,658		7,355		—		1,748,412
Ending balance	$	1,402,114	$	48,036	$	304,635	$	7,780	$	—	$	1,762,565

(1) Includes mortgage warehouse lines.

Allowance for Credit Losses and Recorded Investment in Financing Receivables

(dollars in thousands, unaudited)

		Three months ended June 30, 2019
	Real Estate		Agricultural Products		Commercial and Industrial (1)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	6,094	$	219	$	1,914	$	1,129	$	82	$	9,438
Charge-offs		—		—		(254)		(562)		—		(816)
Recoveries		153		—		431		277		—		861
Provision		(278)		(18)		478		288		(70)		400
Ending balance	$	5,969	$	201	$	2,569	$	1,132	$	12	$	9,883
		Six months ended June 30, 2019
	Real Estate		Agricultural Products		Commercial and Industrial (1)		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,831	$	256	$	2,394	$	1,239	$	30	$	9,750
Charge-offs		—		—		(832)		(1,114)		—		(1,946)
Recoveries		329		—		472		578		—		1,379
Provision		(191)		(55)		535		429		(18)		700
Ending balance	$	5,969	$	201	$	2,569	$	1,132	$	12	$	9,883
Reserves:
Specific	$	881	$	1	$	303	$	137	$	—	$	1,322
General		5,088		200		2,266		995		12		8,561
Ending balance	$	5,969	$	201	$	2,569	$	1,132	$	12	$	9,883
Loans evaluated for impairment:
Individually	$	11,751	$	6	$	837	$	772	$	—	$	13,366
Collectively		1,426,425		51,503		279,091		7,514		—		1,764,533
Ending balance	$	1,438,176	$	51,509	$	279,928	$	8,286	$	—	$	1,777,899

(1) Includes mortgage warehouse lines.