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Loans and Allowance (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Composition of Loan Portfolio by Loan Class

The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated:

December 31, 2019

December 31, 2018

 

 
Commercial and industrial loans
$
2,109,879


$
1,726,664

Agricultural production financing and other loans to farmers
93,861


92,404

Real estate loans:



Construction
787,568


545,729

Commercial and farmland
3,052,698


2,832,102

Residential
1,143,217


966,421

Home equity
588,984


528,157

Individuals' loans for household and other personal expenditures
135,989


99,788

Public finance and other commercial loans
547,114


433,202

Loans
8,459,310


7,224,467

Allowance for loan losses
(80,284
)

(80,552
)
Net Loans
$
8,379,026


$
7,143,915
Changes in Allowance for Loan Losses
The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2019, 2018, and 2017:
 
Twelve Months Ended December 31, 2019
 
Commercial

Commercial Real Estate

Consumer

Residential

Total
Allowance for loan losses:
 

 

 

 

 
Balances, December 31, 2018
$
32,657


$
29,609


$
3,964


$
14,322


$
80,552

Provision for losses
733


1,555


239


273


2,800

Recoveries on loans
1,244


1,289


401


619


3,553

Loans charged off
(1,732
)

(3,675
)

(569
)

(645
)

(6,621
)
Balances, December 31, 2019
$
32,902


$
28,778


$
4,035


$
14,569


$
80,284

 
 
Twelve Months Ended December 31, 2018
 
Commercial

Commercial Real Estate

Consumer

Residential

Total
Allowance for loan losses:
 

 

 

 

 
Balances, December 31, 2017
$
30,420


$
27,343


$
3,732


$
13,537


$
75,032

Provision for losses
2,097


2,482


679


1,969


7,227

Recoveries on loans
2,456


2,525


302


993


6,276

Loans charged off
(2,316
)

(2,741
)

(749
)

(2,177
)

(7,983
)
Balances, December 31, 2018
$
32,657


$
29,609


$
3,964


$
14,322


$
80,552

 
 
Twelve Months Ended December 31, 2017
 
Commercial

Commercial Real Estate

Consumer

Residential

Total
Allowance for loan losses:
 

 

 

 

 
Balances, December 31, 2016
$
27,698


$
23,661


$
2,923


$
11,755


$
66,037

Provision for losses
2,515


3,159


1,078


2,391


9,143

Recoveries on loans
1,590


2,260


324


706


4,880

Loans charged off
(1,383
)

(1,737
)

(593
)

(1,315
)

(5,028
)
Balances, December 31, 2017
$
30,420


$
27,343


$
3,732


$
13,537


$
75,032
Allowance for Credit Losses and Loan Portfolio by Loan Segment

The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated.

December 31, 2019
 
Commercial

Commercial
Real Estate

Consumer

Residential

Total
Allowance balances:
 

 

 

 

 
Individually evaluated for impairment
$
—


$
231


$
—


$
458


$
689

Collectively evaluated for impairment
32,902


28,547


4,035


14,111


79,595

Total allowance for loan losses
$
32,902


$
28,778


$
4,035


$
14,569


$
80,284

Loan balances:
 

 

 

 

 
Individually evaluated for impairment
$
457


$
8,728


$
4


$
2,520


$
11,709

Collectively evaluated for impairment
2,748,681


3,821,660


135,985


1,727,966


8,434,292

Loans acquired with deteriorated credit quality
1,716


9,878


—


1,715


13,309

Loans
$
2,750,854


$
3,840,266


$
135,989


$
1,732,201


$
8,459,310



December 31, 2018

Commercial

Commercial
Real Estate

Consumer

Residential

Total
Allowance balances:
 

 

 

 

 
Individually evaluated for impairment
$
—


$
1,435


$
1


$
436


$
1,872

Collectively evaluated for impairment
32,657


28,174


3,963


13,886


78,680

Total allowance for loan losses
$
32,657


$
29,609


$
3,964


$
14,322


$
80,552

Loan balances:
 

 

 

 

 
Individually evaluated for impairment
$
1,838


$
17,756


$
18


$
2,413


$
22,025

Collectively evaluated for impairment
2,248,330


3,347,686


99,770


1,490,872


7,186,658

Loans acquired with deteriorated credit quality
2,102


12,389


—


1,293


15,784

Loans
$
2,252,270


$
3,377,831


$
99,788


$
1,494,578


$
7,224,467
Summary of Non-Accrual Loans by Loan class
The following table summarizes the Corporation’s non-accrual loans by loan class for the years indicated:

December 31, 2019

December 31, 2018
Commercial and industrial loans
$
1,255


$
1,803

Agriculture production financing and other loans to farmers
183

 
679

Real estate loans:



 
Construction
977


8,667

Commercial and farmland
7,007


8,156

Residential
5,062


4,966

Home equity
1,421


1,481

Individuals' loans for household and other personal expenditures
44


42

Public Finance and other commercial loans
—


354

Total
$
15,949


$
26,148
Composition of Impaired Loans by Loan Class

The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class for the years indicated:
 
December 31, 2019
 
Unpaid Principal
Balance

Recorded
Investment

Related
Allowance

Average Recorded Investment

Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
320


$
320


$
—


$
320


$
—

Agriculture production financing and other loans to farmers
299


137


—


298


—

Real estate loans:









Construction
1,206


970


—


1,229


—

Commercial and farmland
8,037


5,849


—


6,000


156

Residential
93


76


—


77


3

Total
$
9,955


$
7,352


$
—


$
7,924


$
159

Impaired loans with related allowance:
 

 

 

 

 
Real estate loans:









Commercial and farmland
$
2,648


$
1,909


$
231


$
1,909


$
—

Residential
2,070


2,044


383


2,083


63

Home equity
417


400


75


409


12

Individuals' loans for household and other personal expenditures
4


4


—


4


$
—

Total
$
5,139


$
4,357


$
689


$
4,405


$
75

Total Impaired Loans
$
15,094


$
11,709


$
689


$
12,329


$
234


 
December 31, 2018
 
Unpaid Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Average Recorded Investment
 
Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
828


$
806


$
—


$
833


$
—

Agriculture production financing and other loans to farmers
679


679


—


679


—

Real estate loans:
 
 
 
 
 
 
 
 
 
Construction
1,352


614


—


835


—

Commercial and farmland
11,176


8,994


—


12,975


165

Residential
118


100


—


101


3

Home equity
49


48


—


48


—

Public finance and other commercial loans
353


353


—


353


—

Total
$
14,555


$
11,594


$
—


$
15,824


$
168

Impaired loans with related allowance:









Real estate loans:









Construction
$
7,978


$
7,977


$
1,429


$
7,977


$
—

Commercial and farmland
171


171


6


171


—

Residential
1,958


1,907


362


1,915


57

Home equity
376


358


74


365


10

Individuals' loans for household and other personal expenditures
18


18


1


20


1

Total
$
10,501


$
10,431


$
1,872


$
10,448


$
68

Total Impaired Loans
$
25,056


$
22,025


$
1,872


$
26,272


$
236







 
December 31, 2017
 
Unpaid Principal
Balance

Recorded
Investment

Related
Allowance

Average Recorded Investment

Interest Income Recognized
Impaired loans with no related allowance:
 

 

 

 

 
Commercial and industrial loans
$
7,611


$
1,536


$
—


$
3,839


$
—

Agriculture production financing and other loans to farmers
732


700


—


762


—

Real estate loans:









Commercial and farmland
16,758


15,163


—


17,495


360

Residential
833


519


—


635


—

Home equity
40


8


—


14


—

Individuals' loans for household and other personal expenditures
5


5


—


7


—

Total
$
25,979


$
17,931


$
—


$
22,752


$
360

Impaired loans with related allowance:
 

 

 

 

 
Commercial and industrial loans
812


782


552


1,517


—

Agriculture production financing and other loans to farmers
357


327


114


327


—

Real estate loans:









Commercial and farmland
2,988


2,269


567


2,379


—

Residential
1,616


1,572


327


1,580


28

Home equity
350


330


77


332


11

Total
$
6,123


$
5,280


$
1,637


$
6,135


$
39

Total Impaired Loans
$
32,102


$
23,211


$
1,637


$
28,887


$
399
Credit Quality of Loan Portfolio by Loan Class
The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the years indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and the probability, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below.
 
December 31, 2019
 
Commercial Pass

Commercial Special Mention

Commercial Substandard

Commercial Doubtful

Commercial Loss

Consumer Performing

Consumer
Non Performing

Total
Commercial and industrial loans
$
1,956,985


$
81,179


$
71,715


$
—


$
—


$
—


$
—


$
2,109,879

Agriculture production financing and other loans to farmers
78,558


5,626


9,677


—


—


—


—


93,861

Real estate loans:












 


Construction
749,249


1,613


1,634


—


—


35,072


—


787,568

Commercial and farmland
2,894,366


57,776


98,575


—


—


1,981


—


3,052,698

Residential
196,710


877


8,075


—


—


932,743


4,812


1,143,217

Home equity
24,211


257


682


—


—


562,507


1,327


588,984

Individuals' loans for household and other personal expenditures
—


—


—


—


—


135,944


45


135,989

Public finance and other commercial loans
547,114


—


—


—


—


—


—


547,114

Loans
$
6,447,193


$
147,328


$
190,358


$
—


$
—


$
1,668,247


$
6,184


$
8,459,310


 
December 31, 2018
 
Commercial Pass

Commercial Special Mention

Commercial Substandard

Commercial Doubtful

Commercial Loss

Consumer Performing

Consumer
Non Performing

Total
Commercial and industrial loans
$
1,660,879


$
23,246


$
42,539


$
—


—


$
—


$
—


$
1,726,664

Agriculture production financing and other loans to farmers
78,446


5,966


7,992


—


—


—


—


92,404

Real estate loans:


 







 

 


Construction
492,358


2,185


24,224


—


—


25,419


1,543


545,729

Commercial and farmland
2,669,491


76,037


84,288


—


—


2,285


1


2,832,102

Residential
170,075


7,373


2,076


—


—


782,080


4,817


966,421

Home equity
24,653


535


457


—


—


500,996


1,516


528,157

Individuals' loans for household and other personal expenditures
—


—


—


—


—


99,741


47


99,788

Public finance and other commercial loans
432,849


—


353


—


—


—


—


433,202

Loans
$
5,528,751


$
115,342


$
161,929


$
—


$
—


$
1,410,521


$
7,924


$
7,224,467
Past Due Aging of Loan Portfolio by Loan Class

The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated:

December 31, 2019
 
Current

30-59 Days
Past Due

60-89 Days
Past Due

Loans 90 Days or More Past Due
And Accruing

Non-Accrual

Total Past Due
& Non-Accrual

Total
Commercial and industrial loans
$
2,105,445


$
3,039


$
136


$
4


$
1,255


$
4,434


$
2,109,879

Agriculture production financing and other loans to farmers
93,678


—


—


—


183


183


93,861

Real estate loans:













Construction
784,961


1,630


—


—


977


2,607


787,568

Commercial and farmland
3,043,318


2,324


49


—


7,007


9,380


3,052,698

Residential
1,133,476


4,290


367


22


5,062


9,741


1,143,217

Home equity
584,023


2,960


538


42


1,421


4,961


588,984

Individuals' loans for household and other personal expenditures
135,399


440


105


1


44


590


135,989

Public finance and other commercial loans
547,114


—


—


—


—


—


547,114

Loans
$
8,427,414


$
14,683


$
1,195


$
69


$
15,949


$
31,896


$
8,459,310


December 31, 2018
 
Current

30-59 Days
Past Due

60-89 Days
Past Due

Loans 90 Days or More Past Due
And Accruing

Non-Accrual

Total Past Due
& Non-Accrual

Total
Commercial and industrial loans
$
1,723,337


$
1,093


$
182


$
249


$
1,803


$
3,327


$
1,726,664

Agriculture production financing and other loans to farmers
89,440


2,285


—


—


679


2,964


92,404

Real estate loans:













Construction
535,520


64


—


1,478


8,667


10,209


545,729

Commercial and farmland
2,822,515


1,253


178


—


8,156


9,587


2,832,102

Residential
959,252


1,756


430


17


4,966


7,169


966,421

Home equity
524,198


2,164


207


107


1,481


3,959


528,157

Individuals' loans for household and other personal expenditures
99,499


179


64


4


42


289


99,788

Public finance and other commercial loans
432,848


—


—


—


354


354


433,202

Loans
$
7,186,609


$
8,794


$
1,061


$
1,855


$
26,148


$
37,858


$
7,224,467

 
Schedules of Troubled Debt Restructuring
The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2019 and 2018, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due.

Twelve Months Ended December 31, 2019
 
Number of Loans

Recorded Balance
Real estate loans:
 
 
 
Residential
1

 
$
37

Total
1


$
37


Twelve Months Ended December 31, 2018
 
Number of Loans

Recorded Balance
Real estate loans:



Residential
2


$
75

Total
2


$
75


The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods ended December 31, 2019 and 2018:
 
December 31, 2019

Pre-Modification
Recorded Balance

Post-Modification
Recorded Balance

Number
of Loans
Real estate loans:
 
 
 
 
 
Residential
$
636

 
$
629

 
11

Home equity
56

 
61

 
2

Total
$
692

 
$
690

 
13



 
December 31, 2018

Pre-Modification
Recorded Balance

Post-Modification
Recorded Balance

Number
of Loans
Real estate loans:


 

 
Commercial and farmland
$
85


$
85


1

Residential
490


487


11

Home equity
81

 
81

 
3

Individuals' loans for household and other personal expenditures
65


66


3

Total
$
721


$
719


18



The following tables summarize the recorded investment of troubled debt restructures as of December 31, 2019 and 2018, by modification type, that occurred during the years indicated:
 
December 31, 2019

Term
Modification

Rate
Modification

Combination

Total
Modification
Real estate loans:
 

 
 

 
 

 
 

Residential
$
95

 
$
87

 
$
432

 
$
614

Home equity
—

 
—

 
61

 
61

Total
$
95

 
$
87

 
$
493

 
$
675



 
December 31, 2018

Term
Modification

Rate
Modification

Combination

Total
Modification
Real estate loans:
 

 

 

 
Commercial and farmland
$
85


—


—


$
85

Residential
—


$
209


$
239


448

Home equity
106


74


—


180

Individuals' loans for household and other personal expenditures
58


6


—


64

Total
$
249


$
289


$
239


$
777