XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Loans (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Loans Classifications
Loans were comprised of the following classifications at September 30:
 September 30,
2020		December 31,
2019
Commercial:
Commercial and Industrial Loans$781,547 $532,501 
Commercial Real Estate Loans1,453,280 1,495,862 
Agricultural Loans376,215 384,526 
Leases57,475 57,257 
Retail:
Home Equity Loans218,640 225,755 
Consumer Loans64,919 69,264 
Credit Cards10,717 11,953 
Residential Mortgage Loans262,439 304,855 
Subtotal3,225,232 3,081,973 
Less: Unearned Income(4,105)(4,882)
Allowance for credit losses(46,768)(16,278)
Loans, net$3,174,359 $3,060,813 
Schedule of Allowance for Credit Losses for Loans
The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2020:
September 30, 2020Commercial and Industrial
Loans		Commercial Real Estate LoansAgricultural
Loans		LeasesConsumer LoansHome Equity LoansCredit CardsResidential Mortgage LoansUnallocatedTotal
Allowance for Credit Losses:
Beginning balance $8,787 $22,369 $7,030 $202 $496 $1,062 $125 $2,360 $— $42,431 
Provision for credit loss expense(1,017)5,931 (315)4 70 — 39 (212)— 4,500 
Loans charged-off(73)(9)— — (138)(67)(27)(8)— (322)
Recoveries collected3 91 — — 64 — — 1 — 159 
Total ending allowance balance$7,700 $28,382 $6,715 $206 $492 $995 $137 $2,141 $— $46,768 


The following table presents the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2020:
September 30, 2020Commercial and Industrial
Loans		Commercial Real Estate LoansAgricultural
Loans		LeasesConsumer LoansHome Equity LoansCredit CardsResidential Mortgage LoansUnallocatedTotal
Allowance for Credit Losses:
Beginning balance prior to adoption of ASC 326$4,799 $4,692 $5,315 $— $434 $200 $— $333 $505 $16,278 
Impact of adopting ASC 3262,245 3,063 1,438 105 (59)762 124 1,594 (505)8,767 
Impact of adopting ASC 326 - PCD Loans2,191 4,385 128 — — 35 — 147 — 6,886 
Provision for credit loss expense(1,182)16,145 (166)101 385 65 98 104 — 15,550 
Initial allowance on loans purchased with credit deterioration— — — — — — — — — — 
Loans charged-off(369)(9)— — (520)(67)(86)(39)— (1,090)
Recoveries collected16 106 — — 252 — 1 2 — 377 
Total ending allowance balance$7,700 $28,382 $6,715 $206 $492 $995 $137 $2,141 $— $46,768 
The following table presents the activity in the allowance for loan losses by portfolio class for the three months ended September 30, 2019:
September 30, 2019Commercial and Industrial
Loans and Leases		Commercial Real Estate LoansAgricultural
Loans		Home Equity LoansConsumer LoansResidential Mortgage LoansUnallocatedTotal
Beginning Balance$2,992 $5,841 $5,725 $258 $422 $349 $652 $16,239 
Provision for Loan Losses4,468 (1,410)(373)(72)174 25 (12)2,800 
Recoveries2 5 — 8 99 — — 114 
Loans Charged-off(2,859)(136)— — (277)(12)— (3,284)
Ending Balance$4,603 $4,300 $5,352 $194 $418 $362 $640 $15,869 

The following table presents the activity in the allowance for loan losses by portfolio class for the nine months ended September 30, 2019:
September 30, 2019Commercial and Industrial
Loans and Leases		Commercial Real Estate LoansAgricultural
Loans		Home Equity LoansConsumer LoansResidential Mortgage LoansUnallocatedTotal
Beginning Balance$2,953 $5,291 $5,776 $229 $420 $472 $682 $15,823 
Provision for Loan Losses4,512 (741)(424)(33)507 (54)(42)3,725 
Recoveries53 24 — 8 313 6 — 404 
Loans Charged-off(2,915)(274)— (10)(822)(62)— (4,083)
Ending Balance$4,603 $4,300 $5,352 $194 $418 $362 $640 $15,869 
Schedule of Non-accrual and Past Due Loans
The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of September 30, 2020:
September 30, 2020Non-Accrual With No Allowance for Credit LossNon-AccrualLoans Past Due Over 89 Days Still Accruing
Commercial and Industrial Loans$1,350 $8,519 $— 
Commercial Real Estate Loans5,657 10,282 — 
Agricultural Loans2,015 2,643 — 
Leases— — — 
Home Equity Loans200 200 — 
Consumer Loans61 105 — 
Credit Cards66 66 — 
Residential Mortgage Loans770 1,063 — 
Total$10,119 $22,878 $— 
The following table presents the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of December 31, 2019:
Loans Past Due
90 Days or More
 Non-Accrual& Still Accruing
 20192019
Commercial and Industrial Loans and Leases$4,940 $190 
Commercial Real Estate Loans3,433 — 
Agricultural Loans2,739 — 
Home Equity Loans79 — 
Consumer Loans115 — 
Residential Mortgage Loans2,496 — 
Total$13,802 $190 
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
$5,393 $— 
Loans Acquired in Current Year
(Included in the Total Above)
$2,058 $— 
Schedule or Collateral-dependent Loans by Class
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2020:
September 30, 2020Real EstateEquipmentAccounts ReceivableOtherTotal
Commercial and Industrial Loans$4,973 $3,380 $699 $41 $9,093 
Commercial Real Estate Loans13,036 — — 1,604 14,640 
Agricultural Loans3,069 — — 1 3,070 
Leases— — — — — 
Home Equity Loans415 — — — 415 
Consumer Loans39 3 — 5 47 
Credit Cards— — — — — 
Residential Mortgage Loans1,043 — — — 1,043 
Total$22,575 $3,383 $699 $1,651 $28,308 
Schedule of Aging of Past Due Loans
The following table presents the aging of the amortized cost basis in past due loans by class of loans as of September 30, 2020:
September 30, 202030-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal
Past Due		Loans Not Past DueTotal
Commercial and Industrial Loans$35 $160 $4,488 $4,683 $776,864 $781,547 
Commercial Real Estate Loans1,637 — 958 2,595 1,450,685 1,453,280 
Agricultural Loans— 578 73 651 375,564 376,215 
Leases— — — — 57,475 57,475 
Home Equity Loans401 113 200 714 217,926 218,640 
Consumer Loans259 61 84 404 64,515 64,919 
Credit Cards147 29 66 242 10,475 10,717 
Residential Mortgage Loans3,281 1,947 812 6,040 256,399 262,439 
Total$5,760 $2,888 $6,681 $15,329 $3,209,903 $3,225,232 
The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2019:
December 31, 2019Total30-59 Days
Past Due		60-89 Days
Past Due		90 Days
or More
Past Due		Total
Past Due		Loans Not
Past Due
Commercial and Industrial Loans and Leases$591,403 $4,689 $83 $799 $5,571 $585,832 
Commercial Real Estate Loans1,499,864 209 431 2,106 2,746 1,497,118 
Agricultural Loans390,871 499 — 329 828 390,043 
Home Equity Loans226,775 1,121 253 80 1,454 225,321 
Consumer Loans81,429 347 156 89 592 80,837 
Residential Mortgage Loans305,560 5,014 1,461 2,308 8,783 296,777 
Total (1)
$3,095,902 $11,879 $2,384 $5,711 $19,974 $3,075,928 
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
$12,798 $18 $— $1,589 $1,607 $11,191 
Loans Acquired in Current Year
(Included in the Total Above)
$321,464 $639 $1 $797 $1,437 $320,027 
 
(1) Total recorded investment in loans includes $13,929 in accrued interest.
Schedule of Payment Modifications
As of September 30, 2020, the following active payment modifications are still in effect. These payment modifications are significantly reduced from the level of active modifications as of June 30, 2020.
% of Loan Category
(Excludes PPP Loans)
Type of Loans
(dollars in thousands)		Number of LoansOutstanding Balance

As of 9/30/2020
As of 6/30/2020
Commercial & Industrial Loans24 $6,154 1.2 %10.8 %
Commercial Real Estate Loans44 82,986 5.7 %15.3 %
Agricultural Loans— — — %0.3 %
Consumer Loans1 3 
n/m (1)
0.4 %
Residential Mortgage Loans12 1,275 0.5 %8.2 %
Total81 $90,418 3.1 %10.4 %
Schedule of Risk Category of Loans
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
Term Loans Amortized Cost Basis by Origination Year
As of September 30, 202020202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
Commercial and Industrial:
Risk Rating
   Pass$387,099 $95,812 $54,005 $37,396 $24,134 $55,538 $100,294 $754,278 
   Special Mention187 546 1,350 2,073 185 2,137 2,436 8,914 
   Substandard1,167 — 1,193 1,405 976 5,836 7,778 18,355 
   Doubtful— — — — — — — — 
Total Commercial & Industrial Loans$388,453 $96,358 $56,548 $40,874 $25,295 $63,511 $110,508 $781,547 
Commercial Real Estate:
Risk Rating
   Pass$195,078 $241,890 $204,211 $214,673 $186,951 $328,350 $35,405 $1,406,558 
   Special Mention527 3,038 1,798 4,511 2,025 15,173 247 27,319 
   Substandard— 1,119 1,995 1,777 4,343 10,169 — 19,403 
   Doubtful— — — — — — — — 
Total Commercial Real Estate Loans$195,605 $246,047 $208,004 $220,961 $193,319 $353,692 $35,652 $1,453,280 
Agricultural:
Risk Rating
   Pass$36,822 $28,368 $33,653 $34,303 $24,056 $70,059 $77,605 $304,866 
   Special Mention5,444 7,803 2,974 8,713 2,138 15,763 15,439 58,274 
   Substandard611 73 394 1,255 4,467 6,025 250 13,075 
   Doubtful— — — — — — — — 
      Total Agricultural Loans$42,877 $36,244 $37,021 $44,271 $30,661 $91,847 $93,294 $376,215 
Leases:
Risk Rating
   Pass$14,950 $19,334 $10,342 $6,297 $2,194 $4,358 $— $57,475 
   Special Mention— — — — — — — — 
   Substandard— — — — — — — — 
   Doubtful— — — — — — — — 
      Total Leases$14,950 $19,334 $10,342 $6,297 $2,194 $4,358 $— $57,475 
The risk category of loans by class of loans at December 31, 2019 is as follows: 
December 31, 2019PassSpecial
Mention		SubstandardDoubtfulTotal
Commercial and Industrial Loans and Leases$556,706 $19,671 $15,026 $— $591,403 
Commercial Real Estate Loans1,453,310 30,504 16,050 — 1,499,864 
Agricultural Loans325,991 49,053 15,827 — 390,871 
Total$2,336,007 $99,228 $46,903 $— $2,482,138 
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
$68 $613 $11,060 $— $11,741 
Loans Acquired in Current Year
(Included in the Total Above)
$254,629 $16,535 $12,769 $— $283,933 
Schedule of Residential, Home Equity and Consumer Loans Based on Payment Activity The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity.
Term Loans Amortized Cost Basis by Origination Year
As of September 30, 202020202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
Consumer:
Payment performance
   Performing$25,189 $21,676 $9,777 $2,876 $1,292 $2,444 $1,560 $64,814 
   Nonperforming5 3 2 2 — 62 31 105 
      Total Consumer Loans$25,194 $21,679 $9,779 $2,878 $1,292 $2,506 $1,591 $64,919 
Home Equity:
Payment performance
   Performing$— $— $34 $46 $68 $425 $217,866 $218,439 
   Nonperforming— — — — — — 201 201 
      Total Home Equity Loans$— $— $34 $46 $68 $425 $218,067 $218,640 
Residential Mortgage:
Payment performance
   Performing$27,378 $28,514 $33,281 $32,530 $29,701 $109,972 $— $261,376 
   Nonperforming— — — — 87 976 — 1,063 
Total Residential Mortgage Loans$27,378 $28,514 $33,281 $32,530 $29,788 $110,948 $— $262,439 
The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2019: 
December 31, 2019Home Equity
Loans		Consumer
Loans		Residential
Mortgage Loans
Performing$226,695 $81,314 $303,065 
Nonperforming80 115 2,495 
Total$226,775 $81,429 $305,560 
Schedule of Consumer Loans Based on Payment Activity The following table presents the recorded investment in retail loans based on payment activity:
As of September 30, 2020Credit Cards
   Performing$10,651 
   Nonperforming66 
      Total$10,717 
Schedule of Loans Purchased and/or Sold During the Year
The following table presents loans purchased and/or sold during the year by portfolio segment:
September 30, 2020Commercial and Industrial LoansCommercial Real Estate LoansAgricultural LoansLeasesConsumer LoansHome Equity LoansCredit CardsResidential Mortgage LoansTotal
   Purchases$— $— $— $— $— $— $— $— $— 
   Sales— 527 — — — — — — 527 
The following table presents financing receivables purchased and/or sold during the year by portfolio segment:
December 31, 2019Commercial and Industrial Loans and LeasesCommercial Real Estate LoansTotal
Purchases$2,051 $— $2,051 
Sales— — — 
Schedule of Allowance For Loan Losses and Recorded Investment in Loans by Class
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2019:
December 31, 2019TotalCommercial
and
Industrial
Loans and Leases		Commercial
Real Estate Loans		Agricultural LoansHome
Equity Loans		Consumer LoansResidential
Mortgage Loans		Unallocated
Allowance for Loan Losses:        
Ending Allowance Balance Attributable to Loans:        
Individually Evaluated for Impairment$2,971 $2,412 $559 $— $— $— $— $— 
Collectively Evaluated for Impairment12,902 2,387 3,733 5,315 200 434 328 505 
Acquired with Deteriorated Credit Quality405 — 400 — — — 5 — 
Total Ending Allowance Balance$16,278 $4,799 $4,692 $5,315 $200 $434 $333 $505 
Loans:        
Loans Individually Evaluated for Impairment$6,269 $4,707 $1,562 $— $— $— $— n/m(2)
Loans Collectively Evaluated for Impairment3,076,835 585,328 1,491,090 387,710 226,406 81,429 304,872 n/m(2)
Loans Acquired with Deteriorated Credit Quality12,798 1,368 7,212 3,161 369 — 688 n/m(2)
Total Ending Loans Balance (1)
$3,095,902 $591,403 $1,499,864 $390,871 $226,775 $81,429 $305,560 n/m(2)
 
(1) Total recorded investment in loans includes $13,929 in accrued interest.
(2)n/m = not meaningful
Schedule of Loans Individually Evaluated for Impairment by Class
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:
December 31, 2019
Unpaid
Principal
Balance(1)
Recorded
Investment		Allowance for
Loan Losses
Allocated
With No Related Allowance Recorded:   
Commercial and Industrial Loans and Leases$3,638 $524 $— 
Commercial Real Estate Loans4,738 2,058 — 
Agricultural Loans3,294 2,738 — 
Subtotal11,670 5,320 — 
With An Allowance Recorded:   
Commercial and Industrial Loans and Leases5,042 4,521 2,412 
Commercial Real Estate Loans2,187 1,865 959 
Agricultural Loans— — — 
Subtotal7,229 6,386 3,371 
Total$18,899 $11,706 $3,371 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance
Recorded (Included in the Total Above)		$9,994 $4,624 $— 
Loans Acquired With Deteriorated Credit Quality With An Additional
Allowance Recorded (Included in the Total Above)		$1,134 $813 $400 
 
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.
The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the three month period ended September 30, 2019:
September 30, 2019Average Recorded
Investment		Interest Income RecognizedCash Basis
Recognized
With No Related Allowance Recorded:   
Commercial and Industrial Loans and Leases$2,868 $8 $— 
Commercial Real Estate Loans2,699 45 5 
Agricultural Loans1,539 1 — 
Subtotal7,106 54 5 
With An Allowance Recorded:   
Commercial and Industrial Loans and Leases5,708 — — 
Commercial Real Estate Loans2,010 — 3 
Agricultural Loans— — — 
Subtotal7,718 — 3 
Total$14,824 $54 $8 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance
Recorded (Included in the Total Above)		$3,381 $43 $— 
Loans Acquired With Deteriorated Credit Quality With An Additional
Allowance Recorded (Included in the Total Above)		$815 $— $— 

The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the nine month period ended September 30, 2019:
September 30, 2019Average Recorded
Investment		Interest Income RecognizedCash Basis
Recognized
With No Related Allowance Recorded:   
Commercial and Industrial Loans and Leases$1,157 $11 $2 
Commercial Real Estate Loans3,093 72 5 
Agricultural Loans1,452 1 — 
Subtotal5,702 84 7 
With An Allowance Recorded:   
Commercial and Industrial Loans and Leases3,374 — — 
Commercial Real Estate Loans3,553 — — 
Agricultural Loans— — — 
Subtotal6,927 — — 
Total$12,629 $84 $7 
Loans Acquired With Deteriorated Credit Quality With No Related Allowance
Recorded (Included in the Total Above)		$4,070 $58 $— 
Loans Acquired With Deteriorated Credit Quality With An Additional
Allowance Recorded (Included in the Total Above)		$2,083 $— $—