LOANS (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Loans

	June 30, 2020						December 31, 2019
	Business						Business
	Activities		Acquired				Activities		Acquired
(in thousands)	Loans		Loans		Total		Loans		Loans		Total
Commercial real estate:
Construction and land development	$	60,096	$	2,377	$	62,473	$	31,387	$	2,903	$	34,290
Other commercial real estate		722,949		196,648		919,597		666,051		230,320		896,371
Total commercial real estate		783,045		199,025		982,070		697,438		233,223		930,661
Commercial and industrial:
Commercial		384,390		69,949		454,339		239,692		59,072		298,764
Agricultural		18,026		159		18,185		20,018		206		20,224
Tax exempt		40,593		26,325		66,918		66,860		37,443		104,303
Total commercial and industrial		443,009		96,433		539,442		326,570		96,721		423,291
Total commercial loans		1,226,054		295,458		1,521,512		1,024,008		329,944		1,353,952
Residential real estate:
Residential mortgages		725,450		358,258		1,083,708		740,687		411,170		1,151,857
Total residential real estate		725,450		358,258		1,083,708		740,687		411,170		1,151,857
Consumer:
Home equity		59,413		54,686		114,099		59,368		63,033		122,401
Other consumer		8,685		1,413		10,098		11,167		1,715		12,882
Total consumer		68,098		56,099		124,197		70,535		64,748		135,283
Total loans	$	2,019,602	$	709,815	$	2,729,417	$	1,835,230	$	805,862	$	2,641,092

Schedule of Activity in the Accretable Yield for the Acquired Loan Portfolio that Falls Under the Review of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer

	Three Months Ended June 30,
(in thousands)	2020		2019
Balance at beginning of period	$	6,839	$	4,150
Reclassification from nonaccretable difference for loans with improved cash flows		370		402
Accretion		(982)		(357)
Balance at end of period	$	6,227	$	4,195

	Six Months Ended June 30,
(in thousands)	2020		2019
Balance at beginning of period	$	7,367	$	4,377
Reclassification from nonaccretable difference for loans with improved cash flows		424		624
Accretion		(1,564)		(806)
Balance at end of period	$	6,227	$	4,195

Summary of Past Due Loans

Business Activities Loans

					90 Days or								Past Due >
	30-59 Days		60-89 Days		Greater		Total Past						90 days and
(in thousands)	Past Due		Past Due		Past Due		Due		Current		Total Loans		Accruing
June 30, 2020
Commercial real estate:
Construction and land development	$	—	$	—	$	267	$	267	$	59,829	$	60,096	$	—
Other commercial real estate		1,450		23		720		2,193		720,756		722,949		—
Total commercial real estate		1,450		23		987		2,460		780,585		783,045		—
Commercial and industrial:
Commercial		152		295		646		1,093		383,297		384,390		49
Agricultural		20		—		158		178		17,848		18,026		16
Tax exempt		—		—		—		—		40,593		40,593		—
Total commercial and industrial		172		295		804		1,271		441,738		443,009		65
Total commercial loans		1,622		318		1,791		3,731		1,222,323		1,226,054		65
Residential real estate:
Residential mortgages		320		1,820		1,950		4,090		721,360		725,450		270
Total residential real estate		320		1,820		1,950		4,090		721,360		725,450		270
Consumer:
Home equity		40		153		384		577		58,836		59,413		—
Other consumer		5		—		2		7		8,678		8,685		—
Total consumer		45		153		386		584		67,514		68,098		—
Total loans	$	1,987	$	2,291	$	4,127	$	8,405	$	2,011,197	$	2,019,602	$	335

Acquired Loans

					90 Days or				Acquired				Past Due >
	30-59 Days		60-89 Days		Greater		Total Past		Credit				90 days and
(in thousands)	Past Due		Past Due		Past Due		Due		Impaired		Total Loans		Accruing
June 30, 2020
Commercial real estate:
Construction and land development	$	—	$	—	$	—	$	—	$	269	$	2,377	$	—
Other commercial real estate		113		1,495		960		2,568		6,993		196,648		298
Total commercial real estate		113		1,495		960		2,568		7,262		199,025		298
Commercial and industrial:
Commercial		48		97		409		554		1,821		69,949		387
Agricultural		—		—		—		—		159		159		—
Tax exempt		—		—		—		—		—		26,325		—
Total commercial and industrial		48		97		409		554		1,980		96,433		387
Total commercial loans		161		1,592		1,369		3,122		9,242		295,458		685
Residential real estate:
Residential mortgages		433		530		1,033		1,996		4,715		358,258		60
Total residential real estate		433		530		1,033		1,996		4,715		358,258		60
Consumer:
Home equity		273		369		285		927		766		54,686		25
Other consumer		—		—		—		—		47		1,413		—
Total consumer		273		369		285		927		813		56,099		25
Total loans	$	867	$	2,491	$	2,687	$	6,045	$	14,770	$	709,815	$	770

Business Activities Loans

	`					90 Days or								Past Due >
		30-59 Days		60-89 Days		Greater		Total Past						90 days and
(in thousands)		Past Due		Past Due		Past Due		Due		Current		Total Loans		Accruing
December 31, 2019
Commercial real estate:
Construction and land development		$	205	$	53	$	—	$	258	$	31,129	$	31,387	$	—
Other commercial real estate			40		1,534		1,810		3,384		662,667		666,051		—
Total commercial real estate			245		1,587		1,810		3,642		693,796		697,438		—
Commercial and industrial:
Commercial			452		50		894		1,396		238,296		239,692		—
Agricultural			62		34		96		192		19,826		20,018		—
Tax exempt			—		—		—		—		66,860		66,860		—
Total commercial and industrial			514		84		990		1,588		324,982		326,570		—
Total commercial loans			759		1,671		2,800		5,230		1,018,778		1,024,008		—
Residential real estate:
Residential mortgages			7,293		1,243		668		9,204		731,483		740,687		—
Total residential real estate			7,293		1,243		668		9,204		731,483		740,687		—
Consumer:
Home equity			597		43		429		1,069		58,299		59,368		50
Other consumer			36		12		—		48		11,119		11,167		—
Total consumer			633		55		429		1,117		69,418		70,535		50
Total loans		$	8,685	$	2,969	$	3,897	$	15,551	$	1,819,679	$	1,835,230	$	50

Acquired Loans

					90 Days or				Acquired				Past Due >
	30-59 Days		60-89 Days		Greater		Total Past		Credit				90 days and
(in thousands)	Past Due		Past Due		Past Due		Due		Impaired		Total Loans		Accruing
December 31, 2019
Commercial real estate:
Construction and land development	$	—	$	12	$	—	$	12	$	384	$	2,903	$	—
Other commercial real estate		2,029		245		231		2,505		8,289		230,320		—
Total commercial real estate		2,029		257		231		2,517		8,673		233,223		—
Commercial and industrial:
Commercial		440		335		140		915		2,723		59,072		—
Agricultural		—		—		—		—		173		206		—
Tax exempt		—		—		—		—		36		37,443		—
Total commercial and industrial		440		335		140		915		2,932		96,721		—
Total commercial loans		2,469		592		371		3,432		11,605		329,944		—
Residential real estate:
Residential mortgages		3,185		864		1,015		5,064		5,591		411,170		—
Total residential real estate		3,185		864		1,015		5,064		5,591		411,170		—
Consumer:
Home equity		208		548		217		973		1,291		63,033		217
Other consumer		2		9		—		11		66		1,715		—
Total consumer		210		557		217		984		1,357		64,748		217
Total loans	$	5,864	$	2,013	$	1,603	$	9,480	$	18,553	$	805,862	$	217

Summary of Information Pertaining to Non-Accrual Loans

	June 30, 2020						December 31, 2019
	Business						Business
	Activities		Acquired				Activities		Acquired
(in thousands)	Loans		Loans		Total		Loans		Loans		Total
Commercial real estate:
Construction and land development	$	267	$	—	$	267	$	258	$	—	$	258
Other commercial real estate		1,487		2,227		3,714		2,888		343		3,231
Total commercial real estate		1,754		2,227		3,981		3,146		343		3,489
Commercial and industrial:
Commercial		803		459		1,262		932		626		1,558
Agricultural		528		—		528		278		—		278
Tax exempt		—		—		—		—		—		—
Total commercial and industrial		1,331		459		1,790		1,210		626		1,836
Total commercial loans		3,085		2,686		5,771		4,356		969		5,325
Residential real estate:
Residential mortgages		4,041		3,153		7,194		3,362		1,973		5,335
Total residential real estate		4,041		3,153		7,194		3,362		1,973		5,335
Consumer:
Home equity		618		388		1,006		615		254		869
Other consumer		17		—		17		21		—		21
Total consumer		635		388		1,023		636		254		890
Total loans	$	7,761	$	6,227	$	13,988	$	8,354	$	3,196	$	11,550

Schedule of Loans Evaluated for Impairment

Business Activities Loans

	Commercial		Commercial		Residential
(in thousands)	real estate		and industrial		real estate		Consumer		Total
June 30, 2020
Balance at end of period
Individually evaluated for impairment	$	2,482	$	1,049	$	2,396	$	13	$	5,940
Collectively evaluated		780,563		441,960		723,054		68,085		2,013,662
Total	$	783,045	$	443,009	$	725,450	$	68,098	$	2,019,602

Acquired Loans

	Commercial		Commercial		Residential
(in thousands)	real estate		and industrial		real estate		Consumer		Total
June 30, 2020
Balance at end of period
Individually evaluated for impairment	$	2,402	$	356	$	925	$	—	$	3,683
Purchased credit impaired		7,262		1,980		4,715		813		14,770
Collectively evaluated		189,361		94,097		352,618		55,286		691,362
Total	$	199,025	$	96,433	$	358,258	$	56,099	$	709,815

Business Activities Loans

	Commercial		Commercial		Residential
(in thousands)	real estate		and industrial		real estate		Consumer		Total
December 31, 2019
Balance at end of period
Individually evaluated for impairment	$	3,964	$	1,353	$	2,620	$	13	$	7,950
Collectively evaluated		693,474		325,217		738,067		70,522		1,827,280
Total	$	697,438	$	326,570	$	740,687	$	70,535	$	1,835,230

Acquired Loans

	Commercial		Commercial		Residential
(in thousands)	real estate		and industrial		real estate		Consumer		Total
December 31, 2019
Balance at end of period
Individually evaluated for impairment	$	258	$	385	$	1,032	$	—	$	1,675
Purchased credit impaired		8,673		2,932		5,591		1,357		18,553
Collectively evaluated		224,292		93,404		404,547		63,391		785,634
Total	$	233,223	$	96,721	$	411,170	$	64,748	$	805,862

Summary of Impaired Loans

Business Activities Loans

	June 30, 2020
	Recorded		Unpaid Principal		Related
(in thousands)	Investment		Balance		Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate		1,344		1,449		—
Commercial		625		714		—
Agricultural		290		428		—
Tax exempt loans		—		—		—
Residential real estate		1,875		2,036		—
Home equity		—		—		—
Other consumer		—		—		—
With an allowance recorded:
Construction and land development		267		265		213
Other commercial real estate		871		924		474
Commercial		134		134		18
Agricultural		—		—		—
Tax exempt loans		—		—		—
Residential real estate		521		587		60
Home equity		13		13		1
Other consumer		—		—		—
Total
Commercial real estate		2,482		2,638		687
Commercial and industrial		1,049		1,276		18
Residential real estate		2,396		2,623		60
Consumer		13		13		1
Total impaired loans	$	5,940	$	6,550	$	766

Acquired Loans

	June 30, 2020
	Recorded		Unpaid Principal		Related
(in thousands)	Investment		Balance		Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate		1,518		1,525		—
Commercial		284		373		—
Agricultural		—		—		—
Tax exempt loans		—		—		—
Residential real estate		401		590		—
Home equity		—		—		—
Other consumer		—		—		—
With an allowance recorded:
Construction and land development		—		—		—
Other commercial real estate		884		907		365
Commercial		72		74		9
Agricultural		—		—		—
Tax exempt loans		—		—		—
Residential real estate		524		707		67
Home equity		—		—		—
Other consumer		—		—		—
Total
Commercial real estate		2,402		2,432		365
Commercial and industrial		356		447		9
Residential real estate		925		1,297		67
Consumer		—		—		—
Total impaired loans	$	3,683	$	4,176	$	441

Business Activities Loans

	December 31, 2019
	Recorded		Unpaid Principal		Related
(in thousands)	Investment		Balance		Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate		1,911		1,957		—
Commercial		710		773		—
Agricultural		361		261		—
Tax exempt loans		—		—		—
Residential real estate		2,067		2,227		—
Home equity		—		—		—
Other consumer		—		—		—
With an allowance recorded:
Construction and land development		258		258		205
Other commercial real estate		1,795		1,940		1,026
Commercial		282		289		164
Agricultural		—		—		—
Tax exempt loans		—		—		—
Residential real estate		553		590		57
Home equity		13		13		—
Other consumer		—		—		—
Total
Commercial real estate		3,964		4,155		1,231
Commercial and industrial		1,353		1,423		164
Residential real estate		2,620		2,817		57
Consumer		13		13		—
Total impaired loans	$	7,950	$	8,408	$	1,452

Acquired Loans

	December 31, 2019
	Recorded		Unpaid Principal		Related
(in thousands)	Investment		Balance		Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate		90		90		—
Commercial		385		481		—
Agricultural		—		—		—
Tax exempt		—		—		—
Residential mortgages		678		938		—
Home equity		—		—		—
Other consumer		—		—		—
With an allowance recorded:
Construction and land development		—		—		—
Other commercial real estate		168		168		12
Commercial		—		—		—
Agricultural		—		—		—
Tax exempt		—		—		—
Residential mortgages		354		376		49
Home equity		—		—		—
Other consumer		—		—		—
Total
Commercial real estate		258		258		12
Commercial and industrial		385		481		—
Residential real estate		1,032		1,314		49
Consumer		—		—		—
Total impaired loans	$	1,675	$	2,053	$	61

Summary of the Average Recorded Investment and Interest Income Recognized on Impaired Loans

Business Activities Loans

	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019
	Average Recorded		Interest		Average Recorded		Interest
(in thousands)	Investment		Income Recognized		Investment		Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate		1,347		3		7,499		20
Commercial		652		1		940		2
Agricultural		382		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		1,875		4		2,104		16
Home equity		—		—		—		—
Other consumer		—		—		—		—
With an allowance recorded:
Construction and land development		265		—		1		—
Other commercial real estate		871		—		1,396		—
Commercial		134		—		412		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		546		—		572		3
Home equity		13		—		13		—
Other consumer		—		—		—		—
Total
Commercial real estate		2,483		3		8,896		20
Commercial and industrial		1,168		1		1,352		2
Residential real estate		2,421		4		2,676		19
Consumer		13		—		13		—
Total impaired loans	$	6,085	$	8	$	12,937	$	41

Business Activities Loans

	Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
	Average Recorded		Interest		Average Recorded		Interest
(in thousands)	Investment		Income Recognized		Investment		Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate		1,286		6		7,219		46
Commercial		657		2		931		4
Agricultural		406		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		1,880		16		2,113		31
Home equity		—		—		—		—
Other consumer		—		—		—		—
With an allowance recorded:
Construction and land development		264		—		3		—
Other commercial real estate		874		—		1,497		—
Commercial		134		—		417		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		547		2		534		5
Home equity		13		—		13		—
Other consumer		—		—		—		—
Total
Commercial real estate		2,424		6		8,719		46
Commercial and industrial		1,197		2		1,348		4
Residential real estate		2,427		18		2,647		36
Consumer		13		—		13		—
Total impaired loans	$	6,061	$	26	$	12,727	$	86

Acquired Loans

	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019
	Average Recorded		Interest		Average Recorded		Interest
(in thousands)	Investment		Income Recognized		Investment		Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate		1,527		—		187		—
Commercial		295		—		412		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		446		—		426		—
Home equity		—		—		—		—
Other consumer		—		—		—		—
With an allowance recorded:
Construction and land development		—		—		—		—
Other commercial real estate		906		3		71		—
Commercial		75		—		—		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		596		—		363		—
Home equity		—		—		—		—
Other consumer		—		—		—		—
Total
Commercial real estate		2,433		3		258		—
Commercial and industrial		370		—		412		—
Residential real estate		1,042		—		789		—
Consumer		—		—		—		—
Total impaired loans	$	3,845	$	3	$	1,459	$	—

Acquired Loans

	Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
	Average Recorded		Interest		Average Recorded		Interest
(in thousands)	Investment		Income Recognized		Investment		Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate		763		—		157		—
Commercial		345		—		446		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		456		—		431		—
Home equity		—		—		—		—
Other consumer		—		—		—		—
With an allowance recorded:
Construction and land development		—		—		—		—
Other commercial real estate		663		3		36		—
Commercial		80		—		—		—
Agricultural		—		—		—		—
Tax exempt loans		—		—		—		—
Residential real estate		601		—		365		—
Home equity		—		—		—		—
Other consumer		—		—		—		—
Total
Commercial real estate		1,426		3		193		—
Commercial and industrial		425		—		446		—
Residential real estate		1,057		—		796		—
Consumer		—		—		—		—
Total impaired loans	$	2,908	$	3	$	1,435	$	—

Schedule of Recorded Investment and Number of Modifications for TDRs

The following tables include the recorded investment and number of modifications identified during the three and six months ended June 30, 2020 and 2019, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. Modifications may include adjustments to interest rates, payment amounts, extensions of maturity, court ordered concessions or other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. There were no modifications qualifying as TDR’s for the three months ended June 30, 2020.

	Three Months Ended June 30, 2019
		Pre-Modification		Post-Modification
	Number of	Outstanding Recorded		Outstanding Recorded
(in thousands, except modifications)	Modifications	Investment		Investment
Troubled Debt Restructurings
Other commercial real estate	2		186		177
Commercial	1		12		12
Residential mortgages	2		152		116
Total	5	$	350	$	305

	Six Months Ended June 30, 2020
		Pre-Modification		Post-Modification
	Number of	Outstanding Recorded		Outstanding Recorded
(in thousands, except modifications)	Modifications	Investment		Investment
Troubled Debt Restructurings
Other commercial real estate	1	$	54	$	252
Other commercial	3		41		196
Home equity	1		26		25
Other consumer	1		9		9
Total	6	$	130	$	482

	Six Months Ended June 30, 2019
		Pre-Modification			Post-Modification
	Number of	Outstanding Recorded		Outstanding Recorded
(in thousands, except modifications)	Modifications	Investment		Investment
Troubled Debt Restructurings
Other commercial real estate	5	$	299	$	290
Other commercial	3		43		43
Residential mortgages	8		682		644
Total	16	$	1,024	$	977

The following tables summarize the types of loan concessions made for the periods presented:

	Three Months Ended June 30,
	2020			2019
		Post-Modification			Post-Modification
		Outstanding			Outstanding
	Number of	Recorded		Number of	Recorded
(in thousands, except modifications)	Modifications	Investment		Modifications	Investment
Troubled Debt Restructurings
Interest only payments and maturity concession	—	$	—	1	$	70
Forbearance and interest only payments	—		—	2		131
Forbearance and maturity concession	—		—	1		46
Other	—		—	1		58
Total	—	$	—	5	$	305

	Six Months Ended June 30,
	2020			2019
		Post-Modification			Post-Modification
		Outstanding			outstanding
	Number of	Recorded		Number of	Recorded
(in thousands, except modifications)	Modifications	Investment		Modifications	Investment
Troubled Debt Restructurings
Interest rate and maturity concession	—	$	—	—	$	—
Interest only payments and maturity concession	—		—	2		75
Interest rate, forbearance and maturity concession	4		448	—		—
Amortization and maturity concession	—		—	4		275
Forbearance	—		—	1		77
Forbearance and interest only payments	1		25	4		243
Forbearance and maturity concession	—		—	4		249
Maturity concession	1		9	—		—
Other	—		—	1		58
Total	6	$	482	16	$	977

Schedule of Servicing Rights Activity

	At or for the Three Months Ended June 30,				At or for the Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Balance at beginning of year	$	2,939	$	3,025	$	3,001	$	3,086
Acquired		—		—		—		—
Additions		164		51		253		107
Amortization		(192)		(135)		(343)		(252)
Balance at end of year	$	2,911	$	2,941	$	2,911	$	2,941