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Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2021
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)
  
2021
    
2020
  
Loans and leases held-for-investment, net
            
Real estate:
            
Commercial real estate
  
$
1,167,516
    
$
971,326
  
Agricultural
    
672,830
      
643,014
  
Residential and home equity
    
350,581
      
333,618
  
Construction
    
177,163
      
185,741
  
Total real estate
    
2,368,090
      
2,133,699
  
Commercial & Industrial
     427,799       374,816  
Agricultural
    
276,684
      
264,372
  
Commercial leases
    
96,971
      
103,117
  
Consumer and other(1)
    
78,367
      
235,529
  
Total gross loans and leases
    
3,247,911
      
3,111,533
  
Unearned income
    
(10,734
)
    
(11,941
)
Total net loans and leases
    
3,237,177
      
3,099,592
  
Allowance for credit losses
    
(61,007
)
    
(58,862
)
Total loans and leases held-for-investment, net
  
$
3,176,170
    
$
3,040,730
  

(1) Includes SBA PPP loans.
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, 2021 and 2020:
 
  
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 real estate
  
$
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
  


 
  
December 31, 2020
  
(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 real estate
  
$
958,980
    
$
-
    
$
-
    
$
-
    
$
-
    
$
958,980
  
Agricultural
    
643,014
      
-
      
-
      
-
      
-
      
643,014
  
Residential and home equity
    
333,618
      
-
      
-
      
-
      
-
      
333,618
  
Construction
    
185,741
      
-
      
-
      
-
      
-
      
185,741
  
Total real estate
    
2,121,353
      
-
      
-
      
-
      
-
      
2,121,353
  
Commercial & Industrial
    
374,816
      
-
      
-
      
-
      
-
      
374,816
  
Agricultural
    
263,877
      
-
      
-
      
495
      
495
      
264,372
  
Commercial leases
    
103,522
      
-
      
-
      
-
      
-
      
103,522
  
Consumer and other
    
235,518
      
11
      
-
      
-
      
11
      
235,529
  
Total loans and leases, net
  
$
3,099,086
    
$
11
    
$
-
    
$
495
    
$
506
    
$
3,099,592
  
Non-accrual Loans

Non-accrual loans are summarized as follows:
 
  
December 31,
  
(Dollars in thousands)
  
2021
    
2020
  
Non-accrual loans and leases:
            
Non-accrual loans and leases, not TDRs
            
Real estate:
            
Commercial real estate
  
$
-
    
$
-
  
Agricultural
    
18
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
18
      
-
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
18
      
-
  
Non-accrual loans and leases, are TDRs
                
Real estate:
                
Commercial real estate
  
$
-
    
$
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
498
      
495
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
498
      
495
  
Total non-accrual loans and leases
  
$
516
    
$
495
  
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)
  
2021
    
2020
  
Troubled debt restructured loans and leases:
            
Accruing TDR loans and leases
            
Real estate:
            
Commercial real estate
   $
41
     $
84
  
Agricultural
    
-
      
5,629
  
Residential and home equity
    
1,522
      
1,731
  
Construction
    
-
       -
 
Total real estate
    
1,563
      
7,444
  
Commercial & Industrial
    
260
      
233
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
1
      
190
  
Subtotal
    
1,824
      
7,867
  
Non-accruing TDR loans and leases
                
Real estate:
                
Commercial real estate
   $
-
     $
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & Industrial
    
-
      
-
  
Agricultural
    
498
      
495
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
498
      
495
  
Total TDR loans and leases
  
$
2,322
    
$
8,362
  
Outstanding Loan Balances Category by Credit Quality Indicators

Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows:
 
  
December 31, 2021
  
(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 real estate
  
$
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
      
263
  
Unallocated
     -       -       -       -       -       400  
Total loans and leases, net
  
$
3,200,251
    
$
20,474
    
$
16,452
    
$
-
    
$
3,237,177
    
$
61,007
  


 
  
December 31, 2020
  
(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 real estate
  
$
946,621
    
$
7,849
    
$
4,510
    
$
-
    
$
958,980
    
$
27,679
  
Agricultural
    
631,043
      
400
      
11,571
      
-
      
643,014
      
8,633
  
Residential and home equity
    
332,747
      
-
      
871
      
-
      
333,618
      
2,984
  
Construction
    
185,741
      
-
      
-
      
-
      
185,741
      
1,643
  
Total real estate
    
2,096,152
      
8,249
      
16,952
      
-
      
2,121,353
      
40,939
  
Commercial & Industrial
    
373,038
      
1,060
      
718
      
-
      
374,816
      
9,961
  
Agricultural
    
263,781
      
96
      
495
      
-
      
264,372
      
4,814
  
Commercial leases
    
103,522
      
-
      
-
      
-
      
103,522
      
1,731
  
Consumer and other
    
235,063
      
-
      
466
      
-
      
235,529
      
333
  
Unallocated
     -       -       -       -       -       1,084  
Total loans and leases, net
  
$
3,071,556
    
$
9,405
    
$
18,631
    
$
-
    
$
3,099,592
    
$
58,862
  
Changes in Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:


 
  
Year Ended December 31, 2021
  
(Dollars in thousands)
  
Commercial & Agricultural R/E
    
Construction
    
Residential & Home Equity
    
Commercial
&
Agricultural
    
Commercial Leases
    
Consumer & Other
    
Unallocated
    
Total
  
Allowance for credit losses:
                                                
Balance at beginning of year
  
$
36,312
    
$
1,643
    
$
2,984
    
$
14,775
    
$
1,731
    
$
333
    
$
1,084
    
$
58,862
  
Provision / (recapture) for credit losses
    
1,837
      
(187
)
    
(235
)
    
2,025
      
(793
)
    
(53
)
    
(684
)
    
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
    
$
263
    
$
400
    
$
61,007
  


 
  
Year Ended December 31, 2020
  
(Dollars in thousands)
  
Commercial & Agricultural R/E
    
Construction
    
Residential & Home Equity
    
Commercial
&
Agricultural
    
Commercial Leases
    
Consumer & Other
    
Unallocated
    
Total
  
Allowance for credit losses:
                                                
Balance at beginning of year
  
$
26,181
    
$
1,949
    
$
3,530
    
$
19,542
    
$
3,162
    
$
456
    
$
192
    
$
55,012
  
Provision / (recapture) for credit losses
    
10,050
      
(306
)
    
(669
)
    
(3,946
)
    
(1,431
)
    
(90
)
    
892
      
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
    
$
333
    
$
1,084
    
$
58,862
  


 
  
Year Ended December 31, 2019
  
(Dollars in thousands)
  
Commercial & Agricultural R/E
    
Construction
    
Residential & Home Equity
    
Commercial
&
Agricultural
    
Commercial Leases
    
Consumer & Other
    
Unallocated
    
Total
  
Allowance for credit losses:
                                                
Balance at beginning of year
  
$
25,701
    
$
1,249
    
$
3,641
    
$
19,898
    
$
4,022
    
$
494
    
$
261
    
$
55,266
  
Provision / (recapture) for credit losses
    
442
      
700
      
(152
)
    
146
      
(860
)
    
(7
)
    
(69
)
    
200
  
Charge-offs
    
-
      
-
      
-
      
(592
)
    
-
      
(83
)
    
-
      
(675
)
Recoveries
    
38
      
-
      
41
      
90
      
-
      
52
      
-
      
221
  
Net (charge-offs) / recoveries
    
38
      
-
      
41
      
(502
)
    
-
      
(31
)
    
-
      
(454
)
 
                                                                
Balance at end of year
  
$
26,181
    
$
1,949
    
$
3,530
    
$
19,542
    
$
3,162
    
$
456
    
$
192
    
$
55,012
  
Allowance for Credit Loss and Outstanding Loan Balances

The ACL and outstanding loan balances reviewed according to the Company’s estimated credit loss methods were summarized as follows:
   
  
December 31, 2021
  
(Dollars in thousands)
  
Commercial & Agricultural R/E
    
Construction
    
Residential & Home Equity
    
Commercial
&
Agricultural
    
Commercial Leases
    
Consumer & Other
    
Unallocated
    
Total
  
Allowance for credit losses:
                                                
Total loans and leases
                                                
Collectively evaluated for impairment
  
$
1,824,517
    
$
177,163
    
$
348,729
    
$
703,725
    
$
96,415
    
$
78,193
     $ -    
$
3,228,742
  
Individually evaluated for impairment
    
5,651
      
-
      
1,852
      
758
      
-
      
174
       -      
8,435
  
Total loans and leases
  
$
1,830,168
    
$
177,163
    
$
350,581
    
$
704,483
    
$
96,415
    
$
78,367
     $ -    
$
3,237,177
  
 
                                                                
Allowance for credit losses:
                                                                
Collectively evaluated for impairment
  
$
38,149
    
$
1,456
    
$
2,755
    
$
16,937
    
$
938
    
$
227
    
$
400
    
$
60,862
  
Individually evaluated for impairment
    
-
      
-
      
92
      
17
      
-
      
36
      
-
      
145
  
Total allowance for credit losses
  
$
38,149
    
$
1,456
    
$
2,847
    
$
16,954
    
$
938
    
$
263
    
$
400
    
$
61,007
  


   
  
December 31, 2020
  
(Dollars in thousands)
  
Commercial & Agricultural R/E
    
Construction
    
Residential & Home Equity
    
Commercial
&
Agricultural
    
Commercial Leases
    
Consumer & Other
    
Unallocated
    
Total
  
Allowance for credit losses:
                                                
Total loans and leases
                                                
Collectively evaluated for impairment
  
$
1,596,261
    
$
185,741
    
$
331,095
    
$
638,460
    
$
103,522
    
$
235,275
     $ -    
$
3,090,354
  
Individually evaluated for impairment
    
5,733
      
-
      
2,523
      
728
      
-
      
254
       -      
9,238
  
Total loans and leases
  
$
1,601,994
    
$
185,741
    
$
333,618
    
$
639,188
    
$
103,522
    
$
235,529
     $ -    
$
3,099,592
  
 
                                                                
Allowance for credit losses:
                                                                
Collectively evaluated for impairment
  
$
36,312
    
$
1,643
    
$
2,859
    
$
14,663
    
$
1,731
    
$
281
    
$
1,084
    
$
58,573
  
Individually evaluated for impairment
    
-
      
-
      
125
      
112
      
-
      
52
      
-
      
289
  
Total allowance for credit losses
  
$
36,312
    
$
1,643
    
$
2,984
    
$
14,775
    
$
1,731
    
$
333
    
$
1,084
    
$
58,862
  
Summary of Information on Individually Evaluated Loans

Information on individually evaluated loans was summarized as follows:
 
  
December 31, 2021
  
(Dollars in thousands)
  
Unpaid Principal Balance
    
With no Allowance
    
With Allowance
    
Total Recorded Investment
    
Related Allowance
  
Loans and leases individually evaluated:
                              
Real estate:
                              
Commercial real estate
  
$
45
    
$
45
    
$
-
    
$
45
    
$
-
  
Agricultural
    
5,606
      
5,606
      
-
      
5,606
      
-
  
Residential and home equity
    
1,852
      
-
      
1,852
      
1,663
      
92
  
Construction
    
-
      
-
      
-
      
-
      
-
  
Total real estate
    
7,503
      
5,651
      
1,852
      
7,314
      
92
  
Commercial & Industrial
    
260
      
-
      
260
      
260
      
17
  
Agricultural
    
498
      
498
      
-
      
456
      
-
  
Commercial leases
    
-
      
-
      
-
      
-
      
-
  
Consumer and other
    
174
      
-
      
174
      
173
      
36
  
Total gross loans and leases
  
$
8,435
    
$
6,149
    
$
2,286
    
$
8,203
    
$
145
  


 
  
December 31, 2020
  
(Dollars in thousands)
  
Unpaid Principal Balance
    
With no Allowance
    
With Allowance
    
Total Recorded Investment
    
Related Allowance
  
Loans and leases individually evaluated:
                              
Real estate:
                              
Commercial real estate
  
$
104
    
$
104
    
$
-
    
$
104
    
$
-
  
Agricultural
    
5,629
      
5,629
      
-
      
5,629
      
-
  
Residential and home equity
    
2,523
      
-
      
2,523
      
2,288
      
125
  
Construction
    
-
      
-
      
-
      
-
      
-
  
Total real estate
    
8,256
      
5,733
      
2,523
      
8,021
      
125
  
Commercial & Industrial
    
233
      
-
      
233
      
233
      
20
  
Agricultural
    
495
      
3
      
492
      
453
      
92
  
Commercial leases
    
-
      
-
      
-
      
-
      
-
  
Consumer and other
    
254
      
63
      
191
      
253
      
52
  
Total gross loans and leases
  
$
9,238
    
$
5,799
    
$
3,439
    
$
8,960
    
$
289
  
Interest Income Recognized on Average Recorded Investment

Interest income recognized on the average recorded investment of individually evaluated loans was as follows:
 
  
Year Ended December 31,
  
 
  
2021
    
2020
     2019
  
(Dollars in thousands)
  
Average Recorded Investment
    
Interest Income Recognized
    
Average Recorded Investment
    
Interest Income Recognized
    
Average Recorded Investment
    
Interest Income
Recognized
  
Loans and leases individually evaluated:
                                    
Real estate:
                                    
Commercial real estate
  
$
80
    
$
7
    
$
812
    
$
38
     $ 4,595     $ 182  
Agricultural
    
5,588
      
735
      
5,766
      
352
       6,069       379  
Residential and home equity
    
1,978
      
93
      
2,543
      
135
       2,679       144  
Construction
    
-
      
-
      
-
      
-
       -       -  
Total real estate
    
7,646
      
835
      
9,121
      
525
       13,343       705  
Commercial & Industrial
    
232
      
20
      
500
      
34
       1,562       54  
Agricultural
    
585
      
58
      
907
      
102
       195       6  
Commercial leases
    
-
      
-
      
-
      
-
       -       -  
Consumer and other
    
310
      
21
      
257
      
13
       54       -  
Total loans and leases individually evaluated
  
$
8,773
    
$
934
    
$
10,785
    
$
674
     $
15,154     $
 765