XML 30 R20.htm IDEA: XBRL DOCUMENT v3.22.2.2
Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2022
Loans and Leases [Abstract]  
Components of Loans and Leases
Loans and leases as of the dates indicated consisted of the following:
(Dollars in thousands)
  
September 30,
2022
    
December 31,
2021
  
Loans and leases held for investment, net
            
Real estate:
            
Commercial
  
$
1,246,805
    
$
1,167,516
  
Agricultural
    
722,448
      
672,830
  
Residential and home equity
    
377,249
      
350,581
  
Construction
    
169,624
      
177,163
  
Total real estate
    
2,516,126
      
2,368,090
  
Commercial & industrial
    
454,185
      
427,799
  
Agricultural
    
260,296
      
276,684
  
Commercial leases
    
94,089
      
96,971
  
Consumer and other(1)
    
7,776
      
78,367
  
Total gross loans and leases
    
3,332,472
      
3,247,911
  
Unearned income
    
(8,610
)
    
(10,734
)
Total net loans and leases
    
3,323,862
      
3,237,177
  
Allowance for credit losses
    
(63,617
)
    
(61,007
)
Total loans and leases held for investment, net
  
$
3,260,245
    
$
3,176,170
  

(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 for the periods indicated:
   
September 30, 2022
  
(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
  
$
1,238,110
    
$
170
    
$
-
    
$
411
    
$
581
    
$
1,238,691
  
Agricultural
    
722,448
      
-
      
-
      
-
      
-
      
722,448
  
Residential and home equity
    
377,224
      
25
      
-
      
-
      
25
      
377,249
  
Construction
    
169,624
      
-
      
-
      
-
      
-
      
169,624
  
Total real estate
    
2,507,406
      
195
      
-
      
411
      
606
      
2,508,012
  
Commercial & industrial
    
454,185
      
-
      
-
      
-
      
-
      
454,185
  
Agricultural
    
260,296
      
-
      
-
      
-
      
-
      
260,296
  
Commercial leases
    
93,593
      
-
      
-
      
-
      
-
      
93,593
  
Consumer and other
    
7,766
      
10
      
-
      
-
      
10
      
7,776
  
Total loans and leases, net
  
$
3,323,246
    
$
205
    
$
-
    
$
411
    
$
616
    
$
3,323,862
  


   
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
  
$
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
  
Non-accrual Loans

Non-accrual loans are summarized as follows:
(Dollars in thousands)
  
September 30,
2022
    
December 31,
2021
 
Non-accrual loans and leases:
            
Non-accrual loans and leases, not TDRs
            
Real estate:
            
Commercial
  
$
411
    
$
-
  
Agricultural
    
-
      
18
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
411
      
18
  
Commercial & industrial
    
-
      
-
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
411
      
18
  
Non-accrual loans and leases, are TDRs
                
Real estate:
                
Commercial
  
$
-
    
$
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & industrial
    
-
      
-
  
Agricultural
    
-
      
498
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
-
      
498
  
Total non-accrual loans and leases
  
$
411
    
$
516
  
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:
(Dollars in thousands)
  
September 30,
2022
   
December 31,
2021
 
Troubled debt restructured loans and leases:
            
Accruing TDR loans and leases
            
Real estate:
            
Commercial
  
$
-
    
$
41
  
Agricultural
    
-
      
-
  
Residential and home equity
    
1,319
      
1,522
  
Construction
    
-
      
-
  
Total real estate
    
1,319
      
1,563
  
Commercial & industrial
    
6
      
260
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
1
  
Subtotal
    
1,325
      
1,824
  
Non-accruing TDR loans and leases
                
Real estate:
                
Commercial
   $
-
     $
-
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
-
      
-
  
Commercial & industrial
    
-
      
-
  
Agricultural
    
-
      
498
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Subtotal
    
-
      
498
  
Total TDR loans and leases
  
$
1,325
    
$
2,322
  



The below table summarize TDRs outstanding as of September 30, 2022, by year of occurrence:


   
September 30, 2022
  
(Dollars in thousands)
  
# of Accruing
TDR
    
$ of Accruing
TDR
    
# of Non-
Accruing TDR
    
$ of Non-
Accruing TDR
    
# of Total TDR
    
$ of Total TDR
  
Loan and lease TDRs
                                    
2022
    
-
    
$
-
      
-
    
$
-
      
-
    
$
-
  
2021
    
-
      
-
      
-
      
-
      
-
      
-
  
2020
    
4
      
260
      
-
      
-
      
4
      
260
  
2019
    
-
      
-
      
-
      
-
      
-
      
-
  
Prior
    
8
      
1,065
      
-
      
-
      
8
      
1,065
  
Total
    
12
    
$
1,325
      
-
    
$
-
      
12
    
$
1,325
  
Outstanding Loan Balances Category by Credit Quality Indicators and Vintage Year by Class of Financing Receivable and Current Period Gross Charge-Offs by Year of Origination

Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows:
   
September 30, 2022
  
(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
  
$
1,229,837
    
$
7,320
    
$
1,534
    
$
-
    
$
1,238,691
    
$
16,540
  
Agricultural
    
705,404
      
10,891
      
6,153
      
-
      
722,448
      
16,560
  
Residential and home equity
    
377,021
      
-
      
228
      
-
      
377,249
      
6,865
  
Construction
    
169,624
      
-
      
-
      
-
      
169,624
      
2,995
  
Total real estate
    
2,481,886
      
18,211
      
7,915
      
-
      
2,508,012
      
42,960
  
Commercial & industrial
    
453,832
      
70
      
283
      
-
      
454,185
      
10,392
  
Agricultural
    
253,554
      
6,726
      
16
      
-
      
260,296
      
8,523
  
Commercial leases
    
93,493
      
100
      
-
      
-
      
93,593
      
1,588
  
Consumer and other
    
7,583
      
-
      
193
      
-
      
7,776
      
154
  
Total loans and leases, net
  
$
3,290,348
    
$
25,107
    
$
8,407
    
$
-
    
$
3,323,862
    
$
63,617
  


   
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
  
$
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
      
663
  
Total loans and leases, net
  
$
3,200,251
    
$
20,474
    
$
16,452
    
$
-
    
$
3,237,177
    
$
61,007
  

 

The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable and current period gross charge-offs by year of origination as of September 30, 2022:
   
September 30, 2022
  
   
Term Loans Amortized Cost Basis by Origination Year
              
(Dollars in thousands)
  
2022
    
2021
    
2020
    
2019
    
2018
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Total
  
Net loans and leases held for investment
                                                
Real estate:
                                                
Commercial
                                                
Pass
  
$
140,036
    
$
236,947
    
$
153,480
    
$
72,167
    
$
86,063
    
$
227,146
    
$
313,998
    
$
1,229,837
  
Special mention
    
-
      
-
      
-
      
-
      
3,844
      
-
      
3,476
      
7,320
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
1,534
      
-
      
1,534
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial
  
$
140,036
    
$
236,947
    
$
153,480
    
$
72,167
    
$
89,907
    
$
228,680
    
$
317,474
    
$
1,238,691
  
Commercial
                                                                
Current-period gross charge-offs
   $
 -     $
-     $
 -     $
 -     $
 -     $
 -     $
 -     $
 -  
                                                                 
Agricultural
                                                                
Pass
  
$
54,480
    
$
43,117
    
$
56,965
    
$
15,297
    
$
51,194
    
$
151,470
    
$
332,881
    
$
705,404
  
Special mention
    
-
      
-
      
-
      
2,636
      
-
      
-
      
8,255
      
10,891
  
Substandard
    
-
      
-
      
-
      
-
      
119
      
6,034
      
-
      
6,153
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
54,480
    
$
43,117
    
$
56,965
    
$
17,933
    
$
51,313
    
$
157,504
    
$
341,136
    
$
722,448
  
Agricultural
                                                                
Current-period gross charge-offs
   $
 -     $
 -     $
 -     $
 -     $
 -     $
 -     $
 -     $
 -  
                                                                 
Residential and home equity
                                                                
Pass
  
$
51,888
    
$
97,973
    
$
88,214
    
$
14,851
    
$
6,910
    
$
78,458
    
$
38,727
    
$
377,021
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
144
      
84
      
228
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Residential and home equity
  
$
51,888
    
$
97,973
    
$
88,214
    
$
14,851
    
$
6,910
    
$
78,602
    
$
38,811
    
$
377,249
  
Residential and home equity
                                                                
Current-period gross charge-offs
   $
-     $
 -     $
 -     $
-     $
-     $
 -     $
 -     $
 -  
                                                                 
Construction
                                                                
Pass
  
$
-
    
$
-
    
$
-
    
$
1,575
    
$
-
    
$
62
    
$
167,987
    
$
169,624
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
1,575
    
$
-
    
$
62
    
$
167,987
    
$
169,624
  
Construction
                                                                
Current-period gross charge-offs
   $
 -     $
 -     $
 -     $
-     $
 -     $
 -     $
 -     $
 -  
                                                                 
Total Real estate
  
$
246,404
    
$
378,037
    
$
298,659
    
$
106,526
    
$
148,130
    
$
464,848
    
$
865,408
    
$
2,508,012
  
                                                                 
Commercial & industrial
                                                                
Pass
  
$
24,852
    
$
41,476
    
$
13,975
    
$
10,646
    
$
8,774
    
$
6,386
    
$
347,723
    
$
453,832
  
Special mention
    
-
      
69
      
-
      
-
      
-
      
1
      
-
      
70
  
Substandard
    
-
      
-
      
-
      
-
      
6
      
6
      
271
      
283
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial & industrial
  
$
24,852
    
$
41,545
    
$
13,975
    
$
10,646
    
$
8,780
    
$
6,393
    
$
347,994
    
$
454,185
  
Commercial & industrial
                                                                
Current-period gross charge-offs
   $
 -     $ -     $
 -     $
 246     $
 78     $
 -     $
-     $
 324  
                                                                 
Agricultural
                                                                
Pass
  
$
4,387
    
$
3,789
    
$
1,082
    
$
1,617
    
$
731
    
$
2,211
    
$
239,737
    
$
253,554
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
7
      
6,719
      
6,726
  
Substandard
    
-
      
-
      
-
      
13
      
3
      
-
      
-
      
16
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
 
$
4,387
    
$
3,789
    
$
1,082
    
$
1,630
    
$
734
    
$
2,218
    
$
246,456
    
$
260,296
  
Agricultural
                                                                
Current-period gross charge-offs
   $
-     $
 -     $
-     $
-     $
-     $
-     $
 -     $
 -  
                                                                 
Commercial leases
                                                                
Pass
  
$
11,541
    
$
16,541
    
$
13,664
    
$
7,643
    
$
21,387
    
$
22,717
    
$
-
    
$
93,493
  
Special mention
    
-
      
-
      
-
      
100
      
-
      
-
      
-
      
100
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
11,541
    
$
16,541
    
$
13,664
    
$
7,743
    
$
21,387
    
$
22,717
    
$
-
    
$
93,593
  
Commercial leases
                                                                
Current-period gross charge-offs
   $
 -     $ -     $
-     $
-     $
-     $
-     $
-     $
-  
                                                                 
Consumer and other
                                                                
Pass
  
$
965
    
$
2,463
    
$
359
    
$
235
    
$
386
    
$
2,481
    
$
694
    
$
7,583
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
193
      
-
      
-
      
-
      
-
      
-
      
-
      
193
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Consumer and other
  
$
1,158
    
$
2,463
    
$
359
    
$
235
    
$
386
    
$
2,481
    
$
694
    
$
7,776
  
Consumer and other
                                                                
Current-period gross charge-offs
   $
 25     $
 5     $
4     $
1     $
3     $
-     $
-     $
38  
                                                                 
Total net loans and leases
  
$
288,342
    
$
442,375
    
$
327,739
    
$
126,780
    
$
179,417
    
$
498,657
    
$
1,460,552
    
$
3,323,862
  
Amortized Cost of Collateral Dependent Loans by Class

The following tables provide amortized cost basis for collateral dependent loans as of September 30, 2022 and December 31, 2021, respectively:
   
September 30, 2022
  
(Dollars in thousands)
  
Real Estate
    
Vehicles
and
Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
1,124
    
$
-
    
$
1,124
  
Agricultural
    
11,944
      
-
      
11,944
  
Residential and home equity
    
2,002
      
-
      
2,002
  
Construction
    
-
      
-
      
-
  
Total Real estate
    
15,070
      
-
      
15,070
  
Commercial & industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
16
      
16
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
161
      
161
  
Total gross loans and leases
  
$
15,070
    
$
177
    
$
15,247
  


   
December 31, 2021
  
(Dollars in thousands)
  
Real Estate
    
Vehicles
and
Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
5
    
$
-
    
$
5
  
Agricultural
    
5,587
      
-
      
5,587
  
Residential and home equity
    
330
      
-
      
330
  
Construction
    
-
      
-
      
-
  
Total Real estate
    
5,922
      
-
      
5,922
  
Commercial & industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
-
      
-
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
173
      
173
  
Total gross loans and leases
  
$
5,922
    
$
173
    
$
6,095
  
Changes in Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:
   
For the three Months Ended September 30, 2022
  
(Dollars in thousands)
  
Commercial &
Agricultural
R/E
    
Construction
    
Residential &
Home Equity
    
Commercial
&
Agricultural
    
Commercial
Leases
    
Consumer
& Other
    
Total
  
Allowance for credit losses:
                                          
Beginning balance
   $ 34,716     $ 2,876     $ 6,874     $ 15,808     $ 1,645     $ 161     $ 62,080  
Provision / (recapture) for credit losses
     (1,616 )     119       (15 )     3,063       (57 )     5       1,499  
Charge-offs
     -       -       -       (48 )     -       (20 )     (68 )
Recoveries
     -       -       6       92       -       8       106  
Net (charge-offs) / recoveries
     -       -       6       44       -       (12 )     38  
Ending balance
   $ 33,100     $ 2,995     $ 6,865     $ 18,915     $ 1,588     $ 154     $ 63,617  



   
For the Nine Months Ended September 30, 2022
  
(Dollars in thousands)
  
Commercial &
Agricultural
R/E
    
Construction
    
Residential &
Home Equity
    
Commercial
&
Agricultural
    
Commercial
Leases
    
Consumer
& Other
    
Total
  
Allowance for credit losses:
                                          
Beginning balance
   $ 38,149     $ 1,456     $ 2,847     $ 16,954     $ 938    
$
663
    
$
61,007
  
Impact of Adopting ASC 326
    -       -       -       -       -       -       -  
Provision / (recapture) for credit losses
     (5,049 )     1,539       3,893       2,058       650       (485 )    
2,606
  
Charge-offs
     -       -       -       (324 )     -       (38 )    
(362
)
Recoveries
     -       -       125       227       -       14      
366
  
Net (charge-offs) / recoveries
     -       -       125       (97 )     -       (24 )    
4
  
Ending balance
   $ 33,100     $ 2,995     $ 6,865     $ 18,915     $ 1,588     $ 154     $ 63,617