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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS
Portfolio Segments:
Commercial and agricultural real estate loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75%.
Commercial and industrial (“C&I”) loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural operating loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets or other business assets, as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. SBA PPP loan balances are 100% guaranteed under the Small Business Association’s Paycheck Protection Program and may be forgiven in full, depending on use of funds and eligibility. These SBA-backed loans helped businesses keep their workforce employed during the COVID-19 crisis. Eligible borrowers, who qualify for full loan forgiveness during the eight to twenty four week period following loan disbursement, can apply for forgiveness, once all proceeds for which the borrower requested forgiveness has been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan.
Residential mortgage loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower’s documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home’s appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential mortgage portfolio due to relatively small loan account balances spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis.
Consumer installment loans are comprised of originated indirect paper loans secured primarily by boats and recreational vehicles and other consumer loans secured primarily by automobiles and other personal assets. The Bank ceased new originations of indirect paper loans in early fiscal 2017. Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score. In the event of a consumer installment loan default, collateral value alone may not provide an adequate source of repayment of the outstanding loan balance. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral.
Loans by classes within portfolio segments were as follows:
December 31, 2020December 31, 2019
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$351,113 $302,546 
Agricultural real estate31,741 34,026 
Multi-family real estate112,731 71,877 
Construction and land development91,241 71,467 
C&I/Agricultural operating:
Commercial and industrial95,290 89,730 
Agricultural operating24,457 20,717 
Residential mortgage:
Residential mortgage86,283 108,619 
Purchased HELOC loans6,260 8,407 
Consumer installment:
Originated indirect paper25,851 39,585 
Other Consumer12,056 15,546 
Originated loans before SBA PPP loans$837,023 $762,520 
SBA PPP loans123,702 — 
Total originated loans$960,725 $762,520 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$156,562 $211,913 
Agricultural real estate37,054 51,337 
Multi-family real estate9,421 15,131 
Construction and land development7,276 14,943 
C&I/Agricultural operating:
Commercial and industrial21,263 44,004 
Agricultural operating8,328 17,063 
Residential mortgage:
Residential mortgage45,103 67,713 
Consumer installment:
Other Consumer1,157 2,640 
Total acquired loans$286,164 $424,744 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$507,675 $514,459 
Agricultural real estate68,795 85,363 
Multi-family real estate122,152 87,008 
Construction and land development98,517 86,410 
C&I/Agricultural operating:
Commercial and industrial116,553 133,734 
Agricultural operating32,785 37,780 
Residential mortgage:
Residential mortgage131,386 176,332 
Purchased HELOC loans6,260 8,407 
Consumer installment:
Originated indirect paper25,851 39,585 
Other Consumer13,213 18,186 
Total loans before SBA PPP loans$1,123,187 $1,187,264 
SBA PPP loans123,702 — 
Gross loans$1,246,889 $1,187,264 
Less:
Unearned net deferred fees and costs and loans in process(4,245)(393)
Unamortized discount on acquired loans(5,063)(9,491)
Allowance for loan losses(17,043)(10,320)
Loans receivable, net$1,220,538 $1,167,060 
Credit Quality/Risk Ratings:
    Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant.
Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio ratings are presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows:
1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better.
5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future.
6 - Special Mention. A “Special Mention” loan has one or more potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future.
7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future.
Below is a breakdown of loans by risk rating as of December 31, 2020:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$349,482 $543 $1,088 $— $— $351,113 
Agricultural real estate30,041 446 1,254 — — 31,741 
Multi-family real estate112,423 308 — — — 112,731 
Construction and land development87,763 — 3,478 — — 91,241 
C&I/Agricultural operating:
Commercial and industrial91,474 20 3,796 — — 95,290 
SBA PPP loans123,702 — — — — 123,702 
Agricultural operating22,462 934 1,061 — — 24,457 
Residential mortgage:
Residential mortgage82,097 7 4,179 — — 86,283 
Purchased HELOC loans5,959 — 301 — — 6,260 
Consumer installment:— 
Originated indirect paper25,616 — 235 — — 25,851 
Other Consumer11,986 — 70 — — 12,056 
Total originated loans$943,005 $2,258 $15,462 $— $— $960,725 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$148,303 $4,274 $3,985 $— $— $156,562 
Agricultural real estate31,147 — 5,907 — — 37,054 
Multi-family real estate9,273 — 148 — — 9,421 
Construction and land development7,237 — 39 — — 7,276 
C&I/Agricultural operating:
Commercial and industrial20,918 9 336 — — 21,263 
Agricultural operating7,838 — 490 — — 8,328 
Residential mortgage:
Residential mortgage42,805 131 2,167 — — 45,103 
Consumer installment:
Other Consumer1,150 — 7 — — 1,157 
Total acquired loans$268,671 $4,414 $13,079 $— $— $286,164 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$497,785 $4,817 $5,073 $— $— $507,675 
Agricultural real estate61,188 446 7,161 — — 68,795 
Multi-family real estate121,696 308 148 — — 122,152 
Construction and land development95,000 — 3,517 — — 98,517 
C&I/Agricultural operating:
Commercial and industrial112,392 29 4,132 — — 116,553 
SBA PPP loans123,702 — — — — 123,702 
Agricultural operating30,300 934 1,551 — — 32,785 
Residential mortgage:
Residential mortgage124,902 138 6,346 — — 131,386 
Purchased HELOC loans5,959 — 301 — — 6,260 
Consumer installment:
Originated indirect paper25,616 — 235 — — 25,851 
Other Consumer13,136 — 77 — — 13,213 
Gross loans$1,211,676 $6,672 $28,541 $— $— $1,246,889 
Less:
Unearned net deferred fees and costs and loans in process(4,245)
Unamortized discount on acquired loans(5,063)
Allowance for loan losses(17,043)
Loans receivable, net$1,220,538 
Below is a breakdown of loans by risk rating as of December 31, 2019:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$301,381 $266 $899 $— $— $302,546 
Agricultural real estate31,129 829 2,068 — — 34,026 
Multi-family real estate71,877 — — — — 71,877 
Construction and land development67,989 — 3,478 — — 71,467 
C&I/Agricultural operating:
Commercial and industrial85,248 1,023 3,459 — — 89,730 
Agricultural operating19,545 402 770 — — 20,717 
Residential mortgage:
Residential mortgage104,428 — 4,191 — — 108,619 
Purchased HELOC loans8,407 — — — — 8,407 
Consumer installment:— 
Originated indirect paper39,339 — 246 — — 39,585 
Other Consumer15,425 — 121 — — 15,546 
Total originated loans$744,768 $2,520 $15,232 $— $— $762,520 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$196,692 $6,084 $9,137 $— $— $211,913 
Agricultural real estate42,381 534 8,422 — — 51,337 
Multi-family real estate13,533 — 1,598 — — 15,131 
Construction and land development14,181 — 762 — — 14,943 
C&I/Agricultural operating:
Commercial and industrial41,587 932 1,485 — — 44,004 
Agricultural operating15,621 350 1,092 — — 17,063 
Residential mortgage:
Residential mortgage65,125 436 2,152 — — 67,713 
Consumer installment:
Other Consumer2,628 — 12 — — 2,640 
Total acquired loans$391,748 $8,336 $24,660 $— $— $424,744 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$498,073 $6,350 $10,036 $— $— $514,459 
Agricultural real estate73,510 1,363 10,490 — — 85,363 
Multi-family real estate85,410 — 1,598 — — 87,008 
Construction and land development82,170 — 4,240 — — 86,410 
C&I/Agricultural operating:
Commercial and industrial126,835 1,955 4,944 — — 133,734 
Agricultural operating35,166 752 1,862 — — 37,780 
Residential mortgage:
Residential mortgage169,553 436 6,343 — — 176,332 
Purchased HELOC loans8,407 — — — — 8,407 
Consumer installment:
Originated indirect paper39,339 — 246 — — 39,585 
Other Consumer18,053 — 133 — — 18,186 
Gross loans$1,136,516 $10,856 $39,892 $— $— $1,187,264 
Less:
Unearned net deferred fees and costs and loans in process(393)
Unamortized discount on acquired loans(9,491)
Allowance for loan losses(10,320)
Loans receivable, net$1,167,060 



     
Certain directors and executive officers of the Company are defined as related parties. These related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during the twelve months ended December 31, 2020, and the twelve months ended December 31, 2019. A summary of the changes in those loans is as follows:
Twelve months endedTwelve months ended
 December 31, 2020December 31, 2019
Balance—beginning of period$20,367 $11,104 
New loan originations7,230 10,243 
Repayments(1,114)(980)
Balance—end of period$26,483 $20,367 
Available and unused lines of credit$187 $7,017 
Allowance for Loan Losses—The ALL represents management’s estimate of probable and inherent credit losses in the Bank’s loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change.
There are many factors affecting the ALL; some are quantitative, while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which result in probable credit losses), includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provision for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized.
As an integral part of their examination process, various regulatory agencies also review the Bank’s ALL. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of our management based on information available to the regulators at the time of their examinations.
Changes in the ALL by loan type for the periods presented below were as follows:
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Twelve months ended December 31, 2020:
Allowance for Loan Losses:
Beginning balance, January 1, 2020$6,205 $1,643 $879 $467 $357 $9,551 
Charge-offs— (932)(5)(145)— (1,082)
Recoveries75 8 7 69 — 159 
Provision3,991 1,393 160 98 549 6,191 
Total Allowance on originated loans$10,271 $2,112 $1,041 $489 $906 $14,819 
Purchased credit impaired loans— — — — — — 
Other acquired loans:
Beginning balance, January 1, 2020$526 $27 $163 $53 $— $769 
Charge-offs— (159)(74)(3)— (236)
Recoveries77 33 15 7 — 132 
Provision1,081 240 231 7 — 1,559 
Total allowance on other acquired loans$1,684 $141 $335 $64 $— $2,224 
Total allowance on acquired loans$1,684 $141 $335 $64 $— $2,224 
Ending Balance, December 31, 2020$11,955 $2,253 $1,376 $553 $906 $17,043 
Allowance for Loan Losses at December 31, 2020:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$698 $190 $226 $1 $— $1,115 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$11,257 $2,063 $1,150 $552 $906 $15,928 
Loans Receivable as of December 31, 2020:
Ending balance of originated loans$586,826 $243,449 $92,543 $37,907 $— $960,725 
Ending balance of purchased credit-impaired loans15,100 1,534 1,312 — — 17,946 
Ending balance of other acquired loans195,213 28,057 43,791 1,157 — 268,218 
Ending balance of loans$797,139 $273,040 $137,646 $39,064 $— $1,246,889 
Ending balance: individually evaluated for impairment$26,303 $7,115 $9,621 $358 $— $43,397 
Ending balance: collectively evaluated for impairment$770,836 $265,925 $128,025 $38,706 $— $1,203,492 
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Twelve months ended December 31, 2019:
Allowance for Loan Losses:
Beginning balance, January 1, 2019$4,019 $1,258 $1,048 $641 $153 $7,119 
Charge-offs(355)— (120)(257)— (732)
Recoveries— — — 84 — 84 
Provision2,541 385 (49)(1)204 3,080 
Total Allowance on originated loans$6,205 $1,643 $879 $467 $357 $9,551 
Purchased credit impaired loans— — — — — — 
Other acquired loans:
Beginning balance, January 1, 2019$183 $32 $205 $65 $— $485 
Charge-offs(26)— (120)(33)— (179)
Recoveries3 — 5 10 — 18 
Provision366 (5)73 11 — 445 
Total Allowance on other acquired loans$526 $27 $163 $53 $— $769 
Total Allowance on acquired loans$526 $27 $163 $53 $— $769 
Ending balance, December 31, 2019$6,731 $1,670 $1,042 $520 $357 $10,320 
Allowance for Loan Losses at December 31, 2019:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$495 $312 $136 $13 $— $956 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$6,236 $1,358 $906 $507 $357 $9,364 
Loans Receivable as of December 31, 2019:
Ending balance of originated loans$479,916 $110,447 $117,026 $55,131 $— $762,520 
Ending balance of purchased credit-impaired loans31,408 4,666 2,194 — — 38,268 
Ending balance of other acquired loans261,916 56,401 65,519 2,640 — 386,476 
Ending balance of loans$773,240 $171,514 $184,739 $57,771 $— $1,187,264 
Ending balance: individually evaluated for impairment$42,658 $9,966 $10,126 $446 $— $63,196 
Ending balance: collectively evaluated for impairment$730,582 $161,548 $174,613 $57,325 $— $1,124,068 
Loans receivable by loan type as of the end of the periods shown below were as follows:
 Commercial/Agricultural Real Estate LoansC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotals
Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,
 2020201920202019202020192020201920202019
Performing loans
Performing TDR loans$4,695 $1,730 $3,836 $366 $3,142 $3,206 $49 $68 $11,722 $5,370 
Performing loans other786,533 758,237 266,975 167,596 131,470 178,415 38,856 57,486 1,223,834 1,161,734 
Total performing loans791,228 759,967 270,811 167,962 134,612 181,621 38,905 57,554 1,235,556 1,167,104 
Nonperforming loans (1)
Nonperforming TDR loans4,691 4,868 1,287 1,973 777 383 — — 6,755 7,224 
Nonperforming loans other1,220 8,405 942 1,579 2,257 2,735 159 217 4,578 12,936 
Total nonperforming loans5,911 13,273 2,229 3,552 3,034 3,118 159 217 11,333 20,160 
Total loans$797,139 $773,240 $273,040 $171,514 $137,646 $184,739 $39,064 $57,771 $1,246,889 $1,187,264 
(1)Nonperforming loans are either 90+ days past due or nonaccrual.

    
An aging analysis of the Company’s commercial/agriculture real estate and non-real estate, consumer real estate and non-real estate and purchased third party loans as of December 31, 2020 and 2019, respectively, was as follows:
30-59 Days Past Due and Accruing60-89 Days Past Due and AccruingGreater Than 89 Days Past Due and AccruingTotal Past Due AccruingNonaccrual LoansCurrentTotal Loans
December 31, 2020
Commercial/Agricultural real estate:
Commercial real estate$9,568 $467 $— $10,035 $679 $496,961 $507,675 
Agricultural real estate411 48 — 459 5,084 63,252 68,795 
Multi-family real estate308 — — 308 148 121,696 122,152 
Construction and land development3,898 — — 3,898 — 94,619 98,517 
C&I/Agricultural operating:
Commercial and industrial436 491 — 927 357 115,269 116,553 
SBA PPP loans— — — — — 123,702123,702 
Agricultural operating1,499 200 — 1,699 1,872 29,214 32,785 
Residential mortgage:
Residential mortgage2,238 372 516 3,126 2,217 126,043 131,386 
Purchased HELOC loans338 94 67 499 234 5,527 6,260 
Consumer installment:
Originated indirect paper90 37 — 127 133 25,591 25,851 
Other Consumer100 14 3 117 23 13,073 13,213 
Total$18,886 $1,723 $586 $21,195 $10,747 $1,214,947 $1,246,889 
December 31, 2019
Commercial/Agricultural real estate:
Commercial real estate$2,804 $847 $— $3,651 $4,214 $506,594 $514,459 
Agricultural real estate509 — — 509 7,568 77,286 85,363 
Multi-family real estate— — — — 1,449 85,559 87,008 
Construction and land development436 — — 436 42 85,932 86,410 
C&I/Agricultural operating:
Commercial and industrial1,024 — — 1,024 1,850 130,860 133,734 
Agricultural operating73 49 — 122 1,702 35,956 37,780 
Residential mortgage:
Residential mortgage4,929 1,597 649 7,175 2,063 167,094 176,332 
Purchased HELOC loans293 378 407 1,078 — 7,329 8,407 
Consumer installment:
Originated indirect paper168 52 20 240 137 39,208 39,585 
Other Consumer204 43 28 275 31 17,880 18,186 
Total$10,440 $2,966 $1,104 $14,510 $19,056 $1,153,698 $1,187,264 
At December 31, 2020, the Company has identified impaired loans of $43,397, consisting of $18,477 TDR loans, the carrying amount of purchased credit impaired loans of $16,859 and $8,061 of substandard non-TDR loans. The $43,397 total of impaired loans includes $11,722 of performing TDR loans. At December 31, 2019, the Company had identified impaired loans of $63,196, consisting of $12,594 TDR loans, the carrying amount of purchased credit impaired loans of $31,978 and $18,624 of substandard non-TDR loans. The $63,196 total of impaired loans includes $5,370 of performing TDR loans. Loans evaluated for impairment include all TDRs, all purchased credit impaired loans and all other loans with a risk rating of substandard or worse. Performing TDRs consist of loans that have been modified and are performing in accordance with the modified terms for a sufficient length of time, generally six months, or loans that were modified on a proactive basis.
A summary of loans evaluated for impairment as of December 31, 2020 was as follows:
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2020
With No Related Allowance Recorded:
Commercial/Agricultural real estate$24,013 $24,013 $— $32,264 $1,894 
C&I/Agricultural operating6,334 6,334 — 7,906 284 
Residential mortgage8,542 8,542 — 8,619 450 
Consumer installment356 356 — 368 30 
Total$39,245 $39,245 $— $49,157 $2,658 
With An Allowance Recorded:
Commercial/Agricultural real estate$2,290 $2,290 $698 $2,217 $100 
C&I/Agricultural operating781 781 190 636 22 
Residential mortgage1,079 1,079 226 1,255 54 
Consumer installment2 2 1 35 1 
Total$4,152 $4,152 $1,115 $4,143 $177 
December 31, 2020 Totals
Commercial/Agricultural real estate$26,303 $26,303 $698 $34,481 $1,994 
C&I/Agricultural operating7,115 7,115 190 8,542 306 
Residential mortgage9,621 9,621 226 9,874 504 
Consumer installment358 358 1 403 31 
Total$43,397 $43,397 $1,115 $53,300 $2,835 
At December 31, 2020, the Company had nine residential real estate loans, secured by residential real estate properties, for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction, with a recorded investment of $685. At December 31, 2020. the Company had ten commercial real estate loans, secured by commercial and agricultural real estate properties, for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction, with a recorded investment of $3,530.
A summary of loans evaluated for impairment as of December 31, 2019 was as follows:
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2019
With No Related Allowance Recorded:
Commercial/Agricultural real estate$40,514 $40,514 $— $24,693 $699 
C&I/Agricultural operating9,477 9,477 — 19,163 119 
Residential mortgage8,695 8,695 — 4,461 128 
Consumer installment379 379 — 3,640 6 
Total$59,065 $59,065 $— $51,957 $952 
With An Allowance Recorded:
Commercial/Agricultural real estate$2,143 $2,143 $495 $1,738 $4 
C&I/Agricultural operating490 490 312 734 3 
Residential mortgage1,431 1,431 136 789 15 
Consumer installment67 67 13 47 — 
Total$4,131 $4,131 $956 $3,308 $22 
December 31, 2019 Totals
Commercial/Agricultural real estate$42,657 $42,657 $495 $26,431 $703 
C&I/Agricultural operating9,967 9,967 312 19,897 122 
Residential mortgage10,126 10,126 136 5,250 143 
Consumer installment446 446 13 3,687 6 
Total$63,196 $63,196 $956 $55,265 $974 

Troubled Debt Restructuring – A TDR includes a loan modification where a borrower is experiencing financial difficulty, and the Bank grants a concession to that borrower that the Bank would not otherwise consider, except for the borrower’s financial difficulties. Concessions may include: extension of the loan’s term, renewals of existing balloon loans, reductions in interest rates and consolidating existing Bank loans at modified terms. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status. There was one accruing, delinquent TDR, greater than 60 days past due, with a recorded investment of $20 at December 31, 2020, compared to two accruing, delinquent TDRs, greater than 60 days past due, with a recorded investment of $101 at December 31, 2019.
Following is a summary of TDR loans by accrual status as of December 31, 2020 and December 31, 2019.
 December 31December 31
 20202019
Troubled debt restructure loans:
Accrual status$11,742 $5,396 
Non-accrual status6,735 7,198 
Total$18,477 $12,594 
There were no TDR commitments meeting our TDR criteria as of December 31, 2020. There were unused lines of credit totaling $15 meeting our TDR criteria as of December 31, 2020. There were no TDR commitments meeting our TDR criteria as of December 31, 2019. There were unused lines of credit totaling $12 meeting our TDR criteria as of December 31, 2019.
The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the years ended December 31, 2020 and December 31, 2019:
Number of ContractsModified RateModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Twelve months ended December 31, 2020
TDRs:
Commercial/Agricultural real estate12 $4,441 $198 $293 $— $4,932 $4,932 $— 
C&I/Agricultural operating6 3,295 78 3,000 — 6,373 6,373 — 
Residential mortgage17 456 858 117 — 1,431 1,431 — 
Consumer installment3 6 — 4 — 10 10 — 
Totals38 $8,198 $1,134 $3,414 $— $12,746 $12,746 $— 


Number of ContractsModified RateModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Twelve months ended December 31, 2019
TDRs:
Commercial/Agricultural real estate18 $2,028 $159 $3,224 $— $5,411 $5,411 $317,867 
C&I/Agricultural operating11 184 364 996 — 1,544 1,544 98,152 
Residential mortgage14 823 — 212 — 1,035 1,035 42,035 
Consumer installment1 2 — — — 2 2 — 
Totals44 $3,037 $523 $4,432 $— $7,992 $7,992 $458,054 

A summary of loans by loan class modified in a troubled debt restructuring as of December 31, 2020 and December 31, 2019:
 December 31, 2020December 31, 2019
 Number of
Modifications		Recorded
Investment		Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/Agricultural real estate31 $9,386 27 $6,599 
C&I/Agricultural operating16 5,123 16 2,338 
Residential mortgage52 3,919 43 3,589 
Consumer installment8 49 7 68 
Total loans107 $18,477 93 $12,594 
The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the year ended December 31, 2020, as well as the recorded investment in these restructured loans as of December 31, 2020:
 December 31, 2020
 Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/Agricultural real estate1 $100 
C&I/Agricultural operating1 224 
Residential mortgage4 404 
Consumer installment— — 
Total troubled debt restructurings6 $728 
    
The following table provides information related to restructured loans that were considered in default as of December 31, 2019:
 December 31, 2019
 Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/Agricultural real estate13 $4,868 
C&I/Agricultural operating14 1,973 
Residential mortgage3 357 
Consumer installment— — 
Total troubled debt restructurings30 $7,198 
All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
 December 31, 2020
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance$17,946 
Carrying amount$16,859 
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance$268,218 
Carrying amount$264,242 
Total acquired loans
Outstanding balance$286,164 
Carrying amount$281,101 
    
The following table provides changes in accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:
 December 31, 2020December 31, 2019
Balance at beginning of period$3,201 $3,163 
Acquisitions— 814 
Reduction due to unexpected early payoffs(971)— 
Reclass from non-accretable difference2,754 80 
Accretion(1,008)(856)
Balance at end of period$3,976 $3,201 
Non-accretable yield on purchased credit impaired loans was $6,290 at December 31, 2019. The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:     
 December 31, 2020
Balance at beginning of period$6,290 
Additions to non-accretable difference for acquired purchased credit impaired loans— 
Non-accretable difference realized as interest from payoffs of purchased credit impaired loans(1,693)
Transfers from non-accretable difference to accretable discount(2,754)
Non-accretable difference used to reduce loan principal balance(505)
Non-accretable difference transferred to OREO due to loan foreclosure(251)
Balance at end of period$1,087 
The following table reflects amounts for all acquired credit impaired and acquired performing loans acquired from F&M at acquisition.
Acquired Credit Impaired LoansAcquired Performing LoansTotal Acquired Loans
Contractually required cash flows at acquisition$18,355 $111,919 $130,274 
Non-accretable difference (expected losses and foregone interest)(2,728)— (2,728)
Cash flows expected to be collected at acquisition15,627 111,919 127,546 
Accretable yield— (814)(814)
Fair value of acquired loans at acquisition$15,627 $111,105 $126,732