Loans

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans

Loans:

Loan balances were as follows:

(In Thousands of Dollars)	June 30, 2021			December 31, 2020
Originated loans:
Commercial real estate
Owner occupied	$	215,016		$	215,187
Non-owner occupied		315,823			309,777
Farmland		150,703			156,277
Other		73,885			78,140
Commercial
Commercial and industrial		337,541			385,831
Agricultural		45,743			44,922
Residential real estate
1-4 family residential		309,434			324,723
Home equity lines of credit		91,842			92,968
Consumer
Indirect		156,765			164,620
Direct		20,188			23,348
Other		9,171			9,868
Total originated loans	$	1,726,111		$	1,805,661
Acquired loans:
Commercial real estate
Owner occupied	$	42,890		$	45,101
Non-owner occupied		46,084			52,863
Farmland		22,900			26,080
Other		11,111			12,868
Commercial
Commercial and industrial		13,720			18,662
Agricultural		4,080			4,850
Residential real estate
1-4 family residential		73,752			89,118
Home equity lines of credit		15,312			17,383
Consumer
Direct		3,857			5,128
Other		84			97
Total acquired loans	$	233,790		$	272,150
Net Deferred loan (fees) costs		(36	)		233
Allowance for loan losses		(24,806	)		(22,144	)
Net loans	$	1,935,059		$	2,055,900

Allowance for credit loss activity

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six month periods ended June 30, 2021 and the activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2020:

Three Months Ended June 30, 2021

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	8,844		$	5,450		$	3,961		$	6,680		$	24,935
Provision for credit losses		3,435			(988	)		247			(2,644	)		50
Loans charged off		(20	)		(38	)		(99	)		(345	)		(502	)
Recoveries		31			176			21			95			323
Total ending allowance balance	$	12,290		$	4,600		$	4,130		$	3,786		$	24,806

Six Months Ended June 30, 2021

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	10,824		$	5,073		$	3,643		$	2,604		$	22,144
Impact of CECL adoption		(2,076	)		429			237			3,860			2,450
Provision for credit losses		3,531			(1,013	)		336			(2,379	)		475
Loans charged off		(20	)		(72	)		(166	)		(528	)		(786	)
Recoveries		31			183			80			229			523
Total ending allowance balance	$	12,290		$	4,600		$	4,130		$	3,786		$	24,806

Three Months Ended June 30, 2020

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	6,637		$	2,651		$	2,945		$	2,719		$	14,952
Provision for credit losses		1,429			685			67			219			2,400
Loans charged off		(97	)		(49	)		(34	)		(344	)		(524	)
Recoveries		3			6			13			110			132
Total ending allowance balance	$	7,972		$	3,293		$	2,991		$	2,704		$	16,960

Six Months Ended June 30, 2020

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	6,156		$	2,447		$	3,029		$	2,855		$	14,487
Provision for credit losses		1,909			1,086			76			429			3,500
Loans charged off		(97	)		(247	)		(142	)		(787	)		(1,273	)
Recoveries		4			7			28			207			246
Total ending allowance balance	$	7,972		$	3,293		$	2,991		$	2,704		$	16,960

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of June 30, 2021 and December 31, 2020:

	June 30, 2021				December 31, 2020
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Originated loans:
Commercial real estate
Owner occupied	$	326	$	0	$	0	$	335
Farmland		0		0		0		0
Commercial
Commercial and industrial		5,620		0		3,312		22
Agricultural		187		0		205		0
Residential real estate
1-4 family residential		852		185		866		223
Home equity lines of credit		568		74		603		0
Consumer
Indirect		382		106		648		64
Direct		184		31		157		111
Other		0		9		1		5
Total originated loans	$	8,119	$	405	$	5,792	$	760
Acquired loans:
Commercial real estate
Owner occupied	$	159	$	0	$	27	$	0
Non-owner occupied		361		0		362		0
Farmland		281		0		471		95
Other		0		0		0		0
Commercial
Commercial and industrial		549		0		477		0
Agricultural		1		0		4		0
Residential real estate
1-4 family residential		3,631		154		4,128		1,469
Home equity lines of credit		172		0		186		0
Consumer
Direct		40		1		58		6
Total acquired loans	$	5,194	$	155	$	5,713	$	1,570
Total loans	$	13,313	$	560	$	11,505	$	2,330

The following tables present the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020 by class of loans.  Note that loans on a current modification to defer payments under the CARES Act are included in loans not past due.

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
June 30, 2021
Originated loans:
Commercial real estate
Owner occupied	$	0	$	0	$	326	$	326	$	214,320	$	214,646
Non-owner occupied		0		0		0		0		315,272		315,272
Farmland		0		0		0		0		150,452		150,452
Other		0		0		0		0		73,641		73,641
Commercial
Commercial and industrial		87		33		5,620		5,740		328,279		334,019
Agricultural		95		0		187		282		45,635		45,917
Residential real estate
1-4 family residential		1,929		132		1,037		3,098		305,435		308,533
Home equity lines of credit		169		0		642		811		91,040		91,851
Consumer
Indirect		782		127		488		1,397		160,898		162,295
Direct		177		147		215		539		19,755		20,294
Other		10		18		9		37		9,133		9,170
Total originated loans:	$	3,249	$	457	$	8,524	$	12,230	$	1,713,860	$	1,726,090
Acquired loans:
Commercial real estate
Owner occupied	$	0	$	0	$	159	$	159	$	42,724	$	42,883
Non-owner occupied		406		0		361		767		45,308		46,075
Farmland		0		95		281		376		22,525		22,901
Other		0		0		0		0		11,111		11,111
Commercial
Commercial and industrial		0		0		549		549		13,170		13,719
Agricultural		13		0		1		14		4,067		4,081
Residential real estate
1-4 family residential		2,879		218		3,785		6,882		66,870		73,752
Home equity lines of credit		70		0		172		242		15,070		15,312
Consumer
Direct		217		2		41		260		3,597		3,857
Other		0		0		0		0		84		84
Total acquired loans	$	3,585	$	315	$	5,349	$	9,249	$	224,526	$	233,775
Total loans	$	6,834	$	772	$	13,873	$	21,479	$	1,938,386	$	1,959,865

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2020
Originated loans:
Commercial real estate
Owner occupied	$	0	$	0	$	335	$	335	$	214,460	$	214,795
Non-owner occupied		0		0		0		0		309,216		309,216
Farmland		0		0		0		0		156,053		156,053
Other		261		0		0		261		77,725		77,986
Commercial
Commercial and industrial		356		61		3,334		3,751		378,594		382,345
Agricultural		45		255		205		505		44,555		45,060
Residential real estate
1-4 family residential		1,668		974		1,089		3,731		320,129		323,860
Home equity lines of credit		419		0		603		1,022		91,957		92,979
Consumer
Indirect		1,046		285		712		2,043		168,245		170,288
Direct		284		120		268		672		22,789		23,461
Other		24		22		6		52		9,816		9,868
Total originated loans	$	4,103	$	1,717	$	6,552	$	12,372	$	1,793,539	$	1,805,911
Acquired loans:
Commercial real estate
Owner occupied	$	0	$	0	$	27	$	27	$	45,072	$	45,099
Non-owner occupied		197		0		362		559		52,295		52,854
Farmland		0		0		566		566		25,513		26,079
Other		0		0		0		0		12,868		12,868
Commercial
Commercial and industrial		19		390		477		886		17,772		18,658
Agricultural		4		0		4		8		4,841		4,849
Residential real estate
1-4 family residential		1,954		821		5,597		8,372		80,745		89,117
Home equity lines of credit		23		0		186		209		17,175		17,384
Consumer
Direct		20		49		64		133		4,995		5,128
Other		0		0		0		0		97		97
Total acquired loans	$	2,217	$	1,260	$	7,283	$	10,760	$	261,373	$	272,133
Total loans	$	6,320	$	2,977	$	13,835	$	23,132	$	2,054,912	$	2,078,044