Loans

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Loans

Loans

Loans at June 30, 2020 were as follows: 

	June 30, 2020			December 31, 2019
Commercial:
Commercial and Industrial Loans	$	795,688		$	532,501
Commercial Real Estate Loans	1,473,234			1,495,862
Agricultural Loans	373,483			384,526
Leases	56,728			57,257
Retail:
Home Equity Loans	216,366			225,755
Consumer Loans	64,972			69,264
Credit Cards	10,217			11,953
Residential Mortgage Loans	280,246			304,855
Subtotal	3,270,934			3,081,973
Less: Unearned Income	(4,587		)	(4,882		)
Allowance for credit losses	(42,431		)	(16,278		)
Loans, net	$	3,223,916		$	3,060,813

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law, providing an approximately $2 trillion stimulus package that includes direct payments to individual taxpayers, economic stimulus to significantly impacted industry sectors, emergency funding for hospitals and providers, small business loans, increased unemployment benefits, and a variety of tax incentives. For small businesses, eligible nonprofits and certain others, the CARES Act established a Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”). On April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act was enacted. Among other things, this legislation amends the initial CARES Act program by raising the appropriation level for PPP loans from $349 billion to $670 billion. The PPP was further modified on June 5, 2020 with the adoption of the Paycheck Protection Program Flexibility Act (the “Flexibility Act”), which extended the maturity date for PPP loans from two years to five years for loans disbursed on or after the date of enactment of the Flexibility Act. For PPP loans disbursed prior to such enactment, the Flexibility Act permits the borrower

and lender to mutually agree to extend the term of the loan to five years. The vast majority of the Company's PPP loans have two-year maturities. PPP loans earn interest at a fixed rate of 1% and are fully guaranteed by the U.S. government. The Company anticipates that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. As of June 30, 2020, the Bank has $349,546 in loans under this program, all of which are included above in the Commercial and Industrial Loan category.

Allowance for Credit Losses for Loans

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2020:

June 30, 2020	Commercial and Industrial Loans			Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans			Home Equity Loans		Credit Cards			Residential Mortgage Loans			Unallocated		Total
Allowance for Credit Losses:
Beginning balance	$	8,814		$	17,310	$	6,485	$	172	$	455		$	977	$	124		$	2,304		$	—	$	36,641
Provision for credit loss expense	(31		)	5,049		545		30		109			85		26			87			—		5,900
Loans charged-off	—			—		—		—		(144		)	—		(25		)	(31		)	—		(200		)
Recoveries collected	4			10		—		—		76			—		—			—			—		90
Total ending allowance balance	$	8,787		$	22,369	$	7,030	$	202	$	496		$	1,062	$	125		$	2,360		$	—	$	42,431

The following table presents the activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2020:

June 30, 2020	Commercial and Industrial Loans			Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans			Home Equity Loans		Credit Cards			Residential Mortgage Loans			Unallocated			Total
Allowance for Credit Losses:
Beginning balance prior to adoption of ASC 326	$	4,799		$	4,692	$	5,315	$	—	$	434		$	200	$	—		$	333		$	505		$	16,278
Impact of adopting ASC 326	2,245			3,063		1,438		105		(59		)	762		124			1,594			(505		)	8,767
Impact of adopting ASC 326 - PCD Loans	2,191			4,385		128		—		—			35		—			147			—			6,886
Provision for credit loss expense	(166		)	10,215		149		97		314			65		60			316			—			11,050
Initial allowance on loans purchased with credit deterioration	—			—		—		—		—			—		—			—			—			—
Loans charged-off	(296		)	—		—		—		(381		)	—		(60		)	(31		)	—			(768		)
Recoveries collected	14			14		—		—		188			—		1			1			—			218
Total ending allowance balance	$	8,787		$	22,369	$	7,030	$	202	$	496		$	1,062	$	125		$	2,360		$	—		$	42,431

The Company estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in underwriting standards, portfolio mix, delinquency level, changes in environmental conditions, unemployment rates, risk classifications and collateral values. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When the borrower is experiencing financial difficulty at the reporting date and repayment is expected

to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs.

The Company utilizes the Static Pool methodology in determining expected future credit losses. Static pool analysis means segmenting and tracking loans over a period of time based on similar risk characteristics such as loan structure, collateral type, industry of borrower and concentrations, contractual terms and credit risk indicators. Static pool calculates a loss rate on a closed pool of loans that existed on a specified start date based upon the remaining life of each segment.

The Company's expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company's historical look-back period includes January 2014 through the current period, on a monthly basis.

Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration industry and collateral concentrations, acquired loan portfolio characteristics and other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible.

For the six months ended June 30, 2020, the allowance for credit losses increased primarily due to macroeconomic factors surrounding the COVID-19 pandemic. While there continues to be great uncertainty related to COVID-19 on our borrowers and communities, we have begun to recognize significant declines in employment and gross domestic product which are key indicators utilized in our forecasting for our allowance calculations. Based on the potential increased losses related to the economic impact of the COVID-19 pandemic, the bank has considered this loss experience may align with loss experience from the recessionary period from 2008-2011 and qualitative adjustments have been made accordingly. Since PPP loans are guaranteed by the Small Business Administration (SBA), they have minimal impact on the allowance for credit losses.

All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection.

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of June 30, 2020:

June 30, 2020	Non-Accrual With No Allowance for Credit Loss		Non-Accrual		Loans Past Due Over 89 Days Still Accruing
Commercial and Industrial Loans	$	61	$	7,194	$	354
Commercial Real Estate Loans	259		4,540		—
Agricultural Loans	2,082		2,715		2,594
Leases	—		—		—
Home Equity Loans	209		258		—
Consumer Loans	62		114		—
Credit Cards	191		191		—
Residential Mortgage Loans	988		1,171		—
Total	$	3,852	$	16,183	$	2,948

Interest income on non-accrual loans recognized during the three and six months ended June 30, 2020 totaled $13 and $16, respectively.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2020:

June 30, 2020	Real Estate		Equipment		Accounts Receivable		Other		Total
Commercial and Industrial Loans	$	5,311	$	940	$	744	$	965	$	7,960
Commercial Real Estate Loans	8,937		—		—		1,667		10,604
Agricultural Loans	3,125		—		—		3		3,128
Leases	—		—		—		—		—
Home Equity Loans	464		—		—		—		464
Consumer Loans	41		4		—		10		55
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	943		—		—		—		943
Total	$	18,821	$	944	$	744	$	2,645	$	23,154

The following table presents the aging of the amortized cost basis in past due loans by class of loans as of June 30, 2020:

June 30, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial and Industrial Loans	$	238	$	171	$	5,126	$	5,535	$	790,153	$	795,688
Commercial Real Estate Loans	169		37		1,126		1,332		1,471,902		1,473,234
Agricultural Loans	927		89		2,594		3,610		369,873		373,483
Leases	—		—		—		—		56,728		56,728
Home Equity Loans	539		87		258		884		215,482		216,366
Consumer Loans	608		11		91		710		64,262		64,972
Credit Cards	70		34		191		295		9,922		10,217
Residential Mortgage Loans	3,279		1,476		985		5,740		274,506		280,246
Total	$	5,830	$	1,905	$	10,371	$	18,106	$	3,252,828	$	3,270,934

Troubled Debt Restructurings:

In certain instances, the Company may choose to restructure the contractual terms of loans. A troubled debt restructuring occurs when the Bank grants a concession to the borrower that it would not otherwise consider due to a borrower’s financial difficulty.   In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification. This evaluation is performed under the Company’s internal underwriting policy. The Company uses the same methodology for loans acquired with deteriorated credit quality as for all other loans when determining whether the loan is a troubled debt restructuring.

As of June 30, 2020, the Company had troubled debt restructurings totaling $114. The Company has no specific allocation of allowance for these loans at June 30, 2020.

The Company had not committed to lending any additional amounts as of June 30, 2020 and December 31, 2019 to customers with outstanding loans that are classified as troubled debt restructurings.

During the three and six months ended June 30, 2020 and 2019, the Company had no loans modified as troubled debt restructurings. Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2020 and 2019.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.

Loan Modifications and Troubled Debt Restructurings due to COVID-19

On April 7, 2020, the federal banking regulators issued a revised Interagency Statement on Loan Modifications and Reporting for Financial Institutions, which, among other things, encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19, and stated that institutions generally do not need to categorize COVID-19-related modifications as troubled debt restructurings and that the agencies will not direct supervised institutions to automatically categorize all COVID-19 related loan modifications as troubled debt restructurings. Accordingly, the Company is offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due.

As of June 30, 2020, the following payment modifications have been made:

Type of Loans	Number of Loans	Loan Balance		% of Loan Type (excludes PPP Loans)
(dollars in thousands)
Commercial & Industrial Loans	257	$	54,300	10.8	%
Commercial Real Estate Loans	392	224,664		15.3	%
Agricultural Loans	8	1,175		0.3	%
Consumer Loans	80	1,115		0.4	%
Residential Mortgage Loans	110	23,103		8.2	%
Total	847	$	304,357	10.4	%

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $250. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	369,836	$	103,058	$	55,284	$	39,975	$	26,295	$	60,942	$	110,480	$	765,870
Special Mention	53		363		1,354		2,211		185		1,859		2,470		8,495
Substandard	1,980		—		1,393		1,427		1,164		7,396		7,963		21,323
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	371,869	$	103,421	$	58,031	$	43,613	$	27,644	$	70,197	$	120,913	$	795,688
Commercial Real Estate:
Risk Rating
Pass	$	141,956	$	243,084	$	219,374	$	227,575	$	202,118	$	357,949	$	35,066	$	1,427,122
Special Mention	207		2,936		4,209		4,134		2,042		17,108		1,034		31,670
Substandard	—		403		2,212		1,915		1,348		8,564		—		14,442
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	142,163	$	246,423	$	225,795	$	233,624	$	205,508	$	383,621	$	36,100	$	1,473,234
Agricultural:
Risk Rating
Pass	$	26,853	$	30,206	$	36,271	$	36,205	$	24,406	$	72,472	$	76,836	$	303,249
Special Mention	5,318		6,853		2,262		8,137		2,351		16,228		15,694		56,843
Substandard	598		162		393		1,309		4,504		6,245		180		13,391
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	32,769	$	37,221	$	38,926	$	45,651	$	31,261	$	94,945	$	92,710	$	373,483
Leases:
Risk Rating
Pass	$	9,796	$	21,094	$	11,110	$	6,944	$	2,892	$	4,892	$	—	$	56,728
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	9,796	$	21,094	$	11,110	$	6,944	$	2,892	$	4,892	$	—	$	56,728

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.  The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity.

	Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2020	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	15,307	$	28,274	$	11,631	$	3,624	$	1,690	$	2,718	$	1,614	$	64,858
Nonperforming	—		10		—		2		3		68		31		114
Total Consumer Loans	$	15,307	$	28,284	$	11,631	$	3,626	$	1,693	$	2,786	$	1,645	$	64,972
Home Equity:
Payment performance
Performing	$	—	$	—	$	34	$	46	$	70	$	394	$	215,564	$	216,108
Nonperforming	—		—		—		—		—		—		258		258
Total Home Equity Loans	$	—	$	—	$	34	$	46	$	70	$	394	$	215,822	$	216,366
Residential Mortgage:
Payment performance
Performing	$	19,294	$	29,331	$	40,343	$	36,049	$	32,247	$	121,812	$	—	$	279,076
Nonperforming	—		—		—		—		162		1,008		—		1,170
Total Residential Mortgage Loans	$	19,294	$	29,331	$	40,343	$	36,049	$	32,409	$	122,820	$	—	$	280,246

The Company considers the performance of the loan portfolio and its impact on the allowance for credit loan losses. For certain retail loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in retail loans based on payment activity:

As of June 30, 2020	Credit Cards
Performing	$	10,026
Nonperforming	191
Total	$	10,217

The following table presents loans purchased and/or sold during the year by portfolio segment:

June 30, 2020	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Purchases	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Sales	—		524		—		—		—		—		—		—		524

Allowance for Loan Losses

Prior to the adoption of ASC 326 on January 1, 2020, the Company calculated the allowance for loan losses using the incurred loss methodology. The following tables are disclosures related to the allowance for loan losses in prior periods.

The following table presents the activity in the allowance for loan losses by portfolio class for the three months ended June 30, 2019:

June 30, 2019	Commercial and Industrial Loans and Leases			Commercial Real Estate Loans			Agricultural Loans		Home Equity Loans			Consumer Loans			Residential Mortgage Loans			Unallocated		Total
Beginning Balance	$	3,317		$	5,741		$	5,453	$	214		$	483		$	429		$	606	$	16,243
Provision for Loan Losses	(303		)	104			272		54			124			(47		)	46		250
Recoveries	34			14			—		—			93			3			—		144
Loans Charged-off	(56		)	(18		)	—		(10		)	(278		)	(36		)	—		(398		)
Ending Balance	$	2,992		$	5,841		$	5,725	$	258		$	422		$	349		$	652	$	16,239

The following table presents the activity in the allowance for loan losses by portfolio class for the six months ended June 30, 2019:

June 30, 2019	Commercial and Industrial Loans and Leases			Commercial Real Estate Loans			Agricultural Loans			Home Equity Loans			Consumer Loans			Residential Mortgage Loans			Unallocated			Total
Beginning Balance	$	2,953		$	5,291		$	5,776		$	229		$	420		$	472		$	682		$	15,823
Provision for Loan Losses	44			669			(51		)	39			333			(79		)	(30		)	925
Recoveries	51			19			—			—			214			6			—			290
Loans Charged-off	(56		)	(138		)	—			(10		)	(545		)	(50		)	—			(799		)
Ending Balance	$	2,992		$	5,841		$	5,725		$	258		$	422		$	349		$	652		$	16,239

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2019:

December 31, 2019	Total		Commercial and Industrial Loans and Leases		Commercial Real Estate Loans		Agricultural Loans		Home Equity Loans		Consumer Loans		Residential Mortgage Loans		Unallocated
Allowance for Loan Losses:
Ending Allowance Balance Attributable to Loans:
Individually Evaluated for Impairment	$	2,971	$	2,412	$	559	$	—	$	—	$	—	$	—	$	—
Collectively Evaluated for Impairment	12,902		2,387		3,733		5,315		200		434		328		505
Acquired with Deteriorated Credit Quality	405		—		400		—		—		—		5		—
Total Ending Allowance Balance	$	16,278	$	4,799	$	4,692	$	5,315	$	200	$	434	$	333	$	505
Loans:
Loans Individually Evaluated for Impairment	$	6,269	$	4,707	$	1,562	$	—	$	—	$	—	$	—	n/m(2)
Loans Collectively Evaluated for Impairment	3,076,835		585,328		1,491,090		387,710		226,406		81,429		304,872		n/m(2)
Loans Acquired with Deteriorated Credit Quality	12,798		1,368		7,212		3,161		369		—		688		n/m(2)
Total Ending Loans Balance (1)	$	3,095,902	$	591,403	$	1,499,864	$	390,871	$	226,775	$	81,429	$	305,560	n/m(2)

⁽¹⁾ Total recorded investment in loans includes $13,929 in accrued interest.

⁽²⁾n/m = not meaningful

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:

December 31, 2019	Unpaid Principal Balance(1)		Recorded Investment		Allowance for Loan Losses Allocated
With No Related Allowance Recorded:
Commercial and Industrial Loans and Leases	$	3,638	$	524	$	—
Commercial Real Estate Loans	4,738		2,058		—
Agricultural Loans	3,294		2,738		—
Subtotal	11,670		5,320		—
With An Allowance Recorded:
Commercial and Industrial Loans and Leases	5,042		4,521		2,412
Commercial Real Estate Loans	2,187		1,865		959
Agricultural Loans	—		—		—
Subtotal	7,229		6,386		3,371
Total	$	18,899	$	11,706	$	3,371
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)	$	9,994	$	4,624	$	—
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)	$	1,134	$	813	$	400

⁽¹⁾ Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.

The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the three month period ended June 30, 2019:

June 30, 2019	Average Recorded Investment		Interest Income Recognized		Cash Basis Recognized
With No Related Allowance Recorded:
Commercial and Industrial Loans and Leases	$	164	$	2	$	—
Commercial Real Estate Loans	2,981		11		—
Agricultural Loans	1,412		—		—
Subtotal	4,557		13		—
With An Allowance Recorded:
Commercial and Industrial Loans and Leases	2,128		—		—
Commercial Real Estate Loans	3,957		—		—
Agricultural Loans	—		—		—
Subtotal	6,085		—		—
Total	$	10,642	$	13	$	—
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)	$	3,386	$	8	$	—
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)	$	744	$	—	$	—

The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the six month period ended June 30, 2019:

June 30, 2019	Average Recorded Investment		Interest Income Recognized		Cash Basis Recognized
With No Related Allowance Recorded:
Commercial and Industrial Loans and Leases	$	301	$	4	$	—
Commercial Real Estate Loans	3,291		28		—
Agricultural Loans	1,409		—		—
Subtotal	5,001		32		—
With An Allowance Recorded:
Commercial and Industrial Loans and Leases	2,207		—		—
Commercial Real Estate Loans	4,324		—		—
Agricultural Loans	—		—		—
Subtotal	6,531		—		—
Total	$	11,532	$	32	$	—
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)	$	4,414	$	15	$	—
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)	$	3,861	$	—	$	—

The following table presents the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of December 31, 2019:

			Loans Past Due 90 Days or More
	Non-Accrual		& Still Accruing
	2019		2019
Commercial and Industrial Loans and Leases	$	4,940	$	190
Commercial Real Estate Loans	3,433		—
Agricultural Loans	2,739		—
Home Equity Loans	79		—
Consumer Loans	115		—
Residential Mortgage Loans	2,496		—
Total	$	13,802	$	190
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)	$	5,393	$	—
Loans Acquired in Current Year (Included in the Total Above)	$	2,058	$	—

The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2019:

December 31, 2019	Total		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Loans Not Past Due
Commercial and Industrial Loans and Leases	$	591,403	$	4,689	$	83	$	799	$	5,571	$	585,832
Commercial Real Estate Loans	1,499,864		209		431		2,106		2,746		1,497,118
Agricultural Loans	390,871		499		—		329		828		390,043
Home Equity Loans	226,775		1,121		253		80		1,454		225,321
Consumer Loans	81,429		347		156		89		592		80,837
Residential Mortgage Loans	305,560		5,014		1,461		2,308		8,783		296,777
Total (1)	$	3,095,902	$	11,879	$	2,384	$	5,711	$	19,974	$	3,075,928
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)	$	12,798	$	18	$	—	$	1,589	$	1,607	$	11,191
Loans Acquired in Current Year (Included in the Total Above)	$	321,464	$	639	$	1	$	797	$	1,437	$	320,027

⁽¹⁾ Total recorded investment in loans includes $13,929 in accrued interest.

The risk category of loans by class of loans at December 31, 2019 is as follows: 

December 31, 2019	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Industrial Loans and Leases	$	556,706	$	19,671	$	15,026	$	—	$	591,403
Commercial Real Estate Loans	1,453,310		30,504		16,050		—		1,499,864
Agricultural Loans	325,991		49,053		15,827		—		390,871
Total	$	2,336,007	$	99,228	$	46,903	$	—	$	2,482,138
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)	$	68	$	613	$	11,060	$	—	$	11,741
Loans Acquired in Current Year (Included in the Total Above)	$	254,629	$	16,535	$	12,769	$	—	$	283,933

The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2019: 

December 31, 2019	Home Equity Loans		Consumer Loans		Residential Mortgage Loans
Performing	$	226,695	$	81,314	$	303,065
Nonperforming	80		115		2,495
Total	$	226,775	$	81,429	$	305,560

The following table presents financing receivables purchased and/or sold during the year by portfolio segment:

December 31, 2019	Commercial and Industrial Loans and Leases		Commercial Real Estate Loans		Total
Purchases	$	2,051	$	—	$	2,051
Sales	—		—		—