ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

12 Months Ended

Dec. 31, 2020

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY

In Allowance For Loan Losses and Recorded Investment In Loans By Portfolio Segment

The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2020, 2019 and 2018. PPP loans are fully guaranteed by the United States Small Business Administration and have not been allocated for within the allowance for loan losses.

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2020
Beginning balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652
Provision for loan losses		6,640		6,868		(826)		(31)		341		959		819		14,770
Loans charged-off		(4,524)		(72)		—		—		(141)		(516)		—		(5,253)
Recoveries		428		315		—		—		333		163		—		1,239
Net loans (charged-off) recovered		(4,096)		243		—		—		192		(353)		—		(4,014)
Ending balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Beginning balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453
Provision for loan losses		4,259		259		(444)		79		(219)		275		(974)		3,235
Loans charged-off		(1,447)		(17)		—		—		(110)		(336)		—		(1,910)
Recoveries		459		161		8		—		123		123		—		874
Net loans (charged-off) recovered		(988)		144		8		—		13		(213)		—		(1,036)
Ending balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2018
Beginning balance	$	21,097	$	14,714	$	4,920	$	577	$	2,768	$	379	$	2,666	$	47,121
Provision for loan losses		5,884		1,140		(657)		(209)		(536)		150		628		6,400
Loans charged-off		(5,215)		(491)		—		—		(48)		(357)		—		(6,111)
Recoveries		752		30		42		—		108		111		—		1,043
Net loans (charged-off) recovered		(4,463)		(461)		42		—		60		(246)		—		(5,068)
Ending balance	$	22,518	$	15,393	$	4,305	$	368	$	2,292	$	283	$	3,294	$	48,453

The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020 and 2019:

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2020
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6,310	$	1,377	$	84	$	—	$	270	$	—	$	—	$	8,041
Collectively evaluated for impairment		22,023		21,530		2,959		416		2,349		951		3,139		53,367
Total ending allowance balance	$	28,333	$	22,907	$	3,043	$	416	$	2,619	$	951	$	3,139	$	61,408
Loans:
Loans individually evaluated for impairment	$	12,533	$	5,518	$	428	$	—	$	1,700	$	—	$	—	$	20,179
Loans collectively evaluated for impairment		1,772,393		1,887,054		429,234		93,912		342,999		103,385		—		4,628,977
Total ending loans balance	$	1,784,926	$	1,892,572	$	429,662	$	93,912	$	344,699	$	103,385	$	—	$	4,649,156

			Commercial
			Real Estate
	Commercial		and		Agri-business				Consumer
	and		Multi-family		and		Other		1-4 Family		Other
(dollars in thousands)	Industrial		Residential		Agricultural		Commercial		Mortgage		Consumer		Unallocated		Total
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	9,324	$	538	$	90	$	—	$	426	$	6	$	—	$	10,384
Collectively evaluated for impairment		16,465		15,258		3,779		447		1,660		339		2,320		40,268
Total ending allowance balance	$	25,789	$	15,796	$	3,869	$	447	$	2,086	$	345	$	2,320	$	50,652
Loans:
Loans individually evaluated for impairment	$	19,580	$	4,998	$	445	$	—	$	2,789	$	17	$	—	$	27,829
Loans collectively evaluated for impairment		1,407,246		1,665,842		379,186		112,166		375,210		98,349		—		4,037,999
Total ending loans balance	$	1,426,826	$	1,670,840	$	379,631	$	112,166	$	377,999	$	98,366	$	—	$	4,065,828

Loans individually evaluated for impairment

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2020:

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	346	$	173	$	0
Non-working capital loans		2,399		968		0
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,002		2,930		0
Agri-business and agricultural loans:
Loans secured by farmland		603		283		0
Consumer 1‑4 family loans:
Closed end first mortgage loans		316		236		0
Open end and junior lien loans		5		5		0
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		433		433		255
Non-working capital loans		11,644		10,959		6,055
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,589		2,588		1,377
Agri-business and agricultural loans:
Loans secured by farmland		145		145		84
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,457		1,459		270
Total	$	22,939	$	20,179	$	8,041

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

	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
(dollars in thousands)	Balance		Investment		Allocated
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	22	$	22	$	—
Non-working capital loans		2,130		735		—
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,189		3,010		—
Agri-business and agricultural loans:
Loans secured by farmland		603		283		—
Loans for ag production		15		15		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		411		330		—
Open end and junior lien loans		121		121		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,214		6,214		3,089
Non-working capital loans		13,230		12,609		6,235
Commercial real estate and multi-family residential loans:
Owner occupied loans		1,988		1,988		538
Agri-business and agricultural loans:
Loans secured by farmland		147		147		90
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,643		1,646		363
Open end and junior lien loans		641		640		53
Residential construction loans		51		52		10
Other consumer loans		17		17		6
Total	$	30,422	$	27,829	$	10,384

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2020:

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	375	$	—	$	—
Non-working capital loans		816		21		21
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,156		13		12
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Consumer 1-4 family loans:
Closed end first mortgage loans		291		3		2
Open end and junior lien loans		49		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		2,433		—		—
Non-working capital loans		11,579		287		287
Commercial real estate and multi-family residential loans:
Owner occupied loans		3,156		30		30
Agri-business and agricultural loans:
Loans secured by farmland		147		—		—
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,557		36		33
Open end and junior lien loans		481		—		—
Residential construction loans		35		—		—
Total	$	23,362	$	390	$	385

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

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	176	$	9	$	9
Non-working capital loans		1,170		40		30
Commercial real estate and multi-family residential loans:
Owner occupied loans		2,354		34		34
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Loans for ag production		4		—		—
Consumer 1-4 family loans:
Closed end first mortgage loans		272		3		3
Open end and junior lien loans		133		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		6,335		143		81
Non-working capital loans		11,800		448		410
Commercial real estate and multi-family residential loans:
Construction and land development loans
Owner occupied loans		1,849		43		39
Agri-business and agricultural loans:
Loans secured by farmland		147		3		1
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		1,643		45		43
Open end and junior lien loans		268		—		—
Residential construction loans		9		—		—
Other consumer loans		21		2		1
Total	$	26,464	$	770	$	651

The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018:

					Cash Basis
	Average		Interest		Interest
	Recorded		Income		Income
(dollars in thousands)	Investment		Recognized		Recognized
With no related allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans	$	785	$	26	$	23
Non-working capital loans		1,862		74		68
Commercial real estate and multi-family residential loans:
Construction and land development loans		58		5		4
Owner occupied loans		2,291		36		37
Agri-business and agricultural loans:
Loans secured by farmland		283		—		—
Consumer 1‑4 family loans:
Closed end first mortgage loans		521		13		12
Open end and junior lien loans		205		—		—
With an allowance recorded:
Commercial and industrial loans:
Working capital lines of credit loans		3,307		74		12
Non-working capital loans		5,328		138		81
Commercial real estate and multi-family residential loans:
Construction and land development loans		453		26		29
Owner occupied loans		1,631		9		1
Agri-business and agricultural loans:
Loans secured by farmland		12		1		—
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		1,214		37		36
Open end and junior lien loans		38		—		—
Other consumer loans		47		3		3
Total	$	18,035	$	442	$	306

Aging of the Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 by class of loans:

					Greater than
			30‑89		90 Days Past				Total Past
	Loans Not		Days		Due and Still				Due and
(dollars in thousands)	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	625,493	$	—	$	—	$	606	$	606	$	626,099
Non-working capital loans		1,153,540		—		—		5,287		5,287		1,158,827
Commercial real estate and multi-family residential loans:
Construction and land development loans		361,664		—		—		—		—		361,664
Owner occupied loans		642,527		—		—		5,047		5,047		647,574
Nonowner occupied loans		579,050		—		—		—		—		579,050
Multi-family loans		304,284		—		—		—		—		304,284
Agri-business and agricultural loans:
Loans secured by farmland		194,935		—		—		428		428		195,363
Loans for agricultural production		234,191		108		—		—		108		234,299
Other commercial loans		93,912		—		—		—		—		93,912
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		165,895		877		116		613		1,606		167,501
Open end and junior lien loans		165,094		137		—		5		142		165,236
Residential construction loans		11,962		—		—		—		—		11,962
Other consumer loans		103,240		145		—		—		145		103,385
Total	$	4,635,787	$	1,267	$	116	$	11,986	$	13,369	$	4,649,156

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

					Greater than
			30‑89		90 Days Past				Total Past
	Loans Not		Days		Due and Still				Due and
(dollars in thousands)	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	703,737	$	10	$	—	$	6,236	$	6,246	$	709,983
Non-working capital loans		710,557		4		—		6,282		6,286		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		569,303		—		—		4,056		4,056		573,359
Nonowner occupied loans		570,687		—		—		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		173,959		—		—		430		430		174,389
Loans for agricultural production		205,228		—		—		14		14		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		174,902		1,099		45		827		1,971		176,873
Open end and junior lien loans		187,255		188		—		761		949		188,204
Residential construction loans		12,870		—		—		52		52		12,922
Other consumer loans		98,176		173		—		17		190		98,366
Total	$	4,045,634	$	1,474	$	45	$	18,675	$	20,194	$	4,065,828

Troubled Debt Restructuring

The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2019:

						Modified Repayment Terms
		Pre-Modification		Post-Modification			Extension
		Outstanding		Outstanding			Period or
	Number of	Recorded		Recorded		Number of	Range
(dollars in thousands)	Loans	Investment		Investment		Loans	(in months)
Troubled Debt Restructurings
Commercial and industrial loans:
Working capital lines of credit loans	1	$	35	$	35	1	1
Total	1	$	35	$	35	1	1

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2018:

						Modified Repayment Terms
		Pre-Modification		Post-Modification			Extension
		Outstanding		Outstanding			Period or
	Number of	Recorded		Recorded		Number of	Range
(dollars in thousands)	Loans	Investment		Investment		Loans	(in months)
Troubled Debt Restructurings Commercial and industrial loans:
Working capital lines of credit loans	1	$	600	$	600	1	0
Non-working capital loans	7		4,628		4,628	7	0‑6
Commercial real estate and multi-family residential loans:
Construction and land
development loans	1		824		824	1	12
Owner occupied loans	2		933		933	2	12
Consumer 1-4 family loans:
Closed end first mortgage loans	1		198		197	1	239
Total	12	$	7,183	$	7,182	12	0‑239

Schedule of Loans Modified as Troubled Debt Restructurings which were Payment Default with in Tweleve Months Following the Modification Terms

	2020			2019			2018
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Troubled Debt Restructurings that Subsequently Defaulted Commercial and industrial loans:
Non-working capital loans	—	$	—	1	$	601	—	$	—
Total	—	$	—	1	$	601	—	$	—

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2020:

						Modified Repayment Terms
		Pre-Modification		Post-Modification			Extension
		Outstanding		Outstanding			Period or
	Number of	Recorded		Recorded		Number of	Range
(dollars in thousands)	Loans	Investment		Investment		Loans	(in months)
Troubled Debt Restructurings Commercial and industrial loans:
Working capital lines of credit loans	1	$	250	$	315	1	0
Non-working capital loans	2		4,288		3,691	2	0
Commercial real estate and multi-family residential loans:
Owner occupied loans	1		1,528		1,527	1	0
Total	4	$	6,066	$	5,533	4	0

Credit Quality Indicators

As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	535,071	$	81,095	$	9,718	$	—	$	215	$	626,099
Non-working capital loans		1,111,989		26,523		14,820		—		5,495		1,158,827
Commercial real estate and multi-family residential loans:
Construction and land development loans		361,664		—		—		—		—		361,664
Owner occupied loans		608,845		31,355		7,374		—		—		647,574
Nonowner occupied loans		547,790		31,260		—		—		—		579,050
Multi-family loans		282,031		22,253		—		—		—		304,284
Agri-business and agricultural loans:
Loans secured by farmland		183,983		10,728		652		—		—		195,363
Loans for agricultural production		185,875		48,424		—		—		—		234,299
Other commercial loans		93,912		—		—		—		—		93,912
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		40,682		—		1,695		—		125,124		167,501
Open end and junior lien loans		8,424		—		5		—		156,807		165,236
Residential construction loans		—		—		—		—		11,962		11,962
Other consumer loans		36,979		253		—		—		66,153		103,385
Total	$	3,997,245	$	251,891	$	34,264	$	0	$	365,756	$	4,649,156

As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

			Special						Not
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Rated		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	631,728	$	40,551	$	37,278	$	—	$	426	$	709,983
Non-working capital loans		673,370		18,782		19,381		—		5,310		716,843
Commercial real estate and multi-family residential loans:
Construction and land development loans		286,534		—		—		—		—		286,534
Owner occupied loans		535,496		14,804		23,059		—		—		573,359
Nonowner occupied loans		569,315		781		591		—		—		570,687
Multi-family loans		240,260		—		—		—		—		240,260
Agri-business and agricultural loans:
Loans secured by farmland		165,005		7,952		1,432		—		—		174,389
Loans for agricultural production		191,489		13,738		15		—		—		205,242
Other commercial loans		112,166		—		—		—		—		112,166
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		47,405		—		1,976		—		127,492		176,873
Open end and junior lien loans		10,845		—		762		—		176,597		188,204
Residential construction loans		—		—		51		—		12,871		12,922
Other consumer loans		27,250		—		17		—		71,099		98,366
Total	$	3,490,863	$	96,608	$	84,562	$	—	$	393,795	$	4,065,828