XML 39 R29.htm IDEA: XBRL DOCUMENT v3.23.1
Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Text Block [Abstract]  
Changes in the Allowance for Loan Losses

The following tables present, by portfolio segment, the changes in the ACL for the three months ended March 31, 2023.

 

Allowance for credit losses:

 

For the three months ended March 31, 2023

 

Beginning balance

 

 

CECL Adoption Day 1 Impact

 

 

Impact of Adopting ASC 326 - PCD Loans 1

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending Balance

 

Commercial & Agriculture

 

$

3,011

 

 

$

429

 

 

$

—

 

 

$

(140

)

 

$

6

 

 

$

10

 

 

$

3,316

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4,565

 

 

 

1,075

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

74

 

 

 

5,733

 

Non-Owner Occupied

 

 

14,138

 

 

 

(2,847

)

 

 

—

 

 

 

—

 

 

 

7

 

 

 

462

 

 

 

11,760

 

Residential Real Estate

 

 

3,145

 

 

 

2,762

 

 

 

166

 

 

 

(10

)

 

 

22

 

 

 

(151

)

 

 

5,934

 

Real Estate Construction

 

 

2,293

 

 

 

1,502

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

121

 

 

 

3,920

 

Farm Real Estate

 

 

291

 

 

 

(28

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

269

 

Lease Financing Receivables

 

 

429

 

 

 

1,743

 

 

 

635

 

 

 

—

 

 

 

—

 

 

 

100

 

 

 

2,907

 

Consumer and Other

 

 

98

 

 

 

201

 

 

 

77

 

 

 

(25

)

 

 

8

 

 

 

(5

)

 

 

354

 

Unallocated

 

 

541

 

 

 

(541

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

3

 

Total

 

$

28,511

 

 

$

4,296

 

 

$

897

 

 

$

(175

)

 

$

47

 

 

$

620

 

 

$

34,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Day 1 impact of $1,668, of adopting ASC 326-PCD loans
     was netted by changes in estimates of $771.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

For the three months ended March 31, 2022

 

Beginning balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending Balance

 

Commercial & Agriculture

 

$

2,600

 

 

$

—

 

 

$

1

 

 

$

(17

)

 

$

2,584

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4,464

 

 

 

—

 

 

 

—

 

 

 

130

 

 

 

4,594

 

Non-Owner Occupied

 

 

13,860

 

 

 

—

 

 

 

48

 

 

 

669

 

 

 

14,577

 

Residential Real Estate

 

 

2,597

 

 

 

(1

)

 

 

61

 

 

 

(45

)

 

 

2,612

 

Real Estate Construction

 

 

1,810

 

 

 

—

 

 

 

—

 

 

 

53

 

 

 

1,863

 

Farm Real Estate

 

 

287

 

 

 

—

 

 

 

2

 

 

 

(40

)

 

 

249

 

Consumer and Other

 

 

176

 

 

 

(29

)

 

 

10

 

 

 

(21

)

 

 

136

 

Unallocated

 

 

847

 

 

 

—

 

 

 

—

 

 

 

(429

)

 

 

418

 

Total

 

$

26,641

 

 

$

(30

)

 

$

122

 

 

$

300

 

 

$

27,033

 

March 31, 2023

 

Loans individually
evaluated for
impairment

 

 

Loans collectively
evaluated for
impairment

 

 

Total

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

$

12

 

 

$

3,304

 

 

$

3,316

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

7

 

 

 

5,726

 

 

 

5,733

 

Non-Owner Occupied

 

 

—

 

 

 

11,760

 

 

 

11,760

 

Residential Real Estate

 

 

2

 

 

 

5,932

 

 

 

5,934

 

Real Estate Construction

 

 

—

 

 

 

3,920

 

 

 

3,920

 

Farm Real Estate

 

 

—

 

 

 

269

 

 

 

269

 

Lease Financing Receivables

 

 

371

 

 

 

2,536

 

 

 

2,907

 

Consumer and Other

 

 

77

 

 

 

277

 

 

 

354

 

Unallocated

 

 

—

 

 

 

3

 

 

 

3

 

Total

 

$

469

 

 

$

33,727

 

 

$

34,196

 

Outstanding loan balances:

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

$

165

 

 

$

270,995

 

 

$

271,160

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

1,514

 

 

 

374,311

 

 

 

375,825

 

Non-Owner Occupied

 

 

119

 

 

 

1,043,516

 

 

 

1,043,635

 

Residential Real Estate

 

 

1,838

 

 

 

559,140

 

 

 

560,978

 

Real Estate Construction

 

 

—

 

 

 

247,253

 

 

 

247,253

 

Farm Real Estate

 

 

—

 

 

 

24,040

 

 

 

24,040

 

Lease Financing Receivables

 

 

328

 

 

 

37,242

 

 

 

37,570

 

Consumer and Other

 

 

77

 

 

 

19,528

 

 

 

19,605

 

Total

 

$

4,041

 

 

$

2,576,025

 

 

$

2,580,066

 

 

December 31, 2022

 

Loans acquired
with credit
deterioration

 

 

Loans individually
evaluated for
impairment

 

 

Loans collectively
evaluated for
impairment

 

 

Total

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

$

6

 

 

$

—

 

 

$

3,005

 

 

$

3,011

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

3

 

 

 

6

 

 

 

4,556

 

 

 

4,565

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

14,138

 

 

 

14,138

 

Residential Real Estate

 

 

—

 

 

 

1

 

 

 

3,144

 

 

 

3,145

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

2,293

 

 

 

2,293

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

291

 

 

 

291

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

98

 

 

 

98

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

 

 

429

 

 

 

429

 

Unallocated

 

 

—

 

 

 

—

 

 

 

541

 

 

 

541

 

Total

 

$

9

 

 

$

7

 

 

$

28,495

 

 

$

28,511

 

Outstanding loan balances:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

$

863.00

 

 

$

—

 

 

$

277,732

 

 

$

278,595

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

1,988

 

 

 

232

 

 

 

368,927

 

 

 

371,147

 

Non-Owner Occupied

 

 

119

 

 

 

—

 

 

 

1,018,617

 

 

 

1,018,736

 

Residential Real Estate

 

 

1,414

 

 

 

392

 

 

 

550,975

 

 

 

552,781

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

243,127

 

 

 

243,127

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

24,708

 

 

 

24,708

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

 

 

36,797

 

 

 

36,797

 

Consumer and Other

 

 

1

 

 

 

—

 

 

 

20,774

 

 

 

20,775

 

Total

 

$

4,385

 

 

$

624

 

 

$

2,541,657

 

 

$

2,546,666

 
Credit Exposures by Internally Assigned Grades

Based on the most recent analysis performed, the risk category of loans, by type and year of originations, at March 31, 2023, is as follows:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

Converted

 

 

 

 

March 31, 2023

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

to Term

 

 

Total

 

Commercial & Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

29,720

 

 

$

57,104

 

 

$

40,428

 

 

$

11,291

 

 

$

10,846

 

 

$

3,204

 

 

$

115,283

 

 

$

—

 

 

$

267,876

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

135

 

 

 

—

 

 

 

—

 

 

 

1,409

 

 

 

—

 

 

 

1,544

 

Substandard

 

 

—

 

 

 

—

 

 

 

542

 

 

 

466

 

 

 

93

 

 

 

93

 

 

 

276

 

 

 

—

 

 

 

1,470

 

Doubtful

 

 

—

 

 

 

184

 

 

 

61

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

270

 

Total Commercial & Agriculture

 

$

29,720

 

 

$

57,288

 

 

$

41,031

 

 

$

11,917

 

 

$

10,939

 

 

$

3,297

 

 

$

116,968

 

 

$

—

 

 

$

271,160

 

Commercial & Agriculture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

59

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

81

 

 

$

—

 

 

$

—

 

 

$

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

11,769

 

 

$

92,658

 

 

$

73,561

 

 

$

62,938

 

 

$

35,118

 

 

$

92,494

 

 

$

5,152

 

 

$

—

 

 

$

373,690

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400

 

 

 

320

 

 

 

—

 

 

 

—

 

 

 

720

 

Substandard

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

1,408

 

 

 

4

 

 

 

—

 

 

 

1,415

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Owner Occupied

 

$

11,769

 

 

$

92,658

 

 

$

73,564

 

 

$

62,938

 

 

$

35,518

 

 

$

94,222

 

 

$

5,156

 

 

$

—

 

 

$

375,825

 

Commercial Real Estate - Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Non-Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

43,761

 

 

$

288,143

 

 

$

216,483

 

 

$

150,088

 

 

$

115,865

 

 

$

192,348

 

 

$

19,286

 

 

$

—

 

 

$

1,025,974

 

Special Mention

 

 

—

 

 

 

5,207

 

 

 

—

 

 

 

—

 

 

 

277

 

 

 

8,235

 

 

 

277

 

 

 

—

 

 

 

13,996

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

146

 

 

 

3,519

 

 

 

—

 

 

 

—

 

 

 

3,665

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Non-Owner Occupied

 

$

43,761

 

 

$

293,350

 

 

$

216,483

 

 

$

150,088

 

 

$

116,288

 

 

$

204,102

 

 

$

19,563

 

 

$

—

 

 

$

1,043,635

 

Commercial Real Estate - Non-Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

19,267

 

 

$

103,972

 

 

$

92,892

 

 

$

78,060

 

 

$

39,193

 

 

$

91,023

 

 

$

130,964

 

 

$

—

 

 

$

555,371

 

Special Mention

 

 

—

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46

 

 

 

55

 

 

 

—

 

 

 

155

 

Substandard

 

 

—

 

 

 

29

 

 

 

271

 

 

 

155

 

 

 

768

 

 

 

3,574

 

 

 

655

 

 

 

—

 

 

 

5,452

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Residential Real Estate

 

$

19,267

 

 

$

104,055

 

 

$

93,163

 

 

$

78,215

 

 

$

39,961

 

 

$

94,643

 

 

$

131,674

 

 

$

—

 

 

$

560,978

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

10

 

 

$

—

 

 

$

—

 

 

$

10

 

 

 

Real Estate Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

10,367

 

 

$

124,262

 

 

$

73,422

 

 

$

28,258

 

 

$

—

 

 

$

—

 

 

$

10,727

 

 

$

—

 

 

$

247,036

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

44

 

 

 

—

 

 

 

173

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

217

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate Construction

 

$

10,367

 

 

$

124,262

 

 

$

73,466

 

 

$

28,258

 

 

$

173

 

 

$

—

 

 

$

10,727

 

 

$

—

 

 

$

247,253

 

Real Estate Construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farm Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

572

 

 

$

1,368

 

 

$

2,284

 

 

$

5,418

 

 

$

840

 

 

$

12,723

 

 

$

602

 

 

$

—

 

 

$

23,807

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

189

 

 

 

—

 

 

 

—

 

 

 

189

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Farm Real Estate

 

$

572

 

 

$

1,368

 

 

$

2,284

 

 

$

5,462

 

 

$

840

 

 

$

12,912

 

 

$

602

 

 

$

—

 

 

$

24,040

 

Farm Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

11,925

 

 

$

16,335

 

 

$

5,210

 

 

$

2,252

 

 

$

1,492

 

 

$

248

 

 

$

—

 

 

$

—

 

 

$

37,462

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

47

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

47

 

Doubtful

 

 

—

 

 

 

—

 

 

 

26

 

 

 

—

 

 

 

35

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

61

 

Total Lease Financing Receivables

 

$

11,925

 

 

$

16,335

 

 

$

5,283

 

 

$

2,252

 

 

$

1,527

 

 

$

248

 

 

$

—

 

 

$

—

 

 

$

37,570

 

Lease Financing Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,693

 

 

$

6,214

 

 

$

5,736

 

 

$

2,451

 

 

$

984

 

 

$

618

 

 

$

1,715

 

 

$

—

 

 

$

19,411

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

141

 

 

 

33

 

 

 

12

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

194

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Consumer and Other

 

$

1,693

 

 

$

6,355

 

 

$

5,769

 

 

$

2,463

 

 

$

984

 

 

$

626

 

 

$

1,715

 

 

$

—

 

 

$

19,605

 

Consumer and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

1

 

 

$

10

 

 

$

2

 

 

$

10

 

 

$

—

 

 

$

2

 

 

$

—

 

 

$

25

 

Total Loans

 

$

129,074

 

 

$

695,671

 

 

$

511,043

 

 

$

341,593

 

 

$

206,230

 

 

$

410,050

 

 

$

286,405

 

 

$

—

 

 

$

2,580,066

 

Total Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

60

 

 

$

10

 

 

$

2

 

 

$

10

 

 

$

91

 

 

$

2

 

 

$

—

 

 

$

175

 

 

Generally, Residential Real Estate, Real Estate Construction and Consumer and Other loans are not risk-graded, except when collateral is used for a business purpose. Only those loans that have been risk rated as of December 31, 2022 are included below.

 

December 31, 2022

 

Pass

 

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Ending Balance

 

Commercial & Agriculture

 

$

273,291

 

 

$

2,558

 

 

$

2,746

 

 

$

—

 

 

$

278,595

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

367,652

 

 

 

734

 

 

 

2,761

 

 

 

—

 

 

 

371,147

 

Non-Owner Occupied

 

 

1,003,942

 

 

 

10,947

 

 

 

3,847

 

 

 

—

 

 

 

1,018,736

 

Residential Real Estate

 

 

114,021

 

 

 

183

 

 

 

5,787

 

 

 

—

 

 

 

119,991

 

Real Estate Construction

 

 

198,734

 

 

 

—

 

 

 

221

 

 

 

—

 

 

 

198,955

 

Farm Real Estate

 

 

24,283

 

 

 

379

 

 

 

46

 

 

 

—

 

 

 

24,708

 

Lease Financing Receivables

 

 

36,223

 

 

 

—

 

 

 

401

 

 

 

173

 

 

 

36,797

 

Consumer and Other

 

 

839

 

 

 

—

 

 

 

163

 

 

 

—

 

 

 

1,002

 

Total

 

$

2,018,985

 

 

$

14,801

 

 

$

15,972

 

 

$

173

 

 

$

2,049,931

 

Performing and Nonperforming Loans

December 31, 2022

 

Residential
Real Estate

 

 

Real Estate
Construction

 

 

Consumer
and Other

 

 

Total

 

Performing

 

$

432,790

 

 

$

44,172

 

 

$

19,773

 

 

$

496,735

 

Nonperforming

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

432,790

 

 

$

44,172

 

 

$

19,773

 

 

$

496,735

 
Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of March 31, 2023 and December 31, 2022.

March 31, 2023

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or Greater
Past Due

 

 

Total Past
Due

 

 

Current

 

 

Total Loans

 

 

Past Due
90 Days
and
Accruing

 

Commercial & Agriculture

 

$

834

 

 

$

201

 

 

$

684

 

 

$

1,719

 

 

$

269,441

 

 

$

271,160

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

44

 

 

 

—

 

 

 

39

 

 

 

83

 

 

 

375,742

 

 

 

375,825

 

 

 

—

 

Non-Owner Occupied

 

 

347

 

 

 

6,500

 

 

 

1,294

 

 

 

8,141

 

 

 

1,035,494

 

 

 

1,043,635

 

 

 

—

 

Residential Real Estate

 

 

2,751

 

 

 

355

 

 

 

978

 

 

 

4,084

 

 

 

556,894

 

 

 

560,978

 

 

 

—

 

Real Estate Construction

 

 

506

 

 

 

—

 

 

 

—

 

 

 

506

 

 

 

246,747

 

 

 

247,253

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24,040

 

 

 

24,040

 

 

 

—

 

Lease Financing Receivables

 

 

1,032

 

 

 

87

 

 

 

110

 

 

 

1,229

 

 

 

36,341

 

 

 

37,570

 

 

 

47

 

Consumer and Other

 

 

101

 

 

 

27

 

 

 

78

 

 

 

206

 

 

 

19,399

 

 

 

19,605

 

 

 

—

 

Total

 

$

5,615

 

 

$

7,170

 

 

$

3,183

 

 

$

15,968

 

 

$

2,564,098

 

 

$

2,580,066

 

 

$

47

 

December 31, 2022

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or Greater
Past Due

 

 

Total Past
Due

 

 

Current

 

 

Purchased
Credit-
Impaired
Loans

 

 

Total Loans

 

 

Past Due
90 Days
and
Accruing

 

Commercial & Agriculture

 

$

247

 

 

$

78

 

 

$

534

 

 

$

859

 

 

$

276,873

 

 

$

863

 

 

$

278,595

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

21

 

 

 

13

 

 

 

76

 

 

 

110

 

 

 

369,049

 

 

 

1,988

 

 

 

371,147

 

 

 

—

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

1,164

 

 

 

1,164

 

 

 

1,017,453

 

 

 

119

 

 

 

1,018,736

 

 

 

—

 

Residential Real Estate

 

 

3,133

 

 

 

857

 

 

 

1,107

 

 

 

5,097

 

 

 

546,270

 

 

 

1,414

 

 

 

552,781

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

219

 

 

 

219

 

 

 

242,908

 

 

 

—

 

 

 

243,127

 

 

 

—

 

Farm Real Estate

 

 

7

 

 

 

—

 

 

 

—

 

 

 

7

 

 

 

24,701

 

 

 

—

 

 

 

24,708

 

 

 

—

 

Lease Financing Receivables

 

 

1,040

 

 

 

—

 

 

 

341

 

 

 

1,381

 

 

 

35,416

 

 

 

—

 

 

 

36,797

 

 

 

—

 

Consumer and Other

 

 

293

 

 

 

49

 

 

 

74

 

 

 

416

 

 

 

20,358

 

 

 

1

 

 

 

20,775

 

 

 

—

 

Total

 

$

4,741

 

 

$

997

 

 

$

3,515

 

 

$

9,253

 

 

$

2,533,028

 

 

$

4,385

 

 

$

2,546,666

 

 

$

—

 

 
Summary of Nonaccrual Loans Excluding PCI Loans

The following table presents loans on nonaccrual status as of March 31, 2023.

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans with a related ACL

 

 

Nonaccrual loans without a related ACL

 

 

Total Nonaccrual loans

 

 

Interest Income Recognized

 

Commercial & Agriculture

 

$

12

 

 

$

945

 

 

$

957

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

—

 

 

 

358

 

 

 

358

 

 

 

3

 

Non-Owner Occupied

 

 

—

 

 

 

1,294

 

 

 

1,294

 

 

 

—

 

Residential Real Estate

 

 

—

 

 

 

3,892

 

 

 

3,892

 

 

 

29

 

Real Estate Construction

 

 

—

 

 

 

217

 

 

 

217

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

61

 

 

 

61

 

 

 

—

 

Consumer and Other

 

 

77

 

 

 

124

 

 

 

201

 

 

 

—

 

Total

 

$

89

 

 

$

6,891

 

 

$

6,980

 

 

$

32

 

 

The following table presents loans on nonaccrual status as of December 31, 2022, excluding PCI loans.

 

 

 

December 31, 2022

 

Commercial & Agriculture

 

$

774

 

Commercial Real Estate:

 

 

 

Owner Occupied

 

 

386

 

Non-Owner Occupied

 

 

1,109

 

Residential Real Estate

 

 

3,926

 

Real Estate Construction

 

 

221

 

Farm Real Estate

 

 

—

 

Lease Financing Receivables

 

 

—

 

Consumer and Other

 

 

91

 

Total

 

$

6,507

 
Schedule of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated Expected Credit Losses and Related Allowance for Credit Losses

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans.

 

March 31, 2023

 

Real Estate

 

 

Other

 

 

Allowance for Credit Losses

 

Commercial & Agriculture

 

$

49

 

 

$

116

 

 

$

12

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

Residential Real Estate

 

 

689

 

 

 

—

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

 

 

—

 

Consumer and Other

 

 

—

 

 

 

77

 

 

 

77

 

Total

 

$

738

 

 

$

193

 

 

$

89

 
Impaired Loans Excluding PCI Loans

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, as of December 31, 2022, excluding PCI loans.

 

 

 

December 31, 2022

 

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Average Recorded
Investment

 

 

Interest
Income
Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

$

—

 

 

$

—

 

 

 

 

 

$

86

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

82

 

 

 

82

 

 

 

 

 

 

192

 

 

 

6

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

 

 

 

35

 

 

 

—

 

Residential Real Estate

 

 

385

 

 

 

410

 

 

 

 

 

 

595

 

 

 

40

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

 

 

 

381

 

 

 

14

 

Total

 

 

467

 

 

 

492

 

 

 

 

 

 

1,289

 

 

 

60

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

 

—

 

 

 

—

 

 

$

—

 

 

 

—

 

 

 

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

150

 

 

 

150

 

 

 

6

 

 

 

214

 

 

 

—

 

Residential Real Estate

 

 

7

 

 

 

11

 

 

 

1

 

 

 

19

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

157

 

 

 

161

 

 

 

7

 

 

 

233

 

 

 

—

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Agriculture

 

 

—

 

 

 

—

 

 

 

—

 

 

 

86

 

 

 

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

232

 

 

 

232

 

 

 

6

 

 

 

406

 

 

 

6

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35

 

 

 

—

 

Residential Real Estate

 

 

392

 

 

 

421

 

 

 

1

 

 

 

614

 

 

 

40

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

381

 

 

 

14

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

624

 

 

$

653

 

 

$

7

 

 

$

1,522

 

 

$

60

 

 

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three-month periods ended March 31, 2022.

 

 

 

March 31, 2022

 

For the three months ended

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

Commercial & Agriculture

 

$

—

 

 

$

—

 

Commercial Real Estate—Owner Occupied

 

 

193

 

 

 

3

 

Commercial Real Estate—Non-Owner Occupied

 

 

—

 

 

 

—

 

Residential Real Estate

 

 

530

 

 

 

7

 

Farm Real Estate

 

 

514

 

 

 

6

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

Consumer and Other

 

 

—

 

 

 

—

 

Total

 

$

1,237

 

 

$

16

 

 
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Accretion Table Text Block

Changes in the accretable yield for PCI loans as of March 31, 2022 were as follows, since acquisition:

 

 

 

For the
Three-Month
Period Ended
March 31, 2022

 

 

 

(In Thousands)

 

Balance at beginning of period

 

$

217

 

Acquisition of PCI loans

 

 

—

 

Accretion

 

 

(16

)

Transfer from non-accretable to accretable

 

 

15

 

Balance at end of period

 

$

216

 

 

The Company has acquired loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Upon the Company's adoption of ASU 2016-13, remaining credit-related discount on these assets were re-classified to the allowance for credit losses. The Company elected the prospective transition approach and all loans previously considered purchased credit impaired are now classified as purchased with credit deterioration. The remaining non-credit discount will continue to be accreted into income over the remining lives of the assets.
Schedule of Loans Acquired and Accounted The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 as of December 31, 2022:

 

 

 

At December 31, 2022

 

 

 

Acquired Loans with
Specific Evidence of
Deterioration of Credit
Quality (ASC 310-30)

 

 

 

(In Thousands)

 

Outstanding balance

 

$

5,220

 

Carrying amount

 

 

4,386

 
Schedule Of Allowance For Credit Losses On Off-balance Sheet Credit Exposures

The following table lists the allowance for credit losses on off-balance sheet credit exposures as of March 31, 2023:

 

 

Allowance for

 

March 31, 2023

 

Credit Losses

 

Commercial & Agriculture

 

$

648

 

Commercial Real Estate:

 

 

 

Owner Occupied

 

 

91

 

Non-Owner Occupied

 

 

159

 

Residential Real Estate

 

 

486

 

Real Estate Construction

 

 

2,143

 

Farm Real Estate

 

 

26

 

Lease Financing Receivables

 

 

—

 

Consumer and Other

 

 

34

 

Total allowance for credit losses

 

$

3,587