Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2021

Changes in the Allowance for Loan Losses

The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three months ended March 31, 2021 and March 31, 2020.

Allowance for loan losses:

For the three months ended March 31, 2021	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,810	$	—		$	145	$	(595	)	$	2,360
Commercial Real Estate:
Owner Occupied		4,057		—			6		(14	)		4,049
Non-Owner Occupied		12,451		—			7		751			13,209
Residential Real Estate		2,484		(37	)		142		(80	)		2,509
Real Estate Construction		2,439		—			1		462			2,902
Farm Real Estate		338		—			3		(58	)		283
Consumer and Other		209		(9	)		17		(47	)		170
Unallocated		240		—			—		411			651
Total	$	25,028	$	(46	)	$	321	$	830		$	26,133

Allowance for loan losses:

For the three months ended March 31, 2020	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,219	$	—		$	1	$	180		$	2,400
Commercial Real Estate:
Owner Occupied		2,541		—			7		262			2,810
Non-Owner Occupied		6,584		—			3		1,030			7,617
Residential Real Estate		1,582		(23	)		48		343			1,950
Real Estate Construction		1,250		—			1		355			1,606
Farm Real Estate		344		—			2		(36	)		310
Consumer and Other		247		(1	)		17		(17	)		246
Unallocated		—		—			—		9			9
Total	$	14,767	$	(24	)	$	79	$	2,126		$	16,948

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of March 31, 2021 and December 31, 2020.

March 31, 2021	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,360	$	2,360
Commercial Real Estate:
Owner Occupied		—		5		4,044		4,049
Non-Owner Occupied		—		—		13,209		13,209
Residential Real Estate		—		29		2,480		2,509
Real Estate Construction		—		—		2,902		2,902
Farm Real Estate		—		—		283		283
Consumer and Other		—		—		170		170
Unallocated		—		—		651		651
Total	$	—	$	34	$	26,099	$	26,133
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	419,666	$	419,666
Commercial Real Estate:
Owner Occupied		—		309		274,438		274,747
Non-Owner Occupied		—		39		723,617		723,656
Residential Real Estate		338		568		430,600		431,506
Real Estate Construction		—		—		171,121		171,121
Farm Real Estate		—		605		27,438		28,043
Consumer and Other		—		—		11,500		11,500
Total	$	338	$	1,521	$	2,058,380	$	2,060,239

December 31, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	73	$	2,737	$	2,810
Commercial Real Estate:
Owner Occupied		—		5		4,052		4,057
Non-Owner Occupied		—		—		12,451		12,451
Residential Real Estate		—		29		2,455		2,484
Real Estate Construction		—		—		2,439		2,439
Farm Real Estate		—		—		338		338
Consumer and Other		—		—		209		209
Unallocated		—		—		240		240
Total	$	—	$	107	$	24,921	$	25,028
Outstanding loan balances:
Commercial & Agriculture	$	—	$	74	$	409,802	$	409,876
Commercial Real Estate:
Owner Occupied		—		980		277,433		278,413
Non-Owner Occupied		—		48		705,024		705,072
Residential Real Estate		388		946		441,254		442,588
Real Estate Construction		—		—		175,609		175,609
Farm Real Estate		—		618		32,484		33,102
Consumer and Other		—		—		12,842		12,842
Total	$	388	$	2,666	$	2,054,448	$	2,057,502

Credit Exposures by Internally Assigned Grades

March 31, 2021	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	412,059	$	4,041	$	3,566	$	—	$	419,666
Commercial Real Estate:
Owner Occupied		243,868		20,740		10,139		—		274,747
Non-Owner Occupied		622,125		59,121		42,410		—		723,656
Residential Real Estate		80,306		961		4,865		—		86,132
Real Estate Construction		156,299		282		1,073		—		157,654
Farm Real Estate		25,609		275		2,159		—		28,043
Consumer and Other		690		—		26		—		716
Total	$	1,540,956	$	85,420	$	64,238	$	—	$	1,690,614

December 31, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	401,636	$	4,472	$	3,768	$	—	$	409,876
Commercial Real Estate:
Owner Occupied		248,316		19,429		10,668		—		278,413
Non-Owner Occupied		604,909		58,270		41,893		—		705,072
Residential Real Estate		81,409		668		5,524		—		87,601
Real Estate Construction		158,207		962		492		—		159,661
Farm Real Estate		30,486		216		2,400		—		33,102
Consumer and Other		833		—		33		—		866
Total	$	1,525,796	$	84,017	$	64,778	$	—	$	1,674,591

Performing and Nonperforming Loans

Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

March 31, 2021	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	345,374	$	13,467	$	10,784	$	369,625
Nonperforming		—		—		—		—
Total	$	345,374	$	13,467	$	10,784	$	369,625

December 31, 2020	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	354,987	$	15,948	$	11,976	$	382,911
Nonperforming		—		—		—		—
Total	$	354,987	$	15,948	$	11,976	$	382,911

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, 2021 and December 31, 2020.

March 31, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	45	$	15	$	46	$	106	$	419,560	$	—	$	419,666	$	—
Commercial Real Estate:
Owner Occupied		20		19		97		136		274,611		—		274,747		—
Non-Owner Occupied		761		—		5		766		722,890		—		723,656		—
Residential Real Estate		1,140		286		592		2,018		429,150		338		431,506		—
Real Estate Construction		—		—		—		—		171,121		—		171,121		—
Farm Real Estate		—		132		—		132		27,911		—		28,043		—
Consumer and Other		27		—		11		38		11,462		—		11,500		—
Total	$	1,993	$	452	$	751	$	3,196	$	2,056,705	$	338	$	2,060,239	$	—

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	117	$	25	$	50	$	192	$	409,684	$	—	$	409,876	$	—
Commercial Real Estate:
Owner Occupied		—		4		102		106		278,307		—		278,413		—
Non-Owner Occupied		—		—		6		6		705,066		—		705,072		—
Residential Real Estate		1,059		867		1,314		3,240		438,960		388		442,588		—
Real Estate Construction		—		—		—		—		175,609		—		175,609		—
Farm Real Estate		—		—		4		4		33,098		—		33,102		—
Consumer and Other		59		1		16		76		12,766		—		12,842		—
Total	$	1,235	$	897	$	1,492	$	3,624	$	2,053,490	$	388	$	2,057,502	$	—

Summary of Nonaccrual Loans Excluding Purchased Credit-Impaired (PCI) Loans

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of March 31, 2021 and December 31, 2020.

	March 31, 2021		December 31, 2020
Commercial & Agriculture	$	61	$	139
Commercial Real Estate:
Owner Occupied		647		964
Non-Owner Occupied		5		6
Residential Real Estate		3,318		3,893
Real Estate Construction		7		7
Farm Real Estate		70		85
Consumer and Other		24		31
Total	$	4,132	$	5,125

Impaired Loans Excluding Purchased-Credit Impaired ("PCI") Loans

The following table includes the recorded investment and unpaid principal balances for impaired loans, excluding purchased-credit impaired (“PCI”) loans, with the associated allowance amount, if applicable, as of March 31, 2021 and December 31, 2020.

	March 31, 2021						December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial Real Estate:
Owner Occupied	$	92	$	92			$	757	$	757
Non-Owner Occupied		39		39				48		48
Residential Real Estate		537		562				915		940
Farm Real Estate		605		605				618		618
Total		1,273		1,298				2,338		2,363
With an allowance recorded:
Commercial & Agriculture		—		—	$	—		74		74	$	73
Commercial Real Estate:
Owner Occupied		217		217		5		223		223		5
Residential Real Estate		31		35		29		31		35		29
Total		248		252		34		328		332		107
Total:
Commercial & Agriculture		—		—		—		74		74		73
Commercial Real Estate:
Owner Occupied		309		309		5		980		980		5
Non-Owner Occupied		39		39		—		48		48		—
Residential Real Estate		568		597		29		946		975		29
Farm Real Estate		605		605		—		618		618		—
Total	$	1,521	$	1,550	$	34	$	2,666	$	2,695	$	107

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three-month period ended March 31, 2021 and 2020.

	March 31, 2021				March 31, 2020
For the three months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	37	$	—	$	183	$	4
Commercial Real Estate—Owner Occupied		644		6		421		7
Commercial Real Estate—Non-Owner Occupied		43		1		372		5
Residential Real Estate		758		8		1,753		13
Farm Real Estate		611		6		666		7
Total	$	2,093	$	21	$	3,395	$	36

Schedule of Changes in Accretable Yield for PCI Loans

Changes in the accretable yield for PCI loans were as follows, since acquisition: 

	For the Three-Month Period Ended March 31, 2021			For the Three-Month Period Ended March 31, 2020
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	225		$	255
Acquisition of PCI loans		—			—
Accretion		(1	)		(162	)
Transfer from non-accretable to accretable		—			113
Balance at end of period	$	224		$	206

Schedule of Loans Acquired and Accounted

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At March 31, 2021		At December 31, 2020
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)		Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	637	$	687
Carrying amount		338		388

CARES Act [Member]

Schedule of Loan Modifications

Details with respect to loan modifications that remain on deferred status are as follows:

	Number of				Percent of
Type of Loan	Loans		Balance		Loans Outstanding
			(In thousands)
Commercial & Agriculture		21	$	4,514		0.22	%
Commercial Real Estate:
Owner Occupied		8		10,876		0.53	%
Non-Owner Occupied		18		48,882		2.37	%
Residential Real Estate		3		5,903		0.29	%
Real Estate Construction		1		485		0.02	%
Total		51	$	70,660		3.43	%