Loans and Leases

3 Months Ended

Mar. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases at March 31, 2023 and December 31, 2022 were as follows:


(In thousands)	03/31/2023		12/31/2022
Commercial and industrial
Agriculture	$	65,223	$	85,073
Commercial and industrial other	673,104		705,700
PPP loans*	686		756
Subtotal commercial and industrial	739,013		791,529
Commercial real estate
Construction	219,789		201,116
Agriculture	214,014		214,963
Commercial real estate other	2,476,532		2,437,339
Subtotal commercial real estate	2,910,335		2,853,418
Residential real estate
Home equity	183,636		188,623
Mortgages	1,342,214		1,346,318
Subtotal residential real estate	1,525,850		1,534,941
Consumer and other
Indirect	1,783		2,224
Consumer and other	83,775		75,412
Subtotal consumer and other	85,558		77,636
Leases	18,016		16,134
Total loans and leases	5,278,772		5,273,658
Less: unearned income and deferred costs and fees	(5,101)		(4,747)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,273,671	$	5,268,911
*SBA Paycheck Protection Program ("PPP")

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. Management reviews these policies and procedures on a regular basis. The Company discussed its lending policies and underwriting guidelines for its various lending portfolios in Note 3 – "Loans and Leases" in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in these policies and guidelines since the date of that report. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan origination, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments are due. Generally loans are placed on nonaccrual status if principal or interest payments become 90 days or more contractually past due and/or management deems the collectability of the principal and/or interest to be in question as well as when required by regulatory agencies. When interest accrual is discontinued, all unpaid accrued interest is reversed. Payments received on loans on nonaccrual are generally applied to reduce the principal balance of the loan. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has established a payment history, and future payments are reasonably assured. When management determines that the collection of principal in full is not probable, management will charge-off a partial amount or full amount of the loan balance. Management considers specific facts and circumstances relative to each individual credit in making such a determination. For residential and consumer loans, management uses specific regulatory guidance and thresholds for determining charge-offs.

The below tables are an age analysis of past due loans, segregated by class of loans as of March 31, 2023 and December 31, 2022:


March 31, 2023
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	152	$	0	$	0	$	152	$	65,071	$	65,223
Commercial and industrial other	2,586		46		371		3,003		670,101		673,104
PPP loans*	0		0		0		0		686		686
Subtotal commercial and industrial	2,738		46		371		3,155		735,858		739,013
Commercial real estate
Construction	0		0		0		0		219,789		219,789
Agriculture	170		0		0		170		213,844		214,014
Commercial real estate other	0		0		10,037		10,037		2,466,495		2,476,532
Subtotal commercial real estate	170		0		10,037		10,207		2,900,128		2,910,335
Residential real estate
Home equity	512		400		1,426		2,338		181,298		183,636
Mortgages	1,741		30		6,505		8,276		1,333,938		1,342,214
Subtotal residential real estate	2,253		430		7,931		10,614		1,515,236		1,525,850
Consumer and other
Indirect	56		11		41		108		1,675		1,783
Consumer and other	120		70		104		294		83,481		83,775
Subtotal consumer and other	176		81		145		402		85,156		85,558
Leases	0		0		0		0		18,016		18,016
Total loans and leases	5,337		557		18,484		24,378		5,254,394		5,278,772
Less: unearned income and deferred costs and fees	0		0		0		0		(5,101)		(5,101)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,337	$	557	$	18,484	$	24,378	$	5,249,293	$	5,273,671
*SBA Paycheck Protection Program ("PPP")


December 31, 2022
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	58	$	0	$	0	$	58	$	85,015	$	85,073
Commercial and industrial other	50		381		82		513		705,187		705,700
PPP loans*	0		0		0		0		756		756
Subtotal commercial and industrial	108		381		82		571		790,958		791,529
Commercial real estate
Construction	0		0		0		0		201,116		201,116
Agriculture	128		0		0		128		214,835		214,963
Commercial real estate other	0		0		11,449		11,449		2,425,890		2,437,339
Subtotal commercial real estate	128		0		11,449		11,577		2,841,841		2,853,418
Residential real estate
Home equity	435		204		1,628		2,267		186,356		188,623
Mortgages	1,748		0		6,802		8,550		1,337,768		1,346,318
Subtotal residential real estate	2,183		204		8,430		10,817		1,524,124		1,534,941
Consumer and other
Indirect	66		31		53		150		2,074		2,224
Consumer and other	52		19		112		183		75,229		75,412
Subtotal consumer and other	118		50		165		333		77,303		77,636
Leases	0		0		0		0		16,134		16,134
Total loans and leases	2,537		635		20,126		23,298		5,250,360		5,273,658
Less: unearned income and deferred costs and fees	0		0		0		0		(4,747)		(4,747)
Total loans and leases, net of unearned income and deferred costs and fees	$	2,537	$	635	$	20,126	$	23,298	$	5,245,613	$	5,268,911
*SBA Paycheck Protection Program ("PPP")

The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses. The below tables are an age analysis of nonaccrual loans segregated by class of loans, as of March 31, 2023 and December 31, 2022:


March 31, 2023
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	17	$	0
Commercial and industrial other	0		906		0

Subtotal commercial and industrial	0		923		0
Commercial real estate

Agriculture	0		183		0
Commercial real estate other	10,547		12,197		0
Subtotal commercial real estate	10,547		12,380		0
Residential real estate
Home equity	0		2,547		0
Mortgages	181		12,322		0
Subtotal residential real estate	181		14,869		0
Consumer and other
Indirect	0		78		0
Consumer and other	0		174		13
Subtotal consumer and other	0		252		13

Total loans and leases	$	10,728	$	28,424	$	13


December 31, 2022
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial

Commercial and industrial other	$	411	$	618	$	25

Subtotal commercial and industrial	411		618		25
Commercial real estate


Agriculture	186		186		0
Commercial real estate other	13,101		13,672		0
Subtotal commercial real estate	13,287		13,858		0
Residential real estate
Home equity	318		2,391		0
Mortgages	1,177		11,153		0
Subtotal residential real estate	1,495		13,544		0
Consumer and other
Indirect	0		94		0
Consumer and other	0		175		0
Subtotal consumer and other	0		269		0

Total loans and leases	$	15,193	$	28,289	$	25

The Company recognized $0 of interest income on nonaccrual loans during the three months ended March 31, 2023.