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Loans (Tables)

3 Months Ended

Mar. 31, 2021

Loan balances as of March 31, 2021 and December 31, 2020 are summarized below:

	(In Thousands)
Loans:	March 31, 2021			December 31, 2020
Consumer Real Estate	$	175,675		$	175,588
Agricultural Real Estate		179,945			189,159
Agricultural		100,022			94,358
Commercial Real Estate		618,754			588,825
Commercial and Industrial		202,958			189,246
Consumer		54,445			52,540
Other		14,088			15,757
		1,345,887			1,305,473
Less: Net deferred loan fees and costs		(4,208	)		(2,483	)
		1,341,679			1,302,990
Less: Allowance for loan losses		(14,425	)		(13,672	)
Loans - Net	$	1,327,254		$	1,289,318

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of March 31, 2021:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	127,467	$	48,208
Agricultural Real Estate		105,009		74,936
Agricultural		87,924		12,098
Commercial Real Estate		492,252		126,502
Commercial and Industrial		172,598		30,360
Consumer		50,558		3,887
Other		14,084		4

Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment (in thousands) in past due loans by portfolio classification of loans as of March 31, 2021 and December 31, 2020, net of deferred loan fees and costs:

March 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	284	$	-	$	1,019	$	1,303	$	174,178	$	175,481	$	-
Agricultural Real Estate		-		-		88		88		179,551		179,639		-
Agricultural		-		-		-		-		100,147		100,147		-
Commercial Real Estate		-		-		183		183		617,329		617,512		-
Commercial and Industrial		-		-		794		794		213,547		214,341		-
Consumer		6		1		-		7		54,552		54,559		-
Total	$	290	$	1	$	2,084	$	2,375	$	1,339,304	$	1,341,679	$	-

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	269	$	191	$	1,032	$	1,492	$	173,824	$	175,316	$	-
Agricultural Real Estate		-		-		88		88		188,738		188,826		-
Agricultural		-		-		176		176		94,314		94,490		-
Commercial Real Estate		-		-		185		185		587,469		587,654		-
Commercial and Industrial		-		750		983		1,733		202,310		204,043		-
Consumer		53		-		-		53		52,608		52,661		-
Total	$	322	$	941	$	2,464	$	3,727	$	1,299,263	$	1,302,990	$	-

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by class of loans as of March 31, 2021 and December 31, 2020:

	(In Thousands)
	March 31, 2021		December 31, 2020

Consumer Real Estate	$	1,370	$	1,546
Agricultural Real Estate		5,195		5,575
Agricultural		-		307
Commercial Real Estate		663		665
Commercial & Industrial		898		1,296
Consumer		13		15
Total	$	8,139	$	9,404

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of March 31, 2021 and December 31, 2020:

	(In Thousands)
	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
March 31, 2021
1-2	$	12,001	$	1,637	$	10,731	$	53,577	$	-
3		33,850		26,549		163,758		24,926		3,295
4		111,704		70,589		422,632		114,991		10,793
5		7,188		1,319		4,363		2,839		-
6		14,896		53		16,028		3,788		-
7		-		-		-		132		-
8		-		-		-		-		-
Total	$	179,639	$	100,147	$	617,512	$	200,253	$	14,088

	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
December 31, 2020
1-2	$	11,960	$	5,093	$	11,001	$	38,486	$	-
3		38,306		23,779		165,201		26,515		4,651
4		112,465		63,480		396,076		114,108		11,106
5		7,478		1,577		4,010		3,266		-
6		18,617		561		11,366		4,796		-
7		-		-		-		1,115		-
8		-		-		-		-		-
Total	$	188,826	$	94,490	$	587,654	$	188,286	$	15,757

Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of March 31, 2021 and December 31, 2020.

	(In Thousands)
	Consumer		Consumer
	Real Estate		Real Estate
	March 31, 2021		December 31, 2020
Grade
Pass	$	172,062	$	171,667
Special Mention (5)		1,265		1,284
Substandard (6)		2,154		2,365
Doubtful (7)		-		-
Total	$	175,481	$	175,316

	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Performing	$	3,299	$	3,660	$	51,134	$	48,855
Nonperforming		11		10		115		136
Total	$	3,310	$	3,670	$	51,249	$	48,991

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2021, December 31, 2020 and March 31, 2020 are as follows:

			(In Thousands)
	March 31, 2021		December 31, 2020		March 31, 2020

Impaired loans without a valuation allowance	$	6,604	$	5,172	$	1,393
Impaired loans with a valuation allowance		5,532		9,360		4,795
Total impaired loans	$	12,136	$	14,532	$	6,188
Valuation allowance related to impaired loans	$	1,109	$	1,657	$	766
Total non-accrual loans	$	8,139	$	9,404	$	3,344
Total loans past-due ninety days or more and still accruing	$	-	$	-	$	-
Quarter ended average investment in impaired loans	$	13,467	$	14,868	$	4,314
Year to date average investment in impaired loans	$	13,467	$	10,234	$	4,314

Impaired Loans Classified as Troubled Debt Restructured

The following tables represents three months ended March 31, 2021 and 2020:

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2021	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Consumer Real Estate		-	$	-	$	-

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2020	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Consumer Real Estate		2	$	981	$	981

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for the three months ended March 31, 2021 and March 31, 2020 and for the year ended December 31, 2020.

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2021			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	817	$	817	$	-	$	508	$	1	$	2
Agricultural Real Estate		1,526		1,526		-		1,531		23		-
Agricultural		-		-		-		168		-		-
Commercial Real Estate		2,905		2,905		-		2,306		31		3
Commercial and Industrial		1,335		1,467		-		1,793		17		1
Consumer		21		21		-		21		-		-
With a specific allowance recorded:
Consumer Real Estate		134		134		23		179		-		2
Agricultural Real Estate		5,106		5,106		1,086		5,160		-		-
Agricultural		292		292		-		214		4		-
Commercial Real Estate		-		-		-		917		-		-
Commercial and Industrial		-		-		-		670		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	951	$	951	$	23	$	687	$	1	$	4
Agricultural Real Estate	$	6,632	$	6,632	$	1,086	$	6,691	$	23	$	-
Agricultural	$	292	$	292	$	-	$	382	$	4	$	-
Commercial Real Estate	$	2,905	$	2,905	$	-	$	3,223	$	31	$	3
Commercial and Industrial	$	1,335	$	1,467	$	-	$	2,463	$	17	$	1
Consumer	$	21	$	21	$	-	$	21	$	-	$	-

	(In Thousands)
											Interest
Year Ended December 31, 2020			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	799	$	799	$	-	$	738	$	22	$	10
Agricultural Real Estate		1,546		1,549		-		729		18		12
Agricultural		291		291		-		392		3		3
Commercial Real Estate		185		185		-		195		13		-
Commercial and Industrial		2,328		2,328		-		1,222		26		5
Consumer		23		23		-		16		-		-
With a specific allowance recorded:
Consumer Real Estate		202		202		31		126		-		3
Agricultural Real Estate		5,210		5,210		600		3,175		6		102
Agricultural		176		176		116		188		-		-
Commercial Real Estate		2,765		2,765		20		2,524		128		-
Commercial and Industrial		1,007		1,007		890		916		52		-
Consumer		-		-		-		11		1		-
Totals:
Consumer Real Estate	$	1,001	$	1,001	$	31	$	864	$	22	$	13
Agricultural Real Estate	$	6,756	$	6,759	$	600	$	3,904	$	24	$	114
Agricultural	$	467	$	467	$	116	$	580	$	3	$	3
Commercial Real Estate	$	2,950	$	2,950	$	20	$	2,719	$	141	$	-
Commercial and Industrial	$	3,335	$	3,335	$	890	$	2,138	$	78	$	5
Consumer	$	23	$	23	$	-	$	27	$	1	$	-

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2020			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	644	$	644	$	-	$	649	$	5	$	4
Agricultural Real Estate		30		30		-		291		3		-
Agricultural		348		348		-		386		5		-
Commercial Real Estate		186		186		-		224		3		-
Commercial and Industrial		154		154		-		699		12		-
Consumer		31		31		-		10		-		-
With a specific allowance recorded:
Consumer Real Estate		194		194		34		212		-		-
Agricultural Real Estate		92		92		15		93		2		-
Agricultural		121		121		12		121		-		-
Commercial Real Estate		3,109		3,109		95		1,036		39		-
Commercial and Industrial		1,279		1,429		610		572		7		-
Consumer		-		-		-		21		-		-
Totals:
Consumer Real Estate	$	838	$	838	$	34	$	861	$	5	$	4
Agricultural Real Estate	$	122	$	122	$	15	$	384	$	5	$	-
Agricultural	$	469	$	469	$	12	$	507	$	5	$	-
Commercial Real Estate	$	3,295	$	3,295	$	95	$	1,260	$	42	$	-
Commercial and Industrial	$	1,433	$	1,583	$	610	$	1,271	$	19	$	-
Consumer	$	31	$	31	$	-	$	31	$	-	$	-

Summary of Activities in Allowance for Credit Losses

The following tables summarize the activities in the allowance for credit losses.

	(In Thousands)
	Three Months Ended			Twelve Months Ended
	March 31, 2021			December 31, 2020
Allowance for Loan & Lease Losses
Balance at beginning of year	$	13,672		$	7,228
Provision for loan loss		1,700			6,981
Loans charged off		(1,013	)		(720	)
Recoveries		66			183
Allowance for Loan & Lease Losses	$	14,425		$	13,672
Allowance for Unfunded Loan Commitments & Letters of Credit	$	1,052		$	641
Total Allowance for Credit Losses	$	15,477		$	14,313

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for the three months ended March 31, 2021 and March 31, 2020 in addition to the ending balances as of December 31, 2020 is as follows:

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
Three Months Ended March 31, 2021
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	633		$	958	$	701		$	7,415	$	3,346		$	606		$	641	$	13	$	14,313
Charge Offs		-			-		(142	)		-		(809	)		(62	)		-		-		(1,013	)
Recoveries		3			-		-			2		5			56			-		-		66
Provision (Credit)		(12	)		428		57			251		66			(5	)		-		915		1,700
Other Non-interest expense related to unfunded		-			-		-			-		-			-			411		-		411
Ending Balance	$	624		$	1,386	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	15,477
Ending balance: individually evaluated for impairment	$	23		$	1,086	$	-		$	-	$	-		$	-		$	-	$	-	$	1,109
Ending balance: collectively evaluated for impairment	$	601		$	300	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	14,368
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-		$	-		$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	175,481		$	179,639	$	100,147		$	617,512	$	214,341		$	54,559		$	-	$	-	$	1,341,679
Ending balance: individually evaluated for impairment	$	951		$	6,632	$	292		$	2,905	$	1,335		$	21		$	-	$	-	$	12,136
Ending balance: collectively evaluated for impairment	$	174,489		$	173,007	$	99,855		$	614,607	$	212,927		$	54,538		$	-	$	-	$	1,329,423
Ending balance: loans acquired with deteriorated credit quality	$	41		$	-	$	-		$	-	$	79		$	-		$	-	$	-	$	120

December 31, 2020	Consumer Real Estate		Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Consumer		Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
ALLOWANCE FOR CREDIT LOSSES:
Ending Balance	$	633	$	958	$	701	$	7,415	$	3,346	$	606	$	641	$	13	$	14,313
Ending balance: individually evaluated for impairment	$	31	$	600	$	116	$	20	$	890	$	-	$	-	$	-	$	1,657
Ending balance: collectively evaluated for impairment	$	602	$	358	$	585	$	7,395	$	2,456	$	606	$	641	$	13	$	12,656
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	175,316	$	188,826	$	94,490	$	587,654	$	204,043	$	52,661	$	-	$	-	$	1,302,990
Ending balance: individually evaluated for impairment	$	1,001	$	6,756	$	467	$	2,950	$	3,335	$	23	$	-	$	-	$	14,532
Ending balance: collectively evaluated for impairment	$	174,273	$	182,070	$	94,023	$	584,704	$	200,602	$	52,638	$	-	$	-	$	1,288,310
Ending balance: loans acquired with deteriorated credit quality	$	42	$	-	$	-	$	-	$	106	$	-	$	-	$	-	$	148

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate		Commercial and Industrial		Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated		Total
Three Months Ended March 31, 2020
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	311		$	314	$	691		$	3,634	$	1,727	$	551		$	479		$	-	$	7,707
Charge Offs		(35	)		-		-			-		-		(129	)		-			-		(164	)
Recoveries		3			-		-			3		3		30			-			-		39
Provision (Credit)		66			13		(26	)		236		1,020		81			-			40		1,430
Other Non-interest expense related to unfunded		-			-		-			-		-		-			(9	)		-		(9	)
Ending Balance	$	345		$	327	$	665		$	3,873	$	2,750	$	533		$	470		$	40	$	9,003
Ending balance: individually evaluated for impairment	$	34		$	15	$	12		$	95	$	610	$	-		$	-		$	-	$	766
Ending balance: collectively evaluated for impairment	$	311		$	312	$	653		$	3,778	$	2,140	$	533		$	470		$	40	$	8,237
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-	$	-		$	-		$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	173,976		$	194,130	$	109,707		$	568,991	$	151,647	$	49,190		$	-		$	-	$	1,247,641
Ending balance: individually evaluated for impairment	$	838		$	122	$	469		$	3,295	$	1,433	$	31		$	-		$	-	$	6,188
Ending balance: collectively evaluated for impairment	$	173,093		$	194,008	$	109,238		$	565,696	$	150,111	$	49,159		$	-		$	-	$	1,241,305
Ending balance: loans acquired with deteriorated credit quality	$	45		$	-	$	-		$	-	$	103	$	-		$	-		$	-	$	148