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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of Loans by Risk Rating
Below is a summary of originated and acquired loans by type and risk rating as of March 31, 2021:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$363,758 $764 $1,081 $— $— $365,603 
Agricultural real estate36,439 522 1,179 — — 38,140 
Multi-family real estate111,199 304 — — — 111,503 
Construction and land development80,458 — 3,478 — — 83,936 
C&I/Agricultural operating:
Commercial and industrial72,355 317 4,021 — — 76,693 
Agricultural operating20,003 1,045 101 — — 21,149 
Residential mortgage:
Residential mortgage78,764 — 3,521 — — 82,285 
Purchased HELOC loans5,057 — 234 — — 5,291 
Consumer installment:
Originated indirect paper23,024 — 162 — — 23,186 
Other consumer10,906 — 45 — — 10,951 
Originated loans before SBA PPP loans801,963 2,952 13,822 — — 818,737 
 SBA PPP loans118,931 — — — — 118,931 
Total originated loans$920,894 $2,952 $13,822 $— $— $937,668 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$135,059 $10,494 $4,033 $— $— $149,586 
Agricultural real estate27,041 — 5,386 — — 32,427 
Multi-family real estate7,485 — — — — 7,485 
Construction and land development6,553 204 39 — — 6,796 
C&I/Agricultural operating:
Commercial and industrial18,865 9 366 — — 19,240 
Agricultural operating6,754 — 347 — — 7,101 
Residential mortgage:
Residential mortgage37,982 — 2,064 — — 40,046 
Consumer installment:
Other consumer906 — 7 — — 913 
Total acquired loans$240,645 $10,707 $12,242 $— $— $263,594 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$498,817 $11,258 $5,114 $— $— $515,189 
Agricultural real estate63,480 522 6,565 — — 70,567 
Multi-family real estate118,684 304 — — — 118,988 
Construction and land development87,011 204 3,517 — — 90,732 
Commercial/Agricultural non-real estate:
Commercial and industrial91,220 326 4,387 — — 95,933 
Agricultural operating26,757 1,045 448 — — 28,250 
Residential mortgage:
Residential mortgage116,746 — 5,585 — — 122,331 
Purchased HELOC loans5,057 — 234 — — 5,291 
Consumer installment:
Originated indirect paper23,024 — 162 — — 23,186 
Other Consumer11,812 — 52 — — 11,864 
Gross loans before SBA PPP Loans1,042,608 13,659 26,064 — — 1,082,331 
SBA PPP loans118,931 — — — — $118,931 
Gross loans$1,161,539 $13,659 $26,064 $— $— $1,201,262 
Less:
Unearned net deferred fees and costs and loans in process(4,487)
Unamortized discount on acquired loans(4,649)
Allowance for loan losses(16,860)
Loans receivable, net$1,175,266 
Below is a summary of originated and acquired loans by type and risk rating as of December 31, 2020:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$349,482 $543 $1,088 $— $— $351,113 
Agricultural real estate30,041 446 1,254 — — 31,741 
Multi-family real estate112,423 308 — — — 112,731 
Construction and land development87,763 — 3,478 — — 91,241 
C&I/Agricultural operating:
Commercial and industrial91,474 20 3,796 — — 95,290 
Agricultural operating22,462 934 1,061 — — 24,457 
Residential mortgage:
Residential mortgage82,097 7 4,179 — — 86,283 
Purchased HELOC loans5,959 — 301 — — 6,260 
Consumer installment:
Originated indirect paper25,616 — 235 — — 25,851 
Other Consumer11,986 — 70 — — 12,056 
Originated loans before SBA PPP loans819,303 2,258 15,462 — — 837,023 
SBA PPP loans123,702 — — — — 123,702 
Total originated loans$943,005 $2,258 $15,462 $— $— $960,725 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$148,303 $4,274 $3,985 $— $— $156,562 
Agricultural real estate31,147 — 5,907 — — 37,054 
Multi-family real estate9,273 — 148 — — 9,421 
Construction and land development7,237 — 39 — — 7,276 
C&I/Agricultural operating:
Commercial and industrial20,918 9 336 — — 21,263 
Agricultural operating7,838 — 490 — — 8,328 
Residential mortgage:
Residential mortgage42,805 131 2,167 — — 45,103 
Consumer installment:
Other Consumer1,150 — 7 — — 1,157 
Total acquired loans$268,671 $4,414 $13,079 $— $— $286,164 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$497,785 $4,817 $5,073 $— $— 507,675 
Agricultural real estate61,188 446 7,161 — — 68,795 
Multi-family real estate121,696 308 148 — — 122,152 
Construction and land development95,000 — 3,517 — — 98,517 
C&I/Agricultural operating:
Commercial and industrial112,392 29 4,132 — — 116,553 
Agricultural operating30,300 934 1,551 — — 32,785 
Residential mortgage:
Residential mortgage124,902 138 6,346 — — 131,386 
Purchased HELOC loans5,959 — 301 — — 6,260 
Consumer installment:
Originated indirect paper25,616 — 235 — — 25,851 
Other Consumer13,136 — 77 — — 13,213 
Gross loans before SBA PPP loans1,087,974 6,672 28,541 — — 1,123,187 
SBA PPP loans123,702 — — — — 123,702 
Gross loans$1,211,676 $6,672 $28,541 $— $— $1,246,889 
Less:
Unearned net deferred fees and costs and loans in process(4,245)
Unamortized discount on acquired loans(5,063)
Allowance for loan losses(17,043)
Loans receivable, net$1,220,538 
Schedule of SBA PPP Loans by Round Activity
The following table summarizes SBA PPP loans by round at March 31, 2021 and December 31, 2020 and includes additional round 2 activity in April 2021:
(Dollars in Millions)
BalanceNet Deferred Fee Income
SBA PPP Loans - Round 1$124 $3.0 
SBA PPP Loans - Round 2— — 
Total SBA PPP Loans, December 31, 20201243.0
SBA PPP Loans - Round 1$72 $1.3 
SBA PPP Loans - Round 247 1.7 
Total SBA PPP Loans, March 31, 20211193.0
Net deferred fees collected after March 31, 2021 from Q1 SBA PPP loan originations— 0.9 
1193.9
SBA PPP Pipeline Round 2, April 20218 0.8 
March 31, 2021 plus SBA PPP Pipeline - Round 2, April 2021$127 $4.7 
Schedule of Changes of Impaired Loans and Non-Impaired Loans
Changes in the ALL by loan type for the periods presented below were as follows:
Commercial/Agriculture Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Three months ended March 31, 2021
Allowance for Loan Losses:
Beginning balance, January 1, 2021$10,271 $2,112 $1,041 $489 $906 $14,819 
Charge-offs— — — (25)— (25)
Recoveries5 8 7 10 — 30 
Provision833 (487)(107)(24)(11)204 
Total Allowance on originated loans11,109 1,633 941 450 895 15,028 
Purchased credit impaired loans— — — — — — 
Other acquired loans:
Beginning balance, January 1, 20211,684 141 335 64 — 2,224 
Charge-offs(200)— — — — (200)
Recoveries— 7 1 4 — 12 
Provision(183)(54)52 (19)— (204)
Total Allowance on other acquired loans1,301 94 388 49 — 1,832 
Total Allowance on acquired loans1,301 94 388 49 — 1,832 
Ending balance, March 31, 2021$12,410 $1,727 $1,329 $499 $895 $16,860 
Allowance for Loan Losses at March 31, 2021:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$1,094 $10 $157 $— $— $1,261 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$11,316 $1,717 $1,172 $499 $895 $15,599 
Loans Receivable as of March 31, 2021— 
Ending balance of originated loans$599,182 $216,773 $87,576 $34,137 $— $937,668 
Ending balance of purchased credit-impaired loans14,856 1,367 1,218 — — 17,441 
Ending balance of other acquired loans181,438 24,974 38,828 913 — 246,153 
Ending balance of loans$795,476 $243,114 $127,622 $35,050 $— $1,201,262 
Ending balance: individually evaluated for impairment$24,948 $6,197 $8,843 $255 $— $40,243 
Ending balance: collectively evaluated for impairment$770,528 $236,917 $118,779 $34,795 $— $1,161,019 
Commercial/Agriculture Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Three months ended March 31, 2020
Allowance for Loan Losses:
Beginning balance, January 1, 2020$6,205 $1,643 $879 $467 $357 $9,551 
Charge-offs— (307)— (49)— (356)
Recoveries— — 5 20 — 25 
Provision1,072 323 40 92 103 1,630 
Total Allowance on originated loans$7,277 $1,659 $924 $530 $460 $10,850 
Purchased credit impaired loans— — — — — — 
Other acquired loans
Beginning balance, January 1, 2020526 27 163 53 — 769 
Charge-offs— (135)(27)(2)— (164)
Recoveries— — 8 2 — 10 
Provision139 268 (29)(8)— 370 
Total Allowance on other acquired loans665 160 115 45 — 985 
Total Allowance on acquired loans665 160 115 45 — 985 
Ending balance, March 31, 2020$7,942 $1,819 $1,039 $575 $460 $11,835 
Allowance for Loan Losses at March 31, 2020:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$733 $92 $181 $27 $— $1,033 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$7,209 $1,727 $858 $548 $460 $10,802 
Loans Receivable as of March 31, 2020:
Ending balance of originated loans$519,958 $107,949 $110,455 $51,494 $— $789,856 
Ending balance of purchased credit-impaired loans25,452 3,845 1,934 — — 31,231 
Ending balance of other acquired loans257,059 48,152 61,023 2,104 — 368,338 
Ending balance of loans$802,469 $159,946 $173,412 $53,598 $— $1,189,425 
Ending balance: individually evaluated for impairment$36,470 $8,759 $10,226 $496 $— $55,951 
Ending balance: collectively evaluated for impairment$765,999 $151,187 $163,186 $53,102 $— $1,133,474 
Commercial/Agriculture Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Allowance for Loan Losses at December 31, 2020:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$698 $190 $226 $1 $— $1,115 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$11,257 $2,063 $1,150 $552 $906 $15,928 
Loans Receivable as of December 31, 2020:
Ending balance of originated loans$586,826 $243,449 $92,543 $37,907 $— $960,725 
Ending balance of purchased credit-impaired loans15,100 1,534 1,312 — — 17,946 
Ending balance of other acquired loans195,213 28,057 43,791 1,157 — 268,218 
Ending balance of loans$797,139 797139000$273,040 $137,646 $39,064 $— $1,246,889 
Ending balance: individually evaluated for impairment$26,303 $7,115 $9,621 $358 $— $43,397 
Ending balance: collectively evaluated for impairment$770,836 $265,925 $128,025 $38,706 $— $1,203,492 
Schedule of Loans Receivable
Loans receivable by loan type as of the end of the periods shown below were as follows:
 Commercial/Agriculture Real Estate LoansC&I/Agricultural OperatingResidential MortgageConsumer InstallmentTotals
 March 31, 2021December 31, 2020March 31, 2021December 31, 2020March 31, 2021December 31, 2020March 31, 2021December 31, 2020March 31, 2021December 31, 2020
Performing loans
Performing TDR loans$4,472 $4,695 $4,042 $3,836 $3,195 $3,142 $43 $49 $11,752 $11,722 
Performing loans other785,733 786,533 237,917 266,975 121,746 131,470 34,899 38,856 1,180,295 1,223,834 
Total performing loans790,205 791,228 241,959 270,811 124,941 134,612 34,942 38,905 1,192,047 1,235,556 
Nonperforming loans (1)
Nonperforming TDR loans4,184 4,691 758 1,287 742 777 6 — 5,690 6,755 
Nonperforming loans other1,087 1,220 397 942 1,939 2,257 102 159 3,525 4,578 
Total nonperforming loans5,271 5,911 1,155 2,229 2,681 3,034 108 159 9,215 11,333 
Total loans$795,476 $797,139 $243,114 $273,040 $127,622 $137,646 $35,050 $39,064 $1,201,262 $1,246,889 
(1)Nonperforming loans are either 90+ days past due or nonaccrual.
Schedule of Aging Analysis of the Bank Real Estate and Consumer Loans
An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of March 31, 2021 and December 31, 2020, respectively, was as follows:
30-59 Days Past Due and Accruing60-89 Days Past Due and AccruingGreater Than 89 Days Past Due and AccruingTotal
Past Due and Accruing		Nonaccrual LoansTotal Past Due Accruing and Nonaccrual LoansCurrentTotal
Loans
March 31, 2021
Commercial/Agricultural real estate:
Commercial real estate$1,788 $1,430 $— $3,218 $760 $3,978 $511,211 $515,189 
Agricultural real estate361 — — 361 4,511 4,872 65,695 70,567 
Multi-family real estate— — — — — — 118,988 118,988 
Construction and land development— 204 — 204 — 204 90,528 90,732 
C&I/Agricultural operating:
Commercial and industrial592 145 — 737 391 1,128 94,805 95,933 
C&I SBA PPP loans— — — — — — 118,931 118,931 
Agricultural operating2,506 379 — 2,885 764 3,649 24,601 28,250 
Residential mortgage:
Residential mortgage1,974 246 514 2,734 1,933 4,667 117,664 122,331 
Purchased HELOC loans— — — — 234 234 5,057 5,291 
Consumer installment:
Originated indirect paper20 33 — 53 64 117 23,069 23,186 
Other Consumer40 1 22 63 22 85 11,779 11,864 
Total $7,281 $2,438 $536 $10,255 $8,679 $18,934 $1,182,328 $1,201,262 
December 31, 2020
Commercial/Agricultural real estate:
Commercial real estate$9,568 $467 $— $10,035 $679 $10,714 $496,961 $507,675 
Agricultural real estate411 48 — 459 5,084 5,543 63,252 68,795 
Multi-family real estate308 — — 308 148 456 121,696 122,152 
Construction and land development3,898 — — 3,898 — 3,898 94,619 98,517 
C&I/Agricultural operating:
Commercial and industrial436 491 — 927 357 1,284 115,269 116,553 
SBA PPP loans— — — — — — 123,702 123,702 
Agricultural operating1,499 200 — 1,699 1,872 3,571 29,214 32,785 
Residential mortgage:
Residential mortgage2,238 372 516 3,126 2,217 5,343 126,043 131,386 
Purchased HELOC loans338 94 67 499 234 733 5,527 6,260 
Consumer installment:
Originated indirect paper90 37 — 127 133 260 25,591 25,851 
Other Consumer100 14 3 117 23 140 13,073 13,213 
Total $18,886 $1,723 $586 $21,195 $10,747 $31,942 $1,214,947 $1,246,889 
Schedule of Bank Impaired Loans
A summary of the Company’s impaired loans as of March 31, 2021, December 31, 2020 and March 31, 2020 was as follows:
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
March 31, 2021
With No Related Allowance Recorded:
Commercial/agriculture real estate$19,714 $19,714 $— $21,864 $239 
C&I/Agricultural operating6,118 6,118 — 6,226 70 
Residential mortgage8,191 8,191 — 8,367 80 
Consumer installment255 255 — 306 3 
Total $34,278 $34,278 $— $36,763 $392 
With An Allowance Recorded:
Commercial/agriculture real estate$5,234 $5,234 $1,094 $3,762 $62 
C&I/Agricultural operating79 79 10 430 — 
Residential mortgage652 652 157 866 8 
Consumer installment— — — 1 — 
Total$5,965 $5,965 $1,261 $5,059 $70 
March 31, 2021 Totals:
Commercial/agriculture real estate$24,948 $24,948 $1,094 $25,626 $301 
C&I/Agricultural operating6,197 6,197 10 6,656 70 
Residential mortgage8,843 8,843 157 9,233 88 
Consumer installment255 255 — 307 3 
Total$40,243 $40,243 $1,261 $41,822 $462 
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2020
With No Related Allowance Recorded:
Commercial/agriculture real estate$24,013 $24,013 $— $32,264 $1,894 
C&I/Agricultural operating6,334 6,334 — 7,906 284 
Residential mortgage8,542 8,542 — 8,619 450 
Consumer installment356 356 — 368 30 
Total$39,245 $39,245 $— $49,157 $2,658 
With An Allowance Recorded:
Commercial/agriculture real estate$2,290 $2,290 $698 $2,217 $100 
C&I/Agricultural operating781 781 190 636 22 
Residential mortgage1,079 1,079 226 1,255 54 
Consumer installment2 2 1 35 1 
Total$4,152 $4,152 $1,115 $4,143 $177 
December 31, 2020 Totals
Commercial/agriculture real estate$26,303 $26,303 $698 $34,481 $1,994 
C&I/Agricultural operating7,115 7,115 190 8,542 306 
Residential mortgage9,621 9,621 226 9,874 504 
Consumer installment358 358 1 403 31 
Total$43,397 $43,397 $1,115 $53,300 $2,835 



 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
March 31, 2020
With No Related Allowance Recorded:
Commercial/agriculture real estate$33,959 $33,959 $— $37,237 $563 
C&I/Agricultural operating8,343 8,343 — 8,910 119 
Residential mortgage7,966 7,966 — 8,330 116 
Consumer installment397 397 — 388 8 
Total $50,665 $50,665 $— $54,865 $806 
With An Allowance Recorded:
Commercial/agriculture real estate$2,511 $2,511 $733 $2,327 $6 
C&I/Agricultural operating416 416 92 453 5 
Residential mortgage2,260 2,260 181 1,846 30 
Consumer installment99 99 27 83 1 
Total$5,286 $5,286 $1,033 $4,709 $42 
March 31, 2020 Totals:
Commercial/agriculture real estate$36,470 $36,470 $733 $39,564 $569 
C&I/Agricultural operating8,759 8,759 92 9,363 124 
Residential mortgage10,226 10,226 181 10,176 146 
Consumer installment496 496 27 471 9 
Total$55,951 $55,951 $1,033 $59,574 $848 
Schedule of Troubled Debt Restructuring
Following is a summary of TDR loans by accrual status as of March 31, 2021 and December 31, 2020.
March 31, 2021December 31, 2020
Troubled debt restructure loans:
Accrual status$11,752 $11,742 
Non-accrual status5,690 6,735 
Total$17,442 $18,477 
The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the three months ended March 31, 2021 and March 31, 2020:     
Number of ContractsMaturity ExtensionModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Three months ended March 31, 2021
TDRs:
Commercial/agriculture real estate2 $38 $81 $— $— $119 $119 $— 
C&I/Agricultural operating1 — — 240 — 240 240 — 
Residential mortgage2 66 — 14 — 80 80 — 
Consumer installment1 6 — — — 6 6 — 
Totals6 $110 $81 $254 $— $445 $445 $— 
Number of ContractsMaturity ExtensionModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Three months ended March 31, 2020
TDRs:
Commercial/agriculture real estate3 $248 $— $17 $— $265 $265 $— 
C&I/Agricultural operating— — — — — — — — 
Residential mortgage1 — — 85 — 85 85 — 
Consumer installment2 3 — 4 — 7 7 — 
Totals6 $251 $— $106 $— $357 $357 $— 

A summary of loans by loan segment modified in a troubled debt restructuring as of March 31, 2021 and March 31, 2020, was as follows:
 March 31, 2021March 31, 2020
 Number of
Modifications		Recorded
Investment		Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/agriculture real estate30 $8,656 28 $6,415 
C&I/Agricultural operating14 4,800 14 2,065 
Residential mortgage52 3,937 42 3,539 
Consumer installment9 49 8 69 
Total troubled debt restructurings105 $17,442 92 $12,088 

The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three months ended March 31, 2021 and March 31, 2020, as well as the recorded investment in these restructured loans as of March 31, 2021 and March 31, 2020:
 March 31, 2021March 31, 2020
 Number of
Modifications		Recorded
Investment		Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/agriculture real estate— $— 5 $1,892 
C&I/Agricultural operating— — — — 
Residential mortgage1 19 — — 
Consumer installment— — — — 
Total troubled debt restructurings1 $19 5 $1,892 
Schedule of Acquired Loans The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
 March 31, 2021December 31, 2020
Accountable for under ASC 310-30 (Purchased Credit Impaired “PCI” loans)
Outstanding balance$17,441 $17,946 
Carrying amount$16,475 $16,859 
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance$246,153 $268,218 
Carrying amount$242,470 $264,242 
Total acquired loans
Outstanding balance$263,594 $286,164 
Carrying amount$258,945 $281,101 
Schedule of Accretable Yield
The following table provides changes in accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:
 March 31, 2021March 31, 2020
Balance at beginning of period$3,976 $3,201 
Acquisitions— — 
Reduction due to unexpected early payoffs(90)— 
Reclass from non-accretable difference63 669 
Accretion(266)(233)
Balance at end of period$3,683 $3,637 
Schedule of Non-Accretable Yield
The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:
 March 31, 2021December 31, 2020
Balance at beginning of period$1,087 $6,290 
Additions to non-accretable difference for acquired purchased credit impaired loans— — 
Non-accretable difference realized as interest from payoffs of purchased credit impaired loans(58)(1,693)
Transfers from non-accretable difference to accretable discount(63)(2,754)
Non-accretable difference used to reduce loan principal balance— (505)
Non-accretable difference transferred to OREO due to loan foreclosure— (251)
Balance at end of period$966 $1,087