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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Schedule of Segments of the Company's Loan Portfolio
Below is a summary of the segments of the Company’s loan portfolio:
 
 
 
Commercial and industrial:
  
This portfolio segment includes general secured and unsecured commercial loans which are not secured by real estate. Risks inherent in this portfolio segment include fluctuations in the local and national economy.
 
 
Construction and development:
  
This portfolio segment includes all loans for the purpose of construction, including both business and residential structures; and real estate development loans, including non agricultural vacant land. Risks inherent in this portfolio include fluctuations in property values and changes in the local and national economy.
 
 
Commercial real estate:
  
The commercial real estate portfolio segment includes all commercial loans that are secured by real estate, other than those included in the construction and development, farmland, multi-family, and 1-4 family residential segments. Risks inherent in this portfolio segment include fluctuations in property values and changes in the local and national economy impacting the sale of the finished structures.
 
 
 
Farmland:
  
The farmland portfolio includes loans that are secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing & pasture land and timberland. This segment includes land with a 1-4 family residential structure if the value of the land exceeds the value of the residence. Risks inherent in this portfolio segment include adverse changes in climate, fluctuations in feed and cattle prices and changes in property values.
 
 
Consumer:
  
This portfolio segment consists of non-real estate loans to consumers. This includes secured and unsecured loans such as auto and personal loans. The risks inherent in this portfolio segment include those factors that would impact the consumer’s ability to meet their obligations under the loan. These include increases in the local unemployment rate and fluctuations in consumer and business sales.
 
 
1-4 family residential:
  
This portfolio segment includes loans to both commercial and consumer borrowers secured by real estate for housing units of up to four families. Risks inherent in this portfolio segment include increases in the local unemployment rate, changes in the local economy and factors that would impact the value of the underlying collateral, such as changes in property values.
 
 
Multi-family residential:
  
This portfolio segment includes loans secured by structures containing five or more residential housing units. Risks inherent in this portfolio segment include increases to the local unemployment rate, changes in the local economy, and factors that would impact property values.
 
 
Agricultural:
  
The agricultural portfolio segment includes loans to individuals and companies in the dairy and cattle industries and farmers. Loans in the segment are secured by collateral including cattle, crops and equipment. Risks inherent in this portfolio segment include adverse changes in climate and fluctuations in feed and cattle prices.
Schedule of Financing Receivable Credit Quality Indicators
The following is a discussion of the primary credit quality indicators most closely monitored for the respective portfolio segment classes:
 
 
 
Commercial and industrial:
  
In assessing risk associated with commercial loans, management considers the business’s cash flow and the value of the underlying collateral to be the primary credit quality indicators.
 
 
Construction and development:
  
In assessing the credit quality of construction loans, management considers the ability of the borrower to finance principal and interest payments in the event that he is unable to sell the completed structure to be a primary credit quality indicator. For real estate development loans, management also considers the likelihood of the successful sale of the constructed properties in the development.
 
 
Commercial real estate:
  
Management considers the strength of the borrower’s cash flows, changes in property values and occupancy status to be key credit quality indicators of commercial real estate loans.
 
 
Farmland:
  
In assessing risk associated with farmland loans, management considers the borrower’s cash flows and underlying property values to be key credit quality indicators.
 
 
Consumer:
  
Management considers the debt to income ratio of the borrower, the borrower’s credit history, the availability of other credit to the borrower, the borrower’s past-due history, and, if applicable, the value of the underlying collateral to be primary credit quality indicators.
 
 
1-4 family residential:
  
Management considers changes in the local economy, changes in property values, and changes in local unemployment rates to be key credit quality indicators of the loans in the 1-4 family residential loan segment.
 
 
Multi-family residential:
  
Management considers changes in the local economy, changes in property values, vacancy rates and changes in local unemployment rates to be key credit quality indicators of the loans in the multifamily loan segment.
 
 
Agricultural:
  
In assessing risk associated with agricultural loans, management considers the borrower’s cash flows, the value of the underlying collateral and sources of secondary repayment to be primary credit quality indicators.
The following tables summarize the credit exposure in the Company's consumer and commercial loan portfolios as of:
December 31, 2017
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real estate
 
Farmland
 
1-4
family
residential
 
Multi-family
residential
 
Consumer
and
Overdrafts
 
Agricultural
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
196,890

 
$
196,515

 
$
412,488

 
$
58,623

 
$
373,154

 
$
16,073

 
$
51,409

 
$
24,650

 
$
1,329,802

Special mention
348

 
259

 
1,135

 
226

 
442

 
20,284

 
65

 
454

 
23,213

Substandard
270

 
—

 
4,514

 
174

 
775

 
217

 
87

 
492

 
6,529

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
197,508

 
$
196,774

 
$
418,137

 
$
59,023

 
$
374,371

 
$
36,574

 
$
51,561

 
$
25,596

 
$
1,359,544

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real estate
 
Farmland
 
1-4
family
residential
 
Multi-family
residential
 
Consumer
and
Overdrafts
 
Agricultural
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
218,690

 
$
127,802

 
$
360,591

 
$
61,717

 
$
352,196

 
$
25,871

 
$
52,320

 
$
17,965

 
$
1,217,152

Special mention
4,299

 
4

 
2,021

 
248

 
4,311

 
—

 
524

 
478

 
11,885

Substandard
706

 
1,825

 
5,465

 
401

 
5,121

 
208

 
568

 
458

 
14,752

Doubtful
17

 
—

 
—

 
—

 
37

 
—

 
82

 
—

 
136

Total
$
223,712

 
$
129,631

 
$
368,077

 
$
62,366

 
$
361,665

 
$
26,079

 
$
53,494

 
$
18,901

 
$
1,243,925
Schedule of Estimated Useful Lives
The following table provides a summary of the estimated useful life of the different fixed asset classes as stated in the policy:
 
 
 
Bank Buildings
  
Up to 40 years
Equipment
  
to 10 years
Furniture and Fixtures
  
to 7 years
Software
  
to 5 years
Automobiles
  
to 4 years
 
December 31, 2017
 
December 31, 2016
Land
$
9,857

 
$
9,959

Building and improvements
45,525

 
44,240

Furniture, fixtures and equipment
12,845

 
14,188

Automobiles
247

 
368

 
68,474

 
68,755

Less: accumulated depreciation
24,656

 
23,945

 
$
43,818

 
$
44,810