Loans (Tables)

9 Months Ended

Sep. 30, 2019

Information About Loans Modified During Period That Were Determined To Be Troubled Debt Restructurings [Table Text Block]

nformation concerning loans that were modified during the nine months ended September 30, 2019 and 2018 and that were determined to be troubled debt restructurings follows (in thousands):

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

Loan modifications that were classified as TDRs during the three and nine months ended September 30, 2019 and 2018 were as follows (dollars in thousands):



	2019				2018
	Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance	Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance
Three Months Ended September 30,
Commercial and industrial	—	$	—	—	—	$	—	—
Commercial, secured by real estate	—	—		—	—	—		—
Residential real estate	1	66		66	1	199		199
Consumer	—	—		—	—	—		—
Total	1	$	66	66	1	$	199	199

Nine Months Ended September 30,
Commercial and industrial		$	—	—	—	$	—	—
Commercial, secured by real estate	2	258		258	—	—		—
Residential real estate	3	120		120	1	199		199
Consumer	—	—		—	—	—		—
Total	5	$	378	378	1	$	199	199

Major Classifications of Loans

Major classifications of loans at September 30, 2019 and December 31, 2018 are as follows (in thousands):



	September 30, 2019			December 31, 2018
Commercial and industrial	$	71,576		77,740
Commercial, secured by real estate	797,842			740,647
Residential real estate	320,703			349,127
Consumer	23,918			17,283
Agricultural	11,525			13,297
Other loans, including deposit overdrafts	456			450
Loans, gross	1,226,020			1,198,544
Deferred origination costs (fees), net	(128		)	79
Loans, net of deferred origination costs (fees)	1,225,892			1,198,623
Less allowance for loan losses	4,167			4,046
Loans, net	$	1,221,725		1,194,577

Non-accrual, Past Due, and Accruing Restructured Loans

Non-accrual, past-due, and accruing restructured loans as of September 30, 2019 and December 31, 2018 are as follows (in thousands):



	September 30, 2019		December 31, 2018
Non-accrual loans:
Commercial and industrial	$	—	—
Commercial, secured by real estate	2,624		1,767
Residential real estate	899		1,007
Consumer	—		—
Agricultural	—		177
Total non-accrual loans	3,523		2,951
Past-due 90 days or more and still accruing	—		149
Total non-accrual and past-due 90 days or more and still accruing	3,523		3,100
Accruing restructured loans	6,784		10,516
Total	$	10,307	13,616

Allowance for Loan Losses and Recorded Investments in Loans

The allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands):



	Commercial & Industrial			Commercial, Secured by Real Estate		Residential Real Estate		Consumer		Agricultural		Other		Total
Three Months Ended September 30, 2019
Balance, beginning of period	$	497		2,720		773		81		38		3		4,112
Provision (credit) charged to expenses	(50		)	372		(101	)	10		1		32		264
Losses charged off	(47		)	—		(204	)	(5	)	—		(52	)	(308	)
Recoveries	—			—		73		4		—		22		99
Balance, end of period	$	400		3,092		541		90		39		5		4,167

Nine Months Ended September 30, 2019
Balance, beginning of year	$	400		2,745		767		87		46		1		4,046
Provision (credit) charged to expenses	47			298		(189	)	(12	)	(7	)	76		213
Losses charged off	(47		)	(7	)	(272	)	(15	)	—		(126	)	(467	)
Recoveries	—			56		235		30		—		54		375
Balance, end of period	$	400		3,092		541		90		39		5		4,167

Three Months Ended September 30, 2018
Balance, beginning of period	$	407		2,383		690		70		52		1		3,603
Provision (credit) charged to expenses	(3		)	488		25		95		2		52		659
Losses charged off	—			(116	)	—		(88	)	—		(81	)	(285	)
Recoveries	—			3		—		4		—		32		39
Balance, end of period	$	404		2,758		715		81		54		4		4,016

Nine Months Ended September 30, 2018
Balance, beginning of year	$	378		2,178		717		76		53		1		3,403
Provision (credit) charged to expenses	26			546		211		102		1		76		962
Losses charged off	—			(145	)	(227	)	(109	)	—		(142	)	(623	)
Recoveries	—			179		14		12		—		69		274
Balance, end of period	$	404		2,758		715		81		54		4		4,016

A breakdown of the allowance for loan losses and the loan portfolio by loan segment at September 30, 2019 and December 31, 2018 are as follows (in thousands):



	Commercial & Industrial		Commercial, Secured by Real Estate	Residential Real Estate	Consumer	Agricultural	Other	Total
September 30, 2019
Allowance for loan losses:
Individually evaluated for impairment	$	7	346	28	—	—	—	381
Collectively evaluated for impairment	393		2,746	513	90	39	5	3,786
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	400	3,092	541	90	39	5	4,167

Loans:
Individually evaluated for impairment	$	239	7,650	1,438	29	—	—	9,356
Collectively evaluated for impairment	70,575		784,453	316,772	24,010	11,540	148	1,207,498
Acquired credit impaired loans	817		5,032	2,881	—	—	308	9,038
Balance, end of period	$	71,631	797,135	321,091	24,039	11,540	456	1,225,892

December 31, 2018
Allowance for loan losses:
Individually evaluated for impairment	$	10	3	49	—	—	—	62
Collectively evaluated for impairment	390		2,742	718	87	46	1	3,984
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	400	2,745	767	87	46	1	4,046

Loans:
Individually evaluated for impairment	$	268	15,101	1,558	36	177	—	17,140
Collectively evaluated for impairment	76,609		718,709	344,751	17,363	13,135	114	1,170,681
Acquired credit impaired loans	922		6,315	3,229	—	—	336	10,802
Balance, end of period	$	77,799	740,125	349,538	17,399	13,312	450	1,198,623

Analysis of the Company's Loan Portfolio by Credit Quality Indicators

A breakdown of the loan portfolio by credit quality indicators at September 30, 2019 and December 31, 2018 is as follows (in thousands):



	Pass		OAEM	Substandard	Doubtful	Total
September 30, 2019
Commercial & industrial	$	69,725	161	1,745	—	71,631
Commercial, secured by real estate	782,232		986	13,917	—	797,135
Residential real estate	319,128		99	1,864	—	321,091
Consumer	24,022		—	17	—	24,039
Agricultural	11,513		—	27	—	11,540
Other	456		—	—	—	456
Total	$	1,207,076	1,246	17,570	—	1,225,892

December 31, 2018
Commercial & industrial	$	74,530	89	3,180	—	77,799
Commercial, secured by real estate	718,233		768	21,124	—	740,125
Residential real estate	344,432		—	5,106	—	349,538
Consumer	17,381		—	18	—	17,399
Agricultural	13,116		—	196	—	13,312
Other	450		—	—	—	450
Total	$	1,168,142	857	29,624	—	1,198,623

Loan Portfolio Aging Analysis

A loan portfolio aging analysis at September 30, 2019 and December 31, 2018 is as follows (in thousands):



	30-59 Days Past Due		60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total Loans Receivable	Total Loans Greater Than 90 Days and Accruing
September 30, 2019
Commercial & industrial	$	59	30	—	89	71,542	71,631	—
Commercial, secured by real estate	54		46	—	100	797,035	797,135	—
Residential real estate	411		201	528	1,140	319,951	321,091	—
Consumer	16		11	—	27	24,012	24,039	—
Agricultural	27		—	—	27	11,513	11,540	—
Other	148		—	—	148	308	456	—
Total	$	715	288	528	1,531	1,224,361	1,225,892	—

December 31, 2018
Commercial & industrial	$	626	173	—	799	77,000	77,799	—
Commercial, secured by real estate	347		141	347	835	739,290	740,125	—
Residential real estate	905		536	1,046	2,487	347,051	349,538	149
Consumer	14		—	—	14	17,385	17,399	—
Agricultural	19		—	178	197	13,115	13,312	—
Other	114		—	—	114	336	450	—
Total	$	2,025	850	1,571	4,446	1,194,177	1,198,623	149

Impaired Loans

Impaired loans, including acquired credit impaired loans, at September 30, 2019 and December 31, 2018 are as follows (in thousands):



	September 30, 2019				December 31, 2018
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Recorded Investment	Unpaid Principal Balance	Related Allowance
With no related allowance recorded:
Commercial & industrial	$	817	1,358	—	926	1,457	—
Commercial, secured by real estate	10,186		11,065	—	21,266	22,451	—
Residential real estate	3,569		4,135	—	4,122	4,872	—
Consumer	11		11	—	13	13	—
Agricultural	—		—	—	177	177	—
Other	308		434	—	336	475	—
Total	$	14,891	17,003	—	26,840	29,445	—

With an allowance recorded:
Commercial & industrial	$	239	245	7	264	269	10
Commercial, secured by real estate	2,496		2,496	346	150	150	3
Residential real estate	750		751	28	665	684	49
Consumer	18		18	—	23	23	—
Agricultural	—		—	—	—	—	—
Other	—		—	—	—	—	—
Total	$	3,503	3,510	381	1,102	1,126	62

Total:
Commercial & industrial	$	1,056	1,603	7	1,190	1,726	10
Commercial, secured by real estate	12,682		13,561	346	21,416	22,601	3
Residential real estate	4,319		4,886	28	4,787	5,556	49
Consumer	29		29	—	36	36	—
Agricultural	—		—	—	177	177	—
Other	308		434	—	336	475	—
Total	$	18,394	20,513	381	27,942	30,571	62

The following presents information related to the average recorded investment and interest income recognized on impaired loans, including acquired credit impaired loans, for the three and nine months ended September 30, 2019 and 2018 (in thousands):



	2019			2018
	Average Recorded Investment		Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
Three Months Ended September 30,
With no related allowance recorded:
Commercial & industrial	$	960	11	1,261	35
Commercial, secured by real estate	11,409		290	17,364	269
Residential real estate	3,600		51	3,935	77
Consumer	12		—	68	1
Agricultural	—		—	177	—
Other	304		8	374	10
Total	$	16,285	360	23,179	392

With an allowance recorded:
Commercial & industrial	$	244	4	276	4
Commercial, secured by real estate	2,514		13	152	3
Residential real estate	741		12	573	8
Consumer	19		—	23	—
Agricultural	—		—	—	—
Other	—		—	—	—
Total	$	3,518	29	1,024	15

Total:
Commercial & industrial	$	1,204	15	1,537	39
Commercial, secured by real estate	13,923		303	17,516	272
Residential real estate	4,341		63	4,508	85
Consumer	31		—	91	1
Agricultural	—		—	177	—
Other	304		8	374	10
Total	$	19,803	389	24,203	407

Nine Months Ended September 30,
With no related allowance recorded:
Commercial & industrial	$	866	20	950	56
Commercial, secured by real estate	13,891		787	16,143	657
Residential real estate	3,724		161	3,420	174
Consumer	12		1	37	2
Agricultural	—		—	177	—
Other	322		26	390	31
Total	$	18,815	995	21,117	920

With an allowance recorded:
Commercial & industrial	$	253	11	283	13
Commercial, secured by real estate	2,563		47	154	9
Residential real estate	725		34	577	23
Consumer	21		1	24	1
Agricultural	—		—	—	—
Other	—		—	—	—
Total	$	3,562	93	1,038	46

Total:
Commercial & industrial	$	1,119	31	1,233	69
Commercial, secured by real estate	16,454		834	16,297	666
Residential real estate	4,449		195	3,997	197
Consumer	33		2	61	3
Agricultural	—		—	177	—
Other	322		26	390	31
Total	$	22,377	1,088	22,155	966

Schedule of Troubled Debt Restructurings, Modification Type [Table Text Block]




	Term Modification		Rate Modification	Interest Only	Principal Forgiveness	Combination	Total Modifications
Three Months Ended September 30, 2019
Commercial & industrial	$	—	—	—	—	—	—
Commercial, secured by real estate	—		—	—	—	—	—
Residential real estate	66		—	—	—	—	66
Consumer	—		—	—	—	—	—
Total	$	66	—	—	—	—	66

Nine Months Ended September 30, 2019
Commercial & industrial	$	—	—	—	—	—	—
Commercial, secured by real estate	—		—	—	—	258	258
Residential real estate	120		—	—	—	—	120
Consumer	—		—	—	—	—	—
Total	$	120	—	—	—	258	378

Three Months Ended September 30, 2018
Commercial & industrial	$	—	—	—	—	—	—
Commercial, secured by real estate	—		—	—	—	—	—
Residential real estate	199		—	—	—	—	199
Consumer	—		—	—	—	—	—
Total	$	199	—	—	—	—	199

Nine Months Ended September 30, 2018
Commercial & industrial	$	—	—	—	—	—	—
Commercial, secured by real estate	—		—	—	—	—	—
Residential real estate	199		—	—	—	—	199
Consumer	—		—	—	—	—	—
Total	$	199	—	—	—	—	199

Impaired loans without a valuation allowance

Impaired loans with a valuation allowance