Loans (Tables)

3 Months Ended

Mar. 31, 2020

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 three months ended March 31, 2020 and 2019 and that were determined to be troubled debt restructurings follows (in thousands):

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

Loan modifications that were classified as TDRs during the three months ended March 31, 2020 and 2019 were as follows (dollars in thousands):



	2020					2019
	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 March 31,
Commercial and industrial	1	$	4	$	5	—	$	—	$	—
Commercial, secured by real estate	—	—		—		2	258		258
Residential real estate	—	—		—		2	54		54
Total	1	$	4	$	5	4	$	312	$	312

Major Classifications of Loans

Major classifications of loans at March 31, 2020 and December 31, 2019 were as follows (in thousands):



	March 31, 2020			December 31, 2019
Commercial and industrial	$	85,356		78,306
Commercial, secured by real estate	829,461			804,953
Residential real estate	318,009			322,533
Consumer	28,955			25,232
Agricultural	10,519			11,509
Other loans, including deposit overdrafts	436			1,193
Loans, gross	1,272,736			1,243,726
Deferred origination fees, net	(349		)	(275	)
Loans, net of deferred origination fees	1,272,387			1,243,451
Less allowance for loan losses	5,008			4,045
Loans, net	$	1,267,379		1,239,406

Non-accrual, Past Due, and Accruing Restructured Loans

Non-accrual, past-due, and accruing restructured loans as of March 31, 2020 and December 31, 2019 were as follows (in thousands):



	March 31, 2020		December 31, 2019
Non-accrual loans:
Commercial, secured by real estate	$	2,172	2,467
Residential real estate	657		743
Total non-accrual loans	2,829		3,210
Past-due 90 days or more and still accruing	39		—
Total non-accrual and past-due 90 days or more and still accruing	2,868		3,210
Accruing restructured loans	4,126		6,609
Total	$	6,994	9,819

Allowance for Loan Losses and Recorded Investments in Loans

The allowance for loan losses for the three months ended March 31, 2020 and 2019 were as follows (in thousands):



	Commercial & Industrial		Commercial, Secured by Real Estate		Residential Real Estate		Consumer		Agricultural		Other		Total
Three Months Ended March 31, 2020
Balance, beginning of year	$	456	2,924		528		99		34		4		4,045
Provision charged to expenses	159		920		31		41		5		17		1,173
Losses charged off	—		(270	)	(3	)	(12	)	—		(36	)	(321	)
Recoveries	18		—		73		1		—		19		111
Balance, end of period	$	633	3,574		629		129		39		4		5,008

Three Months Ended March 31, 2019
Balance, beginning of year	$	400	2,745		767		87		46		1		4,046
Provision (credit) charged to expenses	51		57		(195	)	(31	)	(5	)	18		(105	)
Losses charged off	—		—		(33	)	—		—		(31	)	(64	)
Recoveries	—		56		154		21		—		18		249
Balance, end of period	$	451	2,858		693		77		41		6		4,126

A breakdown of the allowance for loan losses and the loan portfolio by loan segment at March 31, 2020 and December 31, 2019 were as follows (in thousands):



	Commercial & Industrial		Commercial, Secured by Real Estate	Residential Real Estate	Consumer	Agricultural	Other	Total
March 31, 2020
Allowance for loan losses:
Individually evaluated for impairment	$	22	—	12	—	—	—	34
Collectively evaluated for impairment	611		3,574	617	129	39	4	4,974
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	633	3,574	629	129	39	4	5,008

Loans:
Individually evaluated for impairment	$	956	5,355	924	13	—	—	7,248
Collectively evaluated for impairment	83,916		820,535	314,802	29,070	10,535	166	1,259,024
Acquired credit impaired loans	562		2,690	2,593	—	—	270	6,115
Balance, end of period	$	85,434	828,580	318,319	29,083	10,535	436	1,272,387

December 31, 2019
Allowance for loan losses:
Individually evaluated for impairment	$	6	272	17	—	—	—	295
Collectively evaluated for impairment	450		2,652	511	99	34	4	3,750
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	456	2,924	528	99	34	4	4,045

Loans:
Individually evaluated for impairment	$	230	7,432	949	27	—	—	8,638
Collectively evaluated for impairment	77,430		793,191	319,188	25,328	11,523	930	1,227,590
Acquired credit impaired loans	711		3,531	2,718	—	—	263	7,223
Balance, end of period	$	78,371	804,154	322,855	25,355	11,523	1,193	1,243,451

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

A breakdown of the loan portfolio by credit quality indicators at March 31, 2020 and December 31, 2019 is as follows (in thousands):



	Pass		OAEM	Substandard	Doubtful	Total
March 31, 2020
Commercial & industrial	$	83,816	—	1,618	—	85,434
Commercial, secured by real estate	815,998		2,467	10,115	—	828,580
Residential real estate	313,270		1,795	3,254	—	318,319
Consumer	29,078		—	5	—	29,083
Agricultural	10,513		—	22	—	10,535
Other	436		—	—	—	436
Total	$	1,253,111	4,262	15,014	—	1,272,387

December 31, 2019
Commercial & industrial	$	76,236	233	1,902	—	78,371
Commercial, secured by real estate	789,319		3,007	11,828	—	804,154
Residential real estate	319,075		267	3,513	—	322,855
Consumer	25,342		—	13	—	25,355
Agricultural	11,523		—	—	—	11,523
Other	1,193		—	—	—	1,193
Total	$	1,222,688	3,507	17,256	—	1,243,451

Loan Portfolio Aging Analysis

A loan portfolio aging analysis at March 31, 2020 and December 31, 2019 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
March 31, 2020
Commercial & industrial	$	1,465	—	—	1,465	83,969	85,434	—
Commercial, secured by real estate	261		511	1,092	1,864	826,716	828,580	—
Residential real estate	2,398		23	461	2,882	315,437	318,319	39
Consumer	19		1	—	20	29,063	29,083	—
Agricultural	22		—	—	22	10,513	10,535	—
Other	67		—	—	67	369	436	—
Total	$	4,232	535	1,553	6,320	1,266,067	1,272,387	39

December 31, 2019
Commercial & industrial	$	283	—	—	283	78,088	78,371	—
Commercial, secured by real estate	339		—	1,171	1,510	802,644	804,154	—
Residential real estate	1,573		260	423	2,256	320,599	322,855	—
Consumer	27		9	—	36	25,319	25,355	—
Agricultural	—		—	—	—	11,523	11,523	—
Other	930		—	—	930	263	1,193	—
Total	$	3,152	269	1,594	5,015	1,238,436	1,243,451	—

Impaired Loans

Impaired loans, including acquired credit impaired loans, at March 31, 2020 and December 31, 2019 were as follows (in thousands):



	March 31, 2020				December 31, 2019
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Recorded Investment	Unpaid Principal Balance	Related Allowance
With no related allowance recorded:
Commercial & industrial	$	562	862	—	711	1,253	—
Commercial, secured by real estate	7,951		8,459	—	8,625	9,373	—
Residential real estate	3,185		3,655	—	3,118	3,651	—
Consumer	9		9	—	10	10	—
Agricultural	—		—	—	—	—	—
Other	270		391	—	263	392	—
Total	$	11,977	13,376	—	12,727	14,679	—

With an allowance recorded:
Commercial & industrial	$	956	956	22	230	235	6
Commercial, secured by real estate	94		95	—	2,338	2,485	272
Residential real estate	332		332	12	549	549	17
Consumer	4		4	—	17	17	—
Agricultural	—		—	—	—	—	—
Other	—		—	—	—	—	—
Total	$	1,386	1,387	34	3,134	3,286	295

Total:
Commercial & industrial	$	1,518	1,818	22	941	1,488	6
Commercial, secured by real estate	8,045		8,554	—	10,963	11,858	272
Residential real estate	3,517		3,987	12	3,667	4,200	17
Consumer	13		13	—	27	27	—
Agricultural	—		—	—	—	—	—
Other	270		391	—	263	392	—
Total	$	13,363	14,763	34	15,861	17,965	295

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 months ended March 31, 2020 and 2019 (in thousands):



	2020			2019
	Average Recorded Investment		Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
Three Months Ended March 31,
With no related allowance recorded:
Commercial & industrial	$	637	264	767	7
Commercial, secured by real estate	9,823		344	18,302	199
Residential real estate	3,289		92	3,916	47
Consumer	18		—	13	—
Agricultural	—		—	—	—
Other	266		7	340	9
Total	$	14,033	707	23,338	262

With an allowance recorded:
Commercial & industrial	$	839	10	259	4
Commercial, secured by real estate	95		2	244	12
Residential real estate	339		5	622	8
Consumer	5		—	22	—
Agricultural	—		—	—	—
Other	—		—	—	—
Total	$	1,278	17	1,147	24

Total:
Commercial & industrial	$	1,476	274	1,026	11
Commercial, secured by real estate	9,918		346	18,546	211
Residential real estate	3,628		97	4,538	55
Consumer	23		—	35	—
Agricultural	—		—	—	—
Other	266		7	340	9
Total	$	15,311	724	24,485	286

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




	Term Modification		Rate Modification	Interest Only	Principal Forgiveness	Combination	Total Modifications
Three Months Ended March 31, 2020
Commercial & industrial	$	—	—	—	—	5	5
Total	$	—	—	—	—	5	5

Three Months Ended March 31, 2019
Commercial, secured by real estate	$	—	—	—	—	258	258
Residential real estate	54		—	—	—	—	54
Total	$	54	—	—	—	258	312

Impaired loans without a valuation allowance

Impaired loans with a valuation allowance