XML 32 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
LOANS (Tables)
 9 Months Ended
Sep. 30, 2016
LOANS [Abstract]  
Composition of Loan Portfolio, by Loan Class
The composition of the Company's loan portfolio, by loan class, as of September 30, 2016 and December 31, 2015 was as follows:
 
($ in thousands)
 
September 30, 2016
  
December 31, 2015
 
 
      
Commercial
 
$
127,839
  
$
136,095
 
Commercial Real Estate
  
322,622
   
292,316
 
Agriculture
  
97,257
   
84,813
 
Residential Mortgage
  
41,680
   
43,375
 
Residential Construction
  
20,596
   
12,110
 
Consumer
  
43,552
   
45,386
 
 
        
 
  
653,546
   
614,095
 
Allowance for loan losses
  
(10,295
)
  
(9,251
)
Net deferred origination fees and costs
  
995
   
1,009
 
 
        
Loans, net
 
$
644,246
  
$
605,853
 
Non-accrual Loans by Loan Class
The Company's non-accrual loans by loan class, as of September 30, 2016 and December 31, 2015 were as follows:
 
($ in thousands)
 
September 30, 2016
  
December 31, 2015
 
 
      
Commercial
 
$
5,042
  
$
112
 
Commercial Real Estate
  
559
   
964
 
Agriculture
  
—
   
—
 
Residential Mortgage
  
553
   
1,092
 
Residential Construction
  
—
   
—
 
Consumer
  
157
   
560
 
 
        
 
 
$
6,311
  
$
2,728
 
Aging Analysis of Past Due Loans, Segregated by Loan Class
An aging analysis of past due loans, segregated by loan class, as of September 30, 2016 and December 31, 2015, are as follows:
 
($ in thousands)
 
30-59 Days Past Due
  
60-89 Days Past Due
  
90 Days or more Past Due
  
Total Past Due
  
Current
  
Total Loans
 
September 30, 2016
                  
Commercial
 
$
100
  
$
5,090
  
$
—
  
$
5,190
  
$
122,649
  
$
127,839
 
Commercial Real Estate
  
—
   
—
   
—
   
—
   
322,622
   
322,622
 
Agriculture
  
—
   
—
   
—
   
—
   
97,257
   
97,257
 
Residential Mortgage
  
120
   
—
   
555
   
675
   
41,005
   
41,680
 
Residential Construction
  
—
   
—
   
—
   
—
   
20,596
   
20,596
 
Consumer
  
392
   
4
   
—
   
396
   
43,156
   
43,552
 
Total
 
$
612
  
$
5,094
  
$
555
  
$
6,261
  
$
647,285
  
$
653,546
 
 
                        
December 31, 2015
                        
Commercial
 
$
218
  
$
—
  
$
57
  
$
275
  
$
135,820
  
$
136,095
 
Commercial Real Estate
  
130
   
—
   
232
   
362
   
291,954
   
292,316
 
Agriculture
  
—
   
—
   
—
   
—
   
84,813
   
84,813
 
Residential Mortgage
  
—
   
—
   
—
   
—
   
43,375
   
43,375
 
Residential Construction
  
—
   
—
   
—
   
—
   
12,110
   
12,110
 
Consumer
  
19
   
5
   
429
   
453
   
44,933
   
45,386
 
Total
 
$
367
  
$
5
  
$
718
  
$
1,090
  
$
613,005
  
$
614,095
 
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of September 30, 2016 and December 31, 2015 were as follows:
 
($ in thousands)
 
Unpaid
Contractual
Principal
Balance
  
Recorded
Investment with
no Allowance
  
Recorded
Investment with
Allowance
  
Total Recorded
Investment
  
Related
Allowance
 
September 30, 2016
               
Commercial
 
$
5,782
  
$
43
  
$
5,604
  
$
5,647
  
$
906
 
Commercial Real Estate
  
898
   
559
   
286
   
845
   
40
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
3,325
   
553
   
2,408
   
2,961
   
591
 
Residential Construction
  
976
   
—
   
976
   
976
   
105
 
Consumer
  
1,035
   
157
   
606
   
763
   
38
 
Total
 
$
12,016
  
$
1,312
  
$
9,880
  
$
11,192
  
$
1,680
 
 
                    
December 31, 2015
                    
Commercial
 
$
933
  
$
97
  
$
821
  
$
918
  
$
43
 
Commercial Real Estate
  
1,292
   
964
   
294
   
1,258
   
42
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
3,968
   
1,092
   
2,484
   
3,576
   
615
 
Residential Construction
  
1,005
   
—
   
1,005
   
1,005
   
119
 
Consumer
  
1,625
   
631
   
690
   
1,321
   
33
 
Total
 
$
8,823
  
$
2,784
  
$
5,294
  
$
8,078
  
$
852
 
Average Recorded Investment and Interest Income in Impaired Loans Recognized Using Accrual Basis Method of Accounting
The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2016 and September 30, 2015 was as follows:
 
($ in thousands)
 
Three Months Ended
September 30, 2016
  
Three Months Ended
September 30, 2015
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
3,232
  
$
6
  
$
1,840
  
$
13
 
Commercial Real Estate
  
857
   
4
   
1,392
   
30
 
Agriculture
  
—
   
—
   
—
   
—
 
Residential Mortgage
  
2,973
   
24
   
3,587
   
38
 
Residential Construction
  
982
   
12
   
866
   
8
 
Consumer
  
768
   
9
   
1,351
   
10
 
Total
 
$
8,812
  
$
55
  
$
9,036
  
$
99
 

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2016 and September 30, 2015 was as follows:
 
($ in thousands)
 
Nine Months Ended
September 30, 2016
  
Nine Months Ended
September 30, 2015
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
2,111
  
$
28
  
$
2,234
  
$
33
 
Commercial Real Estate
  
966
   
12
   
1,180
   
38
 
Agriculture
  
—
   
—
   
—
   
—
 
Residential Mortgage
  
3,267
   
71
   
4,104
   
96
 
Residential Construction
  
991
   
35
   
879
   
27
 
Consumer
  
890
   
62
   
1,423
   
29
 
Total
 
$
8,225
  
$
208
  
$
9,820
  
$
223
 
Loans Modified as TDR's
Loans modified as TDRs during the nine months ended September 30, 2016 and September 30, 2015 were as follows:

($ in thousands)
Nine Months Ended September 30, 2016
 
 
Number of
Contracts
 
Pre-modification
outstanding
recorded
investment
 
Post-
modification
outstanding
recorded
investment
 
Commercial
  
1
  
$
180
  
$
180
 
Total
  
1
  
$
180
  
$
180
 

($ in thousands)
Nine Months Ended September 30, 2015
 
 
Number of
Contracts
 
Pre-modification
outstanding
recorded
investment
 
Post-
modification
outstanding
recorded
investment
 
Commercial
  
1
  
$
419
  
$
419
 
Consumer
  
1
   
109
   
109
 
Total
  
2
  
$
528
  
$
528
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of September 30, 2016 and December 31, 2015:

($ in thousands)
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
September 30, 2016
                  
Commercial
 
$
114,905
  
$
6,013
  
$
6,921
  
$
—
  
$
—
  
$
127,839
 
Commercial Real Estate
  
305,007
   
15,255
   
2,360
   
—
   
—
   
322,622
 
Agriculture
  
96,778
   
—
   
479
   
—
   
—
   
97,257
 
Residential Mortgage
  
39,216
   
1,777
   
687
   
—
   
—
   
41,680
 
Residential Construction
  
20,010
   
440
   
146
   
—
   
—
   
20,596
 
Consumer
  
42,061
   
547
   
944
   
—
   
—
   
43,552
 
Total
 
$
617,977
  
$
24,032
  
$
11,537
  
$
—
  
$
—
  
$
653,546
 
 
                        
December 31, 2015
                        
Commercial
 
$
125,562
  
$
6,842
  
$
3,691
  
$
—
  
$
—
  
$
136,095
 
Commercial Real Estate
  
268,707
   
8,301
   
15,308
   
—
   
—
   
292,316
 
Agriculture
  
84,813
   
—
   
—
   
—
   
—
   
84,813
 
Residential Mortgage
  
40,231
   
1,847
   
1,297
   
—
   
—
   
43,375
 
Residential Construction
  
11,593
   
452
   
65
   
—
   
—
   
12,110
 
Consumer
  
42,990
   
1,025
   
1,371
   
—
   
—
   
45,386
 
Total
 
$
573,896
  
$
18,467
  
$
21,732
  
$
—
  
$
—
  
$
614,095
 
Allowance for Loan Losses
The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2016.

Three months ended September 30, 2016
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of June 30, 2016
 
$
3,175
  
$
3,584
  
$
1,150
  
$
690
  
$
390
  
$
555
  
$
486
  
$
10,030
 
Provision for loan losses
  
556
   
92
   
56
   
(25
)
  
7
   
(36
)
  
(200
)
  
450
 
 
                                
Charge-offs
  
(187
)
  
—
   
—
   
—
   
—
   
(17
)
  
—
   
(204
)
Recoveries
  
6
   
—
   
—
   
—
   
2
   
11
   
—
   
19
 
Net charge-offs
  
(181
)
  
—
   
—
   
—
   
2
   
(6
)
  
—
   
(185
)
Balance as of September 30, 2016
 
$
3,550
  
$
3,676
  
$
1,206
  
$
665
  
$
399
  
$
513
  
$
286
  
$
10,295
 

Nine months ended September 30, 2016
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2015
 
$
3,097
  
$
3,343
  
$
1,060
  
$
739
  
$
334
  
$
641
  
$
37
  
$
9,251
 
Provision for loan losses
  
836
   
348
   
65
   
(75
)
  
61
   
(134
)
  
249
   
1,350
 
 
                                
Charge-offs
  
(417
)
  
(15
)
  
—
   
—
   
—
   
(52
)
  
—
   
(484
)
Recoveries
  
34
   
—
   
81
   
1
   
4
   
58
   
—
   
178
 
Net charge-offs
  
(383
)
  
(15
)
  
81
   
1
   
4
   
6
   
—
   
(306
)
Balance as of September 30, 2016
 
$
3,550
  
$
3,676
  
$
1,206
  
$
665
  
$
399
  
$
513
  
$
286
  
$
10,295
 

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2016.

($ in thousands)
Commercial
 
Commercial
Real Estate
 
Agriculture
 
Residential
Mortgage
 
Residential
Construction
 
Consumer
 
Unallocated
 
Total
 
Period-end amount allocated to:
                
Loans individually evaluated for impairment
 
$
906
  
$
40
  
$
—
  
$
591
  
$
105
  
$
38
  
$
—
  
$
1,680
 
Loans collectively evaluated for impairment
  
2,644
   
3,636
   
1,206
   
74
   
294
   
475
   
286
   
8,615
 
Ending Balance
 
$
3,550
  
$
3,676
  
$
1,206
  
$
665
  
$
399
  
$
513
  
$
286
  
$
10,295
 

The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2015.

Three months ended September 30, 2015
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of June 30, 2015
 
$
3,259
  
$
2,888
  
$
852
  
$
833
  
$
144
  
$
647
  
$
483
  
$
9,106
 
Provision for loan losses
  
(128
)
  
454
   
75
   
(98
)
  
171
   
57
   
(231
)
  
300
 
 
                                
Charge-offs
  
(14
)
  
—
   
—
   
—
   
—
   
(67
)
  
—
   
(81
)
Recoveries
  
3
   
13
   
—
   
1
   
1
   
17
   
—
   
35
 
Net charge-offs
  
(11
)
  
13
   
—
   
1
   
1
   
(50
)
  
—
   
(46
)
Balance as of September 30, 2015
 
$
3,120
  
$
3,355
  
$
927
  
$
736
  
$
316
  
$
654
  
$
252
  
$
9,360
 
 
Nine months ended September 30, 2015
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2014
 
$
3,581
  
$
1,825
  
$
580
  
$
1,181
  
$
161
  
$
886
  
$
369
  
$
8,583
 
Provision for loan losses
  
(537
)
  
1,513
   
347
   
(529
)
  
97
   
(124
)
  
(117
)
  
650
 
 
                                
Charge-offs
  
(14
)
  
—
   
—
   
(132
)
  
—
   
(152
)
  
—
   
(298
)
Recoveries
  
90
   
17
   
—
   
216
   
58
   
44
   
—
   
425
 
Net recoveries
  
76
   
17
   
—
   
84
   
58
   
(108
)
  
—
   
127
 
Balance as of September 30, 2015
 
$
3,120
  
$
3,355
  
$
927
  
$
736
  
$
316
  
$
654
  
$
252
  
$
9,360
 

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2015.

($ in thousands)
Commercial
 
Commercial
Real Estate
 
Agriculture
 
Residential
Mortgage
 
Residential
Construction
 
Consumer
 
Unallocated
 
Total
 
Period-end amount allocated to:
                
Loans individually evaluated for impairment
 
$
51
  
$
42
  
$
—
  
$
619
  
$
114
  
$
26
  
$
—
  
$
852
 
Loans collectively evaluated for impairment
  
3,069
   
3,313
   
927
   
117
   
202
   
628
   
252
   
8,508
 
Ending Balance
 
$
3,120
  
$
3,355
  
$
927
  
$
736
  
$
316
  
$
654
  
$
252
  
$
9,360
 

The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2015.

Year ended December 31, 2015
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2014
 
$
3,581
  
$
1,825
  
$
580
  
$
1,181
  
$
161
  
$
886
  
$
369
  
$
8,583
 
Provision for (reversal of) loan losses
  
(542
)
  
1,507
   
480
   
(450
)
  
113
   
(126
)
  
(332
)
  
650
 
 
                                
Charge-offs
  
(44
)
  
(7
)
  
—
   
(211
)
  
—
   
(175
)
  
—
   
(437
)
Recoveries
  
102
   
18
   
—
   
219
   
60
   
56
   
—
   
455
 
Net recoveries
  
58
   
11
   
—
   
8
   
60
   
(119
)
  
—
   
18
 
Ending Balance
 
$
3,097
  
$
3,343
  
$
1,060
  
$
739
  
$
334
  
$
641
  
$
37
  
$
9,251
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
 
$
43
  
$
42
  
$
—
  
$
615
  
$
119
  
$
33
  
$
—
  
$
852
 
Loans collectively evaluated for impairment
  
3,054
   
3,301
   
1,060
   
124
   
215
   
608
   
37
   
8,399
 
Balance as of December 31, 2015
 
$
3,097
  
$
3,343
  
$
1,060
  
$
739
  
$
334
  
$
641
  
$
37
  
$
9,251
 

The Company's investment in loans as of September 30, 2016, September 30, 2015, and December 31, 2015 related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company's impairment methodology was as follows:

($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Total
 
September 30, 2016
 
Loans individually evaluated for impairment
 
$
5,647
  
$
845
  
$
—
  
$
2,961
  
$
976
  
$
763
  
$
11,192
 
Loans collectively evaluated for impairment
  
122,192
   
321,777
   
97,257
   
38,719
   
19,620
   
42,789
   
642,354
 
Ending Balance
 
$
127,839
  
$
322,622
  
$
97,257
  
$
41,680
  
$
20,596
  
$
43,552
  
$
653,546
 
 
                            
September 30, 2015
 
Loans individually evaluated for impairment
 
$
959
  
$
1,578
  
$
—
  
$
3,360
  
$
860
  
$
1,329
  
$
8,086
 
Loans collectively evaluated for impairment
  
128,655
   
294,843
   
74,138
   
39,306
   
10,453
   
44,350
   
591,745
 
Ending Balance
 
$
129,614
  
$
296,421
  
$
74,138
  
$
42,666
  
$
11,313
  
$
45,679
  
$
599,831
 
 
                            
December 31, 2015
 
Loans individually evaluated for impairment
 
$
918
  
$
1,258
  
$
—
  
$
3,576
  
$
1,005
  
$
1,321
  
$
8,078
 
Loans collectively evaluated for impairment
  
135,177
   
291,058
   
84,813
   
39,799
   
11,105
   
44,065
   
606,017
 
Ending Balance
 
$
136,095
  
$
292,316
  
$
84,813
  
$
43,375
  
$
12,110
  
$
45,386
  
$
614,095