XML 46 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
LOANS (Tables)
 3 Months Ended
Mar. 31, 2018
LOANS [Abstract]  
Composition of Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of March 31, 2018 and December 31, 2017 was as follows:

($ in thousands)
 
March 31,
2018
  
December 31,
2017
 
       
Commercial
 
$
130,749
  
$
135,015
 
Commercial Real Estate
  
393,910
   
398,346
 
Agriculture
  
104,104
   
113,555
 
Residential Mortgage
  
44,788
   
42,081
 
Residential Construction
  
20,754
   
21,299
 
Consumer
  
36,930
   
38,900
 
   
731,235
   
749,196
 
Allowance for loan losses
  
(11,715
)
  
(11,133
)
Net deferred origination fees and costs
  
1,039
   
1,049
 
Loans, net
 
$
720,559
  
$
739,112
 
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of March 31, 2018 and December 31, 2017, were as follows:

($ in thousands)
 
Current &
Accruing
  
30-59 Days
Past Due &
Accruing
  
60-89 Days
Past Due &
Accruing
  
90 Days or
more Past
Due &
Accruing
  
Nonaccrual
  
Total Loans
 
March 31, 2018
                  
Commercial
 
$
129,831
  
$
39
  
$
—
  
$
—
  
$
879
  
$
130,749
 
Commercial Real Estate
  
392,137
   
97
   
—
   
—
   
1,676
   
393,910
 
Agriculture
  
104,104
   
—
   
—
   
—
   
—
   
104,104
 
Residential Mortgage
  
44,080
   
—
   
—
   
—
   
708
   
44,788
 
Residential Construction
  
20,754
   
—
   
—
   
—
   
—
   
20,754
 
Consumer
  
36,406
   
212
   
—
   
—
   
312
   
36,930
 
Total
 
$
727,312
  
$
348
  
$
—
  
$
—
  
$
3,575
  
$
731,235
 
                         
December 31, 2017
                        
Commercial
 
$
133,913
  
$
—
  
$
—
  
$
45
  
$
1,057
  
$
135,015
 
Commercial Real Estate
  
396,521
   
101
   
—
   
—
   
1,724
   
398,346
 
Agriculture
  
113,555
   
—
   
—
   
—
   
—
   
113,555
 
Residential Mortgage
  
40,354
   
349
   
597
   
—
   
781
   
42,081
 
Residential Construction
  
21,299
   
—
   
—
   
—
   
—
   
21,299
 
Consumer
  
38,656
   
1
   
38
   
—
   
205
   
38,900
 
Total
 
$
744,298
  
$
451
  
$
635
  
$
45
  
$
3,767
  
$
749,196
 
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of March 31, 2018 and December 31, 2017 were as follows:

($ in thousands)
 
Unpaid
Contractual
Principal
Balance
  
Recorded
Investment
with no
Allowance
  
Recorded
Investment
with
Allowance
  
Total
Recorded
Investment
  
Related
Allowance
 
March 31, 2018
               
Commercial
 
$
3,420
  
$
879
  
$
2,312
  
$
3,191
  
$
47
 
Commercial Real Estate
  
2,088
   
1,676
   
270
   
1,946
   
36
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
2,424
   
708
   
1,484
   
2,192
   
309
 
Residential Construction
  
644
   
—
   
644
   
644
   
71
 
Consumer
  
523
   
312
   
211
   
523
   
4
 
Total
 
$
9,099
  
$
3,575
  
$
4,921
  
$
8,496
  
$
467
 
                     
December 31, 2017
                    
Commercial
 
$
3,882
  
$
1,057
  
$
2,603
  
$
3,660
  
$
53
 
Commercial Real Estate
  
2,114
   
1,724
   
272
   
1,996
   
36
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
2,628
   
781
   
1,496
   
2,277
   
302
 
Residential Construction
  
651
   
—
   
650
   
650
   
76
 
Consumer
  
418
   
205
   
213
   
418
   
3
 
Total
 
$
9,693
  
$
3,767
  
$
5,234
  
$
9,001
  
$
470
 
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 March 31, 2018 and March 31, 2017 was as follows:

($ in thousands)
 
Three Months Ended
March 31, 2018
  
Three Months Ended
March 31, 2017
 
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
3,425
  
$
46
  
$
5,561
  
$
9
 
Commercial Real Estate
  
1,971
   
4
   
809
   
15
 
Agriculture
  
—
   
—
   
—
   
—
 
Residential Mortgage
  
2,234
   
15
   
3,028
   
31
 
Residential Construction
  
647
   
9
   
816
   
9
 
Consumer
  
470
   
3
   
649
   
9
 
Total
 
$
8,747
  
$
77
  
$
10,863
  
$
73
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of March 31, 2018 and December 31, 2017:

($ in thousands)
 
Pass
  
Special
Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
March 31, 2018
                  
Commercial
 
$
126,596
  
$
3,022
  
$
1,131
  
$
—
  
$
—
  
$
130,749
 
Commercial Real Estate
  
363,867
   
16,733
   
13,310
   
—
   
—
   
393,910
 
Agriculture
  
101,887
   
2,217
   
—
   
—
   
—
   
104,104
 
Residential Mortgage
  
42,534
   
1,533
   
721
   
—
   
—
   
44,788
 
Residential Construction
  
20,754
   
—
   
—
   
—
   
—
   
20,754
 
Consumer
  
35,635
   
945
   
350
   
—
   
—
   
36,930
 
Total
 
$
691,273
  
$
24,450
  
$
15,512
  
$
—
  
$
—
  
$
731,235
 
                         
December 31, 2017
                        
Commercial
 
$
132,846
  
$
1,050
  
$
1,119
  
$
—
  
$
—
  
$
135,015
 
Commercial Real Estate
  
378,632
   
16,101
   
3,613
   
—
   
—
   
398,346
 
Agriculture
  
110,370
   
3,140
   
45
   
—
   
—
   
113,555
 
Residential Mortgage
  
39,142
   
2,147
   
792
   
—
   
—
   
42,081
 
Residential Construction
  
21,299
   
—
   
—
   
—
   
—
   
21,299
 
Consumer
  
38,157
   
500
   
243
   
—
   
—
   
38,900
 
Total
 
$
720,446
  
$
22,938
  
$
5,812
  
$
—
  
$
—
  
$
749,196
 
Allowance for Loan Losses
The following tables detail activity in the allowance for loan losses by loan class for the three months ended March 31, 2018 and March 31, 2017:
 
Three months ended March 31, 2018
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2017
 
$
2,625
  
$
5,460
  
$
1,547
  
$
628
  
$
360
  
$
342
  
$
171
  
$
11,133
 
Provision for (reversal of) loan losses
  
(85
)
  
(46
)
  
(124
)
  
(1
)
  
(13
)
  
(68
)
  
862
   
525
 
                                 
Charge-offs
  
—
   
—
   
—
   
—
   
—
   
(6
)
  
—
   
(6
)
Recoveries
  
9
   
—
   
—
   
16
   
1
   
37
   
—
   
63
 
Net charge-offs
  
9
   
—
   
—
   
16
   
1
   
31
   
—
   
57
 
Balance as of March 31, 2018
 
$
2,549
  
$
5,414
  
$
1,423
  
$
643
  
$
348
  
$
305
  
$
1,033
  
$
11,715
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
47
   
36
   
—
   
309
   
71
   
4
   
—
   
467
 
Loans collectively evaluated for impairment
  
2,502
   
5,378
   
1,423
   
334
   
277
   
301
   
1,033
   
11,248
 
Balance as of March 31, 2018
 
$
2,549
  
$
5,414
  
$
1,423
  
$
643
  
$
348
  
$
305
  
$
1,033
  
$
11,715
 
 
Three months ended March 31, 2017
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2016
 
$
3,571
  
$
3,910
  
$
1,262
  
$
660
  
$
440
  
$
498
  
$
558
  
$
10,899
 
Provision for (reversal of) loan losses
  
235
   
813
   
25
   
41
   
13
   
(114
)
  
(413
)
  
600
 
                                 
Charge-offs
  
—
   
—
   
—
   
—
   
—
   
(11
)
  
—
   
(11
)
Recoveries
  
2
   
—
   
—
   
—
   
1
   
8
   
—
   
11
 
Net charge-offs
  
2
   
—
   
—
   
—
   
1
   
(3
)
  
—
   
—
 
Balance as of March 31, 2017
 
$
3,808
  
$
4,723
  
$
1,287
  
$
701
  
$
454
  
$
381
  
$
145
  
$
11,499
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
1,341
   
38
   
—
   
578
   
98
   
24
   
—
   
2,079
 
Loans collectively evaluated for impairment
  
2,467
   
4,685
   
1,287
   
123
   
356
   
357
   
145
   
9,420
 
Balance as of March 31, 2017
 
$
3,808
  
$
4,723
  
$
1,287
  
$
701
  
$
454
  
$
381
  
$
145
  
$
11,499
 

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 period ended December 31, 2017.

Year ended December 31, 2017
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2016
 
$
3,571
  
$
3,910
  
$
1,262
  
$
660
  
$
440
  
$
498
  
$
558
  
$
10,899
 
Provision for (reversal of) loan losses
  
(567
)
  
1,550
   
285
   
(7
)
  
(85
)
  
(189
)
  
(387
)
  
600
 
                                 
Charge-offs
  
(681
)
  
—
   
—
   
(121
)
  
—
   
(33
)
  
—
   
(835
)
Recoveries
  
302
   
—
   
—
   
96
   
5
   
66
   
—
   
469
 
Net charge-offs
  
(379
)
  
—
   
—
   
(25
)
  
5
   
33
   
—
   
(366
)
Ending Balance
  
2,625
   
5,460
   
1,547
   
628
   
360
   
342
   
171
   
11,133
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
53
   
36
   
—
   
302
   
76
   
3
   
—
   
470
 
Loans collectively evaluated for impairment
  
2,572
   
5,424
   
1,547
   
326
   
284
   
339
   
171
   
10,663
 
Balance as of December 31, 2017
 
$
2,625
  
$
5,460
  
$
1,547
  
$
628
  
$
360
  
$
342
  
$
171
  
$
11,133
 

The Company’s investment in loans as of March 31, 2018, March 31, 2017, and December 31, 2017 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
 
March 31, 2018
 
Loans individually evaluated for impairment
 
$
3,191
  
$
1,946
  
$
—
  
$
2,192
  
$
644
  
$
523
  
$
8,496
 
Loans collectively evaluated for impairment
  
127,558
   
391,964
   
104,104
   
42,596
   
20,110
   
36,407
   
722,739
 
Ending Balance
 
$
130,749
  
$
393,910
  
$
104,104
  
$
44,788
  
$
20,754
  
$
36,930
  
$
731,235
 
                             
March 31, 2017
 
Loans individually evaluated for impairment
 
$
5,544
  
$
795
  
$
—
  
$
3,022
  
$
812
  
$
593
  
$
10,766
 
Loans collectively evaluated for impairment
  
115,509
   
341,385
   
94,652
   
40,154
   
21,926
   
39,531
   
653,157
 
Ending Balance
 
$
121,053
  
$
342,180
  
$
94,652
  
$
43,176
  
$
22,738
  
$
40,124
  
$
663,923
 
                             
December 31, 2017
 
Loans individually evaluated for impairment
 
$
3,660
  
$
1,996
  
$
—
  
$
2,277
  
$
650
  
$
418
  
$
9,001
 
Loans collectively evaluated for impairment
  
131,355
   
396,350
   
113,555
   
39,804
   
20,649
   
38,482
   
740,195
 
Ending Balance
 
$
135,015
  
$
398,346
  
$
113,555
  
$
42,081
  
$
21,299
  
$
38,900
  
$
749,196