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Loans (Tables)
 12 Months Ended
Dec. 31, 2018
Loans [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, at December 31, is as follows:  

 
 
2018
  
2017
 
Commercial
 
$
125,177
  
$
135,015
 
Commercial Real Estate
  
420,106
   
398,346
 
Agriculture
  
123,626
   
113,555
 
Residential Mortgage
  
51,064
   
42,081
 
Residential Construction
  
20,124
   
21,299
 
Consumer
  
35,397
   
38,900
 
 
        
 
  
775,494
   
749,196
 
Allowance for loan losses
  
(12,822
)
  
(11,133
)
Net deferred origination fees and costs
  
721
   
1,049
 
 
        
Loans, net
 
$
763,393
  
$
739,112
 
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of December 31, 2018 and December 31, 2017 was as follows:

 
 
Current & Accruing
  
30-59 Days Past Due & Accruing
  
60-89 Days Past Due & Accruing
  
90 Days or
more Past Due & Accruing
  
Nonaccrual
  
Total Loans
 
December 31, 2018
                  
Commercial
 
$
123,765
  
$
662
  
$
—
  
$
—
  
$
750
  
$
125,177
 
Commercial Real Estate
  
419,725
   
—
   
—
   
—
   
381
   
420,106
 
Agriculture
  
118,639
   
157
   
—
   
—
   
4,830
   
123,626
 
Residential Mortgage
  
50,964
   
—
   
—
   
—
   
100
   
51,064
 
Residential Construction
  
20,124
   
—
   
—
   
—
   
—
   
20,124
 
Consumer
  
35,054
   
114
   
38
   
—
   
191
   
35,397
 
Total
 
$
768,271
  
$
933
  
$
38
  
$
—
  
$
6,252
  
$
775,494
 
 
                        
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 December 31, 2018 and December 31, 2017 were as follows:

 
 
Unpaid Contractual Principal Balance
  
Recorded Investment with no Allowance
  
Recorded Investment with Allowance
  
Total Recorded Investment
  
Related Allowance
 
December 31, 2018
               
Commercial
 
$
3,591
  
$
300
  
$
2,602
  
$
2,902
  
$
496
 
Commercial Real Estate
  
780
   
381
   
261
   
642
   
21
 
Agriculture
  
4,830
   
4,830
   
—
   
4,830
   
—
 
Residential Mortgage
  
1,669
   
100
   
1,451
   
1,551
   
287
 
Residential Construction
  
560
   
—
   
560
   
560
   
49
 
Consumer
  
403
   
191
   
198
   
389
   
2
 
Total
 
$
11,833
  
$
5,802
  
$
5,072
  
$
10,874
  
$
855
 
 
                    
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 years ended December 31, 2018, 2017, and 2016 was as follows:

 
 
December 31, 2018
  
December 31, 2017
  
December 31, 2016
 
 
 
Average Recorded Investment
  
Interest Income Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Average Recorded Investment
  
Interest Income Recognized
 
Commercial
 
$
2,986
  
$
181
  
$
3,980
  
$
157
  
$
3,276
  
$
33
 
Commercial Real Estate
  
1,681
   
15
   
1,780
   
15
   
857
   
16
 
Agriculture
  
966
   
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
1,834
   
72
   
2,543
   
92
   
3,131
   
93
 
Residential Construction
  
612
   
28
   
732
   
37
   
945
   
44
 
Consumer
  
439
   
27
   
548
   
26
   
736
   
71
 
Total
 
$
8,518
  
$
323
  
$
9,583
  
$
327
  
$
8,945
  
$
257
 
Loans Modified as TDR's
Loans modified as troubled debt restructurings during the year ended December 31, 2018, 2017, and 2016 were as follows:

 
Year Ended December 31, 2018
 
 
Number of Contracts
 
Pre-modification outstanding recorded investment
 
Post-modification outstanding recorded investment
 
Consumer
  
1
  
$
191
  
$
191
 
Total
  
1
  
$
191
  
$
191
 

 
Year Ended December 31, 2017
 
 
Number of Contracts
 
Pre-modification outstanding recorded investment
 
Post-modification outstanding recorded investment
 
Commercial
  
1
  
$
2,410
  
$
2,410
 
Total
  
1
  
$
2,410
  
$
2,410
 

 
Year Ended December 31, 2016
 
 
Number of Contracts
 
Pre-modification outstanding recorded investment
 
Post-modification outstanding recorded investment
 
Commercial
  
2
  
$
5,180
  
$
5,180
 
Total
  
2
  
$
5,180
  
$
5,180
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of December 31, 2018 and December 31, 2017.

 
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
December 31, 2018
                  
Commercial
 
$
121,848
  
$
66
  
$
2,813
  
$
450
  
$
—
  
$
125,177
 
Commercial Real Estate
  
395,436
   
14,272
   
10,398
   
—
   
—
   
420,106
 
Agriculture
  
104,809
   
11,750
   
7,067
   
—
   
—
   
123,626
 
Residential Mortgage
  
50,149
   
—
   
915
   
—
   
—
   
51,064
 
Residential Construction
  
19,372
   
752
   
—
   
—
   
—
   
20,124
 
Consumer
  
34,272
   
590
   
535
   
—
   
—
   
35,397
 
Total
 
$
725,886
  
$
27,430
  
$
21,728
  
$
450
  
$
—
  
$
775,494
 
 
                        
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 table details activity in the allowance for loan losses by loan category for the years ended December 31, 2018, 2017 and 2016.

 
 
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 loan losses
  
1,036
   
572
   
85
   
(19
)
  
(173
)
  
(92
)
  
691
   
2,100
 
 
                                
Charge-offs
  
(509
)
  
(142
)
  
—
   
—
   
—
   
(34
)
  
—
   
(685
)
Recoveries
  
46
   
—
   
—
   
34
   
131
   
63
   
—
   
274
 
Net charge-offs
  
(463
)
  
(142
)
  
—
   
34
   
131
   
29
   
—
   
(411
)
Ending Balance
  
3,198
   
5,890
   
1,632
   
643
   
318
   
279
   
862
   
12,822
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
496
   
21
   
—
   
287
   
49
   
2
   
—
   
855
 
Loans collectively evaluated for impairment
  
2,702
   
5,869
   
1,632
   
356
   
269
   
277
   
862
   
11,967
 
Balance as of
December 31, 2018
 
$
3,198
  
$
5,890
  
$
1,632
  
$
643
  
$
318
  
$
279
  
$
862
  
$
12,822
 

 
 
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 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
 
 

 
 
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
  
883
   
582
   
121
   
(67
)
  
101
   
(341
)
  
521
   
1,800
 
 
                                
Charge-offs
  
(446
)
  
(15
)
  
—
   
(13
)
  
—
   
(65
)
  
—
   
(539
)
Recoveries
  
37
   
—
   
81
   
1
   
5
   
263
   
—
   
387
 
Net charge-offs
  
(409
)
  
(15
)
  
81
   
(12
)
  
5
   
198
   
—
   
(152
)
Ending Balance
  
3,571
   
3,910
   
1,262
   
660
   
440
   
498
   
558
   
10,899
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
898
   
39
   
—
   
584
   
98
   
25
   
—
   
1,644
 
Loans collectively evaluated for impairment
  
2,673
   
3,871
   
1,262
   
76
   
342
   
473
   
558
   
9,255
 
Balance as of December 31, 2016
 
$
3,571
  
$
3,910
  
$
1,262
  
$
660
  
$
440
  
$
498
  
$
558
  
$
10,899
 

The Company’s investment in loans as of December 31, 2018, 2017, and 2016 related to each balance in the allowance for loan losses by loan category and disaggregated on the basis of the Company’s impairment methodology was as follows:

 
 
Commercial
  
Commercial Real Estate
  
Agriculture
  
Residential Mortgage
  
Residential Construction
  
Consumer
  
Total
 
December 31, 2018
 
Loans individually evaluated for impairment
 
$
2,902
  
$
642
  
$
4,830
  
$
1,551
  
$
560
  
$
389
  
$
10,874
 
Loans collectively evaluated for impairment
  
122,275
   
419,464
   
118,796
   
49,513
   
19,564
   
35,008
   
764,620
 
Ending Balance
 
$
125,177
  
$
420,106
  
$
123,626
  
$
51,064
  
$
20,124
  
$
35,397
  
$
775,494
 
 
                            
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
 
December 31, 2016
 
Loans individually evaluated for impairment
 
$
5,578
  
$
823
  
$
—
  
$
3,034
  
$
820
  
$
704
  
$
10,959
 
Loans collectively evaluated for impairment
  
120,733
   
343,387
   
101,905
   
37,203
   
22,830
   
42,546
   
668,604
 
Ending Balance
 
$
126,311
  
$
344,210
  
$
101,905
  
$
40,237
  
$
23,650
  
$
43,250
  
$
679,563