XML 34 R23.htm IDEA: XBRL DOCUMENT v3.19.2
LOANS (Tables)
 6 Months Ended
Jun. 30, 2019
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of June 30, 2019  and December 31, 2018 was as follows:
 
($ in thousands)
 
June 30, 2019
  
December 31, 2018
 
 
      
Commercial
 
$
111,042
  
$
125,177
 
Commercial Real Estate
  
422,063
   
420,106
 
Agriculture
  
109,440
   
123,626
 
Residential Mortgage
  
56,108
   
51,064
 
Residential Construction
  
15,529
   
20,124
 
Consumer
  
29,464
   
35,397
 
 
        
 
  
743,646
   
775,494
 
Allowance for loan losses
  
(12,838
)
  
(12,822
)
Net deferred origination fees and costs
  
811
   
721
 
 
        
Loans, net
 
$
731,619
  
$
763,393
 
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of June 30, 2019 and December 31, 2018, 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
  
Non-Accrual
  
Total Loans
 
June 30, 2019
                  
Commercial
 
$
109,825
  
$
—
  
$
139
  
$
490
  
$
588
  
$
111,042
 
Commercial Real Estate
  
421,715
   
—
   
—
   
—
   
348
   
422,063
 
Agriculture
  
109,342
   
98
   
—
   
—
   
—
   
109,440
 
Residential Mortgage
  
55,844
   
—
   
176
   
—
   
88
   
56,108
 
Residential Construction
  
15,529
   
—
   
—
   
—
   
—
   
15,529
 
Consumer
  
29,243
   
—
   
107
   
—
   
114
   
29,464
 
Total
 
$
741,498
  
$
98
  
$
422
  
$
490
  
$
1,138
  
$
743,646
 
 
                        
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
 
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of June 30, 2019 and December 31, 2018 were as follows:
 
($ in thousands)
 
Unpaid Contractual Principal Balance
  
Recorded
Investment with
no Allowance
  
Recorded
Investment with
Allowance
  
Total Recorded
Investment
  
Related
Allowance
 
June 30, 2019
               
Commercial
 
$
3,116
  
$
588
  
$
1,759
  
$
2,347
  
$
32
 
Commercial Real Estate
  
753
   
348
   
255
   
603
   
20
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
1,102
   
88
   
927
   
1,015
   
179
 
Residential Construction
  
743
   
—
   
711
   
711
   
48
 
Consumer
  
203
   
114
   
88
   
202
   
2
 
Total
 
$
5,917
  
$
1,138
  
$
3,740
  
$
4,878
  
$
281
 
 
                    
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
 
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 June 30, 2019 and June 30, 2018 was as follows:
 
($ in thousands)
 
Three Months Ended
June 30, 2019
  
Three Months Ended
June 30, 2018
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
2,260
  
$
32
  
$
2,863
  
$
45
 
Commercial Real Estate
  
614
   
4
   
1,934
   
4
 
Agriculture
  
2,389
   
240
   
—
   
—
 
Residential Mortgage
  
1,183
   
22
   
1,888
   
15
 
Residential Construction
  
727
   
8
   
641
   
9
 
Consumer
  
293
   
18
   
484
   
3
 
Total
 
$
7,466
  
$
324
  
$
7,810
  
$
76
 

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the six months ended June 30, 2019 and June 30, 2018 was as follows:
 
($ in thousands)
 
Six Months Ended
June 30, 2019
  
Six Months Ended
June 30, 2018
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
2,474
  
$
74
  
$
3,129
  
$
91
 
Commercial Real Estate
  
623
   
8
   
1,955
   
7
 
Agriculture
  
3,203
   
240
   
—
   
—
 
Residential Mortgage
  
1,306
   
34
   
2,018
   
30
 
Residential Construction
  
671
   
16
   
644
   
19
 
Consumer
  
325
   
21
   
462
   
6
 
Total
 
$
8,602
  
$
393
  
$
8,208
  
$
153
 
Loans Modified as TDR's
Loans modified as TDRs during the six months ended June 30, 2019 were as follows:

($ in thousands)
 
Six Months Ended June 30, 2019
 
 
 
Number of
Contracts
  
Pre-modification
outstanding
recorded
investment
  
Post-
modification
outstanding
recorded
investment
 
Residential Construction
  
2
  
$
189
  
$
189
 
Total
  
2
  
$
189
  
$
189
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of June 30, 2019 and December 31, 2018:

($ in thousands)
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
June 30, 2019
                  
Commercial
 
$
107,663
  
$
947
  
$
2,432
  
$
—
  
$
—
  
$
111,042
 
Commercial Real Estate
  
394,747
   
18,746
   
8,570
   
—
   
—
   
422,063
 
Agriculture
  
99,438
   
7,606
   
2,396
   
—
   
—
   
109,440
 
Residential Mortgage
  
55,563
   
—
   
545
   
—
   
—
   
56,108
 
Residential Construction
  
15,529
   
—
   
—
   
—
   
—
   
15,529
 
Consumer
  
28,597
   
500
   
367
   
—
   
—
   
29,464
 
Total
 
$
701,537
  
$
27,799
  
$
14,310
  
$
—
  
$
—
  
$
743,646
 
 
                        
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
 
Allowance for Loan Losses
The following tables detail activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2019.

Three months ended June 30, 2019
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of March 31, 2019
 
$
2,499
  
$
6,386
  
$
1,834
  
$
502
  
$
217
  
$
277
  
$
1,031
  
$
12,746
 
Provision for loan losses
  
(191
)
  
43
   
79
   
(82
)
  
(41
)
  
(6
)
  
198
   
—
 
 
                                
Charge-offs
  
—
   
—
   
—
   
—
   
—
   
(8
)
  
—
   
(8
)
Recoveries
  
64
   
—
   
—
   
16
   
20
   
—
   
—
   
100
 
Net (charge-offs) recoveries
  
64
   
—
   
—
   
16
   
20
   
(8
)
  
—
   
92
 
Balance as of June 30, 2019
 
$
2,372
  
$
6,429
  
$
1,913
  
$
436
  
$
196
  
$
263
  
$
1,229
  
$
12,838
 

Six months ended June 30, 2019
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of December 31, 2018
 
$
3,198
  
$
5,890
  
$
1,632
  
$
643
  
$
318
  
$
279
  
$
862
  
$
12,822
 
Provision for loan losses
  
(759
)
  
539
   
281
   
(279
)
  
(143
)
  
(6
)
  
367
   
—
 
 
                                
Charge-offs
  
(150
)
  
—
   
—
   
—
   
—
   
(15
)
  
—
   
(165
)
Recoveries
  
83
   
—
   
—
   
72
   
21
   
5
   
—
   
181
 
Net (charge-offs) recoveries
  
(67
)
  
—
   
—
   
72
   
21
   
(10
)
  
—
   
16
 
Balance as of June 30, 2019
 
$
2,372
  
$
6,429
  
$
1,913
  
$
436
  
$
196
  
$
263
  
$
1,229
  
$
12,838
 

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of June 30, 2019.

($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Period-end amount allocated to:
                        
Loans individually evaluated for impairment
 
$
32
  
$
20
  
$
—
  
$
179
  
$
48
  
$
2
  
$
—
  
$
281
 
Loans collectively evaluated for impairment
  
2,340
   
6,409
   
1,913
   
257
   
148
   
261
   
1,229
   
12,557
 
Ending Balance
 
$
2,372
  
$
6,429
  
$
1,913
  
$
436
  
$
196
  
$
263
  
$
1,229
  
$
12,838
 

The following table details activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2018.

Three months ended June 30, 2018
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of March 31, 2018
 
$
2,549
  
$
5,414
  
$
1,423
  
$
643
  
$
348
  
$
305
  
$
1,033
  
$
11,715
 
Provision for loan losses
  
654
   
(30
)
  
112
   
(28
)
  
12
   
—
   
(195
)
  
525
 
 
                                
Charge-offs
  
(475
)
  
—
   
—
   
—
   
—
   
(5
)
  
—
   
(480
)
Recoveries
  
36
   
—
   
—
   
4
   
1
   
6
   
—
   
47
 
Net (charge-offs) recoveries
  
(439
)
  
—
   
—
   
4
   
1
   
1
   
—
   
(433
)
Balance as of June 30, 2018
 
$
2,764
  
$
5,384
  
$
1,535
  
$
619
  
$
361
  
$
306
  
$
838
  
$
11,807
 
 
Six months ended June 30, 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 loan losses
  
569
   
(76
)
  
(12
)
  
(29
)
  
(1
)
  
(68
)
  
667
   
1,050
 
 
                                
Charge-offs
  
(475
)
  
—
   
—
   
—
   
—
   
(11
)
  
—
   
(486
)
Recoveries
  
45
   
—
   
—
   
20
   
2
   
43
   
—
   
110
 
Net (charge-offs) recoveries
  
(430
)
  
—
   
—
   
20
   
2
   
32
   
—
   
(376
)
Balance as of June 30, 2018
 
$
2,764
  
$
5,384
  
$
1,535
  
$
619
  
$
361
  
$
306
  
$
838
  
$
11,807
 

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of June 30, 2018.

($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Period-end amount allocated to:
                        
Loans individually evaluated for impairment
 
$
45
  
$
35
  
$
—
  
$
304
  
$
58
  
$
4
  
$
—
  
$
446
 
Loans collectively evaluated for impairment
  
2,719
   
5,349
   
1,535
   
315
   
303
   
302
   
838
   
11,361
 
Ending Balance
 
$
2,764
  
$
5,384
  
$
1,535
  
$
619
  
$
361
  
$
306
  
$
838
  
$
11,807
 

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, 2018.

Year ended December 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 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) recoveries
  
(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
 

The Company’s investment in loans as of June 30, 2019, June 30, 2018, and December 31, 2018 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
 
June 30, 2019
 
Loans individually evaluated for impairment
 
$
2,347
  
$
603
  
$
—
  
$
1,015
  
$
711
  
$
202
  
$
4,878
 
Loans collectively evaluated for impairment
  
108,695
   
421,460
   
109,440
   
55,093
   
14,818
   
29,262
   
738,768
 
Ending Balance
 
$
111,042
  
$
422,063
  
$
109,440
  
$
56,108
  
$
15,529
  
$
29,464
  
$
743,646
 
 
                            
June 30, 2018
 
Loans individually evaluated for impairment
 
$
2,535
  
$
1,922
  
$
—
  
$
1,585
  
$
637
  
$
446
  
$
7,125
 
Loans collectively evaluated for impairment
  
128,936
   
390,151
   
112,457
   
44,182
   
22,057
   
36,751
   
734,534
 
Ending Balance
 
$
131,471
  
$
392,073
  
$
112,457
  
$
45,767
  
$
22,694
  
$
37,197
  
$
741,659
 
 
                            
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