XML 18 R23.htm IDEA: XBRL DOCUMENT v3.19.3
LOANS (Tables)
 9 Months Ended
Sep. 30, 2019
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of September 30, 2019  and December 31, 2018 was as follows:
 
($ in thousands)
 
September 30, 2019
  
December 31, 2018
 
 
      
Commercial
 
$
104,913
  
$
125,177
 
Commercial Real Estate
  
433,698
   
420,106
 
Agriculture
  
118,516
   
123,626
 
Residential Mortgage
  
60,840
   
51,064
 
Residential Construction
  
20,214
   
20,124
 
Consumer
  
28,372
   
35,397
 
 
        
 
  
766,553
   
775,494
 
Allowance for loan losses
  
(12,287
)
  
(12,822
)
Net deferred origination fees and costs
  
738
   
721
 
 
        
Loans, net
 
$
755,004
  
$
763,393
 
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of September 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
  
Nonaccrual
  
Total Loans
 
September 30, 2019
                  
Commercial
 
$
102,706
  
$
1,842
  
$
84
  
$
—
  
$
281
  
$
104,913
 
Commercial Real Estate
  
432,948
   
—
   
406
   
—
   
344
   
433,698
 
Agriculture
  
118,516
   
—
   
—
   
—
   
—
   
118,516
 
Residential Mortgage
  
60,666
   
—
   
—
   
—
   
174
   
60,840
 
Residential Construction
  
20,214
   
—
   
—
   
—
   
—
   
20,214
 
Consumer
  
27,918
   
16
   
—
   
—
   
438
   
28,372
 
Total
 
$
762,968
  
$
1,858
  
$
490
  
$
—
  
$
1,237
  
$
766,553
 
 
                        
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 September 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
 
September 30, 2019
               
Commercial
 
$
2,619
  
$
281
  
$
1,568
  
$
1,849
  
$
30
 
Commercial Real Estate
  
747
   
344
   
252
   
596
   
20
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
1,162
   
174
   
919
   
1,093
   
175
 
Residential Construction
  
732
   
—
   
700
   
700
   
53
 
Consumer
  
525
   
438
   
82
   
520
   
1
 
Total
 
$
5,785
  
$
1,237
  
$
3,521
  
$
4,758
  
$
279
 
 
                    
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 September 30, 2019 and September 30, 2018 was as follows:
 
($ in thousands)
 
Three Months Ended
September 30, 2019
  
Three Months Ended
September 30, 2018
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
2,098
  
$
28
  
$
2,918
  
$
43
 
Commercial Real Estate
  
600
   
4
   
1,923
   
4
 
Agriculture
  
—
   
—
   
—
   
—
 
Residential Mortgage
  
1,054
   
29
   
1,879
   
15
 
Residential Construction
  
705
   
9
   
606
   
2
 
Consumer
  
361
   
1
   
470
   
3
 
Total
 
$
4,818
  
$
71
  
$
7,796
  
$
67
 

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2019 and September 30, 2018 was as follows:
 
($ in thousands)
 
Nine Months Ended
September 30, 2019
  
Nine Months Ended
September 30, 2018
 
 
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
Commercial
 
$
2,318
  
$
102
  
$
3,007
  
$
134
 
Commercial Real Estate
  
617
   
12
   
1,941
   
11
 
Agriculture
  
2,402
   
240
   
—
   
—
 
Residential Mortgage
  
1,253
   
63
   
1,905
   
45
 
Residential Construction
  
678
   
26
   
625
   
21
 
Consumer
  
374
   
23
   
451
   
9
 
Total
 
$
7,642
  
$
466
  
$
7,929
  
$
220
 
Loans Modified as TDR's
Loans modified as TDRs during the three months ended September 30, 2018 were as follows:

($ in thousands)
Three Months Ended September 30, 2018
 
 
Number of
Contracts
 
Pre-modification
outstanding
recorded
investment
 
Post-
modification
outstanding
recorded
investment
 
Consumer
  
1
  
$
194
  
$
194
 
Total
  
1
  
$
194
  
$
194
 


Loans modified as TDRs during the nine months ended September 30, 2019 were as follows:

($ in thousands)
Nine Months Ended September 30, 2019
 
 
Number of
Contracts
 
Pre-modification
outstanding
recorded
investment
 
Post-
modification
outstanding
recorded
investment
 
Residential Construction
  
2
  
$
189
  
$
189
 
Total
  
2
  
$
189
  
$
189
 


Loans modified as TDRs during the nine months ended September 30, 2018 were as follows:

($ in thousands)
Nine Months Ended September 30, 2018
 
 
Number of
Contracts
 
Pre-modification
outstanding
recorded
investment
 
Post-
modification
outstanding
recorded
investment
 
Consumer
  
1
  
$
194
  
$
194
 
Total
  
1
  
$
194
  
$
194
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of September 30, 2019 and December 31, 2018:

($ in thousands)
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
September 30, 2019
                  
Commercial
 
$
103,672
  
$
201
  
$
1,040
  
$
—
  
$
—
  
$
104,913
 
Commercial Real Estate
  
408,716
   
18,567
   
6,415
   
—
   
—
   
433,698
 
Agriculture
  
108,117
   
8,040
   
2,359
   
—
   
—
   
118,516
 
Residential Mortgage
  
60,219
   
—
   
621
   
—
   
—
   
60,840
 
Residential Construction
  
20,214
   
—
   
—
   
—
   
—
   
20,214
 
Consumer
  
27,312
   
500
   
560
   
—
   
—
   
28,372
 
Total
 
$
728,250
  
$
27,308
  
$
10,995
  
$
—
  
$
—
  
$
766,553
 
 
                        
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 nine months ended September 30, 2019.

Three months ended September 30, 2019
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of June 30, 2019
 
$
2,372
  
$
6,429
  
$
1,913
  
$
436
  
$
196
  
$
263
  
$
1,229
  
$
12,838
 
Provision for loan losses
  
384
   
154
   
280
   
17
   
52
   
(6
)
  
(881
)
  
—
 
 
                                
Charge-offs
  
(446
)
  
—
   
(98
)
  
—
   
—
   
(14
)
  
—
   
(558
)
Recoveries
  
2
   
—
   
—
   
—
   
—
   
5
   
—
   
7
 
Net (charge-offs) recoveries
  
(444
)
  
—
   
(98
)
  
—
   
—
   
(9
)
  
—
   
(551
)
Balance as of September 30, 2019
 
$
2,312
  
$
6,583
  
$
2,095
  
$
453
  
$
248
  
$
248
  
$
348
  
$
12,287
 

Nine months ended September 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
  
(375
)
  
693
   
561
   
(262
)
  
(91
)
  
(12
)
  
(514
)
  
—
 
 
                                
Charge-offs
  
(596
)
  
—
   
(98
)
  
—
   
—
   
(29
)
  
—
   
(723
)
Recoveries
  
85
   
—
   
—
   
72
   
21
   
10
   
—
   
188
 
Net (charge-offs) recoveries
  
(511
)
  
—
   
(98
)
  
72
   
21
   
(19
)
  
—
   
(535
)
Balance as of September 30, 2019
 
$
2,312
  
$
6,583
  
$
2,095
  
$
453
  
$
248
  
$
248
  
$
348
  
$
12,287
 

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, 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
 
$
30
  
$
20
  
$
—
  
$
175
  
$
53
  
$
1
  
$
—
  
$
279
 
Loans collectively evaluated for impairment
  
2,282
   
6,563
   
2,095
   
278
   
195
   
247
   
348
   
12,008
 
Ending Balance
 
$
2,312
  
$
6,583
  
$
2,095
  
$
453
  
$
248
  
$
248
  
$
348
  
$
12,287
 

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

Three months ended September 30, 2018
 
($ in thousands)
 
Commercial
  
Commercial
Real Estate
  
Agriculture
  
Residential
Mortgage
  
Residential
Construction
  
Consumer
  
Unallocated
  
Total
 
Balance as of June 30, 2018
 
$
2,764
  
$
5,384
  
$
1,535
  
$
619
  
$
361
  
$
306
  
$
838
  
$
11,807
 
Provision for loan losses
  
2
   
287
   
153
   
1
   
(6
)
  
(22
)
  
110
   
525
 
 
                                
Charge-offs
  
—
   
—
   
—
   
—
   
—
   
(8
)
  
—
   
(8
)
Recoveries
  
—
   
—
   
—
   
6
   
2
   
7
   
—
   
15
 
Net (charge-offs) recoveries
  
—
   
—
   
—
   
6
   
2
   
(1
)
  
—
   
7
 
Balance as of September 30, 2018
 
$
2,766
  
$
5,671
  
$
1,688
  
$
626
  
$
357
  
$
283
  
$
948
  
$
12,339
 
 
Nine months ended September 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
  
571
   
211
   
141
   
(28
)
  
(7
)
  
(90
)
  
777
   
1,575
 
 
                                
Charge-offs
  
(475
)
  
—
   
—
   
—
   
—
   
(19
)
  
—
   
(494
)
Recoveries
  
45
   
—
   
—
   
26
   
4
   
50
   
—
   
125
 
Net (charge-offs) recoveries
  
(430
)
  
—
   
—
   
26
   
4
   
31
   
—
   
(369
)
Balance as of September 30, 2018
 
$
2,766
  
$
5,671
  
$
1,688
  
$
626
  
$
357
  
$
283
  
$
948
  
$
12,339
 

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, 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
 
$
41
  
$
22
  
$
—
  
$
300
  
$
48
  
$
2
  
$
—
  
$
413
 
Loans collectively evaluated for impairment
  
2,725
   
5,649
   
1,688
   
326
   
309
   
281
   
948
   
11,926
 
Ending Balance
 
$
2,766
  
$
5,671
  
$
1,688
  
$
626
  
$
357
  
$
283
  
$
948
  
$
12,339
 

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 September 30, 2019, September 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
 
September 30, 2019
 
Loans individually evaluated for impairment
 
$
1,849
  
$
596
  
$
—
  
$
1,093
  
$
700
  
$
520
  
$
4,758
 
Loans collectively evaluated for impairment
  
103,064
   
433,102
   
118,516
   
59,747
   
19,514
   
27,852
   
761,795
 
Ending Balance
 
$
104,913
  
$
433,698
  
$
118,516
  
$
60,840
  
$
20,214
  
$
28,372
  
$
766,553
 
 
                            
September 30, 2018
 
Loans individually evaluated for impairment
 
$
2,644
  
$
1,900
  
$
—
  
$
1,566
  
$
568
  
$
418
  
$
7,096
 
Loans collectively evaluated for impairment
  
126,737
   
412,411
   
123,753
   
46,075
   
22,471
   
35,601
   
767,048
 
Ending Balance
 
$
129,381
  
$
414,311
  
$
123,753
  
$
47,641
  
$
23,039
  
$
36,019
  
$
774,144
 
 
                            
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