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Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Loans [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, at December 31, is as follows:  

 
 
2019
  
2018
 
Commercial
 
$
106,140
  
$
125,177
 
Commercial Real Estate
  
451,774
   
420,106
 
Agriculture
  
115,751
   
123,626
 
Residential Mortgage
  
64,943
   
51,064
 
Residential Construction
  
15,212
   
20,124
 
Consumer
  
26,825
   
35,397
 
 
        
 
  
780,645
   
775,494
 
Allowance for loan losses
  
(12,356
)
  
(12,822
)
Net deferred origination fees and costs
  
584
   
721
 
 
        
Loans, net
 
$
768,873
  
$
763,393
 
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of December 31, 2019 and 2018 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, 2019
                  
Commercial
 
$
105,741
  
$
—
  
$
133
  
$
—
  
$
266
  
$
106,140
 
Commercial Real Estate
  
451,215
   
—
   
93
   
—
   
466
   
451,774
 
Agriculture
  
115,751
   
—
   
—
   
—
   
—
   
115,751
 
Residential Mortgage
  
64,771
   
—
   
—
   
—
   
172
   
64,943
 
Residential Construction
  
15,212
   
—
   
—
   
—
   
—
   
15,212
 
Consumer
  
26,472
   
100
   
—
   
—
   
253
   
26,825
 
Total
 
$
779,162
  
$
100
  
$
226
  
$
—
  
$
1,157
  
$
780,645
 
 
                        
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 December 31, 2019 and 2018 were as follows:

 
 
Unpaid Contractual Principal Balance
  
Recorded Investment with no Allowance
  
Recorded Investment with Allowance
  
Total Recorded Investment
  
Related Allowance
 
December 31, 2019
               
Commercial
 
$
1,694
  
$
266
  
$
1,385
  
$
1,651
  
$
26
 
Commercial Real Estate
  
715
   
466
   
250
   
716
   
19
 
Agriculture
  
—
   
—
   
—
   
—
   
—
 
Residential Mortgage
  
1,152
   
172
   
912
   
1,084
   
171
 
Residential Construction
  
724
   
—
   
691
   
691
   
56
 
Consumer
  
340
   
253
   
80
   
333
   
1
 
Total
 
$
4,625
  
$
1,157
  
$
3,318
  
$
4,475
  
$
273
 
 
                    
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 years ended December 31, 2019, 2018, and 2017 was as follows:

 
 
December 31, 2019
  
December 31, 2018
  
December 31, 2017
 
 
 
Average Recorded Investment
  
Interest Income Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Average Recorded Investment
  
Interest Income Recognized
 
Commercial
 
$
2,184
  
$
128
  
$
2,986
  
$
181
  
$
3,980
  
$
157
 
Commercial Real Estate
  
636
   
182
   
1,681
   
15
   
1,780
   
15
 
Agriculture
  
1,922
   
240
   
966
   
—
   
—
   
—
 
Residential Mortgage
  
1,219
   
72
   
1,834
   
72
   
2,543
   
92
 
Residential Construction
  
681
   
35
   
612
   
28
   
732
   
37
 
Consumer
  
366
   
31
   
439
   
27
   
548
   
26
 
Total
 
$
7,008
  
$
688
  
$
8,518
  
$
323
  
$
9,583
  
$
327
 
Loans Modified as TDR's
Loans modified as troubled debt restructurings during the year ended December 31, 2019, 2018, and 2017 were as follows:

 
Year Ended December 31, 2019
 
 
Number of Contracts
 
Pre-modification outstanding recorded investment
 
Post-modification outstanding recorded investment
 
Residential Construction
  
2
  
$
189
  
$
189
 
Total
  
2
  
$
189
  
$
189
 

 
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
 
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of December 31, 2019 and 2018.

 
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Loss
  
Total
 
December 31, 2019
                  
Commercial
 
$
104,944
  
$
428
  
$
768
  
$
—
  
$
—
  
$
106,140
 
Commercial Real Estate
  
427,991
   
17,739
   
6,044
   
—
   
—
   
451,774
 
Agriculture
  
105,573
   
7,823
   
2,355
   
—
   
—
   
115,751
 
Residential Mortgage
  
64,596
   
—
   
347
   
—
   
—
   
64,943
 
Residential Construction
  
15,212
   
—
   
—
   
—
   
—
   
15,212
 
Consumer
  
25,933
   
500
   
392
   
—
   
—
   
26,825
 
Total
 
$
744,249
  
$
26,490
  
$
9,906
  
$
—
  
$
—
  
$
780,645
 
 
                        
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 table details activity in the allowance for loan losses by loan category for the years ended December 31, 2019, 2018 and 2017.

 
 
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
  
(415
)
  
956
   
520
   
(251
)
  
(138
)
  
(9
)
  
(663
)
  
—
 
 
                                
Charge-offs
  
(638
)
  
—
   
(98
)
  
—
   
—
   
(43
)
  
—
   
(779
)
Recoveries
  
209
   
—
   
—
   
74
   
21
   
9
   
—
   
313
 
Net charge-offs
  
(429
)
  
—
   
(98
)
  
74
   
21
   
(34
)
  
—
   
(466
)
Ending Balance
  
2,354
   
6,846
   
2,054
   
466
   
201
   
236
   
199
   
12,356
 
Period-end amount allocated to:
                                
Loans individually evaluated for impairment
  
26
   
19
   
—
   
171
   
56
   
1
   
—
   
273
 
Loans collectively evaluated for impairment
  
2,328
   
6,827
   
2,054
   
295
   
145
   
235
   
199
   
12,083
 
Balance as of
December 31, 2019
 
$
2,354
  
$
6,846
  
$
2,054
  
$
466
  
$
201
  
$
236
  
$
199
  
$
12,356
 

 
 
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
 

The Company’s investment in loans as of December 31, 2019, 2018, and 2017 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, 2019
 
Loans individually evaluated for impairment
 
$
1,651
  
$
716
  
$
—
  
$
1,084
  
$
691
  
$
333
  
$
4,475
 
Loans collectively evaluated for impairment
  
104,489
   
451,058
   
115,751
   
63,859
   
14,521
   
26,492
   
776,170
 
Ending Balance
 
$
106,140
  
$
451,774
  
$
115,751
  
$
64,943
  
$
15,212
  
$
26,825
  
$
780,645
 
 
                            
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