XML 35 R24.htm IDEA: XBRL DOCUMENT v3.20.2
LOANS (Tables)
 6 Months Ended
Jun. 30, 2020
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of June 30, 2020 and December 31, 2019 was as follows:
 
($ in thousands)
  
June 30, 2020
    
December 31, 2019
  
 
            
Commercial
  
$
334,318
    
$
106,140
  
Commercial Real Estate
    
459,498
      
451,774
  
Agriculture
    
96,330
      
115,751
  
Residential Mortgage
    
69,687
      
64,943
  
Residential Construction
    
15,969
      
15,212
  
Consumer
    
23,024
      
26,825
  
 
    
998,826
      
780,645
  
Allowance for loan losses
    
(13,631
)
    
(12,356
)
Net deferred origination fees and costs
    
(5,101
)
    
584
  
Loans, net
  
$
980,094
    
$
768,873
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of June 30, 2020 and December 31, 2019, 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
  
June 30, 2020
                                    
Commercial
  
$
333,868
    
$
—
    
$
—
    
$
—
    
$
450
    
$
334,318
  
Commercial Real Estate
    
453,790
      
—
      
—
      
—
      
5,708
      
459,498
  
Agriculture
    
87,185
      
—
      
—
      
—
      
9,145
      
96,330
  
Residential Mortgage
    
69,517
      
—
      
—
      
—
      
170
      
69,687
  
Residential Construction
    
15,969
      
—
      
—
      
—
      
—
      
15,969
  
Consumer
    
22,131
      
10
      
—
      
—
      
883
      
23,024
  
Total
  
$
982,460
    
$
10
    
$
—
    
$
—
    
$
16,356
    
$
998,826
  
 
                                                
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
  
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of June 30, 2020 and December 31, 2019 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, 2020
                              
Commercial
  
$
1,538
    
$
450
    
$
1,023
    
$
1,473
    
$
19
  
Commercial Real Estate
    
5,735
      
5,708
      
—
      
5,708
      
—
  
Agriculture
    
9,162
      
9,145
      
—
      
9,145
      
—
  
Residential Mortgage
    
1,137
      
170
      
897
      
1,067
      
167
  
Residential Construction
    
703
      
—
      
671
      
671
      
73
  
Consumer
    
971
      
883
      
78
      
961
      
1
  
Total
  
$
19,246
    
$
16,356
    
$
2,669
    
$
19,025
    
$
260
  
 
                                        
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
  
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, 2020 and June 30, 2019 was as follows:
 
($ in thousands)
  
Three Months Ended
June 30, 2020
    
Three Months Ended
June 30, 2019
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
1,468
    
$
14
    
$
2,260
    
$
32
  
Commercial Real Estate
    
3,231
      
—
      
614
      
4
  
Agriculture
    
4,572
      
—
      
2,389
      
240
  
Residential Mortgage
    
1,071
      
6
      
1,183
      
22
  
Residential Construction
    
676
      
9
      
727
      
8
  
Consumer
    
645
      
1
      
293
      
18
  
Total
  
$
11,663
    
$
30
    
$
7,466
    
$
324
  


The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the six months ended June 30, 2020 and June 30, 2019 was as follows:
 
($ in thousands)
  
Six Months Ended
June 30, 2020
    
Six Months Ended
June 30, 2019
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
1,529
    
$
35
    
$
2,474
    
$
74
  
Commercial Real Estate
    
2,393
      
4
      
623
      
8
  
Agriculture
    
3,048
      
—
      
3,203
      
240
  
Residential Mortgage
    
1,075
      
15
      
1,306
      
34
  
Residential Construction
    
681
      
18
      
671
      
16
  
Consumer
    
541
      
3
      
325
      
21
  
Total
  
$
9,267
    
$
75
    
$
8,602
    
$
393
  
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, 2020 and December 31, 2019:
 
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
June 30, 2020
                                    
Commercial
  
$
330,590
    
$
3,020
    
$
708
    
$
—
    
$
—
    
$
334,318
  
Commercial Real Estate
    
430,429
      
17,402
      
11,667
      
—
      
—
      
459,498
  
Agriculture
    
84,304
      
543
      
11,483
      
—
      
—
      
96,330
  
Residential Mortgage
    
69,354
      
—
      
333
      
—
      
—
      
69,687
  
Residential Construction
    
15,969
      
—
      
—
      
—
      
—
      
15,969
  
Consumer
    
22,041
      
—
      
983
      
—
      
—
      
23,024
  
Total
  
$
952,687
    
$
20,965
    
$
25,174
    
$
—
    
$
—
    
$
998,826
  
 
                                                
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
  
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, 2020.

Three months ended June 30, 2020
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of March 31, 2020
  
$
2,606
    
$
7,406
    
$
1,788
    
$
536
    
$
260
    
$
251
    
$
22
    
$
12,869
  
Provision for loan losses
    
(230
)
    
28
      
(133
)
    
4
      
(15
)
    
(27
)
    
1,173
      
800
  
 
                                                                
Charge-offs
    
(39
)
    
—
      
—
      
—
      
—
      
(4
)
    
—
      
(43
)
Recoveries
    
1
      
—
      
—
      
—
      
—
      
4
      
—
      
5
  
Net charge-offs
    
(38
)
    
—
      
—
      
—
      
—
      
—
      
—
      
(38
)
Balance as of June 30, 2020
  
$
2,338
    
$
7,434
    
$
1,655
    
$
540
    
$
245
    
$
224
    
$
1,195
    
$
13,631
  

Six months ended June 30, 2020
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2019
  
$
2,354
    
$
6,846
    
$
2,054
    
$
466
    
$
201
    
$
236
    
$
199
    
$
12,356
  
Provision for loan losses
    
156
      
588
      
(399
)
    
74
      
44
      
(9
)
    
996
      
1,450
  
 
                                                                
Charge-offs
    
(184
)
    
—
      
—
      
—
      
—
      
(13
)
    
—
      
(197
)
Recoveries
    
12
      
—
      
—
      
—
      
—
      
10
      
—
      
22
  
Net charge-offs
    
(172
)
    
—
      
—
      
—
      
—
      
(3
)
    
—
      
(175
)
Balance as of June 30, 2020
  
$
2,338
    
$
7,434
    
$
1,655
    
$
540
    
$
245
    
$
224
    
$
1,195
    
$
13,631
  

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, 2020.

($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Period-end amount allocated to:
                                                
Loans individually evaluated for impairment
  
$
19
    
$
—
    
$
—
    
$
167
    
$
73
    
$
1
    
$
—
    
$
260
  
Loans collectively evaluated for impairment
    
2,319
      
7,434
      
1,655
      
373
      
172
      
223
      
1,195
      
13,371
  
Ending Balance
  
$
2,338
    
$
7,434
    
$
1,655
    
$
540
    
$
245
    
$
224
    
$
1,195
    
$
13,631
  
 

The following table details 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2019.
 
Year ended December 31, 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
    
(415
)
    
956
      
520
      
(251
)
    
(138
)
    
(9
)
    
(663
)
    
—
  
 
                                                                
Charge-offs
    
(638
)
    
—
      
(98
)
    
—
      
—
      
(43
)
    
—
      
(779
)
Recoveries
    
209
      
—
      
—
      
74
      
21
      
9
      
—
      
313
  
Net (charge-offs) recoveries
    
(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
  
 
The Company’s investment in loans as of June 30, 2020, June 30, 2019, and December 31, 2019 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, 2020
  
Loans individually evaluated for impairment
  
$
1,473
    
$
5,708
    
$
9,145
    
$
1,067
    
$
671
    
$
961
    
$
19,025
  
Loans collectively evaluated for impairment
    
332,845
      
453,790
      
87,185
      
68,620
      
15,298
      
22,063
      
979,801
  
Ending Balance
  
$
334,318
    
$
459,498
    
$
96,330
    
$
69,687
    
$
15,969
    
$
23,024
    
$
998,826
  
 
                                                        
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
  
 
                                                        
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