XML 35 R24.htm IDEA: XBRL DOCUMENT v3.21.1
LOANS (Tables)
 3 Months Ended
Mar. 31, 2021
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of March 31, 2021 and December 31, 2020 was as follows:
 
($ in thousands)
  
March 31,
2021
    
December 31, 2020
  
 
            
Commercial
  
$
293,148
    
$
255,926
  
Commercial Real Estate
    
496,848
      
454,053
  
Agriculture
    
79,955
      
95,048
  
Residential Mortgage
    
71,112
      
64,497
  
Residential Construction
    
2,662
      
4,223
  
Consumer
    
18,717
      
19,467
  
 
    
962,442
      
893,214
  
Allowance for loan losses
    
(15,713
)
    
(15,416
)
Net deferred origination fees and costs
    
(4,325
)
    
(1,968
)
Loans, net
  
$
942,404
    
$
875,830
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of March 31, 2021 and December 31, 2020, 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
  
March 31, 2021
                                    
Commercial
  
$
292,494
    
$
370
    
$
—
    
$
—
    
$
284
    
$
293,148
  
Commercial Real Estate
    
490,045
      
—
      
—
      
—
      
6,803
      
496,848
  
Agriculture
    
70,825
      
—
      
—
      
—
      
9,130
      
79,955
  
Residential Mortgage
    
70,740
      
224
      
—
      
—
      
148
      
71,112
  
Residential Construction
    
2,662
      
—
      
—
      
—
      
—
      
2,662
  
Consumer
    
18,030
      
—
      
—
      
—
      
687
      
18,717
  
Total
  
$
944,796
    
$
594
    
$
—
    
$
—
    
$
17,052
    
$
962,442
  
 
                                                
December 31, 2020
                                                
Commercial
  
$
255,563
    
$
—
    
$
—
    
$
—
    
$
363
    
$
255,926
  
Commercial Real Estate
    
449,178
      
—
      
—
      
—
      
4,875
      
454,053
  
Agriculture
    
85,918
      
—
      
—
      
—
      
9,130
      
95,048
  
Residential Mortgage
    
64,344
      
—
      
—
      
—
      
153
      
64,497
  
Residential Construction
    
4,223
      
—
      
—
      
—
      
—
      
4,223
  
Consumer
    
18,777
      
—
      
—
      
—
      
690
      
19,467
  
Total
  
$
878,003
    
$
—
    
$
—
    
$
—
    
$
15,211
    
$
893,214
  
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of March 31, 2021 and December 31, 2020 were as follows:
 
($ in thousands)
  
Unpaid Contractual
Principal Balance
    
Recorded
Investment with no
Allowance
    
Recorded
Investment with
Allowance
    
Total Recorded
Investment
    
Related Allowance
  
March 31, 2021
                              
Commercial
  
$
335
    
$
284
    
$
—
    
$
284
    
$
—
  
Commercial Real Estate
    
7,158
      
6,803
      
—
      
6,803
      
—
  
Agriculture
    
9,189
      
1,365
      
7,765
      
9,130
      
3,964
  
Residential Mortgage
    
1,035
      
148
      
876
      
1,024
      
155
  
Residential Construction
    
255
      
—
      
255
      
255
      
4
  
Consumer
    
771
      
687
      
64
      
751
      
1
  
Total
  
$
18,743
    
$
9,287
    
$
8,960
    
$
18,247
    
$
4,124
  
 
                                        
December 31, 2020
                                        
Commercial
  
$
1,087
    
$
363
    
$
661
    
$
1,024
    
$
11
  
Commercial Real Estate
    
5,146
      
4,875
      
—
      
4,875
      
—
  
Agriculture
    
9,189
      
1,365
      
7,765
      
9,130
      
2,093
  
Residential Mortgage
    
1,046
      
153
      
883
      
1,036
      
159
  
Residential Construction
    
684
      
—
      
652
      
652
      
83
  
Consumer
    
773
      
690
      
64
      
754
      
1
  
Total
  
$
17,925
    
$
7,446
    
$
10,025
    
$
17,471
    
$
2,347
  
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 March 31, 2021 and March 31, 2020 was as follows:
 
($ in thousands)
  
Three Months Ended
March 31, 2021
    
Three Months Ended
March 31, 2020
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
654
    
$
1
    
$
1,557
    
$
21
  
Commercial Real Estate
    
5,839
      
—
      
735
      
4
  
Agriculture
    
9,130
      
—
      
—
      
—
  
Residential Mortgage
    
1,030
      
8
      
1,079
      
9
  
Residential Construction
    
453
      
4
      
686
      
9
  
Consumer
    
753
      
1
      
332
      
1
  
Total
  
$
17,859
    
$
14
    
$
4,389
    
$
44
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of March 31, 2021 and December 31, 2020:
 
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
March 31, 2021
                                    
Commercial
  
$
282,088
    
$
9,985
    
$
1,075
    
$
—
    
$
—
    
$
293,148
  
Commercial Real Estate
    
479,879
      
4,189
      
12,780
      
—
      
—
      
496,848
  
Agriculture
    
68,576
      
—
      
3,614
      
7,765
      
—
      
79,955
  
Residential Mortgage
    
70,648
      
—
      
464
      
—
      
—
      
71,112
  
Residential Construction
    
2,662
      
—
      
—
      
—
      
—
      
2,662
  
Consumer
    
17,950
      
—
      
767
      
—
      
—
      
18,717
  
Total
  
$
921,803
    
$
14,174
    
$
18,700
    
$
7,765
    
$
—
    
$
962,442
  
 
                                                
December 31, 2020
                                                
Commercial
  
$
244,327
    
$
10,731
    
$
868
    
$
—
    
$
—
    
$
255,926
  
Commercial Real Estate
    
431,381
      
9,255
      
13,417
      
—
      
—
      
454,053
  
Agriculture
    
83,493
      
—
      
11,555
      
—
      
—
      
95,048
  
Residential Mortgage
    
64,018
      
—
      
479
      
—
      
—
      
64,497
  
Residential Construction
    
4,223
      
—
      
—
      
—
      
—
      
4,223
  
Consumer
    
18,697
      
—
      
770
      
—
      
—
      
19,467
  
Total
  
$
846,139
    
$
19,986
    
$
27,089
    
$
—
    
$
—
    
$
893,214
  
Allowance for Loan Losses
The following tables detail activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment by loan class for the three months ended March 31, 2021 and March 31, 2020:

Three months ended March 31, 2021
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2020
  
$
2,252
    
$
7,915
    
$
3,834
    
$
635
    
$
128
    
$
214
    
$
438
    
$
15,416
  
Provision for (reversal of) loan losses
    
(779
)
    
(354
)
    
1,337
      
45
      
(91
)
    
(30
)
    
172
      
300
  
 
                                                                
Charge-offs
    
(13
)
    
—
      
—
      
—
      
—
      
(3
)
    
—
      
(16
)
Recoveries
    
8
      
—
      
—
      
—
      
—
      
5
      
—
      
13
  
Net charge-offs
    
(5
)
    
—
      
—
      
—
      
—
      
2
      
—
      
(3
)
Balance as of March 31, 2021
  
$
1,468
    
$
7,561
    
$
5,171
    
$
680
    
$
37
    
$
186
    
$
610
    
$
15,713
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
—
      
—
      
3,964
      
155
      
4
      
1
      
—
      
4,124
  
Loans collectively evaluated for impairment
    
1,468
      
7,561
      
1,207
      
525
      
33
      
185
      
610
      
11,589
  
Balance as of March 31, 2021
  
$
1,468
    
$
7,561
    
$
5,171
    
$
680
    
$
37
    
$
186
    
$
610
    
$
15,713
  
 
Three months ended March 31, 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 (reversal of) loan losses
    
386
      
560
      
(266
)
    
70
      
59
      
18
      
(177
)
    
650
  
 
                                                                
Charge-offs
    
(145
)
    
—
      
—
      
—
      
—
      
(9
)
    
—
      
(154
)
Recoveries
    
11
      
—
      
—
      
—
      
—
      
6
      
—
      
17
  
Net charge-offs
    
(134
)
    
—
      
—
      
—
      
—
      
(3
)
    
—
      
(137
)
Balance as of March 31, 2020
  
$
2,606
    
$
7,406
    
$
1,788
    
$
536
    
$
260
    
$
251
    
$
22
    
$
12,869
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
21
      
19
      
—
      
168
      
49
      
2
      
—
      
259
  
Loans collectively evaluated for impairment
    
2,585
      
7,387
      
1,788
      
368
      
211
      
249
      
22
      
12,610
  
Balance as of March 31, 2020
  
$
2,606
    
$
7,406
    
$
1,788
    
$
536
    
$
260
    
$
251
    
$
22
    
$
12,869
  

 
The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment by loan class as of and for the period ended December 31, 2020.
 
Year ended December 31, 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 (reversal of) loan losses
    
(91
)
    
1,069
      
1,780
      
169
      
(73
)
    
(43
)
    
239
      
3,050
  
 
                                                                
Charge-offs
    
(212
)
    
—
      
—
      
—
      
—
      
(15
)
    
—
      
(227
)
Recoveries
    
201
      
—
      
—
      
—
      
—
      
36
      
—
      
237
  
Net recoveries
    
(11
)
    
—
      
—
      
—
      
—
      
21
      
—
      
10
  
Ending Balance
    
2,252
      
7,915
      
3,834
      
635
      
128
      
214
      
438
      
15,416
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
11
      
—
      
2,093
      
159
      
83
      
1
      
—
      
2,347
  
Loans collectively evaluated for impairment
    
2,241
      
7,915
      
1,741
      
476
      
45
      
213
      
438
      
13,069
  
Balance as of December 31, 2020
  
$
2,252
    
$
7,915
    
$
3,834
    
$
635
    
$
128
    
$
214
    
$
438
    
$
15,416
  
 
The Company’s investment in loans as of March 31, 2021, March 31, 2020, and December 31, 2020 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
  
March 31, 2021
  
Loans individually evaluated for impairment
  
$
284
    
$
6,803
    
$
9,130
    
$
1,024
    
$
255
    
$
751
    
$
18,247
  
Loans collectively evaluated for impairment
    
292,864
      
490,045
      
70,825
      
70,088
      
2,407
      
17,966
      
944,195
  
Ending Balance
  
$
293,148
    
$
496,848
    
$
79,955
    
$
71,112
    
$
2,662
    
$
18,717
    
$
962,442
  
 
                                                        
March 31, 2020
  
Loans individually evaluated for impairment
  
$
1,462
    
$
756
    
$
—
    
$
1,075
    
$
681
    
$
330
    
$
4,304
  
Loans collectively evaluated for impairment
    
111,884
      
451,855
      
94,303
      
65,109
      
18,405
      
24,705
      
766,261
  
Ending Balance
  
$
113,346
    
$
452,611
    
$
94,303
    
$
66,184
    
$
19,086
    
$
25,035
    
$
770,565
  
 
                                                        
December 31, 2020
  
Loans individually evaluated for impairment
  
$
1,024
    
$
4,875
    
$
9,130
    
$
1,036
    
$
652
    
$
754
    
$
17,471
  
Loans collectively evaluated for impairment
    
254,902
      
449,178
      
85,918
      
63,461
      
3,571
      
18,713
      
875,743
  
Ending Balance
  
$
255,926
    
$
454,053
    
$
95,048
    
$
64,497
    
$
4,223
    
$
19,467
    
$
893,214