XML 38 R24.htm IDEA: XBRL DOCUMENT v3.21.2
LOANS (Tables)
 6 Months Ended
Jun. 30, 2021
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of June 30, 2021 and December 31, 2020 was as follows:

($ in thousands)
  
June 30, 2021
    
December 31, 2020
  
 
            
Commercial
  
$
224,897
    
$
255,926
  
Commercial Real Estate
    
483,005
      
454,053
  
Agriculture
    
86,842
      
95,048
  
Residential Mortgage
    
74,018
      
64,497
  
Residential Construction
    
3,985
      
4,223
  
Consumer
    
18,964
      
19,467
  
                 
 
    
891,711
      
893,214
  
Allowance for loan losses
    
(15,379
)
    
(15,416
)
Net deferred origination fees and costs
    
(3,582
)
    
(1,968
)
                 
Loans, net
  
$
872,750
    
$
875,830
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of June 30, 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
  
June 30, 2021
                                    
Commercial
  
$
224,869
    
$
—
    
$
—
    
$
—
    
$
28
    
$
224,897
  
Commercial Real Estate
    
476,435
      
—
      
—
      
—
      
6,570
      
483,005
  
Agriculture
    
77,696
      
16
      
—
      
—
      
9,130
      
86,842
  
Residential Mortgage
    
73,874
      
—
      
—
      
—
      
144
      
74,018
  
Residential Construction
    
3,985
      
—
      
—
      
—
      
—
      
3,985
  
Consumer
    
18,279
      
—
      
—
      
—
      
685
      
18,964
  
Total
  
$
875,138
    
$
16
    
$
—
    
$
—
    
$
16,557
    
$
891,711
  
 
                                                
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 June 30, 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
  
June 30, 2021
                              
Commercial
  
$
56
    
$
28
    
$
—
    
$
28
    
$
—
  
Commercial Real Estate
    
7,051
      
6,570
      
—
      
6,570
      
—
  
Agriculture
    
9,189
      
1,365
      
7,765
      
9,130
      
3,990
  
Residential Mortgage
    
683
      
144
      
525
      
669
      
84
  
Residential Construction
    
250
      
—
      
251
      
251
      
4
  
Consumer
    
770
      
685
      
64
      
749
      
3
  
Total
  
$
17,999
    
$
8,792
    
$
8,605
    
$
17,397
    
$
4,081
  
 
                                        
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 June 30, 2021 and June 30, 2020 was as follows:

($ in thousands)
  
Three Months Ended
June 30, 2021
    
Three Months Ended
June 30, 2020
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
156
    
$
6
    
$
1,468
    
$
14
  
Commercial Real Estate
    
6,687
      
—
      
3,231
      
—
  
Agriculture
    
9,130
      
—
      
4,572
      
—
  
Residential Mortgage
    
846
      
5
      
1,071
      
6
  
Residential Construction
    
253
      
4
      
676
      
9
  
Consumer
    
750
      
2
      
645
      
1
  
Total
  
$
17,822
    
$
17
    
$
11,663
    
$
30
  

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the six months ended June 30, 2021 and June 30, 2020 was as follows:

($ in thousands)
  
Six Months Ended
June 30, 2021
    
Six Months Ended
June 30, 2020
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
445
    
$
7
    
$
1,529
    
$
35
  
Commercial Real Estate
    
6,083
      
—
      
2,393
      
4
  
Agriculture
    
9,130
      
—
      
3,048
      
—
  
Residential Mortgage
    
910
      
13
      
1,075
      
15
  
Residential Construction
    
386
      
8
      
681
      
18
  
Consumer
    
752
      
3
      
541
      
3
  
Total
  
$
17,706
    
$
31
    
$
9,267
    
$
75
  
Loans Modified as TDR's
Loans modified as TDRs during the three months ended June 30, 2021 were as follows:

($ in thousands)
  
Three Months Ended June 30, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer
    
1
    
$
99
    
$
99
  
Total
    
1
    
$
99
    
$
99
  


Loans modified as TDRs during the six months ended June 30, 2021 were as follows:

($ in thousands)
  
Six Months Ended June 30, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer
    
1
    
$
99
    
$
99
  
Total
    
1
    
$
99
    
$
99
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of June 30, 2021 and December 31, 2020:

($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
June 30, 2021
                                    
Commercial
  
$
214,546
    
$
9,947
    
$
404
    
$
—
    
$
—
    
$
224,897
  
Commercial Real Estate
    
467,965
      
3,793
      
11,247
      
—
      
—
      
483,005
  
Agriculture
    
77,616
      
96
      
1,365
      
7,765
      
—
      
86,842
  
Residential Mortgage
    
73,696
      
—
      
322
      
—
      
—
      
74,018
  
Residential Construction
    
3,985
      
—
      
—
      
—
      
—
      
3,985
  
Consumer
    
18,279
      
—
      
685
      
—
      
—
      
18,964
  
Total
  
$
856,087
    
$
13,836
    
$
14,023
    
$
7,765
    
$
—
    
$
891,711
  
 
                                                
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 by loan class for the three and six months ended June 30, 2021.

Three months ended June 30, 2021
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of March 31, 2021
  
$
1,468
    
$
7,561
    
$
5,171
    
$
680
    
$
37
    
$
186
    
$
610
    
$
15,713
  
Provision for loan losses
    
421
      
(223
)
    
88
      
(46
)
    
18
      
—
      
(258
)
    
—
  
 
                                                                
Charge-offs
    
(334
)
    
—
      
—
      
—
      
—
      
(3
)
    
—
      
(337
)
Recoveries
    
—
      
—
      
—
      
—
      
—
      
3
      
—
      
3
  
Net charge-offs
    
(334
)
    
—
      
—
      
—
      
—
      
—
      
—
      
(334
)
Balance as of June 30, 2021
  
$
1,555
    
$
7,338
    
$
5,259
    
$
634
    
$
55
    
$
186
    
$
352
    
$
15,379
  

Six months ended June 30, 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 loan losses
    
(358
)
    
(577
)
    
1,425
      
(1
)
    
(73
)
    
(30
)
    
(86
)
    
300
  
 
                                                                
Charge-offs
    
(347
)
    
—
      
—
      
—
      
—
      
(6
)
    
—
      
(353
)
Recoveries
    
8
      
—
      
—
      
—
      
—
      
8
      
—
      
16
  
Net charge-offs
    
(339
)
    
—
      
—
      
—
      
—
      
2
      
—
      
(337
)
Balance as of June 30, 2021
  
$
1,555
    
$
7,338
    
$
5,259
    
$
634
    
$
55
    
$
186
    
$
352
    
$
15,379
  

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, 2021.

($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Period-end amount allocated to:
                                                
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
3,990
    
$
84
    
$
4
    
$
3
    
$
—
    
$
4,081
  
Loans collectively evaluated for impairment
    
1,555
      
7,338
      
1,269
      
550
      
51
      
183
      
352
      
11,298
  
Ending Balance
  
$
1,555
    
$
7,338
    
$
5,259
    
$
634
    
$
55
    
$
186
    
$
352
    
$
15,379
  

The following table details 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year 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 loan losses
    
(91
)
    
1,069
      
1,780
      
169
      
(73
)
    
(43
)
    
239
      
3,050
  
 
                                                                
Charge-offs
    
(212
)
    
—
      
—
      
—
      
—
      
(15
)
    
—
      
(227
)
Recoveries
    
201
      
—
      
—
      
—
      
—
      
36
      
—
      
237
  
Net (charge-offs) 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 June 30, 2021, June 30, 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
  
June 30, 2021
  
Loans individually evaluated for impairment
  
$
28
    
$
6,570
    
$
9,130
    
$
669
    
$
251
    
$
749
    
$
17,397
  
Loans collectively evaluated for impairment
    
224,869
      
476,435
      
77,712
      
73,349
      
3,734
      
18,215
      
874,314
  
Ending Balance
  
$
224,897
    
$
483,005
    
$
86,842
    
$
74,018
    
$
3,985
    
$
18,964
    
$
891,711
  
 
                                                        
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
  
 
                                                        
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