XML 35 R24.htm IDEA: XBRL DOCUMENT v3.21.2
LOANS (Tables)
 9 Months Ended
Sep. 30, 2021
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of September 30, 2021 and December 31, 2020 was as follows:
($ in thousands)
  
September 30, 2021
    
December 31, 2020
  
 
            
Commercial
  
$
165,661
    
$
255,926
  
Commercial Real Estate
    
484,840
      
454,053
  
Agriculture
    
90,821
      
95,048
  
Residential Mortgage
    
75,200
      
64,497
  
Residential Construction
    
5,174
      
4,223
  
Consumer
    
17,792
      
19,467
  
                 
 
    
839,488
      
893,214
  
Allowance for loan losses
    
(14,001
)
    
(15,416
)
Net deferred origination fees and costs
    
(2,017
)
    
(1,968
)
                 
Loans, net
  
$
823,470
    
$
875,830
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of September 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
  
September 30, 2021
                                    
Commercial
  
$
163,418
    
$
1,960
    
$
250
    
$
—
    
$
33
    
$
165,661
  
Commercial Real Estate
    
482,818
      
—
      
—
      
—
      
2,022
      
484,840
  
Agriculture
    
81,691
      
—
      
—
      
—
      
9,130
      
90,821
  
Residential Mortgage
    
75,058
      
—
      
—
      
—
      
142
      
75,200
  
Residential Construction
    
5,169
      
5
      
—
      
—
      
—
      
5,174
  
Consumer
    
17,073
      
38
      
—
      
—
      
681
      
17,792
  
Total
  
$
825,227
    
$
2,003
    
$
250
    
$
—
    
$
12,008
    
$
839,488
  
 
                                                
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 September 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
  
September 30, 2021
                              
Commercial
  
$
33
    
$
33
    
$
—
    
$
33
    
$
—
  
Commercial Real Estate
    
2,081
      
2,022
      
—
      
2,022
      
—
  
Agriculture
    
10,779
      
4,165
      
4,965
      
9,130
      
818
  
Residential Mortgage
    
708
      
142
      
521
      
663
      
82
  
Residential Construction
    
246
      
—
      
246
      
246
      
7
  
Consumer
    
820
      
681
      
64
      
745
      
3
  
Total
  
$
14,667
    
$
7,043
    
$
5,796
    
$
12,839
    
$
910
  
 
                                        
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 September 30, 2021 and September 30, 2020 was as follows:
($ in thousands)
  
Three Months Ended
September 30, 2021
    
Three Months Ended
September 30, 2020
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
30
    
$
—
    
$
1,291
    
$
15
  
Commercial Real Estate
    
4,297
      
466
      
5,549
      
5
  
Agriculture
    
9,130
      
—
      
9,137
      
—
  
Residential Mortgage
    
666
      
5
      
1,057
      
7
  
Residential Construction
    
248
      
4
      
666
      
8
  
Consumer
    
747
      
3
      
865
      
14
  
Total
  
$
15,118
    
$
478
    
$
18,565
    
$
49
  

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2021 and September 30, 2020 was as follows:
($ in thousands)
  
Nine Months Ended
September 30, 2021
    
Nine Months Ended
September 30, 2020
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
342
    
$
7
    
$
1,424
    
$
50
  
Commercial Real Estate
    
5,068
      
466
      
3,142
      
9
  
Agriculture
    
9,130
      
—
      
4,569
      
—
  
Residential Mortgage
    
848
      
18
      
1,068
      
22
  
Residential Construction
    
351
      
11
      
676
      
26
  
Consumer
    
750
      
5
      
598
      
16
  
Total
  
$
16,489
    
$
507
    
$
11,477
    
$
123
  
Loans Modified as TDR's
Loans modified as TDRs during the three months ended September 30, 2021 were as follows:
($ in thousands)
  
Three Months Ended September 30, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Agriculture
    
3
    
$
9,130
    
$
9,130
  
Consumer     1       494       494  
Total
    
4
    
$
9,624
    
$
9,624
  

Loans modified as TDRs during the nine months ended September 30, 2021 were as follows:
($ in thousands)
  
Nine Months Ended September 30, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Agriculture
    
3
    
$
9,130
    
$
9,130
  
Consumer     2       593       593  
Total
    
5
    
$
9,723
    
$
9,723
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of September 30, 2021 and December 31, 2020:
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
September 30, 2021
                                    
Commercial
  
$
154,312
    
$
3,170
    
$
8,179
    
$
—
    
$
—
    
$
165,661
  
Commercial Real Estate
    
475,871
      
4,558
      
4,411
      
—
      
—
      
484,840
  
Agriculture
    
81,691
      
—
      
4,165
      
4,965
      
—
      
90,821
  
Residential Mortgage
    
74,883
      
—
      
317
      
—
      
—
      
75,200
  
Residential Construction
    
5,174
      
—
      
—
      
—
      
—
      
5,174
  
Consumer
    
17,111
      
—
      
681
      
—
      
—
      
17,792
  
Total
  
$
809,042
    
$
7,728
    
$
17,753
    
$
4,965
    
$
—
    
$
839,488
  
 
                                                
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 nine months ended September 30, 2021.
Three months ended September 30, 2021
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of June 30, 2021
  
$
1,555
    
$
7,338
    
$
5,259
    
$
634
    
$
55
    
$
186
    
$
352
    
$
15,379
  
Provision for loan losses
    
119
      
797
      
(3,227
)
    
91
      
26
      
(55
)
    
449
      
(1,800
)
 
                                                                
Charge-offs
    
(36
)
    
—
      
—
      
—
      
—
      
(6
)
    
—
      
(42
)
Recoveries
    
415
      
—
      
—
      
—
      
—
      
49
      
—
      
464
  
Net recoveries
    
379
      
—
      
—
      
—
      
—
      
43
      
—
      
422
  
Balance as of September 30, 2021
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

Nine months ended September 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
    
(239
)
    
220
      
(1,802
)
    
90
      
(47
)
    
(85
)
    
363
      
(1,500
)
 
                                                                
Charge-offs
    
(383
)
    
—
      
—
      
—
      
—
      
(12
)
    
—
      
(395
)
Recoveries
    
423
      
—
      
—
      
—
      
—
      
57
      
—
      
480
  
Net charge-offs
    
40
      
—
      
—
      
—
      
—
      
45
      
—
      
85
  
Balance as of September 30, 2021
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

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, 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
  
$
—
    
$
—
    
$
818
    
$
82
    
$
7
    
$
3
    
$
—
    
$
910
  
Loans collectively evaluated for impairment
    
2,053
      
8,135
      
1,214
      
643
      
74
      
171
      
801
      
13,091
  
Ending Balance
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2020.
Three months ended September 30, 2020
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of June 30, 2020
  
$
2,338
    
$
7,434
    
$
1,655
    
$
540
    
$
245
    
$
224
    
$
1,195
    
$
13,631
  
Provision for loan losses
    
(5
)
    
1,075
      
225
      
133
      
(99
)
    
(24
)
    
(505
)
    
800
  
 
                                                                
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Recoveries
    
1
      
—
      
—
      
—
      
—
      
24
      
—
      
25
  
Net charge-offs
    
1
      
—
      
—
      
—
      
—
      
24
      
—
      
25
  
Balance as of September 30, 2020
  
$
2,334
    
$
8,509
    
$
1,880
    
$
673
    
$
146
    
$
224
    
$
690
    
$
14,456
  

Nine months ended September 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
    
151
      
1,663
      
(174
)
    
207
      
(55
)
    
(33
)
    
491
      
2,250
  
 
                                                                
Charge-offs
    
(184
)
    
—
      
—
      
—
      
—
      
(13
)
    
—
      
(197
)
Recoveries
    
13
      
—
      
—
      
—
      
—
      
34
      
—
      
47
  
Net charge-offs
    
(171
)
    
—
      
—
      
—
      
—
      
21
      
—
      
(150
)
Balance as of September 30, 2020
  
$
2,334
    
$
8,509
    
$
1,880
    
$
673
    
$
146
    
$
224
    
$
690
    
$
14,456
  

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, 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
  
$
16
    
$
—
    
$
—
    
$
162
    
$
72
    
$
1
    
$
—
    
$
251
  
Loans collectively evaluated for impairment
    
2,318
      
8,509
      
1,880
      
511
      
74
      
223
      
690
      
14,205
  
Ending Balance
  
$
2,334
    
$
8,509
    
$
1,880
    
$
673
    
$
146
    
$
224
    
$
690
    
$
14,456
  

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 September 30, 2021, September 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
  
September 30, 2021
  
Loans individually evaluated for impairment
  
$
33
    
$
2,022
    
$
9,130
    
$
663
    
$
246
    
$
745
    
$
12,839
  
Loans collectively evaluated for impairment
    
165,628
      
482,818
      
81,691
      
74,537
      
4,928
      
17,047
      
826,649
  
Ending Balance
  
$
165,661
    
$
484,840
    
$
90,821
    
$
75,200
    
$
5,174
    
$
17,792
    
$
839,488
  
 
                                                        
September 30, 2020
  
Loans individually evaluated for impairment
  
$
1,109
    
$
5,390
    
$
9,130
    
$
1,047
    
$
661
    
$
769
    
$
18,106
  
Loans collectively evaluated for impairment
    
330,336
      
450,847
      
92,915
      
66,193
      
5,949
      
19,627
      
965,867
  
Ending Balance
  
$
331,445
    
$
456,237
    
$
102,045
    
$
67,240
    
$
6,610
    
$
20,396
    
$
983,973
  
 
                                                        
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