XML 33 R23.htm IDEA: XBRL DOCUMENT v3.22.1
LOANS (Tables)
 3 Months Ended
Mar. 31, 2022
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of March 31, 2022 and December 31, 2021 was as follows:
 
($ in thousands)
  
March 31,
2022
    
December 31,
2021
  
 
            
Commercial
  
$
123,462
    
$
135,894
  
Commercial Real Estate
    
562,684
      
526,924
  
Agriculture
    
99,500
      
107,183
  
Residential Mortgage
    
77,761
      
76,160
  
Residential Construction
    
7,749
      
4,482
  
Consumer
    
17,538
      
17,258
  
 
    
888,694
      
867,901
  
Allowance for loan losses
    
(14,258
)
    
(13,952
)
Net deferred origination fees and costs
    
(431
)
    
(1,232
)
Loans, net
  
$
874,005
    
$
852,717
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of March 31, 2022 and December 31, 2021, 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, 2022
                                    
Commercial
  
$
122,021
    
$
1,408
    
$
—
    
$
—
    
$
33
    
$
123,462
  
Commercial Real Estate
    
562,684
      
—
      
—
      
—
      
—
      
562,684
  
Agriculture
    
90,802
      
300
      
—
      
—
      
8,398
      
99,500
  
Residential Mortgage
    
77,077
      
549
      
—
      
—
      
135
      
77,761
  
Residential Construction
    
7,661
      
88
      
—
      
—
      
—
      
7,749
  
Consumer
    
16,771
      
50
      
—
      
—
      
717
      
17,538
  
Total
  
$
877,016
    
$
2,395
    
$
—
    
$
—
    
$
9,283
    
$
888,694
  
 
                                                
December 31, 2021
                                                
Commercial
  
$
134,890
    
$
394
    
$
477
    
$
—
    
$
133
    
$
135,894
  
Commercial Real Estate
    
526,337
      
32
      
—
      
—
      
555
      
526,924
  
Agriculture
    
98,471
      
—
      
—
      
—
      
8,712
      
107,183
  
Residential Mortgage
    
75,861
      
161
      
—
      
—
      
138
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,523
      
—
      
76
      
—
      
659
      
17,258
  
Total
  
$
856,564
    
$
587
    
$
553
    
$
—
    
$
10,197
    
$
867,901
  
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of March 31, 2022 and December 31, 2021 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, 2022
                              
Commercial
  
$
33
    
$
33
    
$
—
    
$
33
    
$
—
  
Commercial Real Estate
    
—
      
—
      
—
      
—
      
—
  
Agriculture
    
8,707
      
8,398
      
—
      
8,398
      
—
  
Residential Mortgage
    
678
      
135
      
512
      
647
      
79
  
Residential Construction
    
—
      
—
      
—
      
—
      
—
  
Consumer
    
781
      
717
      
64
      
781
      
2
  
Total
  
$
10,199
    
$
9,283
    
$
576
    
$
9,859
    
$
81
  
 
                                        
December 31, 2021
                                        
Commercial
  
$
142
    
$
133
    
$
—
    
$
133
    
$
—
  
Commercial Real Estate
    
555
      
555
      
—
      
555
      
—
  
Agriculture
    
10,680
      
8,712
      
—
      
8,712
      
—
  
Residential Mortgage
    
701
      
138
      
517
      
655
      
81
  
Residential Construction
    
241
      
—
      
241
      
241
      
10
  
Consumer
    
815
      
659
      
64
      
723
      
2
  
Total
  
$
13,134
    
$
10,197
    
$
822
    
$
11,019
    
$
93
  
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, 2022 and March 31, 2021 was as follows:
 
($ in thousands)
  
Three Months Ended
March 31, 2022
    
Three Months Ended
March 31, 2021
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
83
    
$
2
    
$
654
    
$
1
  
Commercial Real Estate
    
278
      
13
      
5,839
      
—
  
Agriculture
    
8,555
      
—
      
9,130
      
—
  
Residential Mortgage
    
651
      
5
      
1,030
      
8
  
Residential Construction
    
120
      
—
      
453
      
4
  
Consumer
    
752
      
2
      
753
      
1
  
Total
  
$
10,439
    
$
22
    
$
17,859
    
$
14
  
Loans Modified as TDRs
Loans modified as TDRs during the three months ended March 31, 2022 were as follows:

($ in thousands)
  
Three months ended March 31, 2022
  
   
Number of
Contracts
    
Pre-
modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer
    
1
     $
75
     $
75
  
Total
    
1
    
$
75
    
$
75
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of March 31, 2022 and December 31, 2021:
 
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
March 31, 2022
                                    
Commercial
  
$
119,903
    
$
2,376
    
$
1,183
    
$
—
    
$
—
    
$
123,462
  
Commercial Real Estate
    
553,159
      
6,473
      
3,052
      
—
      
—
      
562,684
  
Agriculture
    
91,102
      
—
      
8,398
      
—
      
—
      
99,500
  
Residential Mortgage
    
77,626
      
—
      
135
      
—
      
—
      
77,761
  
Residential Construction
    
7,749
      
—
      
—
      
—
      
—
      
7,749
  
Consumer
    
16,821
      
—
      
717
      
—
      
—
      
17,538
  
Total
  
$
866,360
    
$
8,849
    
$
13,485
    
$
—
    
$
—
    
$
888,694
  
 
                                                
December 31, 2021
                                                
Commercial
  
$
132,425
    
$
2,376
    
$
1,093
    
$
—
    
$
—
    
$
135,894
  
Commercial Real Estate
    
516,120
      
6,524
      
4,280
      
—
      
—
      
526,924
  
Agriculture
    
98,471
      
—
      
8,712
      
—
      
—
      
107,183
  
Residential Mortgage
    
76,020
      
—
      
140
      
—
      
—
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,599
      
—
      
659
      
—
      
—
      
17,258
  
Total
  
$
844,117
    
$
8,900
    
$
14,884
    
$
—
    
$
—
    
$
867,901
  
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, 2022 and March 31, 2021:

Three months ended March 31, 2022
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2021
  
$
1,604
    
$
8,808
    
$
1,482
    
$
742
    
$
74
    
$
167
    
$
1,075
    
$
13,952
  
Provision for (reversal of) loan losses
    
136
      
572
      
125
      
12
      
61
      
25
      
(631
)
    
300
  
 
                                                                
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
(4
)
    
—
      
(4
)
Recoveries
    
7
      
—
      
—
      
—
      
—
      
3
      
—
      
10
  
Net (charge-offs)/recoveries
    
7
      
—
      
—
      
—
      
—
      
(1
)
    
—
      
6
  
Balance as of March 31, 2022
  
$
1,747
    
$
9,380
    
$
1,607
    
$
754
    
$
135
    
$
191
    
$
444
    
$
14,258
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
—
      
—
      
—
      
79
      
—
      
2
      
—
      
81
  
Loans collectively evaluated for impairment
    
1,747
      
9,380
      
1,607
      
675
      
135
      
189
      
444
      
14,177
  
Balance as of March 31, 2022
  
$
1,747
    
$
9,380
    
$
1,607
    
$
754
    
$
135
    
$
191
    
$
444
    
$
14,258
  
 
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)/recoveries
    
(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
  
 
The Company’s investment in loans as of March 31, 2022, March 31, 2021, and December 31, 2021 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, 2022
  
Loans individually evaluated for impairment
  
$
33
    
$
—
    
$
8,398
    
$
647
    
$
—
    
$
781
    
$
9,859
  
Loans collectively evaluated for impairment
    
123,429
      
562,684
      
91,102
      
77,114
      
7,749
      
16,757
      
878,835
  
Ending Balance
  
$
123,462
    
$
562,684
    
$
99,500
    
$
77,761
    
$
7,749
    
$
17,538
    
$
888,694
  
 
                                                        
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
  
 
                                                        
December 31, 2021
  
Loans individually evaluated for impairment
  
$
133
    
$
555
    
$
8,712
    
$
655
    
$
241
    
$
723
    
$
11,019
  
Loans collectively evaluated for impairment
    
135,761
      
526,369
      
98,471
      
75,505
      
4,241
      
16,535
      
856,882
  
Ending Balance
  
$
135,894
    
$
526,924
    
$
107,183
    
$
76,160
    
$
4,482
    
$
17,258
    
$
867,901