XML 33 R23.htm IDEA: XBRL DOCUMENT v3.22.2
LOANS (Tables)
 6 Months Ended
Jun. 30, 2022
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of June 30, 2022 and December 31, 2021 was as follows:
($ in thousands)
  
June 30,
2022
    
December 31,
2021
  
 
            
Commercial
  
$
112,314
    
$
135,894
  
Commercial Real Estate
    
613,218
      
526,924
  
Agriculture
    
111,246
      
107,183
  
Residential Mortgage
    
83,396
      
76,160
  
Residential Construction
    
8,618
      
4,482
  
Consumer
    
16,397
      
17,258
  
      945,189       867,901  
 
    

     

 
Allowance for loan losses
    
(14,275
)
    
(13,952
)
Net deferred origination fees and costs
    
1,020
   
(1,232
)
                 
Loans, net
  
$
931,934
    
$
852,717
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of June 30, 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
  
June 30, 2022
                                    
Commercial
  
$
111,634
    
$
47
    
$
—
    
$
600
    
$
33
    
$
112,314
  
Commercial Real Estate
    
611,855
      
—
      
—
      
—
      
1,363
      
613,218
  
Agriculture
    
103,162
      
—
      
—
      
—
      
8,084
      
111,246
  
Residential Mortgage
    
83,223
      
—
      
42
      
—
      
131
      
83,396
  
Residential Construction
    
8,618
      
—
      
—
      
—
      
—
      
8,618
  
Consumer
    
15,689
      
78
      
—
      
—
      
630
      
16,397
  
Total
  
$
934,181
    
$
125
    
$
42
    
$
600
    
$
10,241
    
$
945,189
  
 
                                                
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 June 30, 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
  
June 30, 2022
                              
Commercial
  
$
42
    
$
33
    
$
—
    
$
33
    
$
—
  
Commercial Real Estate
    
1,363
      
1,363
      
—
      
1,363
      
—
  
Agriculture
    
10,485
      
8,084
      
—
      
8,084
      
—
  
Residential Mortgage
    
687
      
131
      
508
      
639
      
78
  
Residential Construction
    
—
      
—
      
—
      
—
      
—
  
Consumer
    
778
      
630
      
64
      
694
      
3
  
Total
  
$
13,355
    
$
10,241
    
$
572
    
$
10,813
    
$
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 June 30, 2022 and June 30, 2021 was as follows:
($ in thousands)
  
Three Months Ended
June 30, 2022
    
Three Months Ended
June 30, 2021
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
33
    
$
—
    
$
156
    
$
6
  
Commercial Real Estate
    
681
      
—
      
6,687
      
—
  
Agriculture
    
8,241
      
—
      
9,130
      
—
  
Residential Mortgage
    
643
      
5
      
846
      
5
  
Residential Construction
    
—
      
—
      
253
      
4
  
Consumer
    
738
      
13
      
750
      
2
  
Total
  
$
10,336
    
$
18
    
$
17,822
    
$
17
  

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the six months ended June 30, 2022 and June 30, 2021 was as follows:
($ in thousands)
  
Six Months Ended
June 30, 2022
    
Six Months Ended
June 30, 2021
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
66
    
$
2
    
$
445
    
$
7
  
Commercial Real Estate
    
639
      
13
      
6,083
      
—
  
Agriculture
    
8,398
      
—
      
9,130
      
—
  
Residential Mortgage
    
647
      
10
      
910
      
13
  
Residential Construction
    
80
      
—
      
386
      
8
  
Consumer
    
733
      
15
      
752
      
3
  
Total
  
$
10,563
    
$
40
    
$
17,706
    
$
31
  
Loans Modified as TDRs
Loans modified as TDRs during the six months ended June 30, 2022 were as follows:
($ in thousands)
  
Six Months Ended June 30, 2022
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer     1     $
 75     $
 75  
Total
    
1
    
$
75
    
$
75
  

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, 2022 and December 31, 2021:
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
June 30, 2022
                                    
Commercial
  
$
108,354
    
$
3,176
    
$
784
    
$
—
    
$
—
    
$
112,314
  
Commercial Real Estate
    
603,979
      
5,321
      
3,918
      
—
      
—
      
613,218
  
Agriculture
    
101,099
      
2,063
      
8,084
      
—
      
—
      
111,246
  
Residential Mortgage
    
82,991
      
232
      
173
      
—
      
—
      
83,396
  
Residential Construction
    
8,618
      
—
      
—
      
—
      
—
      
8,618
  
Consumer
    
15,767
      
—
      
630
      
—
      
—
      
16,397
  
Total
  
$
920,808
    
$
10,792
    
$
13,589
    
$
—
    
$
—
    
$
945,189
  
 
                                                
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 by loan class for the three and six months ended June 30, 2022.
Three months ended June 30, 2022
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of March 31, 2022
  
$
1,747
    
$
9,380
    
$
1,607
    
$
754
    
$
135
    
$
191
    
$
444
    
$
14,258
  
Provision for loan losses
    
183
      
191
      
87
      
48
      
16
      
(9
)
    
(216
)
    
300
  
 
                                                                
Charge-offs
    
(297
)
    
—
      
—
      
—
      
—
      
(5
)
    
—
      
(302
)
Recoveries
    
17
      
—
      
—
      
—
      
—
      
2
      
—
      
19
  
Net charge-offs
    
(280
)
    
—
      
—
      
—
      
—
      
(3
)
    
—
      
(283
)
Balance as of June 30, 2022
  
$
1,650
    
$
9,571
    
$
1,694
    
$
802
    
$
151
    
$
179
    
$
228
    
$
14,275
  

Six months ended June 30, 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 loan losses
    
319
      
763
      
212
      
60
      
77
      
16
      
(847
)
    
600
  
 
                                                                
Charge-offs
    
(297
)
    
—
      
—
      
—
      
—
      
(9
)
    
—
      
(306
)
Recoveries
    
24
      
—
      
—
      
—
      
—
      
5
      
—
      
29
  
Net charge-offs
    
(273
)
    
—
      
—
      
—
      
—
      
(4
)
    
—
      
(277
)
Balance as of June 30, 2022
  
$
1,650
    
$
9,571
    
$
1,694
    
$
802
    
$
151
    
$
179
    
$
228
    
$
14,275
  

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, 2022.
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Period-end amount allocated to:
                                                
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
—
    
$
78
    
$
—
    
$
3
    
$
—
    
$
81
  
Loans collectively evaluated for impairment
    
1,650
      
9,571
      
1,694
      
724
      
151
      
176
      
228
      
14,194
  
Ending Balance
  
$
1,650
    
$
9,571
    
$
1,694
    
$
802
    
$
151
    
$
179
    
$
228
    
$
14,275
  

The following table details 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 Company’s investment in loans as of June 30, 2022, June 30, 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
  
June 30, 2022
  
Loans individually evaluated for impairment
  
$
33
    
$
1,363
    
$
8,084
    
$
639
    
$
—
    
$
694
    
$
10,813
  
Loans collectively evaluated for impairment
    
112,281
      
611,855
      
103,162
      
82,757
      
8,618
      
15,703
      
934,376
  
Ending Balance
  
$
112,314
    
$
613,218
    
$
111,246
    
$
83,396
    
$
8,618
    
$
16,397
    
$
945,189
  
 
                                                        
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
  
 
                                                        
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