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Loans (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loans
Loans are comprised of the following:
(in 000's)June 30, 2020December 31, 2019
Commercial and industrial:
Commercial and business loans$41,525  $44,534  
Government program loans26,705  744  
Total commercial and industrial68,230  45,278  
Real estate mortgage:  
Commercial real estate264,492  245,183  
Residential mortgages49,826  45,881  
Home improvement and home equity loans120  173  
Total real estate mortgage314,438  291,237  
Real estate construction and development153,655  138,784  
Agricultural48,979  52,197  
Installment and student loans64,352  69,878  
Total loans$649,654  $597,374  
Delinquent loans
The following is a summary of delinquent loans at June 30, 2020 (in 000's):
June 30, 2020Loans
30-60 Days Past Due		Loans
61-89 Days Past Due		Loans
90 or More
Days Past Due		Total Past Due LoansCurrent LoansTotal LoansAccruing
Loans 90 or
More Days Past Due
Commercial and business loans$—  $—  $—  $—  $41,525  $41,525  $—  
Government program loans—  —  —  —  26,705  26,705  —  
Total commercial and industrial—  —  —  —  68,230  68,230  —  
Commercial real estate loans—  1,009  —  1,009  263,483  264,492  —  
Residential mortgages—  —  —  —  49,826  49,826  —  
Home improvement and home equity loans—  —  —  —  120  120  —  
Total real estate mortgage—  1,009  —  1,009  313,429  314,438  —  
Real estate construction and development loans—  —  8,573  8,573  145,082  153,655  —  
Agricultural loans—  —  514  514  48,465  48,979  —  
Installment and student loans209  292  269  770  63,328  64,098  269  
Overdraft protection lines—  —  —  —  30  30  —  
Overdrafts—  —  —  —  224  224  —  
Total installment and student loans209  292  269  770  63,582  64,352  269  
Total loans$209  $1,301  $9,356  $10,866  $638,788  $649,654  $269  
The following is a summary of delinquent loans at December 31, 2019 (in 000's):
December 31, 2019Loans
30-60 Days Past Due		Loans
61-89 Days Past Due		Loans
90 or More
Days Past Due		Total Past Due LoansCurrent LoansTotal LoansAccruing
Loans 90 or
More Days Past Due
Commercial and business loans$568  $—  $75  $643  $43,891  $44,534  $—  
Government program loans—  —  —  —  744  744  —  
Total commercial and industrial568  —  75  643  44,635  45,278  —  
Commercial real estate loans—  —  —  —  245,183  245,183  —  
Residential mortgages28  —  —  28  45,853  45,881  —  
Home improvement and home equity loans—  —  —  —  173  173  —  
Total real estate mortgage28  —  —  28  291,209  291,237  —  
Real estate construction and development loans—  —  8,825  8,825  129,959  138,784  —  
Agricultural loans957  423  144  1,524  50,673  52,197  —  
Installment and student loans292  657  386  1,335  68,280  69,615  386  
Overdraft protection lines—  —  —  —  33  33  —  
Overdrafts—  —  —  —  230  230  —  
Total installment and student loans292  657  386  1,335  68,543  69,878  386  
Total loans$1,845  $1,080  $9,430  $12,355  $585,019  $597,374  $386  
The following tables summarize the student loan aging for loans in repayment and forbearance as of June 30, 2020 and December 31, 2019 (in 000's, except for number of borrowers):
 June 30, 2020December 31, 2019
 Number of BorrowersAmountNumber of BorrowersAmount
Current or less than 31 days296  $31,961  295  $34,277  
31 - 60 days3  209  4  292  
61 - 90 days2  292  7  657  
91 - 120 days1  174  6  386  
Over 120 days1  95  —  —  
Total303  $32,731  312  $35,612  
Nonaccrual loan balances
The following is a summary of nonaccrual loan balances at June 30, 2020 and December 31, 2019 (in 000's).
June 30, 2020December 31, 2019
Commercial and business loans$—  $75  
Government program loans—  —  
Total commercial and industrial—  75  
Commercial real estate loans—  —  
Residential mortgages—  —  
Home improvement and home equity loans—  —  
Total real estate mortgage—  —  
Real estate construction and development loans11,109  11,478  
Agricultural loans514  144  
Installment and student loans—  —  
Total nonaccrual loans$11,623  $11,697  
Impaired loans
The following is a summary of impaired loans at June 30, 2020 (in 000's).
June 30, 2020Unpaid
Contractual
Principal Balance		Recorded
Investment
With No Allowance (1)		Recorded
Investment
With Allowance (1)		Total
Recorded Investment		Related AllowanceAverage
Recorded Investment (2)		Interest Recognized (2)
Commercial and business loans$316  $318  $—  $318  $—  $744  $14  
Government program loans240  241  —  241  —  249  7  
Total commercial and industrial556  559  —  559  —  993  21  
Commercial real estate loans2,040  1,156  892  2,048  175  2,066  60  
Residential mortgages1,037  502  539  1,041  31  1,052  27  
Home improvement and home equity loans—  —  —  —  —  —  —  
Total real estate mortgage3,077  1,658  1,431  3,089  206  3,118  87  
Real estate construction and development loans11,109  11,109  —  11,109  —  11,333  147  
Agricultural loans694  325  371  696  243  704  8  
Installment and student loans—  —  —  —  —  —  —  
Total impaired loans$15,436  $13,651  $1,802  $15,453  $449  $16,148  $263  

(1) The recorded investment in loans includes accrued interest receivable of $17.
(2) Information is based on six months ended June 30, 2020.
        
The following is a summary of impaired loans at December 31, 2019 (in 000's).
December 31, 2019Unpaid
Contractual
Principal Balance		Recorded
Investment
With No Allowance (1)		Recorded
Investment
With Allowance (1)		Total
Recorded Investment		Related AllowanceAverage
Recorded Investment (2)		Interest Recognized (2)
Commercial and business loans$1,484  $368  $1,128  $1,496  $606  $1,930  $116  
Government program loans257  258  —  258  —  275  18  
Total commercial and industrial1,741  626  1,128  1,754  606  2,205  134  
Commercial real estate loans2,073  1,181  902  2,083  263  2,031  123  
Residential mortgages1,060  517  546  1,063  20  1,577  56  
Home improvement and home equity loans—  —  —  —  —  —  —  
Total real estate mortgage3,133  1,698  1,448  3,146  283  3,608  179  
Real estate construction and development loans11,478  11,478  —  11,478  —  11,572  231  
Agricultural loans684  262  432  694  256  726  57  
Installment and student loans—  —  —  —  —  14  —  
Total impaired loans$17,036  $14,064  $3,008  $17,072  $1,145  $18,125  $601  

(1) The recorded investment in loans includes accrued interest receivable of $36.
(2) Information is based on the year ended December 31, 2019.
Troubled debt restructuring activity
The following tables illustrates TDR additions and defaults for the periods indicated:
Six Months Ended June 30, 2020
($ in 000's)Number of
Contracts		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Number of Contracts which Defaulted During PeriodRecorded Investment on Defaulted TDRs
Troubled Debt Restructurings
Commercial and business loans—  —  —  $—  
Government program loans—  —  —  —  —  
Commercial real estate term loans—  —  —  —  —  
Single family residential loans—  —  —  —  —  
Home improvement and home equity loans—  —  —  —  —  
Real estate construction and development loans—  —  —  —  —  
Agricultural loans1  179  179  —  —  
Installment and student loans—  —  —  —  —  
Overdraft protection lines—  —  —  —  —  
Total loans1  $179  $179  —  $—  
TDR activity by loan category
The following tables summarize TDR activity by loan category for the quarters ended June 30, 2020 and June 30, 2019 (in 000's).
Three Months Ended
June 30, 2020		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$4  $893  $1,048  $—  $2,587  $721  $—  $5,253  
Additions—  —  —  —  —  —  —  —  
Principal (reductions) additions(4) (4) (10) —  (51) (29) —  (98) 
Charge-offs—  —  —  —  —  —  —  —  
Ending balance$—  $889  $1,038  $—  $2,536  $692  $—  $5,155  
Allowance for loan loss$—  $175  $31  $—  $—  $243  $—  $449  
Defaults$—  $—  $—  $—  $—  $—  $—  $—  

Three Months Ended
June 30, 2019		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$57  $911  $1,857  $—  $2,804  $711  $—  $6,340  
Additions—  —  —  —  —  —  —  —  
Principal (reductions) additions(19) (4) (16) —  (66) (52) —  (157) 
Charge-offs—  —  —  —  —  —  —  —  
Ending balance$38  $907  $1,841  $—  $2,738  $659  $—  $6,183  
Allowance for loan loss$—  $347  $32  $—  $—  $451  $—  $830  
Defaults$—  $—  $—  $—  $—  $—  $—  $—  

The following tables summarize TDR activity by loan category for the six months ended June 30, 2020 and June 30, 2019 (in 000's).
Six Months Ended
June 30, 2020		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$9  $898  $1,060  $—  $2,654  $566  $—  $5,187  
Additions—  —  —  —  —  179  —  179  
Principal (reductions) additions(9) (9) (22) —  (118) (53) —  (211) 
Charge-offs—  —  —  —  —  —  —  —  
Ending balance$—  $889  $1,038  $—  $2,536  $692  $—  $5,155  
Allowance for loan loss$—  $175  $31  $—  $—  $243  $—  $449  
Defaults$—  $—  $—  $—  $—  $—  $—  $—  

Six Months Ended
June 30, 2019		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$75  $1,305  $2,029  $—  $2,838  $812  $—  $7,059  
Additions—  —  —  —  —  —  —  —  
Principal (reductions) additions(37) (393) (188) —  (100) (153) —  (871) 
Charge-offs—  (5) —  —  —  —  (5) 
Ending balance$38  $907  $1,841  $—  $2,738  $659  $—  $6,183  
Allowance for loan loss$—  $347  $32  $—  $—  $451  $—  $830  
Defaults$—  $—  $—  $—  $—  $—  $—  $—  
Credit risk rating for commercial, construction and non-consumer related loans
The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for June 30, 2020 and December 31, 2019:
June 30, 2020Commercial and IndustrialCommercial Real EstateReal Estate Construction and DevelopmentAgriculturalTotal
(in 000's)
Grades 1 and 2$26,306  $2,767  $—  $—  $29,073  
Grade 3—  751  —  —  751  
Grades 4 and 5 – pass40,073  258,108  141,548  45,966  485,695  
Grade 6 – special mention1,275  1,715  998  2,320  6,308  
Grade 7 – substandard576  1,151  11,109  693  13,529  
Grade 8 – doubtful—  —  —  —  —  
Total$68,230  $264,492  $153,655  $48,979  $535,356  
December 31, 2019Commercial and IndustrialCommercial Real EstateReal Estate Construction and DevelopmentAgriculturalTotal
(in 000's)
Grades 1 and 2$278  $2,806  $—  $—  $3,084  
Grade 3—  981  —  —  981  
Grades 4 and 5 – pass41,757  238,612  126,308  50,234  456,911  
Grade 6 – special mention919  1,608  998  1,279  4,804  
Grade 7 – substandard2,324  1,176  11,478  684  15,662  
Grade 8 – doubtful—  —  —  —  —  
Total$45,278  $245,183  $138,784  $52,197  $481,442  
Credit risk ratings for consumer related loans and other homogenous loans
The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for June 30, 2020 and December 31, 2019:
 June 30, 2020December 31, 2019
 Residential MortgagesHome
Improvement and Home Equity		Installment and Student LoansTotalResidential MortgagesHome
Improvement and Home Equity		Installment and Student LoansTotal
(in 000's)
Not graded$35,163  $103  $63,427  $98,693  $33,059  $155  $68,752  $101,966  
Pass14,123  17  656  14,796  12,542  18  740  13,300  
Special mention357  —  269  626  88  —  386  474  
Substandard183  —  —  183  192  —  —  192  
Doubtful—  —  —  —  —  —  —  —  
Total$49,826  $120  $64,352  $114,298  $45,881  $173  $69,878  $115,932  
Allowance for credit loses by loan category
The following summarizes the activity in the allowance for credit losses by loan category for the quarters ended June 30, 2020 and 2019 (in 000's)

Three Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
June 30, 2020
Beginning balance$914  $910  $3,461  $868  $2,616  $351  $9,120  
Provision (recovery of provision) for credit losses(166) (103) 363  (32) 577  (211) 428  
Charge-offs—  —  (252) —  (448) —  (700) 
Recoveries8  5  —  —  1  —  14  
Net recoveries (charge-offs)8  5  (252) —  (447) —  (686) 
Ending balance$756  $812  $3,572  $836  $2,746  $140  $8,862  
Period-end amount allocated to:       
Loans individually evaluated for impairment—  206  —  243  —  —  449  
Loans collectively evaluated for impairment756  606  3,572  593  2,746  140  8,413  
Ending balance$756  $812  $3,572  $836  $2,746  $140  $8,862  
Three Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
June 30, 2019
Beginning balance$1,614  $995  $2,188  $969  $1,838  $813  $8,417  
Provision (recovery of provision) for credit losses(167) (135) 142  163  136  (135) 4  
Charge-offs—  —  —  —  (5) —  (5) 
Recoveries9  4  —  —  23  —  36  
Net recoveries (charge-offs)9  4  —  —  18  —  31  
Ending balance$1,456  $864  $2,330  $1,132  $1,992  $678  $8,452  
Period-end amount allocated to:       
Loans individually evaluated for impairment609  379  —  451  —  —  1,439  
Loans collectively evaluated for impairment847  485  2,330  681  1,992  678  7,013  
Ending balance$1,456  $864  $2,330  $1,132  $1,992  $678  $8,452  

The following summarizes the activity in the allowance for credit losses by loan category for the quarters ended June 30, 2020 and 2019 (in 000's)

Six Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
June 30, 2020
Beginning balance$1,322  $712  $2,808  $761  $2,132  $173  $7,908  
Provision (recovery of provision) for credit losses(579) 91  1,016  75  1,564  (33) 2,134  
Charge-offs—  —  (252) —  (956) —  (1,208) 
Recoveries13  9  —  —  6  —  28  
Net recoveries (charge-offs)13  9  (252) —  (950) —  (1,180) 
Ending balance$756  $812  $3,572  $836  $2,746  $140  $8,862  
Period-end amount allocated to:       
Loans individually evaluated for impairment—  206  —  243  —  —  449  
Loans collectively evaluated for impairment756  606  3,572  593  2,746  140  8,413  
Ending balance$756  $812  $3,572  $836  $2,746  $140  $8,862  
Six Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
June 30, 2019
Beginning balance$1,673  $1,015  $2,424  $1,131  $1,559  $593  $8,395  
Provision (recovery of provision) for credit losses(274) (154) (94) 1  446  85  10  
Charge-offs—  (5) —  —  (114) —  (119) 
Recoveries57  8  —  —  101  —  166  
Net (charge-offs) recoveries57  3  —  —  (13) —  47  
Ending balance$1,456  $864  $2,330  $1,132  $1,992  $678  $8,452  
Period-end amount allocated to:       
Loans individually evaluated for impairment609  379  —  451  —  —  1,439  
Loans collectively evaluated for impairment847  485  2,330  681  1,992  678  7,013  
Ending balance$1,456  $864  $2,330  $1,132  $1,992  $678  $8,452  
Summarized loan balances
The following summarizes information with respect to the loan balances at June 30, 2020 and 2019.
 June 30, 2020June 30, 2019
Loans
Individually
Evaluated for Impairment		Loans
Collectively
Evaluated for Impairment		Total LoansLoans
Individually
Evaluated for Impairment		Loans
Collectively
Evaluated for Impairment		Total Loans
(in 000's)
Commercial and business loans$318  $41,207  $41,525  $1,878  $52,456  $54,334  
Government program loans241  26,464  26,705  275  536  811  
Total commercial and industrial559  67,671  68,230  2,153  52,992  55,145  
Commercial real estate loans2,048  262,444  264,492  1,824  225,701  227,525  
Residential mortgage loans1,041  48,785  49,826  1,848  52,294  54,142  
Home improvement and home equity loans—  120  120  —  221  221  
Total real estate mortgage3,089  311,349  314,438  3,672  278,216  281,888  
Real estate construction and development loans11,109  142,546  153,655  11,562  103,049  114,611  
Agricultural loans696  48,283  48,979  667  51,360  52,027  
Installment and student loans—  64,352  64,352  —  69,750  69,750  
Total loans$15,453  $634,201  $649,654  $18,054  $555,367  $573,421