XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Loans (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Loans
Loans are comprised of the following:
(in 000's)September 30, 2020December 31, 2019
Commercial and industrial:
Commercial and business loans$39,218 $44,534 
Government program loans26,524 744 
Total commercial and industrial65,742 45,278 
Real estate mortgage:  
Commercial real estate264,013 245,183 
Residential mortgages45,722 45,881 
Home improvement and home equity loans114 173 
Total real estate mortgage309,849 291,237 
Real estate construction and development171,889 138,784 
Agricultural51,587 52,197 
Installment and student loans62,415 69,878 
Total loans$661,482 $597,374 
Delinquent loans
The following is a summary of delinquent loans at September 30, 2020 (in 000's):
September 30, 2020Loans
30-60 Days Past Due		Loans
61-89 Days Past Due		Loans
90 or More
Days Past Due		Total Past Due LoansCurrent LoansTotal LoansAccruing
Loans 90 or
More Days Past Due
Commercial and business loans$— $— $— $— $39,218 $39,218 $— 
Government program loans— — — — 26,524 26,524 — 
Total commercial and industrial— — — — 65,742 65,742 — 
Commercial real estate loans— — — — 264,013 264,013 — 
Residential mortgages266 — — 266 45,456 45,722 — 
Home improvement and home equity loans— — — — 114 114 — 
Total real estate mortgage266 — — 266 309,583 309,849 — 
Real estate construction and development loans— — 8,573 8,573 163,316 171,889 — 
Agricultural loans— — 477 477 51,110 51,587 — 
Installment and student loans2,253 429 53 2,735 59,580 62,315 53 
Overdraft protection lines— — — — 30 30 — 
Overdrafts— — — — 70 70 — 
Total installment and student loans2,253 429 53 2,735 59,680 62,415 53 
Total loans$2,519 $429 $9,103 $12,051 $649,431 $661,482 $53 

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 September 30, 2020 and December 31, 2019 (in 000's, except for number of borrowers):
 September 30, 2020December 31, 2019
 Number of BorrowersAmountNumber of BorrowersAmount
Current or less than 31 days254 $26,755 295 $34,277 
31 - 60 days21 2,259 4 292 
61 - 90 days5 429 7 657 
91 - 120 days1 53 6 386 
Total281 $29,496 312 $35,612 
Nonaccrual loan balances
The following is a summary of nonaccrual loan balances at September 30, 2020 and December 31, 2019 (in 000's).
September 30, 2020December 31, 2019
Commercial and business loans$— $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 loans11,058 11,478 
Agricultural loans477 144 
Installment and student loans— — 
Total nonaccrual loans$11,535 $11,697 
Impaired loans
The following is a summary of impaired loans at September 30, 2020 (in 000's).
September 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$273 $274 $— $274 $— $627 $18 
Government program loans219 220 — 220 — 241 11 
Total commercial and industrial492 494 — 494 — 868 29 
Commercial real estate loans2,027 1,148 888 2,036 171 2,058 90 
Residential mortgages812 446 369 815 16 993 32 
Home improvement and home equity loans— — — — — — — 
Total real estate mortgage2,839 1,594 1,257 2,851 187 3,051 122 
Real estate construction and development loans11,058 11,058 — 11,058 — 11,264 210 
Agricultural loans655 313 343 656 215 692 23 
Installment and student loans— — — — — — — 
Total impaired loans$15,044 $13,459 $1,600 $15,059 $402 $15,875 $384 

(1) The recorded investment in loans includes accrued interest receivable of $15.
(2) Information is based on nine months ended September 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 $36.
(2) Information is based on the year ended December 31, 2019.
Troubled debt restructuring activity
The following tables illustrates TDR additions and defaults for the periods indicated:
Nine Months Ended September 30, 2020
($ 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 — $— 
TDR activity by loan category
The following tables summarize TDR activity by loan category for the quarters ended September 30, 2020 and September 30, 2019 (in 000's).
Three Months Ended
September 30, 2020		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$— $889 $1,037 $— $2,536 $693 $— $5,155 
Additions— — — — — — — — 
Principal (reductions) additions— (5)(491)— (50)(38)— (584)
Charge-offs— — — — — — — — 
Ending balance$— $884 $546 $— $2,486 $655 $— $4,571 
Allowance for loan loss$— $171 $16 $— $— $215 $— $402 
Defaults$— $— $— $— $— $— $— $— 

Three Months Ended
September 30, 2019		Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$38 $907 $1,842 $— $2,738 $658 $— $6,183 
Additions— — — — — — — — 
Principal (reductions) additions(18)(5)(771)— (33)(30)— (857)
Charge-offs— — — — — (30)— (30)
Ending balance$20 $902 $1,071 $— $2,705 $598 $— $5,296 
Allowance for loan loss$— $346 $15 $— $— $256 $— $617 
Defaults$— $— $— $— $— $— $— $— 

The following tables summarize TDR activity by loan category for the nine months ended September 30, 2020 and September 30, 2019 (in 000's).
Nine Months Ended
September 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 $— $5,187 
Additions— — — — — 179 — 179 
Principal (reductions) additions(9)(14)(514)— (168)(90)— (795)
Charge-offs— — — — — — — — 
Ending balance$— $884 $546 $— $2,486 $655 $— $4,571 
Allowance for loan loss$— $171 $16 $— $— $215 $— $402 
Defaults$— $— $— $— $— $— $— $— 

Nine Months Ended
September 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(55)(403)(958)— (133)(184)— (1,733)
Charge-offs— — — — (30)— (30)
Ending balance$20 $902 $1,071 $— $2,705 $598 $— $5,296 
Allowance for loan loss$— $346 $15 $— $— $256 $— $617 
Defaults$— $— $— $— $— $— $— $— 
CARES activity by loan category The following tables summarize modification under the CARES Act by loan category as of September 30, 2020 (in 000's).
Loan CategoryCOVID-19 Modified Loan BalanceTotal Portfolio Balance
Commercial and Industrial:$667 $65,742 
Commercial Real Estate:
     Hospitality39,757 53,711 
     Health Club14,775 14,775 
     Construction and land development10,836 130,202 
     Commercial/Office/Retail2,687 101,195 
     Residential Mortgages— 45,722 
     Home improvement and home equity loans— 114 
     All other CRE 1,058 136,019 
Agricultural:— 51,587 
Installment and student loans:34 62,415 
Total:$69,814 $661,482 
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 September 30, 2020 and December 31, 2019:
September 30, 2020Commercial and IndustrialCommercial Real EstateReal Estate Construction and DevelopmentAgriculturalTotal
(in 000's)
Grades 1 and 2$26,154 $2,754 $— $30 $28,938 
Grade 3— 735 — — 735 
Grades 4 and 5 – pass37,135 251,963 159,833 49,461 498,392 
Grade 6 – special mention1,945 7,418 998 1,441 11,802 
Grade 7 – substandard524 1,143 11,058 655 13,380 
Grade 8 – doubtful— — — — — 
Total$65,758 $264,013 $171,889 $51,587 $553,247 
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 September 30, 2020 and December 31, 2019:
 September 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$32,738 $98 $61,974 $94,810 $33,059 $155 $68,752 $101,966 
Pass12,453 16 388 12,857 12,542 18 740 13,300 
Special mention354 — — 354 88 — 386 474 
Substandard177 — 53 230 192 — — 192 
Doubtful— — — — — — — — 
Total$45,722 $114 $62,415 $108,251 $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 September 30, 2020 and 2019 (in 000's)

Three Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
September 30, 2020
Beginning balance$756 $812 $3,572 $836 $2,746 $140 $8,862 
Provision (reversal of provision) for credit losses(46)(147)439 (68)(749)575 4 
Charge-offs— — (106)— (178)— (284)
Recoveries9 79 37 — 1 — 126 
Net recoveries (charge-offs)9 79 (69)— (177)— (158)
Ending balance$719 $744 $3,942 $768 $1,820 $715 $8,708 
Period-end amount allocated to:       
Loans individually evaluated for impairment— 187 — 215 — — 402 
Loans collectively evaluated for impairment719 557 3,942 553 1,820 715 8,306 
Ending balance$719 $744 $3,942 $768 $1,820 $715 $8,708 



Three Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
September 30, 2019
Beginning balance$1,457 $864 $2,330 $1,132 $1,991 $678 $8,452 
Provision (recovery of provision) for credit losses(168)(109)(3)(227)388 124 5 
Charge-offs— — — (36)(263)— (299)
Recoveries7 52 — — 13 — 72 
Net recoveries (charge-offs)7 52 — (36)(250)— (227)
Ending balance$1,296 $807 $2,327 $869 $2,129 $802 $8,230 
Period-end amount allocated to:       
Loans individually evaluated for impairment525 361 — 256 — — 1,142 
Loans collectively evaluated for impairment771 446 2,327 613 2,129 802 7,088 
Ending balance$1,296 $807 $2,327 $869 $2,129 $802 $8,230 

The following summarizes the activity in the allowance for credit losses by loan category for the nine months ended September 30, 2020 and 2019 (in 000's)
Nine Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
September 30, 2020
Beginning balance$1,322 $712 $2,808 $761 $2,132 $173 $7,908 
Provision (recovery of provision) for credit losses(625)(56)1,455 7 815 542 2,138 
Charge-offs— — (358)— (1,134)— (1,492)
Recoveries22 88 37 — 7 — 154 
Net recoveries (charge-offs)22 88 (321)— (1,127)— (1,338)
Ending balance$719 $744 $3,942 $768 $1,820 $715 $8,708 
Period-end amount allocated to:       
Loans individually evaluated for impairment— 187 — 215 — — 402 
Loans collectively evaluated for impairment719 557 3,942 553 1,820 715 8,306 
Ending balance$719 $744 $3,942 $768 $1,820 $715 $8,708 
Nine Months EndedCommercial and IndustrialReal Estate MortgageReal Estate Construction Development AgriculturalInstallment and Student Loans UnallocatedTotal
September 30, 2019
Beginning balance$1,673 $1,015 $2,424 $1,131 $1,559 $593 $8,395 
Provision (recovery of provision) for credit losses(441)(263)(97)(226)833 209 15 
Charge-offs— (5)— (36)(377)— (418)
Recoveries64 60 — — 114 — 238 
Net (charge-offs) recoveries64 55 — (36)(263)— (180)
Ending balance$1,296 $807 $2,327 $869 $2,129 $802 $8,230 
Period-end amount allocated to:       
Loans individually evaluated for impairment525 361 — 256 — — 1,142 
Loans collectively evaluated for impairment771 446 2,327 613 2,129 802 7,088 
Ending balance$1,296 $807 $2,327 $869 $2,129 $802 $8,230 
Summarized loan balances
The following summarizes information with respect to the loan balances at September 30, 2020 and 2019.
 September 30, 2020September 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$274 $38,944 $39,218 $1,652 $45,703 $47,355 
Government program loans220 26,304 26,524 266 516 782 
Total commercial and industrial494 65,248 65,742 1,918 46,219 48,137 
Commercial real estate loans2,036 261,977 264,013 3,105 221,608 224,713 
Residential mortgage loans815 44,907 45,722 1,074 49,988 51,062 
Home improvement and home equity loans— 114 114 — 184 184 
Total real estate mortgage2,851 306,998 309,849 4,179 271,780 275,959 
Real estate construction and development loans11,058 160,831 171,889 11,529 104,914 116,443 
Agricultural loans656 50,931 51,587 736 59,364 60,100 
Installment and student loans— 62,415 62,415 — 69,489 69,489 
Total loans$15,059 $646,423 $661,482 $18,362 $551,766 $570,128