Loans (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of Loan Balances

Loan balances were as follows:

(In Thousands of Dollars)	June 30, 2019			December 31, 2018
Originated loans:
Commercial real estate
Owner occupied	$	175,891		$	158,947
Non-owner occupied		279,798			256,124
Farmland		122,621			110,881
Other		98,015			94,527
Commercial
Commercial and industrial		241,206			227,031
Agricultural		37,144			37,623
Residential real estate
1-4 family residential		315,215			307,794
Home equity lines of credit		84,565			82,690
Consumer
Indirect		161,429			164,509
Direct		27,962			30,277
Other		10,359			11,894
Total originated loans	$	1,554,205		$	1,482,297
Acquired loans:
Commercial real estate
Owner occupied	$	40,787		$	44,872
Non-owner occupied		12,886			16,920
Farmland		38,896			40,983
Other		7,076			8,091
Commercial
Commercial and industrial		15,451			18,141
Agricultural		6,882			9,526
Residential real estate
1-4 family residential		72,362			78,786
Home equity lines of credit		21,388			23,617
Consumer
Direct		7,556			9,442
Other		110			162
Total acquired loans	$	223,394		$	250,540
Net Deferred loan costs		2,905			3,003
Allowance for loan losses		(14,222	)		(13,592	)
Net loans	$	1,766,282		$	1,722,248

Purchased Credit Impaired Loans

As part of past acquisitions the Company acquired various loans that displayed evidence of deterioration of credit quality since origination and which was probable that all contractually required payments would not be collected.  The carrying amounts and contractually required payments of these loans which are included in the loan balances above are summarized in the following tables:

(In Thousands of Dollars)	June 30, 2019		December 31, 2018
Commercial real estate
Non-owner occupied	$	259	$	292
Commercial
Commercial and industrial		812		899
Total outstanding balance	$	1,071	$	1,191
Carrying amount, net of allowance of $0 in 2019 and 2018	$	797	$	903

Schedule of Accretable Yield or Income Expected to be Collected

Accretable yield, or income expected to be collected, is shown in the table below:

	Three Months Ended						Six Months Ended
(In Thousands of Dollars)	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Beginning balance	$	86		$	151		$	93		$	170
New loans purchased	0			0			0			0
Accretion of income		(7	)		(19	)		(14	)		(38	)
Ending balance	$	79		$	132		$	79		$	132

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2019 and 2018:

Three Months Ended June 30, 2019

(In Thousands of Dollars)	Commercial Real Estate		Commercial			Residential Real Estate			Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	5,195	$	2,157		$	2,813		$	2,819		$	793		$	13,777
Provision for loan losses		374		46			211			125			(6	)		750
Loans charged off		0		(14	)		(126	)		(448	)		0			(588	)
Recoveries		2		10			12			259			0			283
Total ending allowance balance	$	5,571	$	2,199		$	2,910		$	2,755		$	787		$	14,222

Six Months Ended June 30, 2019

(In Thousands of Dollars)	Commercial Real Estate		Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	5,036	$	2,093		$	2,837		$	2,963		$	663	$	13,592
Provision for loan losses		533		153			183			307			124		1,300
Loans charged off		0		(58	)		(147	)		(949	)		0		(1,154	)
Recoveries		2		11			37			434			0		484
Total ending allowance balance	$	5,571	$	2,199		$	2,910		$	2,755		$	787	$	14,222

Three Months Ended June 30, 2018

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	4,404		$	2,062		$	2,601		$	2,924		$	559	$	12,550
Provision for loan losses		(96	)		(61	)		93			586			228		750
Loans charged off		0			(65	)		(68	)		(644	)		0		(777	)
Recoveries		31			1			25			184			0		241
Total ending allowance balance	$	4,339		$	1,937		$	2,651		$	3,050		$	787	$	12,764

Six Months Ended June 30, 2018

(In Thousands of Dollars)	Commercial Real Estate		Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	4,260	$	2,011		$	2,521		$	2,848		$	675	$	12,315
Provision for loan losses		46		86			168			1,113			112		1,525
Loans charged off		0		(162	)		(124	)		(1,273	)		0		(1,559	)
Recoveries		33		2			86			362			0		483
Total ending allowance balance	$	4,339	$	1,937		$	2,651		$	3,050		$	787	$	12,764

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment, Based on Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on impairment method as of June 30, 2019 and December 31, 2018.  The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable, which is not considered to be material:

June 30, 2019

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6	$	3	$	262	$	0	$	0	$	271
Collectively evaluated for impairment		5,506		2,182		2,602		2,752		787		13,829
Acquired loans collectively evaluated for impairment		59		14		46		3		0		122
Acquired with deteriorated credit quality		0		0		0		0		0		0
Total ending allowance balance	$	5,571	$	2,199	$	2,910	$	2,755	$	787	$	14,222
Loans:
Loans individually evaluated for impairment	$	692	$	210	$	4,209	$	145	$	0	$	5,256
Loans collectively evaluated for impairment		674,524		277,940		395,343		205,080		0		1,552,887
Acquired loans		99,027		21,674		93,229		7,634		0		221,564
Acquired with deteriorated credit quality		229		568		0		0		0		797
Total ending loans balance	$	774,472	$	300,392	$	492,781	$	212,859	$	0	$	1,780,504

December 31, 2018

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	6	$	3	$	267	$	0	$	0	$	276
Collectively evaluated for impairment		4,981		2,075		2,534		2,960		663		13,213
Acquired loans collectively evaluated for impairment		49		15		36		3		0		103
Acquired with deteriorated credit quality		0		0		0		0		0		0
Total ending allowance balance	$	5,036	$	2,093	$	2,837	$	2,963	$	663	$	13,592
Loans:
Loans individually evaluated for impairment	$	790	$	223	$	4,627	$	83	$	0	$	5,723
Loans collectively evaluated for impairment		618,729		264,208		385,702		212,130		0		1,480,769
Acquired loans		110,143		26,916		101,804		9,582		0		248,445
Acquired with deteriorated credit quality		262		641		0		0		0		903
Total ending loans balance	$	729,924	$	291,988	$	492,133	$	221,795	$	0	$	1,735,840

Loans Individually Evaluated for Impairment by Class of Loans

The following tables present information related to impaired loans by class of loans as of June 30, 2019 and December 31, 2018:

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
June 30, 2019
With no related allowance recorded:
Commercial real estate
Owner occupied	$	351	$	312	$	0
Non-owner occupied		39		37		0
Farmland		86		86		0
Commercial
Commercial and industrial		174		141		0
Agricultural		12		12		0
Residential real estate
1-4 family residential		3,221		2,421		0
Home equity lines of credit		488		405		0
Consumer		253		122		0
Subtotal		4,624		3,536		0
With an allowance recorded:
Commercial real estate
Farmland		258		257		6
Commercial
Commercial and industrial		57		57		2
Residential real estate
1-4 family residential		1,369		1,286		252
Home equity lines of credit		97		97		11
Consumer		22		23		0
Subtotal		1,803		1,720		271
Total	$	6,427	$	5,256	$	271

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2018
With no related allowance recorded:
Commercial real estate
Owner occupied	$	524	$	494	$	0
Non-owner occupied		40		38		0
Commercial
Commercial and industrial		191		162		0
Residential real estate
1-4 family residential		3,451		2,759		0
Home equity lines of credit		379		326		0
Consumer		174		83		0
Subtotal		4,759		3,862		0
With an allowance recorded:
Commercial real estate
Farmland		258		258		6
Commercial
Commercial and industrial		61		61		3
Residential real estate
1-4 family residential		1,354		1,343		188
Home equity lines of credit		224		199		79
Consumer		0		0		0
Subtotal		1,897		1,861		276
Total	$	6,656	$	5,723	$	276

The following tables present the average recorded investment in impaired loans by class and interest income recognized by loan class for the three and six month periods ended June 30, 2019 and 2018:

	Average Recorded Investment				Interest Income Recognized
	For Three Months Ended June 30,				For Three Months Ended June 30,
(In Thousands of Dollars)	2019		2018		2019		2018
With no related allowance recorded:
Commercial real estate
Owner occupied	$	316	$	527	$	5	$	8
Non-owner occupied		37		27		0		0
Farmland		29		0		0		0
Commercial
Commercial and industrial		146		204		3		1
Agricultural		4		0		0		0
Residential real estate
1-4 family residential		2,552		2,677		43		42
Home equity lines of credit		360		302		8		4
Consumer		124		77		6		3
Subtotal		3,568		3,814		65		58
With an allowance recorded:
Commercial real estate
Owner occupied		0		0		0		0
Non-owner occupied		0		0		0		0
Farmland		257		257		0		0
Commercial
Commercial and industrial		58		68		1		1
Residential real estate
1-4 family residential		1,286		1,949		8		9
Home equity lines of credit		141		157		1		1
Consumer		29		0		0		0
Subtotal		1,771		2,431		10		11
Total	$	5,339	$	6,245	$	75	$	69

	Average Recorded Investment				Interest Income Recognized
	For Six Months Ended June 30,				For Six Months Ended June 30,
(In Thousands of Dollars)	2019		2018		2019		2018
With no related allowance recorded:
Commercial real estate
Owner occupied	$	324	$	474	$	9	$	15
Non-owner occupied		37		14		0		0
Farmland		14		0		0		0
Commercial
Commercial and industrial		151		538		5		2
Agricultural		2		0		0		0
Residential real estate
1-4 family residential		2,623		2,657		86		91
Home equity lines of credit		354		314		13		8
Consumer		118		70		9		6
Subtotal		3,623		4,067		122		122
With an allowance recorded:
Commercial real estate
Owner occupied		0		0		0		0
Non-owner occupied		0		0		0		0
Farmland		257		129		0		0
Commercial
Commercial and industrial		59		68		2		2
Agricultural		0		0		0		0
Residential real estate
1-4 family residential		1,302		1,689		16		19
Home equity lines of credit		168		156		3		3
Consumer		18		0		0		0
Subtotal		1,804		2,042		21		24
Total	$	5,427	$	6,109	$	143	$	146

Schedule of Investment in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of June 30, 2019 and December 31, 2018:

	June 30, 2019				December 31, 2018
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Originated loans:
Commercial real estate
Owner occupied	$	313	$	0	$	340	$	0
Farmland		22		0		30		0
Commercial
Commercial and industrial		462		0		122		0
Agricultural		24		0		158		0
Residential real estate
1-4 family residential		2,141		186		2,318		185
Home equity lines of credit		727		24		644		31
Consumer
Indirect		568		53		346		369
Direct		123		34		54		200
Other		0		9		0		2
Total originated loans	$	4,380	$	306	$	4,012	$	787
Acquired loans:
Commercial real estate
Non-owner occupied	$	21	$	0	$	82	$	0
Farmland		463		0		257		0
Commercial
Commercial and industrial		669		0		824		0
Agricultural		12		97		291		0
Residential real estate
1-4 family residential		754		137		1,001		122
Home equity lines of credit		261		0		203		14
Consumer
Direct		135		17		95		43
Total acquired loans	$	2,315	$	251	$	2,753	$	179
Total loans	$	6,695	$	557	$	6,765	$	966

Schedule of Investment in Past Due Loans

The following tables present the aging of the recorded investment in past due loans as of June 30, 2019 and December 31, 2018 by class of loans:

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
June 30, 2019
Originated loans:
Commercial real estate
Owner occupied	$	0	$	0	$	313	$	313	$	175,178	$	175,491
Non-owner occupied		5		0		0		5		279,111		279,116
Farmland		1,215		0		22		1,237		121,243		122,480
Other		0		0		0		0		97,749		97,749
Commercial
Commercial and industrial		74		0		462		536		240,273		240,809
Agricultural		219		0		24		243		37,008		37,251
Residential real estate
1-4 family residential		2,940		566		2,327		5,833		308,617		314,450
Home equity lines of credit		226		0		751		977		83,606		84,583
Consumer
Indirect		1,743		521		621		2,885		163,803		166,688
Direct		796		60		157		1,013		27,132		28,145
Other		45		16		9		70		10,290		10,360
Total originated loans:	$	7,263	$	1,163	$	4,686	$	13,112	$	1,544,010	$	1,557,122
Acquired loans:
Commercial real estate
Owner occupied	$	40	$	0	$	0	$	40	$	40,873	$	40,913
Non-owner occupied		0		0		21		21		12,731		12,752
Farmland		0		391		463		854		38,042		38,896
Other		0		0		0		0		7,075		7,075
Commercial
Commercial and industrial		33		27		669		729		14,722		15,451
Agricultural		0		0		109		109		6,772		6,881
Residential real estate
1-4 family residential		693		209		891		1,793		70,567		72,360
Home equity lines of credit		113		9		261		383		21,005		21,388
Consumer
Direct		233		24		152		409		7,147		7,556
Other		5		0		0		5		105		110
Total acquired loans	$	1,117	$	660	$	2,566	$	4,343	$	219,039	$	223,382
Total loans	$	8,380	$	1,823	$	7,252	$	17,455	$	1,763,049	$	1,780,504

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2018
Originated loans:
Commercial real estate
Owner occupied	$	82	$	0	$	340	$	422	$	158,161	$	158,583
Non-owner occupied		22		0		0		22		255,458		255,480
Farmland		184		0		30		214		110,547		110,761
Other		0		0		0		0		94,242		94,242
Commercial
Commercial and industrial		159		0		122		281		226,320		226,601
Agricultural		69		10		158		237		37,484		37,721
Residential real estate
1-4 family residential		1,964		424		2,503		4,891		302,131		307,022
Home equity lines of credit		64		14		675		753		81,957		82,710
Consumer
Indirect		1,714		755		715		3,184		166,622		169,806
Direct		714		340		254		1,308		29,183		30,491
Other		33		14		2		49		11,845		11,894
Total originated loans	$	5,005	$	1,557	$	4,799	$	11,361	$	1,473,950	$	1,485,311
Acquired loans:
Commercial real estate
Owner occupied	$	321	$	0	$	0	$	321	$	44,618	$	44,939
Non-owner occupied		0		0		82		82		16,764		16,846
Farmland		0		102		257		359		40,623		40,982
Other		0		0		0		0		8,091		8,091
Commercial
Commercial and industrial		94		0		824		918		17,223		18,141
Agricultural		31		5		291		327		9,198		9,525
Residential real estate
1-4 family residential		750		229		1,123		2,102		76,682		78,784
Home equity lines of credit		208		0		217		425		23,192		23,617
Consumer
Direct		318		257		138		713		8,729		9,442
Other		0		0		0		0		162		162
Total acquired loans	$	1,722	$	593	$	2,932	$	5,247	$	245,282	$	250,529
Total loans	$	6,727	$	2,150	$	7,731	$	16,608	$	1,719,232	$	1,735,840