Loans (Tables)

3 Months Ended

Mar. 31, 2015

Summary of loan portfolio and allowance for loan losses

The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of March 31, 2015 and December 31, 2014 (in thousands):

March 31, 2015	Total Loans	Individually evaluated for impairment	Collectively evaluated for impairment
Real estate loans:
Residential	$ 183,838	$ 310	$ 183,528
Commercial and agricultural	218,392	6,010	212,382
Construction	6,036	-	6,036
Consumer	8,171	-	8,171
Other commercial and agricultural loans	63,386	2,890	60,496
State and political subdivision loans	85,356	-	85,356
Total	565,179	$ 9,210	$ 555,969
Allowance for loan losses	6,922
Net loans	$ 558,257

December 31, 2014	Total Loans	Individually evaluated for impairment	Collectively evaluated for impairment
Real estate loans:
Residential	$ 185,438	$ 316	$ 185,122
Commercial and agricultural	215,584	6,112	209,472
Construction	6,353	-	6,353
Consumer	8,497	-	8,497
Other commercial and agricultural loans	58,516	2,394	56,122
State and political subdivision loans	79,717	-	79,717
Total	554,105	$ 8,822	$ 545,283
Allowance for loan losses	6,815
Net loans	$ 547,290

Impaired financing receivables with associated allowance amount

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, with the associated allowance amount, if applicable (in thousands):

		Recorded	Recorded
	Unpaid	Investment	Investment	Total
	Principal	With No	With	Recorded	Related
March 31, 2015	Balance	Allowance	Allowance	Investment	Allowance
Real estate loans:
Mortgages	$ 218	$ 121	$ 66	$ 187	$ 13
Home Equity	129	59	64	123	12
Commercial	8,398	5,851	159	6,010	72
Other commercial loans	2,988	2,431	459	2,890	91
Total	$ 11,733	$ 8,462	$ 748	$ 9,210	$ 188

December 31, 2014
Real estate loans:
Mortgages	$ 222	$ 125	$ 66	$ 191	$ 13
Home Equity	130	60	65	125	12
Commercial	8,433	5,708	404	6,112	72
Other commercial loans	2,480	2,346	48	2,394	1
Total	$ 11,265	$ 8,239	$ 583	$ 8,822	$ 98

The following tables includes the average balance of impaired financing receivables by class and the income recognized on impaired loans for the three month periods ended March 31, 2015 and 2014(in thousands):

	March 31, 2015			March 31, 2014
			Interest			Interest
	Average	Interest	Income	Average	Interest	Income
	Recorded	Income	Recognized	Recorded	Income	Recognized
	Investment	Recognized	Cash Basis	Investment	Recognized	Cash Basis
Real estate loans:
Mortgages	$ 188	$ 2	$ -	$ 205	$ 2	$ -
Home Equity	124	1	-	133	1	-
Commercial	6,023	13	-	8,533	26	-
Consumer	-	-	-	15	-	-
Other commercial loans	2,729	25	1	1,893	33	-
Total	$ 9,064	$ 41	$ 1	$ 10,779	$ 62	$ -

Summary of financing receivable credit exposures by internally assigned grades

The following table presents the recorded investment in those loan classes based on payment activity as of March 31, 2015 and December 31, 2014 (in thousands):

March 31, 2015	Performing	Non- performing	Total
Real estate loans:
Mortgages	$ 122,090	$ 1,021	$ 123,111
Home Equity	60,458	269	60,727
Consumer	8,113	58	8,171
Total	$ 190,661	$ 1,348	$ 192,009

December 31, 2014	Performing	Non-performing	Total
Real estate loans:
Mortgages	$ 121,968	$ 890	$ 122,858
Home Equity	62,296	284	62,580
Consumer	8,444	53	8,497
Total	$ 192,708	$ 1,227	$ 193,935

Age analysis of past due financing receivables

The following table includes an aging analysis of the recorded investment of past due financing receivables as of March 31, 2015 and December 31, 2014 (in thousands):

		30-59 Days	60-89 Days	90 Days	Total Past		Total Financing	90 Days and
March 31,2015		Past Due	Past Due	Or Greater	Due	Current	Receivables	Accruing
Real estate loans:
Mortgages		$ 438	$ 432	$ 708	$ 1,578	$ 121,533	$ 123,111	$ 212
Home Equity		333	76	254	663	60,064	60,727	128
Commercial		1,111	-	1,257	2,368	190,333	192,701	44
Agricultural		210	-	-	210	25,481	25,691	-
Construction		-	-	-	-	6,036	6,036	-
Consumer		34	32	12	78	8,093	8,171	1
Other commercial loans		333	158	335	826	51,780	52,606	18
Other agricultural loans		53	-	-	53	10,727	10,780	-
State and political
subdivision loans		-	-	-	-	85,356	85,356	-

	Total	$ 2,512	$ 698	$ 2,566	$ 5,776	$ 559,403	$ 565,179	$ 403

Loans considered non-accrual		$ 579	$ 171	$ 2,163	$ 2,913	$ 4,236	$ 7,149
Loans still accruing		1,933	527	403	2,863	555,167	558,030
	Total	$ 2,512	$ 698	$ 2,566	$ 5,776	$ 559,403	$ 565,179

December 31, 2014
Real estate loans:
Mortgages		$ 318	$ 230	$ 675	$ 1,223	$ 121,635	$ 122,858	$ 214
Home Equity		442	99	260	801	61,779	62,580	132
Commercial		97	231	1,432	1,760	189,185	190,945	310
Agricultural		-	-	-	-	24,639	24,639	-
Construction		-	-	-	-	6,353	6,353	-
Consumer		119	4	7	130	8,367	8,497	6
Other commercial loans		503	258	476	1,237	46,214	47,451	174
Other agricultural loans		-	-	-	-	11,065	11,065	-
State and political
subdivision loans		-	-	-	-	79,717	79,717	-

	Total	$ 1,479	$ 822	$ 2,850	$ 5,151	$ 548,954	$ 554,105	$ 836

Loans considered non-accrual		$ 48	$ 181	$ 2,014	$ 2,243	$ 4,356	$ 6,599
Loans still accruing		1,431	641	836	2,908	544,598	547,506
	Total	$ 1,479	$ 822	$ 2,850	$ 5,151	$ 548,954	$ 554,105

Summary of financing receivables on nonaccrual status

The following table reflects the financing receivables on non-accrual status as of March 31, 2015 and December 31, 2014, respectively. The balances are presented by class of financing receivable (in thousands):

	March 31, 2015	December 31, 2014
Real estate loans:
Mortgages	$ 809	$ 676
Home Equity	141	152
Commercial	5,030	5,010
Consumer	57	47
Other commercial loans	1,112	714
	$ 7,149	$ 6,599

Summary of troubled debt restructurings on financing receivables

Loan modifications that are considered TDRs completed during the three months ended March 31, 2015 and 2014 were as follows (dollars in thousands):

	For the Three Months Ended March 31, 2015
	Number of contracts		Pre-modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	Interest Modification	Term Modification	Interest Modification	Term Modification	Interest Modification	Term Modification
Real estate loans:
Mortgages	1	-	$ 71	-	$ 71	-
Total	1	-	$ 71	$ -	$ 71	$ -

	For the Three Months Ended March 31, 2014
	Number of contracts		Pre-modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	Interest Modification	Term Modification	Interest Modification	Term Modification	Interest Modification	Term Modification
Real estate loans:
Commercial	-	1	$ -	$ 125	$ -	$ 125
Total	-	1	$ -	$ 125	$ -	$ 125

The following table presents the recorded investment in loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2015 and 2014, respectively, and that subsequently defaulted during these reporting periods (dollars in thousands):

	For the Three Months Ended
	March 31, 2015		March 31, 2014
	Number of contracts	Recorded investment	Number of contracts	Recorded investment
Real estate loans:
Commercial	1	$ 124	1	$ 483
Total recidivism	1	$ 124	1	$ 483

Allowance for loan losses by impairment method

The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2015 and December 31, 2014, respectively (in thousands):

	March 31, 2015			December 31, 2014
	Individually evaluated for impairment	Collectively evaluated for impairment	Total	Individually evaluated for impairment	Collectively evaluated for impairment	Total
Real estate loans:
Residential	$ 25	$ 898	$ 923	$ 25	$ 853	$ 878
Commercial and agricultural	72	3,627	3,699	72	3,798	3,870
Construction	-	11	11	-	26	26
Consumer	-	82	82	-	84	84
Other commercial and agricultural loans	91	1,195	1,286	1	1,223	1,224
State and political
subdivision loans	-	572	572	-	545	545
Unallocated	-	349	349	-	188	188
Total	$ 188	$ 6,734	$ 6,922	$ 98	$ 6,717	$ 6,815

Roll forward of allowance for loan losses by portfolio segment

The following tables roll forward the balance of the ALLL by portfolio segment for the three month periods ended March 31, 2015 and 2014, respectively (in thousands):

	Balance at December 31, 2014	Charge-offs	Recoveries	Provision	Balance at March 31, 2015
Real estate loans:
Residential	$ 878	$ (17)	$ -	$ 62	$ 923
Commercial and agricultural	3,870	-	4	(175)	3,699
Construction	26	-	-	(15)	11
Consumer	84	(7)	8	(3)	82
Other commercial and agricultural loans	1,224	(1)	-	63	1,286
State and political				-
subdivision loans	545	-	-	27	572
Unallocated	188	-	-	161	349
Total	$ 6,815	$ (25)	$ 12	$ 120	$ 6,922

	Balance at December 31, 2013	Charge-offs	Recoveries	Provision	Balance at March 31, 2014
Real estate loans:
Residential	$ 946	$ (38)	$ -	$ (22)	$ 886
Commercial and agricultural	4,558	(10)	2	(20)	4,530
Construction	50	-	-	(42)	8
Consumer	105	(8)	9	(23)	83
Other commercial and agricultural loans	942	-	-	231	1,173
State and political				-
subdivision loans	330	-	-	66	396
Unallocated	167	-	-	(10)	157
Total	$ 7,098	$ (56)	$ 11	$ 180	$ 7,233