XML 23 R12.htm IDEA: XBRL DOCUMENT

Loans

3 Months Ended

Mar. 31, 2021

NOTE 4 LOANS

Loan balances as of March 31, 2021 and December 31, 2020 are summarized below:

	(In Thousands)
Loans:	March 31, 2021			December 31, 2020
Consumer Real Estate	$	175,675		$	175,588
Agricultural Real Estate		179,945			189,159
Agricultural		100,022			94,358
Commercial Real Estate		618,754			588,825
Commercial and Industrial		202,958			189,246
Consumer		54,445			52,540
Other		14,088			15,757
		1,345,887			1,305,473
Less: Net deferred loan fees and costs		(4,208	)		(2,483	)
		1,341,679			1,302,990
Less: Allowance for loan losses		(14,425	)		(13,672	)
Loans - Net	$	1,327,254		$	1,289,318

Other loans primarily fund public improvement in the Bank’s service area.

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of March 31, 2021:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	127,467	$	48,208
Agricultural Real Estate		105,009		74,936
Agricultural		87,924		12,098
Commercial Real Estate		492,252		126,502
Commercial and Industrial		172,598		30,360
Consumer		50,558		3,887
Other		14,084		4

As of March 31, 2021 and December 31, 2020 one to four family residential mortgage loans amounting to $36.7 million and $38.0 million, respectively, have been pledged as security for future loans and existing loans the Bank has received from the Federal Home Loan Bank.

Unless listed separately, Other loans are included in the Commercial and Industrial category for the remainder of the tables in this Note 4.

The following table represents the contractual aging of the recorded investment (in thousands) in past due loans by portfolio classification of loans as of March 31, 2021 and December 31, 2020, net of deferred loan fees and costs:

March 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	284	$	-	$	1,019	$	1,303	$	174,178	$	175,481	$	-
Agricultural Real Estate		-		-		88		88		179,551		179,639		-
Agricultural		-		-		-		-		100,147		100,147		-
Commercial Real Estate		-		-		183		183		617,329		617,512		-
Commercial and Industrial		-		-		794		794		213,547		214,341		-
Consumer		6		1		-		7		54,552		54,559		-
Total	$	290	$	1	$	2,084	$	2,375	$	1,339,304	$	1,341,679	$	-

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	269	$	191	$	1,032	$	1,492	$	173,824	$	175,316	$	-
Agricultural Real Estate		-		-		88		88		188,738		188,826		-
Agricultural		-		-		176		176		94,314		94,490		-
Commercial Real Estate		-		-		185		185		587,469		587,654		-
Commercial and Industrial		-		750		983		1,733		202,310		204,043		-
Consumer		53		-		-		53		52,608		52,661		-
Total	$	322	$	941	$	2,464	$	3,727	$	1,299,263	$	1,302,990	$	-

The following table presents the recorded investment in nonaccrual loans by class of loans as of March 31, 2021 and December 31, 2020:

	(In Thousands)
	March 31, 2021		December 31, 2020

Consumer Real Estate	$	1,370	$	1,546
Agricultural Real Estate		5,195		5,575
Agricultural		-		307
Commercial Real Estate		663		665
Commercial & Industrial		898		1,296
Consumer		13		15
Total	$	8,139	$	9,404

Following are the characteristics and underwriting criteria for each major type of loan the Bank offers:

Consumer Real Estate: Purchase, refinance, or equity financing of one to four family owner occupied dwelling. Success in repayment is subject to borrower’s income, debt level, character in fulfilling payment obligations, employment, and others.

Agricultural Real Estate: Purchase of farm real estate or for permanent improvements to the farm real estate. Cash flow from the farm operation is the repayment source and is therefore subject to the financial success of the farm operation.

Agricultural: Loans for the production and housing of crops, fruits, vegetables, and livestock or to fund the purchase or re-finance of capital assets such as machinery and equipment and livestock. The production of crops and livestock is especially vulnerable to commodity prices and weather. The vulnerability to commodity prices is offset by the farmer’s ability to hedge their position by the use of the future contracts. The risk related to weather is often mitigated by requiring crop insurance.

Commercial Real Estate: Construction, purchase, and refinance of business purpose real estate. Risks include potential construction delays and overruns, vacancies, collateral value subject to market value fluctuations, interest rate, market demands, borrower’s ability to repay in orderly fashion, and others. The Bank does employ stress testing on higher balance loans to mitigate risk by ensuring the customer’s ability to repay in a changing rate environment before granting loan approval.

Commercial and Industrial: Loans to proprietorships, partnerships, or corporations to provide temporary working capital and seasonal loans as well as long term loans for capital asset acquisition. Risks include adequacy of cash flow, reasonableness of projections, financial leverage, economic trends, management ability and estimated capital expenditures during the fiscal year. The Bank does employ stress testing on higher balance loans to mitigate risk by ensuring the customer's ability to repay in a changing rate environment before granting loan approval. Included in commercial loans for 2021 and 2020 are Paycheck Protection Program (PPP) loans, administered by the Small Business Administration (SBA), in the amounts of $51.8 million and $36.2 million, respectively. The PPP provides loans to eligible business through financial institutions like the Bank, with loans being eligible for forgiveness of some or all of the principal amount by the SBA if the borrower meets certain requirements. The SBA guarantees repayment of the loans to the Bank if the borrower’s loan is not forgiven and is then not repaid by the customer. Therefore, there is no allowance for loan losses related to these loans.

Consumer: Funding for individual and family purposes. Success in repayment is subject to borrower’s income, debt level, character in fulfilling payment obligations, employment, and others.

Other: Primarily funds public improvements in the Bank’s service area. Repayment ability is based on the continuance of the taxation revenue as the source of repayment.

The Bank uses a nine tier risk rating system to grade its loans. The grade of a loan may change during the life of the loan.

The risk ratings are described as follows.

Zero (0) Unclassified. Any loan which has not been assigned a classification.

One (1) Excellent. Credit to premier customers having the highest credit rating based on an extremely strong financial condition, which compares favorably with industry standards (upper quartile of RMA ratios). Financial statements indicate a sound earnings and financial ratio trend for several years with satisfactory profit margins and excellent liquidity exhibited. Prime credits may also be borrowers with

loans fully secured by highly liquid collateral such as traded stocks, bonds, certificates of deposit, savings account, etc. No credit or collateral exceptions exist, and the loan adheres to The Bank's loan policy in every respect. Financing alternatives would be readily available and would qualify for unsecured credit. This rate is summarized by high liquidity, minimum risk, strong ratios, and low handling costs.

Two (2) Good. Desirable loans of somewhat less stature than rate 1, but with strong financial statements. Loan supported by financial statements containing strong balance sheets and a history of profitability. Probability of serious financial deterioration is unlikely. Possessing a sound repayment source (and a secondary source), which would allow repayment in a reasonable period of time. Individual loans backed by liquid personal assets, established history and unquestionable character.

Three (3) Satisfactory. Satisfactory loans of average or slightly above average risk – having some deficiency or vulnerability to changing economic conditions, but still fully collectible. Projects should normally demonstrate acceptable debt service coverage. There may be some weakness but with offsetting features of other support readily available. Loans that are meeting the terms of repayment.

Loans may be rated 3 when there is no recent information on which to base a current risk evaluation and the following conditions apply:

At inception, the loan was properly underwritten and did not possess an unwarranted level of credit risk;

At inception, the loan was secured with collateral possessing a loan-to-value adequate to protect The Bank from loss;

The loan exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance;

During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the business is in an industry which is known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk rating is warranted.

Four (4) Satisfactory / Monitored. A “4” (Satisfactory/Monitored) risk rating may be established for a loan considered satisfactory but which is of average credit risk due to financial weakness or uncertainty. The loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in Satisfactory/Monitored classification is considered acceptable and within normal underwriting guidelines, so long as the loan is given management supervision.

Five (5) Special Mention. Loans that possess some credit deficiency or potential weakness which deserve close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. The key distinctions of a 5 (Special Mention) classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered “potential” versus “defined” impairments to the primary source of loan repayment and collateral.

Six (6) Substandard. One or more of the following characteristics may be exhibited in loans classified substandard:

Loans which possess a defined credit weakness and the likelihood that a loan will be paid from the primary source are uncertain. Financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss.

Loans are inadequately protected by the current net worth and paying capacity of the borrower.

The primary source of repayment is weakened, and The Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees.

Loans are characterized by the distinct possibility that The Bank will sustain some loss if deficiencies are not corrected.

Unusual courses of action are needed to maintain a high probability of repayment.

The borrower is not generating enough cash flow to repay loan principal; however, continues to make interest payments.

The lender is forced into a subordinate position or unsecured collateral position due to flaws in documentation.

Loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms.

The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.

There is significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions.

Seven (7) Doubtful. One or more of the following characteristics may be exhibited in loans classified Doubtful:

Loans have all of the weaknesses of those classified as Substandard. Additionally, however, these weaknesses make collection or liquidation in full based on existing conditions improbable.

The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

The possibility of loss is high, but, because of certain important pending factors which may strengthen the loan, loss classification is deferred until its exact status is known. A Doubtful classification is established deferring the realization of the loss.

Eight (8) Loss. Loans are considered uncollectable and of such little value that continuing to carry them as assets on the institution’s financial statements is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

[ Remainder of this page intentionally left blank ]

The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of March 31, 2021 and December 31, 2020:

	(In Thousands)
	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
March 31, 2021
1-2	$	12,001	$	1,637	$	10,731	$	53,577	$	-
3		33,850		26,549		163,758		24,926		3,295
4		111,704		70,589		422,632		114,991		10,793
5		7,188		1,319		4,363		2,839		-
6		14,896		53		16,028		3,788		-
7		-		-		-		132		-
8		-		-		-		-		-
Total	$	179,639	$	100,147	$	617,512	$	200,253	$	14,088

	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
December 31, 2020
1-2	$	11,960	$	5,093	$	11,001	$	38,486	$	-
3		38,306		23,779		165,201		26,515		4,651
4		112,465		63,480		396,076		114,108		11,106
5		7,478		1,577		4,010		3,266		-
6		18,617		561		11,366		4,796		-
7		-		-		-		1,115		-
8		-		-		-		-		-
Total	$	188,826	$	94,490	$	587,654	$	188,286	$	15,757

For consumer residential real estate, and other, the Company also evaluates credit quality based on the aging status of the loan, as was previously stated, and by payment activity. The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of March 31, 2021 and December 31, 2020.

	(In Thousands)
	Consumer		Consumer
	Real Estate		Real Estate
	March 31, 2021		December 31, 2020
Grade
Pass	$	172,062	$	171,667
Special Mention (5)		1,265		1,284
Substandard (6)		2,154		2,365
Doubtful (7)		-		-
Total	$	175,481	$	175,316

	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Performing	$	3,299	$	3,660	$	51,134	$	48,855
Nonperforming		11		10		115		136
Total	$	3,310	$	3,670	$	51,249	$	48,991

Information about impaired loans as of March 31, 2021, December 31, 2020 and March 31, 2020 are as follows:

			(In Thousands)
	March 31, 2021		December 31, 2020		March 31, 2020

Impaired loans without a valuation allowance	$	6,604	$	5,172	$	1,393
Impaired loans with a valuation allowance		5,532		9,360		4,795
Total impaired loans	$	12,136	$	14,532	$	6,188
Valuation allowance related to impaired loans	$	1,109	$	1,657	$	766
Total non-accrual loans	$	8,139	$	9,404	$	3,344
Total loans past-due ninety days or more and still accruing	$	-	$	-	$	-
Quarter ended average investment in impaired loans	$	13,467	$	14,868	$	4,314
Year to date average investment in impaired loans	$	13,467	$	10,234	$	4,314

There were $150 of additional funds available to be advanced in connection with impaired loans as of March 31, 2021.

The Bank had approximately $5.8 million of its impaired loans classified as troubled debt restructured (TDR) as of March 31, 2021, $6.5 million as of December 31, 2020 and $1.9 million as of March 31, 2020.

Modification programs focused on payment pattern changes and/or modified maturity dates with most receiving a combination of the two concessions. The modifications did not result in the contractual forgiveness of principal. During the first quarter of 2021, there were no new loans considered TDR. In the first quarter of 2020, two loans resulted in payment changes from a monthly payment to principal and interest at maturity on June 19, 2020. One of the loans was paid off in May 2020 with the other loan in a forbearance agreement. All interest was paid current at the time of the modifications. Consequently, the financial impact of the modifications was immaterial to the ALLL.

The following tables represents three months ended March 31, 2021 and 2020:

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2021	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Consumer Real Estate		-	$	-	$	-

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2020	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Consumer Real Estate		2	$	981	$	981

For the three month periods ended March 31, 2021 and 2020, there were no TDRs that subsequently defaulted after modification.

For the three month period ended March 31, 2021, there were three impaired commercial loans of $809 thousand that were classified as TDR charged off and there were no impaired loans classified as TDR paid off. For the three month period ended March 31, 2020, there were no impaired loans classified as TDR charged off or paid off.

[ Remainder of this page intentionally left blank ]

For the majority of the Bank’s impaired loans, the Bank will apply the fair value of collateral or use a measurement incorporating the present value of expected future cash flows discounted at the loan’s effective rate of interest. To determine fair value of collateral, collateral asset values securing an impaired loan are periodically evaluated. Maximum time of re-evaluation is every 12 months for chattels and titled vehicles and every two years for real estate. In this process, third party evaluations are obtained. Until such time that updated appraisals are received, the Bank may discount the collateral value used.

The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge-off in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 90 days delinquent, secured consumer loans are charged down to the value of the collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. A broker’s price opinion or appraisal will be completed on all home loans in litigation and any deficiency will be charged off before reaching 150 days delinquent. Commercial and agricultural credits are charged down at 120 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized.

The following tables present loans individually evaluated for impairment by class of loans for the three months ended March 31, 2021 and March 31, 2020 and for the year ended December 31, 2020.

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2021			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	817	$	817	$	-	$	508	$	1	$	2
Agricultural Real Estate		1,526		1,526		-		1,531		23		-
Agricultural		-		-		-		168		-		-
Commercial Real Estate		2,905		2,905		-		2,306		31		3
Commercial and Industrial		1,335		1,467		-		1,793		17		1
Consumer		21		21		-		21		-		-
With a specific allowance recorded:
Consumer Real Estate		134		134		23		179		-		2
Agricultural Real Estate		5,106		5,106		1,086		5,160		-		-
Agricultural		292		292		-		214		4		-
Commercial Real Estate		-		-		-		917		-		-
Commercial and Industrial		-		-		-		670		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	951	$	951	$	23	$	687	$	1	$	4
Agricultural Real Estate	$	6,632	$	6,632	$	1,086	$	6,691	$	23	$	-
Agricultural	$	292	$	292	$	-	$	382	$	4	$	-
Commercial Real Estate	$	2,905	$	2,905	$	-	$	3,223	$	31	$	3
Commercial and Industrial	$	1,335	$	1,467	$	-	$	2,463	$	17	$	1
Consumer	$	21	$	21	$	-	$	21	$	-	$	-

	(In Thousands)
											Interest
Year Ended December 31, 2020			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	799	$	799	$	-	$	738	$	22	$	10
Agricultural Real Estate		1,546		1,549		-		729		18		12
Agricultural		291		291		-		392		3		3
Commercial Real Estate		185		185		-		195		13		-
Commercial and Industrial		2,328		2,328		-		1,222		26		5
Consumer		23		23		-		16		-		-
With a specific allowance recorded:
Consumer Real Estate		202		202		31		126		-		3
Agricultural Real Estate		5,210		5,210		600		3,175		6		102
Agricultural		176		176		116		188		-		-
Commercial Real Estate		2,765		2,765		20		2,524		128		-
Commercial and Industrial		1,007		1,007		890		916		52		-
Consumer		-		-		-		11		1		-
Totals:
Consumer Real Estate	$	1,001	$	1,001	$	31	$	864	$	22	$	13
Agricultural Real Estate	$	6,756	$	6,759	$	600	$	3,904	$	24	$	114
Agricultural	$	467	$	467	$	116	$	580	$	3	$	3
Commercial Real Estate	$	2,950	$	2,950	$	20	$	2,719	$	141	$	-
Commercial and Industrial	$	3,335	$	3,335	$	890	$	2,138	$	78	$	5
Consumer	$	23	$	23	$	-	$	27	$	1	$	-

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2020			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	644	$	644	$	-	$	649	$	5	$	4
Agricultural Real Estate		30		30		-		291		3		-
Agricultural		348		348		-		386		5		-
Commercial Real Estate		186		186		-		224		3		-
Commercial and Industrial		154		154		-		699		12		-
Consumer		31		31		-		10		-		-
With a specific allowance recorded:
Consumer Real Estate		194		194		34		212		-		-
Agricultural Real Estate		92		92		15		93		2		-
Agricultural		121		121		12		121		-		-
Commercial Real Estate		3,109		3,109		95		1,036		39		-
Commercial and Industrial		1,279		1,429		610		572		7		-
Consumer		-		-		-		21		-		-
Totals:
Consumer Real Estate	$	838	$	838	$	34	$	861	$	5	$	4
Agricultural Real Estate	$	122	$	122	$	15	$	384	$	5	$	-
Agricultural	$	469	$	469	$	12	$	507	$	5	$	-
Commercial Real Estate	$	3,295	$	3,295	$	95	$	1,260	$	42	$	-
Commercial and Industrial	$	1,433	$	1,583	$	610	$	1,271	$	19	$	-
Consumer	$	31	$	31	$	-	$	31	$	-	$	-

As of March 31, 2021, the Company had $148 thousand foreclosed residential real estate property obtained by physical possession and $796 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions. This compares to the Company having $71 thousand of foreclosed residential real estate property obtained by physical possession and $910 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceeding are in process according to local jurisdictions as of December 31, 2020. As of March 31, 2020, the Company had $50 thousand of foreclosed residential real estate property obtained by physical possession and $292 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process according to local jurisdictions.

The Allowance for Loan and Lease Losses (ALLL) has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense. The following tables summarize the activities in the allowance for credit losses.

	(In Thousands)
	Three Months Ended			Twelve Months Ended
	March 31, 2021			December 31, 2020
Allowance for Loan & Lease Losses
Balance at beginning of year	$	13,672		$	7,228
Provision for loan loss		1,700			6,981
Loans charged off		(1,013	)		(720	)
Recoveries		66			183
Allowance for Loan & Lease Losses	$	14,425		$	13,672
Allowance for Unfunded Loan Commitments & Letters of Credit	$	1,052		$	641
Total Allowance for Credit Losses	$	15,477		$	14,313

The Company segregates its ALLL into two reserves: The ALLL and the Allowance for Unfunded Loan Commitments and Letters of Credit (AULC). When combined, these reserves constitute the total Allowance for Credit Losses (ACL).

The ALLL does not include an accretable yield of $1.5 million and $1.7 million as March 31, 2021 and December 31, 2020 respectively, related to the acquisition of Bank of Geneva as previously discussed in Note 2.

The AULC is reported within other liabilities on the balance sheet while the ALLL is netted within the loans, net asset line. The ACL presented above represents the full amount of reserves available to absorb possible credit losses.

[ Remainder of this page intentionally left blank ]

The following table breaks down the activity within ACL for each loan portfolio classification and shows the contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs.

Additional analysis, presented in thousands, related to the allowance for credit losses for the three months ended March 31, 2021 and March 31, 2020 in addition to the ending balances as of December 31, 2020 is as follows:

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
Three Months Ended March 31, 2021
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	633		$	958	$	701		$	7,415	$	3,346		$	606		$	641	$	13	$	14,313
Charge Offs		-			-		(142	)		-		(809	)		(62	)		-		-		(1,013	)
Recoveries		3			-		-			2		5			56			-		-		66
Provision (Credit)		(12	)		428		57			251		66			(5	)		-		915		1,700
Other Non-interest expense related to unfunded		-			-		-			-		-			-			411		-		411
Ending Balance	$	624		$	1,386	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	15,477
Ending balance: individually evaluated for impairment	$	23		$	1,086	$	-		$	-	$	-		$	-		$	-	$	-	$	1,109
Ending balance: collectively evaluated for impairment	$	601		$	300	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	14,368
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-		$	-		$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	175,481		$	179,639	$	100,147		$	617,512	$	214,341		$	54,559		$	-	$	-	$	1,341,679
Ending balance: individually evaluated for impairment	$	951		$	6,632	$	292		$	2,905	$	1,335		$	21		$	-	$	-	$	12,136
Ending balance: collectively evaluated for impairment	$	174,489		$	173,007	$	99,855		$	614,607	$	212,927		$	54,538		$	-	$	-	$	1,329,423
Ending balance: loans acquired with deteriorated credit quality	$	41		$	-	$	-		$	-	$	79		$	-		$	-	$	-	$	120

December 31, 2020	Consumer Real Estate		Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Consumer		Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
ALLOWANCE FOR CREDIT LOSSES:
Ending Balance	$	633	$	958	$	701	$	7,415	$	3,346	$	606	$	641	$	13	$	14,313
Ending balance: individually evaluated for impairment	$	31	$	600	$	116	$	20	$	890	$	-	$	-	$	-	$	1,657
Ending balance: collectively evaluated for impairment	$	602	$	358	$	585	$	7,395	$	2,456	$	606	$	641	$	13	$	12,656
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	175,316	$	188,826	$	94,490	$	587,654	$	204,043	$	52,661	$	-	$	-	$	1,302,990
Ending balance: individually evaluated for impairment	$	1,001	$	6,756	$	467	$	2,950	$	3,335	$	23	$	-	$	-	$	14,532
Ending balance: collectively evaluated for impairment	$	174,273	$	182,070	$	94,023	$	584,704	$	200,602	$	52,638	$	-	$	-	$	1,288,310
Ending balance: loans acquired with deteriorated credit quality	$	42	$	-	$	-	$	-	$	106	$	-	$	-	$	-	$	148

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate		Commercial and Industrial		Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated		Total
Three Months Ended March 31, 2020
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	311		$	314	$	691		$	3,634	$	1,727	$	551		$	479		$	-	$	7,707
Charge Offs		(35	)		-		-			-		-		(129	)		-			-		(164	)
Recoveries		3			-		-			3		3		30			-			-		39
Provision (Credit)		66			13		(26	)		236		1,020		81			-			40		1,430
Other Non-interest expense related to unfunded		-			-		-			-		-		-			(9	)		-		(9	)
Ending Balance	$	345		$	327	$	665		$	3,873	$	2,750	$	533		$	470		$	40	$	9,003
Ending balance: individually evaluated for impairment	$	34		$	15	$	12		$	95	$	610	$	-		$	-		$	-	$	766
Ending balance: collectively evaluated for impairment	$	311		$	312	$	653		$	3,778	$	2,140	$	533		$	470		$	40	$	8,237
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-	$	-		$	-		$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	173,976		$	194,130	$	109,707		$	568,991	$	151,647	$	49,190		$	-		$	-	$	1,247,641
Ending balance: individually evaluated for impairment	$	838		$	122	$	469		$	3,295	$	1,433	$	31		$	-		$	-	$	6,188
Ending balance: collectively evaluated for impairment	$	173,093		$	194,008	$	109,238		$	565,696	$	150,111	$	49,159		$	-		$	-	$	1,241,305
Ending balance: loans acquired with deteriorated credit quality	$	45		$	-	$	-		$	-	$	103	$	-		$	-		$	-	$	148