Loans and ALLL (Tables)

6 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Summary of changes in the ALLL and the recorded investment in loans by segments

A summary of changes in the ALLL and the recorded investment in loans by segments follows:



	Allowance for Loan Losses
	Three Months Ended June 30, 2016
	Commercial			Agricultural		Residential Real Estate			Consumer			Unallocated		Total
April 1, 2016	$	2,421		$	336	$	3,130		$	540		$	1,073	$	7,500
Charge-offs	(32		)	—		(128		)	(48		)	—		(208		)
Recoveries	189			—		45			62			—		296
Provision for loan losses	(459		)	198		83			(13		)	203		12
June 30, 2016	$	2,119		$	534	$	3,130		$	541		$	1,276	$	7,600



	Allowance for Loan Losses
	Six Months Ended June 30, 2016
	Commercial			Agricultural		Residential Real Estate			Consumer			Unallocated		Total
January 1, 2016	$	2,171		$	329	$	3,330		$	522		$	1,048	$	7,400
Charge-offs	(48		)	—		(369		)	(132		)	—		(549		)
Recoveries	278			92		95			116			—		581
Provision for loan losses	(282		)	113		74			35			228		168
June 30, 2016	$	2,119		$	534	$	3,130		$	541		$	1,276	$	7,600



	Allowance for Loan Losses
	Three Months Ended June 30, 2015
	Commercial			Agricultural		Residential Real Estate			Consumer			Unallocated			Total
April 1, 2015	$	3,808		$	206	$	3,728		$	711		$	1,147		$	9,600
Charge-offs	(11		)	—		(205		)	(80		)	—			(296		)
Recoveries	106			—		86			39			—			231
Provision for loan losses	(421		)	157		(97		)	(79		)	(95		)	(535		)
June 30, 2015	$	3,482		$	363	$	3,512		$	591		$	1,052		$	9,000



	Allowance for Loan Losses
	Six Months Ended June 30, 2015
	Commercial			Agricultural		Residential Real Estate			Consumer			Unallocated			Total
January 1, 2015	$	3,821		$	216	$	4,235		$	645		$	1,183		$	10,100
Charge-offs	(28		)	—		(255		)	(173		)	—			(456		)
Recoveries	319			72		119			107			—			617
Provision for loan losses	(630		)	75		(587		)	12			(131		)	(1,261		)
June 30, 2015	$	3,482		$	363	$	3,512		$	591		$	1,052		$	9,000

Allowance for Loan Losses and Recorded Investment in Loans



	Allowance for Loan Losses and Recorded Investment in Loans
	June 30, 2016
	Commercial		Agricultural		Residential Real Estate		Consumer		Unallocated		Total
ALLL
Individually evaluated for impairment	$	811	$	15	$	1,776	$	—	$	—	$	2,602
Collectively evaluated for impairment	1,308		519		1,354		541		1,276		4,998
Total	$	2,119	$	534	$	3,130	$	541	$	1,276	$	7,600
Loans
Individually evaluated for impairment	$	6,714	$	4,229	$	9,431	$	32			$	20,406
Collectively evaluated for impairment	493,660		122,288		245,685		37,555				899,188
Total	$	500,374	$	126,517	$	255,116	$	37,587			$	919,594



	Allowance for Loan Losses and Recorded Investment in Loans
	December 31, 2015
	Commercial		Agricultural		Residential Real Estate		Consumer		Unallocated		Total
ALLL
Individually evaluated for impairment	$	829	$	2	$	1,989	$	—	$	—	$	2,820
Collectively evaluated for impairment	1,342		327		1,341		522		1,048		4,580
Total	$	2,171	$	329	$	3,330	$	522	$	1,048	$	7,400
Loans
Individually evaluated for impairment	$	7,969	$	4,068	$	10,266	$	35			$	22,338
Collectively evaluated for impairment	440,412		111,843		241,235		34,664				828,154
Total	$	448,381	$	115,911	$	251,501	$	34,699			$	850,492

Credit quality indicators for commercial and agricultural credit exposures

The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of:



	June 30, 2016
	Commercial						Agricultural
	Real Estate		Other		Total		Real Estate		Other		Total
Rating
1 - Excellent	$	—	$	982	$	982	$	—	$	—	$	—
2 - High quality	11,359		10,318		21,677		3,963		1,428		5,391
3 - High satisfactory	100,031		31,861		131,892		24,288		11,052		35,340
4 - Low satisfactory	257,872		75,720		333,592		46,446		24,514		70,960
5 - Special mention	4,464		477		4,941		5,631		6,338		11,969
6 - Substandard	6,936		227		7,163		2,108		603		2,711
7 - Vulnerable	127		—		127		146		—		146
8 - Doubtful	—		—		—		—		—		—
Total	$	380,789	$	119,585	$	500,374	$	82,582	$	43,935	$	126,517



	December 31, 2015
	Commercial						Agricultural
	Real Estate		Other		Total		Real Estate		Other		Total
Rating
1 - Excellent	$	—	$	499	$	499	$	—	$	—	$	—
2 - High quality	7,397		11,263		18,660		4,647		2,150		6,797
3 - High satisfactory	99,136		29,286		128,422		28,886		13,039		41,925
4 - Low satisfactory	222,431		62,987		285,418		37,279		22,166		59,445
5 - Special mention	4,501		473		4,974		3,961		1,875		5,836
6 - Substandard	9,941		256		10,197		1,623		139		1,762
7 - Vulnerable	211		—		211		146		—		146
8 - Doubtful	—		—		—		—		—		—
Total	$	343,617	$	104,764	$	448,381	$	76,542	$	39,369	$	115,911

Summary of past due and current loans

The following tables summarize the past due and current loans as of:



	June 30, 2016
	Accruing Interest and Past Due:								Total Past Due and Nonaccrual
	30-59 Days		60-89 Days		90 Days or More		Nonaccrual		Total Past Due and Nonaccrual		Current		Total
Commercial
Commercial real estate	$	602	$	291	$	—	$	127	$	1,020	$	379,769	$	380,789
Commercial other	75		15		194		—		284		119,301		119,585
Total commercial	677		306		194		127		1,304		499,070		500,374
Agricultural
Agricultural real estate	441		—		—		146		587		81,995		82,582
Agricultural other	342		—		14		—		356		43,579		43,935
Total agricultural	783		—		14		146		943		125,574		126,517
Residential real estate
Senior liens	1,200		527		—		701		2,428		205,928		208,356
Junior liens	40		—		—		—		40		8,607		8,647
Home equity lines of credit	287		—		—		—		287		37,826		38,113
Total residential real estate	1,527		527		—		701		2,755		252,361		255,116
Consumer
Secured	22		—		—		—		22		33,958		33,980
Unsecured	1		—		—		—		1		3,606		3,607
Total consumer	23		—		—		—		23		37,564		37,587
Total	$	3,010	$	833	$	208	$	974	$	5,025	$	914,569	$	919,594



	December 31, 2015
	Accruing Interest and Past Due:								Total Past Due and Nonaccrual
	30-59 Days		60-89 Days		90 Days or More		Nonaccrual		Total Past Due and Nonaccrual		Current		Total
Commercial
Commercial real estate	$	505	$	281	$	—	$	211	$	997	$	342,620	$	343,617
Commercial other	18		—		—		—		18		104,746		104,764
Total commercial	523		281		—		211		1,015		447,366		448,381
Agricultural
Agricultural real estate	196		890		—		146		1,232		75,310		76,542
Agricultural other	—		—		—		—		—		39,369		39,369
Total agricultural	196		890		—		146		1,232		114,679		115,911
Residential real estate
Senior liens	1,551		261		—		429		2,241		199,622		201,863
Junior liens	40		8		—		6		54		9,325		9,379
Home equity lines of credit	225		—		—		—		225		40,034		40,259
Total residential real estate	1,816		269		—		435		2,520		248,981		251,501
Consumer
Secured	27		—		—		—		27		30,839		30,866
Unsecured	4		—		—		—		4		3,829		3,833
Total consumer	31		—		—		—		31		34,668		34,699
Total	$	2,566	$	1,440	$	—	$	792	$	4,798	$	845,694	$	850,492

Information pertaining to impaired loans

The following is a summary of information pertaining to impaired loans as of:



	June 30, 2016						December 31, 2015
	Outstanding Balance		Unpaid Principal Balance		Valuation Allowance		Outstanding Balance		Unpaid Principal Balance		Valuation Allowance
Impaired loans with a valuation allowance
Commercial real estate	$	5,729	$	5,848	$	801	$	5,659	$	5,777	$	818
Commercial other	93		93		10		8		8		11
Agricultural real estate	181		181		15		—		—		—
Agricultural other	—		—		—		335		335		2
Residential real estate senior liens	9,183		9,959		1,750		9,996		10,765		1,959
Residential real estate junior liens	133		143		26		143		163		30
Home equity lines of credit	—		—		—		—		—		—
Consumer secured	—		—		—		—		—		—
Total impaired loans with a valuation allowance	15,319		16,224		2,602		16,141		17,048		2,820
Impaired loans without a valuation allowance
Commercial real estate	820		973				2,122		2,256
Commercial other	72		83				180		191
Agricultural real estate	3,362		3,362				3,549		3,549
Agricultural other	686		686				184		184
Home equity lines of credit	115		415				127		434
Consumer secured	32		32				35		35
Total impaired loans without a valuation allowance	5,087		5,551				6,197		6,649
Impaired loans
Commercial	6,714		6,997		811		7,969		8,232		829
Agricultural	4,229		4,229		15		4,068		4,068		2
Residential real estate	9,431		10,517		1,776		10,266		11,362		1,989
Consumer	32		32		—		35		35		—
Total impaired loans	$	20,406	$	21,775	$	2,602	$	22,338	$	23,697	$	2,820

The following is a summary of information pertaining to impaired loans for the:



	Three Months Ended June 30
	2016				2015
	Average Outstanding Balance		Interest Income Recognized		Average Outstanding Balance		Interest Income Recognized
Impaired loans with a valuation allowance
Commercial real estate	$	5,793	$	85	$	7,052	$	92
Commercial other	95		2		569		9
Agricultural real estate	91		2		44		—
Agricultural other	—		—		—		—
Residential real estate senior liens	9,508		93		10,805		99
Residential real estate junior liens	134		1		196		12
Home equity lines of credit	—		—		—		—
Consumer secured	—		—		46		1
Total impaired loans with a valuation allowance	15,621		183		18,712		213
Impaired loans without a valuation allowance
Commercial real estate	814		28		2,230		74
Commercial other	77		2		68		2
Agricultural real estate	3,454		43		1,545		20
Agricultural other	603		10		351		7
Home equity lines of credit	118		4		190		4
Consumer secured	33		1		—		—
Total impaired loans without a valuation allowance	5,099		88		4,384		107
Impaired loans
Commercial	6,779		117		9,919		177
Agricultural	4,148		55		1,940		27
Residential real estate	9,760		98		11,191		115
Consumer	33		1		46		1
Total impaired loans	$	20,720	$	271	$	23,096	$	320



	Six Months Ended June 30
	2016				2015
	Average Outstanding Balance		Interest Income Recognized		Average Outstanding Balance		Interest Income Recognized
Impaired loans with a valuation allowance
Commercial real estate	$	5,773	$	169	$	7,163	$	183
Commercial other	74		3		581		19
Agricultural real estate	46		2		44		1
Agricultural other	84		—		—		—
Residential real estate senior liens	9,711		193		11,208		217
Residential real estate junior liens	137		2		227		14
Home equity lines of credit	—		—		63		—
Consumer secured	—		—		49		2
Total impaired loans with a valuation allowance	15,825		369		19,335		436
Impaired loans without a valuation allowance
Commercial real estate	1,139		47		2,818		135
Commercial other	104		4		99		5
Agricultural real estate	3,501		88		1,513		41
Agricultural other	477		16		204		8
Home equity lines of credit	121		8		155		10
Consumer secured	34		2		3		—
Total impaired loans without a valuation allowance	5,376		165		4,792		199
Impaired loans
Commercial	7,090		223		10,661		342
Agricultural	4,108		106		1,761		50
Residential real estate	9,969		203		11,653		241
Consumer	34		2		52		2
Total impaired loans	$	21,201	$	534	$	24,127	$	635

Information pertaining to TDR's

The following is a summary of TDR loan balances as of:



	June 30, 2016		December 31, 2015
TDRs	$	19,430	$	21,325

The following is a summary of information pertaining to TDRs granted for the:



	Three Months Ended June 30
	2016					2015
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment
Commercial other	—	$	—	$	—	1	$	71	$	71
Agricultural other	3	201		201		7	770		770
Residential real estate
Senior liens	—	—		—		2	210		210
Junior liens	—	—		—		1	30		30
Home equity lines of credit	—	—		—		—	—		—
Total residential real estate	—	—		—		3	240		240
Consumer unsecured	—	—		—		—	—		—
Total	3	$	201	$	201	11	$	1,081	$	1,081



	Six Months Ended June 30
	2016					2015
	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment
Commercial other	—	$	—	$	—	5	$	585	$	585
Agricultural other	3	201		201		7	770		770
Residential real estate
Senior liens	2	26		26		4	448		448
Junior liens	—	—		—		1	30		30
Home equity lines of credit	—	—		—		1	94		94
Total residential real estate	2	26		26		6	572		572
Consumer unsecured	1	2		2		—	—		—
Total	6	$	229	$	229	18	$	1,927	$	1,927

The following tables summarize concessions we granted to borrowers in financial difficulty for the:



	Three Months Ended June 30
	2016						2015
	Below Market Interest Rate			Below Market Interest Rate and Extension of Amortization Period			Below Market Interest Rate			Below Market Interest Rate and Extension of Amortization Period
	Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment
Commercial other	—	$	—	—	$	—	1	$	71	—	$	—
Agricultural other	—	—		3	201		6	724		1	46
Residential real estate
Senior liens	—	—		—	—		—	—		2	210
Junior liens	—	—		—	—		—	—		1	30
Home equity lines of credit	—	—		—	—		—	—		—	—
Total residential real estate	—	—		—	—		—	—		3	240
Consumer unsecured	—	—		—	—		—	—		—	—
Total	—	$	—	3	$	201	7	$	795	4	$	286



	Six Months Ended June 30
	2016						2015
	Below Market Interest Rate			Below Market Interest Rate and Extension of Amortization Period			Below Market Interest Rate			Below Market Interest Rate and Extension of Amortization Period
	Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment		Number of Loans	Pre-Modification Recorded Investment
Commercial other	—	$	—	—	$	—	3	$	254	2	$	331
Agricultural other	—	—		3	201		6	724		1	46
Residential real estate
Senior liens	2	26		—	—		1	50		3	398
Junior liens	—	—		—	—		—	—		1	30
Home equity lines of credit	—	—		—	—		—	—		1	94
Total residential real estate	2	26		—	—		1	50		5	522
Consumer unsecured	—	—		1	2		—	—		—	—
Total	2	$	26	4	$	203	10	$	1,028	8	$	899

We had no loans that defaulted in the three and six month periods ended June 30, 2016 which were modified within 12 months prior to the default date. Following is a summary of loans that defaulted in the three and six month periods ended June 30, 2015, which were modified within 12 months prior to the default date:



	Three Months Ended June 30, 2015							Six Months Ended June 30, 2015
	Number of Loans	Pre- Default Recorded Investment		Charge-Off Recorded Upon Default		Post- Default Recorded Investment		Number of Loans	Pre- Default Recorded Investment		Charge-Off Recorded Upon Default		Post- Default Recorded Investment
Residential real estate junior liens	1	$	39	$	39	$	—	1	$	39	$	39	$	—