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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of activity in the allowance for loan losses and balances in the loan portfolio

Activity in the allowance for loan losses and balances in the loan portfolio were as follows:

						Commercial
(Dollars in thousands)						and								Commercial				Construction				Residential
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Unallocated				Total
Allowance for Loan Losses
Three Months Ended
June 30, 2019
Beginning balance		$	424			$	857			$	336			$	1,863			$	40			$	558			$	652			$	4,730
Charge-offs			—				(1	)			(45	)			—				—				(15	)			—				(61	)
Recoveries			65				3				39				4				—				21				—				132
Provision			(127	)			(41	)			5				531				3				(42	)			(329	)			—
Ending balance		$	362			$	818			$	335			$	2,398			$	43			$	522			$	323			$	4,801
Six Months Ended
June 30, 2019
Beginning balance		$	481			$	892			$	254			$	1,926			$	38			$	537			$	545			$	4,673
Charge-offs			—				(2	)			(151	)			—				—				(14	)			—				(167	)
Recoveries			65				20				88				6				—				116				—				295
Provision			(184	)			(92	)			144				466				5				(117	)			(222	)			—
Ending balance		$	362			$	818			$	335			$	2,398			$	43			$	522			$	323			$	4,801
Individually evaluated for impairment		$	80			$	84			$	10			$	605			$	—			$	159			$	—			$	938
Collectively evaluated for impairment		$	282			$	734			$	325			$	1,793			$	43			$	363			$	323			$	3,863
Three Months Ended
June 30, 2018
Beginning balance		$	350			$	1,005			$	245			$	1,786			$	18			$	625			$	680			$	4,709
Charge-offs			—				(57	)			(50	)			—				—				(9	)			—				(116	)
Recoveries			—				—				15				3				—				48				—				66
Provision			9				22				(5	)			122				(2	)			(44	)			(102	)			—
Ending balance		$	359			$	970			$	205			$	1,911			$	16			$	620			$	578			$	4,659
Six Months Ended
June 30, 2018
Beginning balance		$	506			$	1,001			$	262			$	1,761			$	35			$	726			$	286			$	4,577
Charge-offs			—				(58	)			(118	)			—				—				(13	)			—				(189	)
Recoveries			—				53				51				59				—				73				—				236
Provision			(147	)			(26	)			10				91				(19	)			(166	)			292				35
Ending balance		$	359			$	970			$	205			$	1,911			$	16			$	620			$	578			$	4,659
Individually evaluated for impairment		$	—			$	76			$	1			$	28			$	—			$	221			$	—			$	326
Collectively evaluated for impairment		$	359			$	894			$	204			$	1,883			$	16			$	399			$	578			$	4,333
Loans
June 30, 2019
Individually evaluated for impairment		$	389			$	362			$	54			$	2,937			$	—			$	2,613							$	6,355
Collectively evaluated for impairment			40,492				84,720				24,628				138,005				9,948				93,079								390,872
Ending balance		$	40,881			$	85,082			$	24,682			$	140,942			$	9,948			$	95,692							$	397,227
December 31, 2018
Individually evaluated for impairment		$	578			$	21			$	90			$	623			$	—			$	2,712							$	4,024
Collectively evaluated for impairment			48,531				91,385				24,292				138,830				8,843				93,168								405,049
Ending balance		$	49,109			$	91,406			$	24,382			$	139,453			$	8,843			$	95,880							$	409,073

Schedule of the bank's credit exposure

Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category

		Agricultural								Commercial and Industrial								Commercial Real Estate
(Dollars in thousands)		June 30,				December 31,				June 30,				December 31,				June 30,				December 31,
		2019				2018				2019				2018				2019				2018
Risk ratings 1 and 2		$	12,032			$	15,300			$	12,759			$	11,972			$	9,208			$	7,962
Risk rating 3			17,950				23,938				41,464				50,266				88,377				89,173
Risk rating 4			9,829				9,082				27,666				23,961				37,280				36,193
Risk rating 5			681				211				2,846				5,204				2,469				4,850
Risk rating 6			389				578				347				3				3,608				1,275
		$	40,881			$	49,109			$	85,082			$	91,406			$	140,942			$	139,453

Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity

		Consumer								Construction Real Estate								Residential Real Estate
(Dollars in thousands)		June 30,				December 31,				June 30,				December 31,				June 30,				December 31,
		2019				2018				2019				2018				2019				2018
Performing		$	24,640			$	24,320			$	9,948			$	8,843			$	94,775			$	94,925
Nonperforming			—				—				—				—				—				—
Nonaccrual			42				62				—				—				917				955
		$	24,682			$	24,382			$	9,948			$	8,843			$	95,692			$	95,880

Schedule of troubled debt restructurings

The following schedule provides information on loans that were considered TDRs that were modified during the three- and six-month periods ended June 30, 2019 and June 30, 2018:

		Three Months Ended June 30, 2019												Six Months Ended June 30, 2019
						Pre-				Post-								Pre-				Post-
						Modification				Modification								Modification				Modification
						Outstanding				Outstanding								Outstanding				Outstanding
(Dollars in thousands)		Number of				Recorded				Recorded				Number of				Recorded				Recorded
		Loans				Investment				Investment				Loans				Investment				Investment
Commercial real estate			2			$	2,471			$	2,471				2			$	2,471			$	2,471
Residential real estate			1				17				17				1				17				17
			3			$	2,488			$	2,488				3			$	2,488			$	2,488

Three Months Ended June 30, 2018

Six Months Ended June 30, 2018

Pre-

Post-

Pre-

Post-

Modification

Modification

Modification

Modification

Outstanding

Outstanding

Outstanding

Outstanding

(Dollars in thousands)

Number of

Recorded

Recorded

Number of

Recorded

Recorded

Loans

Investment

Investment

Loans

Investment

Investment

Commercial and industrial

—

$

—

$

—

1

$

39

$

39

The following schedule provides information on TDRs as of June 30, 2019 and 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three and six-month periods ended June 30, 2019 and June 30, 2018 that had been modified during the year prior to the default:

Three Months Ended

Six Months Ended

June 30, 2019

June 30, 2019

(Dollars in thousands)

Number

Recorded

Number

Recorded

of Loans

Investment

of Loans

Investment

Commercial real estate

2

$

2,471

2

$

2,471

Three Months Ended

Six Months Ended

June 30, 2018

June 30, 2018

(Dollars in thousands)

Number

Recorded

Number

Recorded

of Loans

Investment

of Loans

Investment

Commercial and industrial

1

$

39

1

$

39

Schedule of impaired loans

Impaired loans by loan category follow:

						Unpaid
(Dollars in thousands)		Recorded				Principal				Related
		Investment				Balance				Allowance
June 30, 2019
With no related allowance recorded
Agricultural		$	—			$	—			$	—
Commercial and industrial			—				—				—
Consumer			—				—				—
Commercial real estate			—				—				—
Construction real estate			—				—				—
Residential real estate			115				115				—
Total			115				115				—
With an allowance recorded
Agricultural			389				469				80
Commercial and industrial			362				446				84
Consumer			54				64				10
Commercial real estate			2,937				3,542				605
Construction real estate			—				—				—
Residential real estate			2,498				2,656				159
Total			6,240				7,177				938
Total
Agricultural			389				469				80
Commercial and industrial			362				446				84
Consumer			54				64				10
Commercial real estate			2,937				3,542				605
Construction real estate			—				—				—
Residential real estate			2,613				2,771				159
Total		$	6,355			$	7,292			$	938
December 31, 2018
With no related allowance recorded
Agricultural		$	185			$	185			$	—
Commercial and industrial			—				—				—
Consumer			1				1				—
Construction real estate			—				—				—
Commercial real estate			73				109				—
Residential real estate			250				261				—
Total			509				556				—
With an allowance recorded
Agricultural			393				440				94
Commercial and industrial			21				21				3
Consumer			89				89				13
Construction real estate			—				—				—
Commercial real estate			550				609				20
Residential real estate			2,462				2,494				167
Total			3,515				3,653				297
Total
Agricultural			578				625				94
Commercial and industrial			21				21				3
Consumer			90				90				13
Construction real estate			—				—				—
Commercial real estate			623				718				20
Residential real estate			2,712				2,755				167
Total		$	4,024			$	4,209			$	297

The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the six months ended June 30, 2019 and 2018:

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
June 30, 2019
With no related allowance recorded
Agricultural		$	62			$	—
Commercial and industrial			—				10
Consumer			—				—
Commercial real estate			49				75
Residential real estate			174				54
Total			285				139
With an allowance recorded
Agricultural			390				—
Commercial and industrial			136				—
Consumer			69				—
Commercial real estate			1,340				—
Residential real estate			2,498				—
Total			4,433				0
Total
Agricultural			452				—
Commercial and industrial			136				10
Consumer			69				—
Commercial real estate			1,389				75
Residential real estate			2,672				54
Total		$	4,718			$	139

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
June 30, 2018
With no related allowance recorded
Agricultural		$	423			$	—
Commercial and industrial			20				2
Consumer			3				—
Commercial real estate			79				—
Residential real estate			137				1
Total			662				3
With an allowance recorded
Agricultural			—				—
Commercial and industrial			215				8
Consumer			43				1
Commercial real estate			733				22
Residential real estate			2,633				63
Total			3,624				94
Total
Agricultural			423				—
Commercial and industrial			235				10
Consumer			46				1
Commercial real estate			812				22
Residential real estate			2,770				64
Total		$	4,286			$	97

Schedule of aging analysis of loans by loan category

An aging analysis of loans by loan category follows:

										Greater																90 Days Past
(Dollars in thousands)		30 to 59				60 to 89				Than 90								Loans Not								Due and
		Days				Days				Days (1)				Total				Past Due				Total Loans				Accruing
June 30, 2019
Agricultural		$	—			$	—			$	—			$	—			$	40,881			$	40,881			$	—
Commercial and industrial			—				—				—				—				85,082				85,082				—
Consumer			77				6				5				88				24,594				24,682				—
Commercial real estate			1,372				1,099				—				2,471				138,471				140,942				—
Construction real estate			—				—				—				—				9,948				9,948				—
Residential real estate			660				250				124				1,034				94,658				95,692				—
		$	2,109			$	1,355			$	129			$	3,593			$	393,634			$	397,227			$	—
December 31, 2018
Agricultural		$	—			$	—			$	—			$	—			$	49,109			$	49,109			$	—
Commercial and industrial			5				—				—				5				91,401				91,406				—
Consumer			149				40				11				200				24,182				24,382				—
Commercial real estate			—				—				73				73				139,380				139,453				—
Construction real estate			—				—				—				—				8,843				8,843				—
Residential real estate			1,493				486				648				2,627				93,253				95,880				—
		$	1,647			$	526			$	732			$	2,905			$	406,168			$	409,073			$	—

(1) Includes nonaccrual loans.

Schedule of nonaccrual loans by loan category

Nonaccrual loans by loan category follow:

(Dollars in thousands)		June 30,				December 31,
		2019				2018
Agricultural		$	389			$	393
Commercial and industrial			346				—
Consumer			42				62
Commercial real estate			2,516				123
Construction real estate			—				—
Residential real estate			917				954
		$	4,210			$	1,532

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Tabular disclosure of allowance for credit loss on financing receivable.

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

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Tabular disclosure of financing receivable modified as troubled debt restructuring.

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