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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 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 September 30, 2019
Beginning balance		$	362			$	818			$	335			$	2,398			$	43			$	522			$	323			$	4,801
Charge-offs			—				(81	)			(71	)			(589	)			—				(11	)			—				(752	)
Recoveries			—				1				25				16				—				5				—				47
Provision			111				(87	)			(27	)			(182	)			5				(80	)			260				—
Ending balance		$	473			$	651			$	262			$	1,643			$	48			$	436			$	583			$	4,096
Nine Months Ended September 30, 2019
Beginning balance		$	481			$	892			$	254			$	1,926			$	38			$	537			$	545			$	4,673
Charge-offs			—				(83	)			(222	)			(589	)			—				(25	)			—				(919	)
Recoveries			65				21				113				22				—				121				—				342
Provision			(73	)			(179	)			117				284				10				(197	)			38				—
Ending balance		$	473			$	651			$	262			$	1,643			$	48			$	436			$	583			$	4,096
Individually evaluated for impairment		$	85			$	2			$	4			$	14			$	—			$	186			$	—			$	291
Collectively evaluated for impairment		$	388			$	649			$	258			$	1,629			$	48			$	250			$	583			$	3,805
Three Months Ended September 30, 2018
Beginning balance		$	359			$	970			$	205			$	1,911			$	16			$	620			$	578			$	4,659
Charge-offs			—				—				(62	)			—				—				(13	)			—				(75	)
Recoveries			—				4				22				2				—				10				—				38
Provision			5				(25	)			59				37				15				—				(91	)			—
Ending balance		$	364			$	949			$	224			$	1,950			$	31			$	617			$	487			$	4,622
Nine Months Ended September 30, 2018
Beginning balance		$	506			$	1,001			$	262			$	1,761			$	35			$	726			$	286			$	4,577
Charge-offs			—				(58	)			(180	)			—				—				(25	)			—				(263	)
Recoveries			—				57				73				61				—				82				—				273
Provision			(142	)			(51	)			69				128				(4	)			(166	)			201				35
Ending balance		$	364			$	949			$	224			$	1,950			$	31			$	617			$	487			$	4,622
Individually evaluated for impairment		$	13			$	18			$	19			$	27			$	—			$	180			$	—			$	257
Collectively evaluated for impairment		$	351			$	931			$	205			$	1,923			$	31			$	437			$	487			$	4,365
Loans September 30, 2019
Individually evaluated for impairment		$	389			$	279			$	20			$	2,331			$	—			$	2,646							$	5,665
Collectively evaluated for impairment			49,668				81,252				24,388				141,975				11,188				92,670								401,141
Ending balance		$	50,057			$	81,531			$	24,408			$	144,306			$	11,188			$	95,316							$	406,806
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

Information regarding the Bank’s credit exposure is as follows: 

Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category

		Agricultural								Commercial and Industrial								Commercial Real Estate
(Dollars in thousands)		September 30,				December 31,				September 30,				December 31,				September 30,				December 31,
		2019				2018				2019				2018				2019				2018
Risk ratings 1 and 2		$	14,214			$	15,300			$	7,138			$	11,972			$	9,137			$	7,962
Risk rating 3			16,376				23,938				39,317				50,266				89,117				89,173
Risk rating 4			18,074				9,082				32,002				23,961				40,952				36,193
Risk rating 5			1,004				211				2,795				5,204				2,156				4,850
Risk rating 6			389				578				279				3				2,944				1,275
		$	50,057			$	49,109			$	81,531			$	91,406			$	144,306			$	139,453

Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity

		Consumer								Construction Real Estate								Residential Real Estate
(Dollars in thousands)		September 30,				December 31,				September 30,				December 31,				September 30,				December 31,
		2019				2018				2019				2018				2019				2018
Performing		$	24,400			$	24,320			$	11,188			$	8,843			$	94,343			$	94,925
Nonperforming			—				—				—				—				—				—
Nonaccrual			8				62				—				—				973				955
		$	24,408			$	24,382			$	11,188			$	8,843			$	95,316			$	95,880

Schedule of troubled debt restructurings

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

		Three Months Ended September 30, 2019												Nine Months Ended September 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			$	1,882			$	1,882
Residential real estate			—				—				—				1				17				17
			—			$	—			$	—				3			$	1,899			$	1,899

Three Months Ended September 30, 2018

Nine Months Ended September 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

—

$

—

$

—

—

$

—

$

—

The following schedule provides information on TDRs as of September 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 nine-month periods ended September 30, 2019 and September 30, 2018 that had been modified during the year prior to the default:

Three Months Ended

Nine Months Ended

September 30, 2019

September 30, 2019

(Dollars in thousands)

Number

Recorded

Number

Recorded

of Loans

Investment

of Loans

Investment

Commercial real estate

2

$

1,882

2

$

1,882

Three Months Ended

Nine Months Ended

September 30, 2018

September 30, 2018

(Dollars in thousands)

Number

Recorded

Number

Recorded

of Loans

Investment

of Loans

Investment

Commercial and industrial

—

$

—

—

$

—

Schedule of impaired loans

Impaired loans by loan category follow: 

						Unpaid
(Dollars in thousands)		Recorded				Principal				Related
		Investment				Balance				Allowance
September 30, 2019
With no related allowance recorded
Agricultural		$	—			$	—			$	—
Commercial and industrial			259				259				—
Consumer			—				—				—
Commercial real estate			1,882				1,882				—
Construction real estate			—				—				—
Residential real estate			103				103				—
Total			2,244				2,244				—
With an allowance recorded
Agricultural			389				474				85
Commercial and industrial			20				22				2
Consumer			20				24				4
Commercial real estate			449				462				14
Construction real estate			—				—				—
Residential real estate			2,543				2,729				186
Total			3,421				3,711				291
Total
Agricultural			389				474				85
Commercial and industrial			279				281				2
Consumer			20				24				4
Commercial real estate			2,331				2,344				14
Construction real estate			—				—				—
Residential real estate			2,646				2,832				186
Total		$	5,665			$	5,955			$	291
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 three- and nine-month periods ended September 30, 2019 and 2018:

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
Three months ended September 30, 2019
With no related allowance recorded
Agricultural		$	—			$	—
Commercial and industrial			129				—
Consumer			—				—
Commercial real estate			941				—
Residential real estate			109				1
Total			1,179				1
With an allowance recorded
Agricultural			389				—
Commercial and industrial			191				—
Consumer			37				1
Commercial real estate			1,693				13
Residential real estate			2,521				48
Total			4,831				62
Total
Agricultural			389				—
Commercial and industrial			320				—
Consumer			37				1
Commercial real estate			2,634				13
Residential real estate			2,630				49
Total		$	6,010			$	63

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
Three months ended September 30, 2018
With no related allowance recorded
Agricultural		$	211			$	—
Commercial and industrial			73				3
Consumer			—				—
Commercial real estate			134				—
Construction real estate			65				—
Residential real estate			168				—
Total			651				3
With an allowance recorded
Agricultural			206				—
Commercial and industrial			521				8
Consumer			68				3
Commercial real estate			739				20
Construction real estate			—				—
Residential real estate			2,418				52
Total			3,952				83
Total
Agricultural			417				—
Commercial and industrial			594				11
Consumer			68				3
Commercial real estate			873				20
Construction real estate			65				—
Residential real estate			2,586				52
Total		$	4,603			$	86

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
Nine months ended September 30, 2019
With no related allowance recorded
Agricultural		$	46			$	—
Commercial and industrial			65				9
Consumer			—				—
Commercial real estate			507				61
Residential real estate			156				4
Total			774				74
With an allowance recorded
Agricultural			390				—
Commercial and industrial			107				2
Consumer			56				1
Commercial real estate			1,117				27
Residential real estate			2,510				112
Total			4,180				142
Total
Agricultural			436				—
Commercial and industrial			172				11
Consumer			56				1
Commercial real estate			1,624				88
Residential real estate			2,666				116
Total		$	4,954			$	216

		Average				Interest
(Dollars in thousands)		Recorded				Income
		Investment				Recognized
Nine months ended September 30, 2018
With no related allowance recorded
Agricultural		$	317			$	—
Commercial and industrial			37				6
Consumer			2				—
Commercial real estate			67				—
Construction real estate			79				—
Residential real estate			159				2
Total			661				8
With an allowance recorded
Agricultural			103				—
Commercial and industrial			364				23
Consumer			52				2
Commercial real estate			728				42
Construction real estate			—				—
Residential real estate			2,539				112
Total			3,786				179
Total
Agricultural			420				—
Commercial and industrial			401				29
Consumer			54				2
Commercial real estate			795				42
Construction real estate			79				—
Residential real estate			2,698				114
Total		$	4,447			$	187

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
September 30, 2019
Agricultural		$	—			$	—			$	—			$	—			$	50,057			$	50,057			$	—
Commercial and industrial			284				—				259				543				80,988				81,531				—
Consumer			43				3				2				48				24,360				24,408				—
Commercial real estate			—				—				1,882				1,882				142,424				144,306				—
Construction real estate			—				—				—				—				11,188				11,188				—
Residential real estate			102				644				201				947				94,369				95,316				—
		$	429			$	647			$	2,344			$	3,420			$	403,386			$	406,806			$	—
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)		September 30,				December 31,
		2019				2018
Agricultural		$	389			$	393
Commercial and industrial			279				—
Consumer			7				62
Commercial real estate			1,925				123
Construction real estate			—				—
Residential real estate			973				954
		$	3,573			$	1,532

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