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Loans and Allowance for Loan Losses | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses The Banks’ loan portfolio as of December 31 was as follows:
(Dollars in thousands) |  |  |  |  |  |
|  | 2019 |  |  | 2018 |
Agricultural |  | $ | 57,339 |  |  | $ | 49,109 |
Commercial and industrial |  |  | 148,083 |  |  |  | 91,406 |
Consumer |  |  | 38,854 |  |  |  | 24,382 |
Real estate - commercial |  |  | 326,379 |  |  |  | 139,453 |
Real estate - construction |  |  | 13,411 |  |  |  | 8,843 |
Real estate - residential |  |  | 217,982 |  |  |  | 95,880 |
Loans, gross |  |  | 802,048 |  |  |  | 409,073 |
Allowance for loan losses |  |  | (4,057 | ) |  |  | (4,673 | )
Loans, net |  | $ | 797,991 |  |  | $ | 404,400 |
ChoiceOne manages its credit risk through the use of its loan policy and its loan approval process and by monitoring of loan credit performance. The loan approval process for commercial loans involves individual and group approval authorities. Individual authority levels are based on the experience of the lender. Group authority approval levels can consist of an internal loan committee that includes the applicable Bank’s President or Senior Lender and other loan officers for loans that exceed individual approval levels, or a loan committee of the Board of Directors for larger commercial loans. Most consumer loans are approved by individual loan officers based on standardized underwriting criteria, with larger consumer loans subject to approval by the internal loan committee. Ongoing credit review of commercial loans is the responsibility of the loan officers. ChoiceOne’s internal credit committee meets at least monthly and reviews loans with payment issues and loans with a risk rating of 5, 6, or 7. Risk ratings of commercial loans are reviewed periodically and adjusted if needed. ChoiceOne’s consumer loan portfolio is primarily monitored on an exception basis. Loans where payments are past due are turned over to the applicable Bank’s collection department, which works with the borrower to bring payments current or take other actions when necessary. In addition to internal reviews of credit performance, ChoiceOne contracts with a third party for independent loan review that monitors the loan approval process and the credit quality of the loan portfolio. The table below details the acquisition balances of the County Bank Corp acquired portfolio and the acquisition fair value adjustments at acquisition date:
(Dollars in thousands) |  | Acquired |  |  | Acquired |  |  | Acquired |
|  | Impaired |  |  | Non-impaired |  |  | Total |
Loans acquired - contractual payments |  | $ | 7,729 |  |  | $ | 387,394 |  |  | $ | 395,123 |
Nonaccretable difference |  |  | (2,928 | ) |  |  | — |  |  |  | (2,928 | )
Expected cash flows |  |  | 4,801 |  |  |  | 387,394 |  |  |  | 392,195 |
Accretable yield |  |  | (185 | ) |  |  | (1,656 | ) |  |  | (1,841 | )
Carrying balance at acquisition date |  | $ | 4,616 |  |  | $ | 385,738 |  |  | $ | 390,354 |
The table below presents a roll-forward of the accretable yield on acquired loans for the year end December 31, 2019:
(Dollars in thousands) |  | Acquired |  |  | Acquired |  |  | Acquired |
|  | Impaired |  |  | Non-impaired |  |  | Total |
Balance, January 1, 2019 |  | $ | — |  |  | $ | — |  |  | $ | — |
Merger with County Bank Corp on October 1, 2019 |  |  | 185 |  |  |  | 1,656 |  |  |  | 1,841 |
Accretion |  |  | — |  |  |  | (75 | ) |  |  | (75 | )
Reclassification from nonaccretable difference |  |  | — |  |  |  | — |  |  |  | — |
Balance, December 31, 2019 |  | $ | 185 |  |  | $ | 1,581 |  |  | $ | 1,766 |
Activity in the allowance for loan losses and balances in the loan portfolio was as follows:
(Dollars in thousands) |  |  |  |  | Commercial |  |  |  |  |  | Commercial |  |  | Construction |  |  | Residential |  |  |  |  |  |  |
|  | Agricultural |  |  | and Industrial |  |  | Consumer |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Unallocated |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 481 |  |  | $ | 892 |  |  | $ | 254 |  |  | $ | 1,926 |  |  | $ | 38 |  |  | $ | 537 |  |  | $ | 545 |  |  | $ | 4,673 |
Charge-offs |  |  | — |  |  |  | (83 | ) |  |  | (292 | ) |  |  | (589 | ) |  |  | — |  |  |  | (25 | ) |  |  | — |  |  |  | (989 | )
Recoveries |  |  | 65 |  |  |  | 22 |  |  |  | 136 |  |  |  | 26 |  |  |  | — |  |  |  | 124 |  |  |  | — |  |  |  | 373 |
Provision |  |  | (75 | ) |  |  | (176 | ) |  |  | 172 |  |  |  | 300 |  |  |  | 38 |  |  |  | 4 |  |  |  | (263 | ) |  |  | — |
Ending balance |  | $ | 471 |  |  | $ | 655 |  |  | $ | 270 |  |  | $ | 1,663 |  |  | $ | 76 |  |  | $ | 640 |  |  | $ | 282 |  |  | $ | 4,057 |
Individually evaluated for impairment |  | $ | 103 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 235 |  |  | $ | — |  |  | $ | 355 |
Collectively evaluated for impairment |  | $ | 368 |  |  | $ | 655 |  |  | $ | 266 |  |  | $ | 1,650 |  |  | $ | 76 |  |  | $ | 405 |  |  | $ | 282 |  |  | $ | 3,702 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 924 |  |  | $ | 259 |  |  | $ | 17 |  |  | $ | 2,288 |  |  | $ | — |  |  | $ | 2,434 |  |  |  |  |  |  | $ | 5,922 |
Collectively evaluated for impairment |  |  | 56,415 |  |  |  | 141,583 |  |  |  | 38,524 |  |  |  | 323,358 |  |  |  | 13,411 |  |  |  | 215,106 |  |  |  |  |  |  |  | 788,397 |
Acquired with deteriorated credit quality |  |  | — |  |  |  | 6,241 |  |  |  | 313 |  |  |  | 733 |  |  |  | — |  |  |  | 442 |  |  |  |  |  |  |  | 7,729 |
Ending balance |  | $ | 57,339 |  |  | $ | 148,083 |  |  | $ | 38,854 |  |  | $ | 326,379 |  |  | $ | 13,411 |  |  | $ | 217,982 |  |  |  |  |  |  | $ | 802,048 |
(Dollars in thousands) |  |  |  |  | Commercial |  |  |  |  |  | Commercial |  |  | Construction |  |  | Residential |  |  |  |  |  |  |
|  | Agricultural |  |  | and Industrial |  |  | Consumer |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Unallocated |  |  | Total |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 506 |  |  | $ | 1,001 |  |  | $ | 262 |  |  | $ | 1,761 |  |  | $ | 35 |  |  | $ | 726 |  |  | $ | 286 |  |  | $ | 4,577 |
Charge-offs |  |  | — |  |  |  | (58 | ) |  |  | (282 | ) |  |  | — |  |  |  | — |  |  |  | (25 | ) |  |  | — |  |  |  | (365 | )
Recoveries |  |  | 33 |  |  |  | 107 |  |  |  | 112 |  |  |  | 61 |  |  |  | — |  |  |  | 113 |  |  |  | — |  |  |  | 426 |
Provision |  |  | (58 | ) |  |  | (158 | ) |  |  | 162 |  |  |  | 104 |  |  |  | 3 |  |  |  | (277 | ) |  |  | 259 |  |  |  | 35 |
Ending balance |  | $ | 481 |  |  | $ | 892 |  |  | $ | 254 |  |  | $ | 1,926 |  |  | $ | 38 |  |  | $ | 537 |  |  | $ | 545 |  |  | $ | 4,673 |
Individually evaluated for impairment |  | $ | 94 |  |  | $ | 3 |  |  | $ | 13 |  |  | $ | 20 |  |  | $ | — |  |  | $ | 167 |  |  | $ | — |  |  | $ | 297 |
Collectively evaluated for impairment |  | $ | 387 |  |  | $ | 889 |  |  | $ | 241 |  |  | $ | 1,906 |  |  | $ | 38 |  |  | $ | 370 |  |  | $ | 545 |  |  | $ | 4,376 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
(Dollars in thousands) |  |  |  |  | Commercial |  |  |  |  |  | Commercial |  |  | Construction |  |  | Residential |  |  |  |  |  |  |
|  | Agricultural |  |  | and Industrial |  |  | Consumer |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Unallocated |  |  | Total |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 433 |  |  | $ | 688 |  |  | $ | 305 |  |  | $ | 1,438 |  |  | $ | 62 |  |  | $ | 1,013 |  |  | $ | 338 |  |  | $ | 4,277 |
Charge-offs |  |  | — |  |  |  | (439 | ) |  |  | (253 | ) |  |  | — |  |  |  | — |  |  |  | (43 | ) |  |  | — |  |  |  | (735 | )
Recoveries |  |  | — |  |  |  | 21 |  |  |  | 169 |  |  |  | 258 |  |  |  | 40 |  |  |  | 62 |  |  |  | — |  |  |  | 550 |
Provision |  |  | 73 |  |  |  | 731 |  |  |  | 41 |  |  |  | 65 |  |  |  | (67 | ) |  |  | (306 | ) |  |  | (52 | ) |  |  | 485 |
Ending balance |  | $ | 506 |  |  | $ | 1,001 |  |  | $ | 262 |  |  | $ | 1,761 |  |  | $ | 35 |  |  | $ | 726 |  |  | $ | 286 |  |  | $ | 4,577 |
Individually evaluated for impairment |  | $ | — |  |  | $ | 26 |  |  | $ | 3 |  |  | $ | 49 |  |  | $ | — |  |  | $ | 224 |  |  | $ | — |  |  | $ | 302 |
Collectively evaluated for impairment |  | $ | 506 |  |  | $ | 975 |  |  | $ | 259 |  |  | $ | 1,712 |  |  | $ | 35 |  |  | $ | 502 |  |  | $ | 286 |  |  | $ | 4,275 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 423 |  |  | $ | 124 |  |  | $ | 36 |  |  | $ | 778 |  |  | $ | — |  |  | $ | 2,779 |  |  |  |  |  |  | $ | 4,140 |
Collectively evaluated for impairment |  |  | 48,041 |  |  |  | 104,262 |  |  |  | 24,477 |  |  |  | 122,709 |  |  |  | 6,613 |  |  |  | 88,543 |  |  |  |  |  |  |  | 394,645 |
Ending balance |  | $ | 48,464 |  |  | $ | 104,386 |  |  | $ | 24,513 |  |  | $ | 123,487 |  |  | $ | 6,613 |  |  | $ | 91,322 |  |  |  |  |  |  | $ | 398,785 |
The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered watch credits. They have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. No loans are classified as risk rating 7 and the category has been omitted from the table below. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. No loans are classified as risk rating 8 and the category has been omitted from the table below. Information regarding the Banks’ credit exposure as of December 31 was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category
(Dollars in thousands) |  | Agricultural |  |  | Commercial and Industrial |  |  | Commercial Real Estate |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Risk ratings 1 and 2 |  | $ | 14,173 |  |  | $ | 15,300 |  |  | $ | 14,920 |  |  | $ | 11,972 |  |  | $ | 11,051 |  |  | $ | 7,962 |
Risk rating 3 |  |  | 27,163 |  |  |  | 23,938 |  |  |  | 105,656 |  |  |  | 50,266 |  |  |  | 271,120 |  |  |  | 89,173 |
Risk rating 4 |  |  | 14,530 |  |  |  | 9,082 |  |  |  | 26,152 |  |  |  | 23,961 |  |  |  | 39,934 |  |  |  | 36,193 |
Risk rating 5 |  |  | 1,094 |  |  |  | 211 |  |  |  | 1,081 |  |  |  | 5,204 |  |  |  | 1,332 |  |  |  | 4,850 |
Risk rating 6 |  |  | 379 |  |  |  | 578 |  |  |  | 274 |  |  |  | 3 |  |  |  | 2,942 |  |  |  | 1,275 |
|  | $ | 57,339 |  |  | $ | 49,109 |  |  | $ | 148,083 |  |  | $ | 91,406 |  |  | $ | 326,379 |  |  | $ | 139,453 |
Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity
(Dollars in thousands) |  | Consumer |  |  | Construction Real Estate |  |  | Residential Real Estate |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Performing |  | $ | 38,838 |  |  | $ | 24,320 |  |  | $ | 13,411 |  |  | $ | 8,843 |  |  | $ | 216,651 |  |  | $ | 94,925 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual |  |  | 16 |  |  |  | 62 |  |  |  | — |  |  |  | — |  |  |  | 1,331 |  |  |  | 955 |
|  | $ | 38,854 |  |  | $ | 24,382 |  |  | $ | 13,411 |  |  | $ | 8,843 |  |  | $ | 217,982 |  |  | $ | 95,880 |
Included within the loan categories above were loans in the process of foreclosure. As of December 31, 2019 and 2018, loans in the process of foreclosure totaled $173,000 and $156,000, respectively. Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring. There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the twelve months ended December 31, 2019 and December 31, 2018. The Banks may agree to modify the terms of a loan in order to improve the Banks’ ability to collect amounts due. These modifications may include reduction of the interest rate, extension of the loan term, or in some cases, reduction of the principal balance. As of December 31, 2019 and December 31, 2018 there were no instances of a borrower who was past due with respect to principal and/or interest for 30 days or more during the twelve months ended December 31, 2019 and December 31, 2018 that had been modified during the 12-month period prior to the default. Loans modified in a TDR may already be on nonaccrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR for the Banks may have the financial effect of increasing the specific allowance associated with the loan. The allowance for impaired loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent or on the present value of expected future cash flows discounted at the loan’s effective interest rate. Management exercises significant judgment in developing these estimates. At December 31, 2019 the Banks had no commitments to lend additional funds to the related debtors whose terms have been modified in a TDR. Impaired loans by loan category as of December 31 were as follows:
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
(Dollars in thousands) |  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | 545 |  |  | $ | 545 |  |  | $ | — |  |  | $ | 146 |  |  | $ | 10 |
Commercial and industrial |  |  | 259 |  |  |  | 340 |  |  |  | — |  |  |  | 104 |  |  |  | 9 |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 1,882 |  |  |  | 2,471 |  |  |  | — |  |  |  | 782 |  |  |  | 30 |
Residential real estate |  |  | 42 |  |  |  | 42 |  |  |  | — |  |  |  | 133 |  |  |  | 4 |
Subtotal |  |  | 2,728 |  |  |  | 3,398 |  |  |  | — |  |  |  | 1,165 |  |  |  | 53 |
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 379 |  |  |  | 439 |  |  |  | 103 |  |  |  | 388 |  |  |  | — |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | 1 |
Consumer |  |  | 17 |  |  |  | 18 |  |  |  | 4 |  |  |  | 48 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 406 |  |  |  | 406 |  |  |  | 13 |  |  |  | 975 |  |  |  | 32 |
Residential real estate |  |  | 2,392 |  |  |  | 2,460 |  |  |  | 235 |  |  |  | 2,486 |  |  |  | 83 |
Subtotal |  |  | 3,194 |  |  |  | 3,323 |  |  |  | 355 |  |  |  | 3,983 |  |  |  | 116 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 924 |  |  |  | 984 |  |  |  | 103 |  |  |  | 534 |  |  |  | 10 |
Commercial and industrial |  |  | 259 |  |  |  | 340 |  |  |  | — |  |  |  | 190 |  |  |  | 10 |
Consumer |  |  | 17 |  |  |  | 18 |  |  |  | 4 |  |  |  | 48 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 2,288 |  |  |  | 2,877 |  |  |  | 13 |  |  |  | 1,757 |  |  |  | 62 |
Residential real estate |  |  | 2,434 |  |  |  | 2,502 |  |  |  | 235 |  |  |  | 2,619 |  |  |  | 87 |
Total |  | $ | 5,922 |  |  | $ | 6,721 |  |  | $ | 355 |  |  | $ | 5,148 |  |  | $ | 169 |
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
(Dollars in thousands) |  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | 185 |  |  | $ | 185 |  |  | $ | — |  |  | $ | 291 |  |  | $ | — |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 29 |  |  |  | 2 |
Consumer |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 2 |  |  |  | 8 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 54 |  |  |  | — |
Commercial real estate |  |  | 74 |  |  |  | 109 |  |  |  | — |  |  |  | 78 |  |  |  | 30 |
Residential real estate |  |  | 250 |  |  |  | 261 |  |  |  | — |  |  |  | 177 |  |  |  | 114 |
Subtotal |  |  | 510 |  |  |  | 556 |  |  |  | — |  |  |  | 631 |  |  |  | 154 |
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 393 |  |  |  | 440 |  |  |  | 94 |  |  |  | 161 |  |  |  | 13 |
Commercial and industrial |  |  | 21 |  |  |  | 21 |  |  |  | 3 |  |  |  | 296 |  |  |  | — |
Consumer |  |  | 88 |  |  |  | 88 |  |  |  | 13 |  |  |  | 59 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 550 |  |  |  | 609 |  |  |  | 20 |  |  |  | 692 |  |  |  | — |
Residential real estate |  |  | 2,462 |  |  |  | 2,494 |  |  |  | 167 |  |  |  | 2,523 |  |  |  | 6 |
Subtotal |  |  | 3,514 |  |  |  | 3,652 |  |  |  | 297 |  |  |  | 3,731 |  |  |  | 19 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 578 |  |  |  | 625 |  |  |  | 94 |  |  |  | 452 |  |  |  | 13 |
Commercial and industrial |  |  | 21 |  |  |  | 21 |  |  |  | 3 |  |  |  | 325 |  |  |  | 2 |
Consumer |  |  | 90 |  |  |  | 90 |  |  |  | 13 |  |  |  | 61 |  |  |  | 8 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 54 |  |  |  | — |
Commercial real estate |  |  | 623 |  |  |  | 718 |  |  |  | 20 |  |  |  | 770 |  |  |  | 30 |
Residential real estate |  |  | 2,712 |  |  |  | 2,755 |  |  |  | 167 |  |  |  | 2,700 |  |  |  | 120 |
Total |  | $ | 4,024 |  |  | $ | 4,209 |  |  | $ | 297 |  |  | $ | 4,362 |  |  | $ | 173 |
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
(Dollars in thousands) |  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | 423 |  |  | $ | 455 |  |  | $ | — |  |  | $ | 322 |  |  | $ | — |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 103 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 127 |  |  |  | 258 |  |  |  | — |  |  |  | 110 |  |  |  | — |
Residential real estate |  |  | 115 |  |  |  | 126 |  |  |  | — |  |  |  | 106 |  |  |  | 4 |
Subtotal |  |  | 665 |  |  |  | 839 |  |  |  | — |  |  |  | 641 |  |  |  | 4 |
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 121 |  |  |  | — |
Commercial and industrial |  |  | 124 |  |  |  | 124 |  |  |  | 26 |  |  |  | 177 |  |  |  | 1 |
Consumer |  |  | 36 |  |  |  | 36 |  |  |  | 3 |  |  |  | 33 |  |  |  | 1 |
Commercial real estate |  |  | 651 |  |  |  | 734 |  |  |  | 49 |  |  |  | 826 |  |  |  | 34 |
Residential real estate |  |  | 2,664 |  |  |  | 2,690 |  |  |  | 224 |  |  |  | 2,522 |  |  |  | 110 |
Subtotal |  |  | 3,475 |  |  |  | 3,584 |  |  |  | 302 |  |  |  | 3,679 |  |  |  | 146 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 423 |  |  |  | 455 |  |  |  | — |  |  |  | 443 |  |  |  | — |
Commercial and industrial |  |  | 124 |  |  |  | 124 |  |  |  | 26 |  |  |  | 280 |  |  |  | 1 |
Consumer |  |  | 36 |  |  |  | 36 |  |  |  | 3 |  |  |  | 33 |  |  |  | 1 |
Commercial real estate |  |  | 778 |  |  |  | 992 |  |  |  | 49 |  |  |  | 936 |  |  |  | 34 |
Residential real estate |  |  | 2,779 |  |  |  | 2,816 |  |  |  | 224 |  |  |  | 2,628 |  |  |  | 114 |
Total |  | $ | 4,140 |  |  | $ | 4,423 |  |  | $ | 302 |  |  | $ | 4,320 |  |  | $ | 150 |
An aging analysis of loans by loan category as of December 31 follows:
|  |  |  |  |  |  |  | Loans |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Loans |  |  | Loans |  |  | Past Due |  |  |  |  |  |  |  |  |  |  |  | Loans |
|  | Past Due |  |  | Past Due |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  | 90 Days Past |
(Dollars in thousands) |  | 30 to 59 |  |  | 60 to 89 |  |  | Than 90 |  |  |  |  |  | Loans Not |  |  | Total |  |  | Due and |
|  | Days (1) |  |  | Days (1) |  |  | Days (1) |  |  | Total (1) |  |  | Past Due |  |  | Loans |  |  | Accruing |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | — |  |  | $ | 68 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 57,271 |  |  | $ | 57,339 |  |  | $ | — |
Commercial and industrial |  |  | 542 |  |  |  | 15 |  |  |  | 259 |  |  |  | 816 |  |  |  | 147,267 |  |  |  | 148,083 |  |  |  | — |
Consumer |  |  | 121 |  |  |  | 19 |  |  |  | 11 |  |  |  | 151 |  |  |  | 38,703 |  |  |  | 38,854 |  |  |  | — |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | 1,882 |  |  |  | 1,882 |  |  |  | 324,497 |  |  |  | 326,379 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 13,411 |  |  |  | 13,411 |  |  |  | — |
Residential real estate |  |  | 2,466 |  |  |  | 582 |  |  |  | 393 |  |  |  | 3,441 |  |  |  | 214,541 |  |  |  | 217,982 |  |  |  | — |
|  | $ | 3,129 |  |  | $ | 684 |  |  | $ | 2,545 |  |  | $ | 6,358 |  |  | $ | 795,690 |  |  | $ | 802,048 |  |  | $ | — |
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 Nonaccrual loans by loan category as of December 31 as follows:
(Dollars in thousands) |  |  |  |  |  |
|  | 2019 |  |  | 2018 |
Agricultural |  | $ | 379 |  |  | $ | 393 |
Commercial and industrial |  |  | 776 |  |  |  | — |
Consumer |  |  | 16 |  |  |  | 62 |
Commercial real estate |  |  | 2,185 |  |  |  | 123 |
Construction real estate |  |  | — |  |  |  | — |
Residential real estate |  |  | 1,331 |  |  |  | 954 |
|  | $ | 4,687 |  |  | $ | 1,532

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