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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Schedule of loan portfolio

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

Schedule of acquisition fair value adjustments

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

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 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

Schedule of the bank's credit exposure

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

Schedule of impaired loans

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

Schedule of aging analysis of loans by loan category

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

Schedule of nonaccrual loans by loan category

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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