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LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended
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Mar. 31, 2020
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows:
(Dollars in thousands) |  | Agricultural |  |  | Commercial and Industrial |  |  | Consumer |  |  | Commercial Real Estate |  |  | Construction Real Estate |  |  | Residential Real Estate |  |  | Unallocated |  |  | Total |
Allowance for Loan Losses Three Months Ended March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 471 |  |  | $ | 655 |  |  | $ | 270 |  |  | $ | 1,663 |  |  | $ | 76 |  |  | $ | 640 |  |  | $ | 282 |  |  | $ | 4,057 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | (89 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (89 | )
Recoveries |  |  | — |  |  |  | 1 |  |  |  | 44 |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 47 |
Provision |  |  | (124 | ) |  |  | 197 |  |  |  | (5 | ) |  |  | 297 |  |  |  | 48 |  |  |  | 419 |  |  |  | (57 | ) |  |  | 775 |
Ending balance |  | $ | 347 |  |  | $ | 853 |  |  | $ | 220 |  |  | $ | 1,960 |  |  | $ | 124 |  |  | $ | 1,061 |  |  | $ | 225 |  |  | $ | 4,790 |
Individually evaluated for impairment |  | $ | 98 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 266 |  |  | $ | — |  |  | $ | 378 |
Collectively evaluated for impairment |  | $ | 249 |  |  | $ | 853 |  |  | $ | 219 |  |  | $ | 1,947 |  |  | $ | 124 |  |  | $ | 795 |  |  | $ | 225 |  |  | $ | 4,412 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 103 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 235 |  |  | $ | — |  |  | $ | 355 |
Collectively evaluated for impairment |  | $ | 368 |  |  | $ | 655 |  |  | $ | 266 |  |  | $ | 1,650 |  |  | $ | 76 |  |  | $ | 405 |  |  | $ | 282 |  |  | $ | 3,702 |
Three Months Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 481 |  |  | $ | 892 |  |  | $ | 254 |  |  | $ | 1,926 |  |  | $ | 38 |  |  | $ | 537 |  |  | $ | 545 |  |  | $ | 4,673 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | (106 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (106 | )
Recoveries |  |  | — |  |  |  | 17 |  |  |  | 143 |  |  |  | 2 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 163 |
Provision |  |  | (57 | ) |  |  | (52 | ) |  |  | 45 |  |  |  | (65 | ) |  |  | 2 |  |  |  | 20 |  |  |  | 107 |  |  |  | — |
Ending balance |  | $ | 424 |  |  | $ | 857 |  |  | $ | 336 |  |  | $ | 1,863 |  |  | $ | 40 |  |  | $ | 558 |  |  | $ | 652 |  |  | $ | 4,730 |
Individually evaluated for impairment |  | $ | 85 |  |  | $ | 4 |  |  | $ | 12 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 179 |  |  | $ | — |  |  | $ | 299 |
Collectively evaluated for impairment |  | $ | 339 |  |  | $ | 853 |  |  | $ | 324 |  |  | $ | 1,844 |  |  | $ | 40 |  |  | $ | 379 |  |  | $ | 652 |  |  | $ | 4,431 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 379 |  |  | $ | 259 |  |  | $ | 16 |  |  | $ | 2,272 |  |  | $ | — |  |  | $ | 2,449 |  |  |  |  |  |  | $ | 5,375 |
Collectively evaluated for impairment |  |  | 50,104 |  |  |  | 136,989 |  |  |  | 34,236 |  |  |  | 348,365 |  |  |  | 17,525 |  |  |  | 213,706 |  |  |  |  |  |  |  | 800,925 |
Acquired with deteriorated credit quality |  |  | — |  |  |  | 3,953 |  |  |  | — |  |  |  | 1,116 |  |  |  | — |  |  |  | 208 |  |  |  |  |  |  |  | 5,277 |
Ending balance |  | $ | 50,483 |  |  | $ | 141,201 |  |  | $ | 34,252 |  |  | $ | 351,753 |  |  | $ | 17,525 |  |  | $ | 216,363 |  |  |  |  |  |  | $ | 811,577 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
The provision for loan losses was $775,000 in the first quarter of 2020, compared to $0 in the same period in the prior year. The first quarter of 2020 provision was deemed prudent due to growth in ChoiceOne’s loan portfolio, loans originated by Lakestone Bank & Trust in the two quarters since the merger with County Bank Corp., and the uncertainty of the future impact of the global coronavirus (COVID-19) pandemic upon ChoiceOne’s borrowers and their ability to repay loans. While it is difficult to predict the impact that COVID-19 will have in future quarters, ChoiceOne expects increased levels of past due loans, nonperforming loans and loan losses. 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 pass credits. However, 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. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Banks’ credit exposure was as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category
(Dollars in thousands) |  | Agricultural |  |  | Commercial and Industrial |  |  | Commercial Real Estate |
|  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2020 |  |  | December 31, 2019 |
Risk ratings 1 and 2 |  | $ | 10,977 |  |  | $ | 14,173 |  |  | $ | 16,405 |  |  | $ | 14,920 |  |  | $ | 11,561 |  |  | $ | 11,051 |
Risk rating 3 |  |  | 25,759 |  |  |  | 27,163 |  |  |  | 96,714 |  |  |  | 105,656 |  |  |  | 293,759 |  |  |  | 271,120 |
Risk rating 4 |  |  | 12,906 |  |  |  | 14,530 |  |  |  | 27,005 |  |  |  | 26,152 |  |  |  | 42,244 |  |  |  | 39,934 |
Risk rating 5 |  |  | 462 |  |  |  | 1,094 |  |  |  | 804 |  |  |  | 1,081 |  |  |  | 1,310 |  |  |  | 1,332 |
Risk rating 6 |  |  | 379 |  |  |  | 379 |  |  |  | 273 |  |  |  | 274 |  |  |  | 2,879 |  |  |  | 2,942 |
|  | $ | 50,483 |  |  | $ | 57,339 |  |  | $ | 141,201 |  |  | $ | 148,083 |  |  | $ | 351,753 |  |  | $ | 326,379 |
Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity
(Dollars in thousands) |  | Consumer |  |  | Construction Real Estate |  |  | Residential Real Estate |
|  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2020 |  |  | December 31, 2019 |
Performing |  | $ | 34,236 |  |  | $ | 38,838 |  |  | $ | 17,525 |  |  | $ | 13,411 |  |  | $ | 215,434 |  |  | $ | 216,651 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nonaccrual |  |  | 16 |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | 929 |  |  |  | 1,331 |
|  | $ | 34,252 |  |  | $ | 38,854 |  |  | $ | 17,525 |  |  | $ | 13,411 |  |  | $ | 216,363 |  |  | $ | 217,982 |
There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three months ended March 31, 2020 and March 31, 2019. 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. There were no loans that were considered TDRs as of March 31, 2020 and 2019 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2020 and March 31, 2019 that had been modified during the year prior to the default. The federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” on March 22, 2020 and subsequently issued a revised statement on April 7, 2020. These statements encourage financial institutions to work constructively with borrowers affected by COVID-19, and provide that short-term modifications to loans made on a good faith basis to borrowers who were current as of the implementation date of the statements are not considered troubled debt restructurings (“TDRs”). Further, Section 4013 of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, passed by Congress on March 27, 2020, states that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. As of April 30, 2020, ChoiceOne had granted modifications on approximately 600 loans which, in reliance on the statements of federal banking agencies and the CARES Act, are not reflected as TDRs in this report. ChoiceOne anticipates that additional such modifications will be made in the second quarter of 2020. Impaired loans by loan category follow:
(Dollars in thousands) |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
March 31, 2020 |  |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial and industrial |  |  | 259 |  |  |  | 259 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 1,882 |  |  |  | 1,882 |  |  |  | — |
Residential real estate |  |  | 76 |  |  |  | 76 |  |  |  | — |
Subtotal |  |  | 2,217 |  |  |  | 2,217 |  |  |  | — |
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 379 |  |  |  | 477 |  |  |  | 98 |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 16 |  |  |  | 17 |  |  |  | 1 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 390 |  |  |  | 403 |  |  |  | 13 |
Residential real estate |  |  | 2,373 |  |  |  | 2,639 |  |  |  | 266 |
Subtotal |  |  | 3,158 |  |  |  | 3,536 |  |  |  | 378 |
Total |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 379 |  |  |  | 477 |  |  |  | 98 |
Commercial and industrial |  |  | 259 |  |  |  | 259 |  |  |  | — |
Consumer |  |  | 16 |  |  |  | 17 |  |  |  | 1 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 2,272 |  |  |  | 2,285 |  |  |  | 13 |
Residential real estate |  |  | 2,449 |  |  |  | 2,715 |  |  |  | 266 |
Total |  | $ | 5,375 |  |  | $ | 5,753 |  |  | $ | 378 |
(Dollars in thousands) |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
December 31, 2019 |  |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | 545 |  |  | $ | 545 |  |  | $ | — |
Commercial and industrial |  |  | 259 |  |  |  | 340 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 1,882 |  |  |  | 2,471 |  |  |  | — |
Residential real estate |  |  | 42 |  |  |  | 42 |  |  |  | — |
Subtotal |  |  | 2,728 |  |  |  | 3,398 |  |  |  | — |
With an allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 379 |  |  |  | 439 |  |  |  | 103 |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 17 |  |  |  | 18 |  |  |  | 4 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 406 |  |  |  | 406 |  |  |  | 13 |
Residential real estate |  |  | 2,392 |  |  |  | 2,460 |  |  |  | 235 |
Subtotal |  |  | 3,194 |  |  |  | 3,323 |  |  |  | 355 |
Total |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  |  | 924 |  |  |  | 984 |  |  |  | 103 |
Commercial and industrial |  |  | 259 |  |  |  | 340 |  |  |  | — |
Consumer |  |  | 18 |  |  |  | 18 |  |  |  | 4 |
Construction real estate |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 2,287 |  |  |  | 2,877 |  |  |  | 13 |
Residential real estate |  |  | 2,434 |  |  |  | 2,502 |  |  |  | 235 |
Total |  | $ | 5,922 |  |  | $ | 6,721 |  |  | $ | 355 |
The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2020 and 2019:
|  | Average |  |  | Interest |
(Dollars in thousands) |  | Recorded |  |  | Income |
|  | Investment |  |  | Recognized |
Three Months ended March 31, 2020 |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |
Agricultural |  | $ | 272 |  |  | $ | — |
Commercial and industrial |  |  | 259 |  |  |  | — |
Consumer |  |  | — |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 1,882 |  |  |  | — |
Residential real estate |  |  | 59 |  |  |  | — |
Subtotal |  |  | 2,472 |  |  |  | — |
With an allowance recorded |  |  |  |  |  |  |  |
Agricultural |  |  | 379 |  |  |  | — |
Commercial and industrial |  |  | 7 |  |  |  | — |
Consumer |  |  | 16 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 391 |  |  |  | 7 |
Residential real estate |  |  | 2,383 |  |  |  | 30 |
Subtotal |  |  | 3,176 |  |  |  | 37 |
Total |  |  |  |  |  |  |  |
Agricultural |  |  | 651 |  |  |  | — |
Commercial and industrial |  |  | 266 |  |  |  | — |
Consumer |  |  | 16 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 2,273 |  |  |  | 7 |
Residential real estate |  |  | 2,442 |  |  |  | 30 |
Total |  | $ | 5,648 |  |  | $ | 37 |
|  | Average |  |  | Interest |
(Dollars in thousands) |  | Recorded |  |  | Income |
|  | Investment |  |  | Recognized |
Three Months ended March 31, 2019 |  |  |  |  |  |  |  |
With no related allowance recorded |  |  |  |  |  |  |  |
Agricultural |  | $ | 92 |  |  | $ | — |
Commercial and industrial |  |  | — |  |  |  | — |
Consumer |  |  | 1 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 73 |  |  |  | 7 |
Residential real estate |  |  | 203 |  |  |  | 23 |
Subtotal |  |  | 369 |  |  |  | 30 |
With an allowance recorded |  |  |  |  |  |  |  |
Agricultural |  |  | 391 |  |  |  | — |
Commercial and industrial |  |  | 23 |  |  |  | — |
Consumer |  |  | 76 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 541 |  |  |  | — |
Residential real estate |  |  | 2,499 |  |  |  | 1 |
Subtotal |  |  | 3,530 |  |  |  | 1 |
Total |  |  |  |  |  |  |  |
Agricultural |  |  | 483 |  |  |  | — |
Commercial and industrial |  |  | 23 |  |  |  | — |
Consumer |  |  | 78 |  |  |  | — |
Construction real estate |  |  | — |  |  |  | — |
Commercial real estate |  |  | 613 |  |  |  | 7 |
Residential real estate |  |  | 2,702 |  |  |  | 24 |
Total |  | $ | 3,899 |  |  | $ | 31 |
An aging analysis of loans by loan category 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 |
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agricultural |  | $ | — |  |  | $ | — |  |  | $ | 379 |  |  | $ | 379 |  |  | $ | 50,104 |  |  | $ | 50,483 |  |  | $ | — |
Commercial and industrial |  |  | 56 |  |  |  | 99 |  |  |  | 259 |  |  |  | 414 |  |  |  | 140,787 |  |  |  | 141,201 |  |  |  | — |
Consumer |  |  | 43 |  |  |  | — |  |  |  | — |  |  |  | 43 |  |  |  | 34,209 |  |  |  | 34,252 |  |  |  | — |
Commercial real estate |  |  | 1,268 |  |  |  | 32 |  |  |  | 1,882 |  |  |  | 3,182 |  |  |  | 348,571 |  |  |  | 351,753 |  |  |  | — |
Construction real estate |  |  | 1,187 |  |  |  | — |  |  |  | — |  |  |  | 1,187 |  |  |  | 16,338 |  |  |  | 17,525 |  |  |  | — |
Residential real estate |  |  | 2,152 |  |  |  | 8 |  |  |  | 229 |  |  |  | 2,389 |  |  |  | 213,974 |  |  |  | 216,363 |  |  |  | — |
|  | $ | 4,706 |  |  | $ | 139 |  |  | $ | 2,749 |  |  | $ | 7,594 |  |  | $ | 803,983 |  |  | $ | 811,577 |  |  | $ | — |
December 31, 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 |  |  | $ | — |
(1) Includes nonaccrual loans. Nonaccrual loans by loan category follow:
(Dollars in thousands) |  | March 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Agricultural |  | $ | 380 |  |  | $ | 379 |
Commercial and industrial |  |  | 694 |  |  |  | 776 |
Consumer |  |  | 16 |  |  |  | 16 |
Commercial real estate |  |  | 2,139 |  |  |  | 2,185 |
Construction real estate |  |  | — |  |  |  | — |
Residential real estate |  |  | 929 |  |  |  | 1,331 |
|  | $ | 4,158 |  |  | $ | 4,687 |
The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date (dollars in thousands):
(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 rollforward of the accretable yield on acquired loans for the three months ended March 31, 2020 (dollars in thousands):
(Dollars in thousands) |  | Acquired |  |  | Acquired |  |  | Acquired |
|  | Impaired |  |  | Non-impaired |  |  | Total |
Balance, January 1, 2020 |  | $ | 185 |  |  | $ | 1,581 |  |  | $ | 1,766 |
Accretion income |  |  | — |  |  |  | (50 | ) |  |  | (50 | )
Balance, March 31, 2020 |  | $ | 185 |  |  | $ | 1,531 |  |  | $ | 1,716 |

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