XML 16 R12.htm IDEA: XBRL DOCUMENT v3.20.1
LOANS AND ALLOWANCE FOR LOAN LOSSES
 3 Months Ended
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