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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2020

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:

(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

Schedule of the bank's credit exposure

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

Schedule of impaired loans

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

Schedule of aging analysis of loans by loan category

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.

Schedule of nonaccrual loans by loan category

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

Schedule of acquisition fair value adjustments

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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Tabular disclosure of allowance for credit loss on financing receivable.

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