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Loans
9 Months Ended
Sep. 30, 2011
Loans [Abstract] 
LOANS

NOTE 4 LOANS

Loan balances as of September 30, 2011 and December 31, 2010:

 

                 
    (In Thousands)  

Loans:

   September 30, 2011     December 31, 2010  

Commercial real estate

   $ 201,167     $ 194,268  

Agricultural real estate

     31,806       33,650  

Consumer real estate

     80,607       86,036  

Commercial and industrial

     112,542       117,344  

Agricultural

     54,134       65,400  

Consumer

     23,996       29,008  

Industrial Development Bonds

     1,347       1,965  
   

 

 

    

 

 

  
    $ 505,599     $ 527,671  
   

 

 

    

 

 

  

Less: Net deferred loan fees and costs

     (135 )      (82 ) 
   

 

 

    

 

 

  
      505,464       527,589  

Less: Allowance for loan losses

     (5,138 )      (5,706 ) 
   

 

 

    

 

 

  

Loans - Net

   $ 500,326     $ 521,883  
   

 

 

    

 

 

  

The following is a maturity schedule by major category of loans as of September 30, 2011:

 

                         
          (In Thousands)        
    Within
One Year		     After One
Year Within
Five Years		     After
Five Years		  

Commercial Real Estate

   $ 25,389     $ 121,288     $ 54,490  

Agricultural Real Estate

     2,743       11,981       17,082  

Consumer Real Estate

     6,687       14,300       59,620  

Commercial/Industrial

     72,897       36,246       3,399  

Agricultural

     36,692       14,905       2,537  

Consumer

     5,453       16,643       1,765  

Industrial Development Bonds

     25       359       963  

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of September 30, 2011. Variable rate loans whose current rates are equal to their floor or ceiling are classified as fixed in this table.

 

                 
    (In Thousands)  
    Fixed
Rate		     Variable
Rate		  

Commercial Real Estate

   $ 92,268     $ 108,899  

Agricultural Real Estate

     19,018       12,788  

Consumer Real Estate

     69,221       11,386  

Commercial/Industrial

     81,823       30,719  

Agricultural

     49,468       4,666  

Consumer

     19,556       4,305  

Industrial Development Bonds

     1,347       —    

As of September 30, 2011 and 2010 one to four family residential mortgage loans amounting to $72.0 million and $76.5 million, respectively, have been pledged as security for loans the Bank has received from the Federal Home Loan Bank.

The percentage of delinquent loans has trended downward since the beginning of 2010 from a high of 2.85% of total loans in January to a low of .76% as of the end of March 2011. At the end of the third quarter 2011, the percentage increased to 1.73% due mainly to the addition of one large agricultural related credit during the second quarter. A credit for which the Bank is fully collateralized and should be collected yet in 2011. Consumer delinquency continued to decrease and remained low. These percentages do not include nonaccrual loans which are not past due. This level of delinquency is due in part to an adherence to sound underwriting practices over the course of time, an improvement in the financial status of companies to which the Bank extends credit, continued financial stability in the agricultural loan portfolio, and the writing down of uncollectable credits in a timely manner.

Industrial Development Bonds are included in the commercial and industrial category for the remainder of the tables in this Note 4.

The following table represents the contractual aging of the recorded investment in past due loans by class or loans as of September 30, 2011 and December 31, 2010 (in thousands):

 

                                                         
September 30, 2011   30-59 Days
Past Due		     60-89 Days
Past Due		     Greater Than
90 Days
Past Due		     Total
Past Due		     Current     Total
Financing
Receivables		     Recorded
Investment
> 90 Days
and Accruing		  

Consumer real estate

   $ 823     $ 21     $ 477     $ 1,321     $ 79,286     $ 80,607     $ —    

Agricultural real estate

     —         —         223       223       31,583       31,806       —    

Agricultural

     —         —         4,577       4,577       49,557       54,134       —    

Commercial Real Estate

     212       46       1,085       1,343       199,824       201,167       —    

Commercial and Industrial

     761       420       100       1,281       112,608       113,889       —    

Consumer

     10       2       —         12       23,849       23,861       12  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 1,806     $ 489     $ 6,462     $ 8,757     $ 496,707     $ 505,464     $ 12  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
               
December 31, 2010   30-59 Days
Past Due		     60-89 Days
Past Due		     Greater Than
90 Days
Past Due		     Total
Past Due		     Current     Total
Financing
Receivables		     Recorded
Investment
> 90 Days
and Accruing		  

Consumer real estate

   $ 610     $ 29     $ 169     $ 808     $ 85,228     $ 86,036     $ —    

Agricultural real estate

     —         —         —         —         33,650       33,650       —    

Agricultural

     —         —         1,474       1,474       63,926       65,400       —    

Commercial Real Estate

     548       —         445       993       193,275       194,268       —    

Commercial and Industrial

     957       52       831       1,840       117,469       119,309       15  

Consumer

     147       6       33       186       28,740       28,926       33  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 2,262     $ 87     $ 2,952     $ 5,301     $ 522,288     $ 527,589     $ 48  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The following table presents the recorded investment in nonaccrual loans by class or loans as of September 30, 2011 and December 31, 2010:

 

                 
    (In Thousands)  
    September 30
2011		     December 31
2010		  

Consumer real estate

   $ 696     $ 587  

Agricultural real estate

     223       531  

Agricultural

     4,577       1,474  

Commercial Real Estate

     1,085       1,705  

Commercial and Industrial

     100       1,543  

Consumer

     3       4  
   

 

 

    

 

 

  

Total

   $ 6,684     $ 5,844  
   

 

 

    

 

 

  

The Bank uses a nine tier risk rating system to grade its loans. The grade of a loan may change during the life of the loan. The risk ratings are described as follows.

 

  1. Zero (0) Unclassified. Any loan which has not been assigned a classification.

 

  2. One (1) Excellent. Credit to premier customers having the highest credit rating based on an extremely strong financial condition, which compares favorably with industry standards (upper quartile of RMA ratios). Financial statements indicate a sound earnings and financial ratio trend for several years with satisfactory profit margins and excellent liquidity exhibited. Prime credits may also be borrowers with loans fully secured by highly liquid collateral such as traded stocks, bonds, certificates of deposit, savings account, etc. No credit or collateral exceptions exist and the loan adheres to the Bank’s loan policy in every respect. Financing alternatives would be readily available and would qualify for unsecured credit. This grade is summarized by high liquidity, minimum risk, strong ratios, and low handling costs.

 

  3. Two (2) Good. Desirable loans of somewhat less stature than Grade 1, but with strong financial statements. Loan supported by financial statements containing strong balance sheets, generally with a leverage position less than 1.50, and a history of profitability. Probability of serious financial deterioration is unlikely. Possessing a sound repayment source (and a secondary source), which would allow repayment in a reasonable period of time. Individual loans backed by liquid personal assets, established history and unquestionable character.
  4. Three (3) Satisfactory. Satisfactory loans of average or slightly above average risk – having some deficiency or vulnerability to changing economic conditions, but still fully collectible. Projects should normally demonstrate acceptable debt service coverage. Generally, customers should have a leverage position less than 2.00. May be some weakness but with offsetting features of other support readily available. Loans that are meeting the terms of repayment.

Loans may be graded 3 when there is no recent information on which to base a current risk evaluation and the following conditions apply:

At inception, the loan was properly underwritten and did not possess an unwarranted level of credit risk:

 

  a. At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss;

 

  b. The loan exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance;

 

  c. During the period that the loan has been outstanding, there has been no evidence of any credit weakness considered satisfactory but which is of average credit risk due to financial weakness or uncertainty. The loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in Satisfactory/Monitored classification is considered acceptable and within normal underwriting guidelines, so long as the loan is given management supervision.

 

  5. Four (4) Satisfactory / Monitored. A “4” (Satisfactory/Monitored) risk grade may be established for a loan considered satisfactory but which is of average credit risk due to financial weakness or uncertainty. The loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in Satisfactory/Monitored classification is considered acceptable and within normal underwriting guidelines, so long as the loan is given management supervision.

 

  6. Five (5) Special Mention. Loans that possess some credit deficiency or potential weakness which deserves close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. The key distinctions of a 5 (Special Mention) classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered “potential”, versus “defined”, impairments to the primary source of loan repayment and collateral.

 

  7. Six (6) Substandard. One or more of the following characteristics may be exhibited in loans classified substandard:

 

  a. Loans, which possess a defined credit weakness and the likelihood that a loan will be paid from the primary source, are uncertain. Financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss.

 

  b. Loans are inadequately protected by the current net worth and paying capacity of the borrower.

 

  c. The primary source of repayment is weakened, and the Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees.

 

  d. Loans are characterized by the distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.

 

  e. Unusual courses of action are needed to maintain a high probability of repayment.

 

  f. The borrower is not generating enough cash flow to repay loan principal; however, continues to make interest payments.

 

  g. The lender is forced into a subordinate position or unsecured collateral position due to flaws in documentation.

 

  h. Loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms.

 

  i. The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.

 

  j. There is significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions.

 

  8. Seven (7) Doubtful. One or more of the following characteristics may be exhibited in loans classified Doubtful:

 

  a. Loans have all of the weaknesses of those classified as Substandard. Additionally, however, these weaknesses make collection or liquidation in full based on existing conditions improbable.

 

  b. The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.

 

  c. The possibility of loss is high, but, because of certain important pending factors which may strengthen the loan, loss classification is deferred until its exact status is known. A Doubtful classification is established deferring the realization of the loss.
  9. Eight (8) Loss. Loans are considered uncollectable and of such little value that continuing to carry them as assets on the institution’s financial statements is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

The following table represents the risk category of loans by class based on the most recent analysis performed as of September 30, 2011 and December 31, 2010 (in thousands):

 

                                         
    Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial
and Industrial		     Industrial
Development
Bonds		  

September 30, 2011

                                        

1-2

   $ 998     $ 1,156     $ 720     $ 612     $ 188  

3

     12,329       23,024       26,447       22,746       727  

4

     17,167       24,894       161,807       78,828       432  

5

     182       331       6,079       4,894       —    

6

     1,130       4,721       6,114       5,462       —    

7

     —         8       —         —         —    

8

     —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 31,806     $ 54,134     $ 201,167     $ 112,542     $ 1,347  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           
    Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial
and Industrial		     Industrial
Development
Bonds		  

December 31, 2010

                                        

1-2

   $ 484     $ 109     $ —       $ 341     $ 275  

3

     12,216       27,964       26,333       14,026       733  

4

     19,624       35,655       153,948       92,066       957  

5

     208       173       6,765       3,388       —    

6

     1,097       1,474       6,771       6,688       —    

7

     21       25       451       835       —    

8

     —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 33,650     $ 65,400     $ 194,268     $ 117,344     $ 1,965  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For consumer residential real estate, and other, the Company also evaluates credit quality based on the aging status of the loan, which was previously stated, and by payment activity. The following tables present the recorded investment in those classes based on payment activity and assigned grading as of September 30, 2011 and December 31, 2010.

 

                 
    (In Thousands)  
    Consumer
Real Estate		     Consumer
Real Estate		  
    September 30
2011		     December 31
2010		  

Grade

                

Pass

   $ 80,128     $ 84,723  

Special Mention (5)

     0       387  

Substandard (6)

     131       639  

Doubtful (7)

     348       287  
   

 

 

    

 

 

  

Total

   $ 80,607     $ 86,036  
   

 

 

    

 

 

  

 

                                 
     (In Thousands)  
    Consumer
Credit		     Consumer
Credit		     Consumer
Other		     Consumer
Other		  
    September 30
2011		     December 31
2010		     September 30
2011		     December 31
2010		  

Performing

   $ 3,351     $ 3,553     $ 20,460     $ 25,323  

Nonperforming

     0       6       50       44  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 3,351     $ 3,559     $ 20,510     $ 25,367  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The Bank did classify approximately $3.5 million of its impaired loans as troubled debt restructured (TDR) during 2010 and this balance decreased to $3.2 million as of September 30, 2011 for those TDRs still current and accruing. The following table indicates the number of contracts and their corresponding balances which the Bank has classified as TDR.

 

                         
September 30, 2011         Pre-
Modification
Outstanding		     Post-
Modification
Outstanding		  

Troubled Debt Restructurings

   Number of
Contracts		     Recorded
Investment		     Recorded
Investment		  

Commercial Real Estate

     5     $ 3,940     $ 3,255  

Ag Real Estate

     2     $ 154     $ 152  

Commercial and Industrial

     1     $ 148     $ 26  

Troubled Debt Restructurings

That Subsequently Defaulted

   Number of
Contracts		     Recorded
Investment		  

Commercial Real Estate

     1     $ 207  

Ag Real Estate

     —       $ —    

Commercial and Industrial

     —       $ —    

For the majority of the Bank’s impaired loans, the Bank will apply the observable market price methodology. However, the Bank may also utilize a measurement incorporating the present value of expected future cash flows discounted at the loan’s effective rate of interest. To determine observable market price, collateral asset values securing an impaired loan are periodically evaluated. Maximum time for re-evaluation is every 12 months for chattels and titled vehicles and every two years for real estate. In this process, third party evaluations are obtained and heavily relied upon. Until such time that updated appraisals are received, the

Bank may discount the collateral value used.

The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge-off in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 120 days delinquent, secured consumer loans are charged down to the value of the collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. Commercial and agricultural credits are charged down at 120 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized.

The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2011 and December 31, 2010 (in thousands):

 

                                         
September 30, 2011   Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		     Average
Recorded
Investment		     Interest
Income
Recognized		  

With no related allowance recorded:

                                        

Consumer real estate

   $ —       $ —       $ —       $ 133     $ 12  

Agriculture real estate

     —         —         —         223       —    

Agriculture

     53,036       5,036       —         4,768       3  

Commercial real estate

     1,567       1,744       —         1,667       20  

Commercial and industrial

     —         —         —         1,840       1  

Consumer

     —         —         —         —         —    

With a specific allowance recorded:

                                        

Consumer real estate

     479       492       101       382       2  

Agriculture real estate

     —         —         —         —         —    

Agriculture

     —         —         —         —         —    

Commercial real estate

     —         —         —         154       —    

Commercial and industrial

     —         —         —         —         —    

Consumer

     —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals:

                                        

Consumer real estate

   $ 479     $ 492     $ 101     $ 515     $ 14  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture real estate

   $ 0     $ 0     $ 0     $ 223     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture

   $ 53,036     $ 5,036     $ 0     $ 4,768     $ 3  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial real estate

   $ 1,567     $ 1,744     $ 0     $ 1,821     $ 20  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial and industrial

   $ 0     $ 0     $ 0     $ 1,840     $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consumer

   $ 0     $ 0     $ 0     $ 0     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                         
December 31, 2010   Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		     Average
Recorded
Investment		     Interest
Income
Recognized		  

With no related allowance recorded:

                                        

Consumer real estate

   $ —       $ —       $ —       $ —       $ —    

Agriculture real estate

     219       219       —         119       31  

Agriculture

     1,397       1,397       —         2,786       —    

Commercial real estate

     849       1,699       —         2,209       26  

Commercial and industrial

     —         —         —         2,221       2  

Consumer

     —         —         —         —         —    

With a specific allowance recorded:

                                        

Consumer real estate

     671       701       66       1,375       —    

Agriculture real estate

     —         —         —         —         —    

Agriculture

     —         —         —         5       1  

Commercial real estate

     476       476       73       296       1  

Commercial and industrial

     757       757       493       1,125       —    

Consumer

     —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals:

                                        

Consumer real estate

   $ 671     $ 701     $ 66     $ 1,375     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture real estate

   $ 219     $ 219     $ 0     $ 119     $ 31  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture

   $ 1,397     $ 1,397     $ 0     $ 2,791     $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial real estate

   $ 1,325     $ 2,175     $ 73     $ 2,505     $ 27  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial and industrial

   $ 757     $ 757     $ 493     $ 3,346     $ 2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consumer

   $ —       $ —       $ —       $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The ALLL has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense. The following tables summarize the activities in the allowance for credit losses.

 

                 
    (In Thousands)  
    September 30, 2011     December 31, 2010  

Allowance for Loan Losses

                

Balance at beginning of year

   $ 5,706     $ 6,008  

Provision for loan loss

     1,522       5,325  

Loans charged off

     (2,378 )      (6,422 ) 

Recoveries

     288       795  
   

 

 

    

 

 

  

Allowance for Loan & Leases Losses

   $ 5,138     $ 5,706  
   

 

 

    

 

 

  

Allowance for Unfunded Loan Commitments & Letters of Credit

   $ 155     $ 153  
   

 

 

    

 

 

  

Total Allowance for Credit Losses

   $ 5,293     $ 5,859  
   

 

 

    

 

 

  

The Company segregates its Allowance for Loan and Lease Losses (ALLL) into two reserves: The ALLL and the Allowance for Unfunded Loan Commitments and Letters of Credit (AULC). When combined, these reserves constitute the total Allowance for Credit Losses (ACL).

The AULC is reported within other liabilities on the balance sheet while the ALLL is netted within the loans, net asset line. The ACL presented above represents the full amount of reserves available to absorb possible credit losses. The next table breaks down the activity within ALLL for each loan portfolio segment and shows the contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs.

 

Additional analysis related to the allowance for credit losses as of September 30, 2011 and December 31, 2010 is as follows (in thousands):

 

                                                                         
    Consumer
Real Estate		     Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial     Consumer (incl.
Credit Cards)		     Unfunded Loan
Commitment &
Letters of Credit		     Unallocated     Total  

September 30, 2011

                                                                        

ALLOWANCE FOR CREDIT LOSSES:

                                                                        

Beginning balance

   $ 258     $ 122     $ 327     $ 1,868     $ 2,354     $ 380     $ 153     $ 397     $ 5,859  

Charge Offs

     (380 )      —         (25 )      (210 )      (1,496 )      (267 )                    ($ 2,378 ) 

Recoveries

     48       —         65       30       11       134                     $ 288  

Provision

     403       31       (116 )      338       1,036       68       —         (238 )    $ 1,522  

Other Non-interest expense related to unfunded

   $ —         —         —         —         —         —         3       —       $ 3  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance

   $ 329     $ 153     $ 251     $ 2,026     $ 1,905     $ 315     $ 156     $ 159     $ 5,294  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 101       —         —         —       $ —         —                       $ 101  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 228     $ 153     $ 251     $ 2,026     $ 1,905     $ 315     $ 156     $ 159     $ 5,193  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

     2       —         —         —         —         —                       $ 2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

FINANCING RECEIVABLES:

                                                                        

Ending balance

   $ 80,607     $ 31,806     $ 54,134     $ 201,167     $ 113,889     $ 23,861                     $ 505,464  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: individually evaluated for impairment

   $ 479     $ —       $ 5,036     $ 1,567       —         —                       $ 7,082  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 80,128     $ 31,806     $ 49,098     $ 199,600     $ 113,889     $ 23,861                     $ 498,382  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 986     $ —       $ —       $ —       $ —       $ —                       $ 986  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  
                   
    Consumer
Real Estate		     Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial     Consumer (incl.
Credit Cards)		     Unfunded Loan
Commitment &
Letters of Credit		     Unallocated     Total  

December 31, 2010

                                                                        

ALLOWANCE FOR CREDIT LOSSES:

                                                                        

Beginning balance

   $ 439     $ 120     $ 647     $ 1,810     $ 2,494     $ 497     $ 227     $ 1     $ 6,235  

Charge Offs

     (507 )      —         (136 )      (1,147 )      (4,188 )      (444 )      —         —         (6,422 ) 

Recoveries

     55       —         17       52       515       156       —         —         795  

Provision

     271       2       (201 )      1,153       3,533       171       —         396       5,325  

Other Non-interest expense related to unfunded

     —         —         —         —         —         —         (74 )      —         (74 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance

   $ 258     $ 122     $ 327     $ 1,868     $ 2,354     $ 380     $ 153     $ 397     $ 5,859  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 66       —         —       $ 73     $ 493       —                       $ 632  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 190     $ 122     $ 327     $ 1,795     $ 1,861     $ 380     $ 153     $ 397     $ 5,226  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 2       —         —         —         —       $ 2                     $ 4  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

FINANCING RECEIVABLES:

                                                                        

Ending balance

   $ 75,785     $ 34,446     $ 65,400     $ 204,327     $ 119,262     $ 28,451                     $ 527,671  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: individually evaluated for impairment

   $ 671     $ 219     $ 1,397     $ 1,325     $ 757       —                       $ 4,369  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 75,114     $ 34,227     $ 64,003     $ 203,002     $ 118,505     $ 28,451                     $ 523,302  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

                    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 987       —         —         —         —       $ 156                     $ 1,143