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Loans
 12 Months Ended
Dec. 31, 2012
Loans [Abstract]  
Loans

Note 4—Loans

The Company had $2.5 million in loans held for sale in 2012 as compared to $987 thousand in loans held for sale in 2011. Due to materiality, these loans are included in the Consumer Real Estate loan numbers.

 

Loans at December 31 are summarized below:

 

                 
    (In Thousands)  

Loans:

   2012     2011  

Commercial real estate

   $ 199,999     $ 198,266  

Agricultural real estate

     40,143       31,993  

Consumer real estate

     80,287       84,477  

Commercial and industrial

     101,624       114,497  

Agricultural

     57,770       52,598  

Consumer

     20,413       23,375  

Industrial Development Bonds

     1,299       1,196  
   

 

 

    

 

 

  
    $ 501,535     $ 506,402  

Less: Net deferred loan fees and costs

     (133 )      (187 ) 
   

 

 

    

 

 

  
      501,402       506,215  

Less: Allowance for loan losses

     (5,224 )      (5,091 ) 
   

 

 

    

 

 

  

Loans—Net

   $ 496,178     $ 501,124  
   

 

 

    

 

 

  

The following is a maturity schedule by major category of loans:

 

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

Commercial Real Estate

   $ 25,448     $ 103,857     $ 70,694     $ 199,999  

Agricultural Real Estate

     3,337       10,136       26,670       40,143  

Consumer Real Estate

     9,535       14,424       56,328       80,287  

Commercial and industrial

     58,744       39,716       3,164       101,624  

Agricultural

     37,153       18,116       2,501       57,770  

Consumer

     5,345       13,238       1,830       20,413  

Industrial Development Bonds

     417       490       392       1,299  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 139,979     $ 199,977     $ 161,579     $ 501,535  
   

 

 

    

 

 

    

 

 

    

 

 

  

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of December 31, 2012:

 

                 
    (In Thousands)  
    Fixed     Variable  
    Rate     Rate  

Commercial Real Estate

   $ 118,367     $ 81,632  

Agricultural Real Estate

     28,861       11,282  

Consumer Real Estate

     65,916       14,371  

Commercial and industrial loans

     79,493       22,131  

Agricultural

     53,429       4,341  

Consumer, Master Card and Overdrafts

     15,941       4,472  

Industrial Development Bonds

     1,299       —    

 

As of December 31, 2012 and 2011 one to four family residential mortgage loans amounting to $26.8 million and $67.4 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 0.67% as of the end of December 2011. As of December 31, 2012, the percentage stood at .96%. 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 portfolio segment of loans as of December 31, 2012 and 2011 net of deferred fees:

 

                                                         
    (In Thousands)  
    30-59 Days
Past Due		     60-89 Days
Past Due		     Greater
Than 90
Days		     Total
Past Due		     Current     Total
Financing
Receivables		     Recorded
Investment >
90 Days and
Accruing		  

2012

                                                        

Residential

   $ 575     $  —       $ 648     $ 1,223     $ 79,064     $ 80,287     $ —    

Ag RE

     —         —         —         —         40,143       40,143       —    

Ag

     11       —         —         11       57,759       57,770       —    

Commercial Real Estate

     —         —         877       877       199,122       199,999       —    

Commercial and Industrial

     78       —         2,567       2,645       100,278       102,923       —    

Consumer

     51       1       —         52       20,228       20,280       1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 715     $ 1     $ 4,092     $ 4,808     $ 496,594     $ 501,402     $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

2011

                                                        

Residential

   $ 799     $ 248     $ 441     $ 1,488     $ 82,989     $ 84,477     $ —    

Ag RE

     —         —         —         —         31,993       31,993       —    

Ag

     7       —         —         7       52,591       52,598       —    

Commercial Real Estate

     —         611       927       1,538       196,728       198,266       —    

Commercial and Industrial

     77       —         421       498       115,195       115,693       —    

Consumer

     24       —         —         24       23,164       23,188       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 907     $ 859     $ 1,789     $ 3,555     $ 502,660     $ 506,215     $  —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table presents the recorded investment in nonaccrual loans by portfolio segment of loans as of December 31, 2012 and December 31, 2011:

 

                 
    (In Thousands)  
    2012     2011  

Consumer real estate

   $ 964     $ 700  

Agricultural real estate

     —         —    

Agriculture

     —         7  

Commercial real estate

     877       1,003  

Commercial

     2,987       421  

Consumer

     —         —    
   

 

 

    

 

 

  

Total

   $ 4,828     $ 2,131  
   

 

 

    

 

 

  

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 The Risk Management Association 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 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. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the business is in an industry which is known to be experiencing problems. If any of the credit weaknesses is observed, a lower risk grade is warranted.

 

 

  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 portfolio segment based on the most recent analysis performed as of the time periods shown of December 31, 2012 and December 31, 2011.

 

 

                                                                                 
    (In Thousands)  
    Agriculture Real Estate     Agriculture     Commercial Real Estate     Commercial     Industrial Development
Bonds		  
    2012     2011     2012     2011     2012     2011     2012     2011     2012     2011  

1-2

   $ 2,719     $ 1,058     $ 5,022     $ 1,500     $ 4,046     $ 3,545     $ 750     $ 710     $ 97     $ 188  

3

     15,111       12,613       23,525       25,019       42,467       23,283       21,750       22,506       859       622  

4

     21,481       17,256       29,188       26,008       137,537       159,959       71,228       82,745       343       386  

5

     794       383       35       57       8,984       6,098       3,385       3,897       —         —    

6

     38       683       —         7       6,295       4,677       2,202       4,219       —         —    

7

     —         —         —         7       670       704       2,309       420       —         —    

8

     —         —         —         —         —         —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 40,143     $ 31,993     $ 57,770     $ 52,598     $ 199,999     $ 198,266     $ 101,624     $ 114,497     $ 1,299     $ 1,196  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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 risk grading as of December 31, 2012 and December 31, 2011.

 

                 
    (In Thousands)  
    Consumer Real Estate  
    2012     2011  

Grade

                

Pass

   $ 79,766     $ 83,954  

Special mention (5)

     —         —    

Substandard (6)

     110       240  

Doubtful (7)

     411       283  
   

 

 

    

 

 

  

Total

   $ 80,287     $ 84,477  
   

 

 

    

 

 

  

 

                                 
    (In Thousands)  
    Consumer—Credit Card     Consumer—Other  
    2012     2011     2012     2011  

Performing

   $ 3,470     $ 3,607     $ 16,775     $ 19,531  

Nonperforming

     3       —         32       50  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 3,473     $ 3,607     $ 16,807     $ 19,581  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

Information about impaired loans as of and for the years ended December 31, 2012 and 2011 are as follows:

 

                 
    (In Thousands)  
    2012     2011  

Impaired loans without a valuation allowance

   $ 730     $ 446  

Impaired loans with a valuation allowance

     3,861       1,408  
   

 

 

    

 

 

  

Total impaired loans

   $ 4,591     $ 1,854  
   

 

 

    

 

 

  

Valuation allowance related to impaired loans

   $ 865     $ 175  
   

 

 

    

 

 

  

Total non-accrual loans

   $ 4,828     $ 2,131  
   

 

 

    

 

 

  

Total loans past-due ninety days or more and still accruing

   $ 1     $ —    
   

 

 

    

 

 

  

 

                         
    (In Thousands)  
    2012     2011     2010  

Average investment in impaired loans

   $ 3,436     $ 5,466     $ 10,136  
   

 

 

    

 

 

    

 

 

  

Interest income recognized on impaired loans

   $ 26     $ 1,230     $ 61  
   

 

 

    

 

 

    

 

 

  

Interest income recognized on a cash basis on impaired loans

   $ 21     $ 1,175     $ 41  
   

 

 

    

 

 

    

 

 

  

No additional funds are committed to be advanced in connection with impaired loans.

The Bank had approximately $627.3 thousand of its impaired loans classified as trouble debt restructured as of December 31, 2012 as compared to $207 thousand of its impaired loans classified as trouble debt restructured as of December 31, 2011.

 

The following table represents three months ended and year ended December 31, 2012.

 

                                                 
        Pre-     Post-               Pre-     Post-  
    Number of   Modification     Modification         Number of     Modification     Modification  
    Contracts   Outstanding     Outstanding         Contracts     Outstanding     Outstanding  
December 31, 2012   Modified in the   Recorded     Recorded     December 31, 2012   Modified in the     Recorded     Recorded  

Troubled Debt Restructurings

  

Last 3 Months

   Investment     Investment    

Troubled Debt Restructurings

   Last 12 Months     Investment     Investment  

Commercial Real Estate

       $ —       $ —       Commercial Real Estate     1     $ 1,937     $ 1,921  

Ag Real Estate

         —         —       Ag Real Estate             —         —    

Commercial and Industrial

         —         —       Commercial and Industrial     2       420       420  
               
    Number of                   Number of              
    Contracts                   Contracts              
Troubled Debt Restructurings   Modified in the   Recorded           Troubled Debt Restructurings   Modified in the     Recorded        

That Subsequently Defaulted

  

Last 3 Months

   Investment          

That Subsequently Defaulted

   Last 12 Months     Investment        

Commercial Real Estate

       $ —               Commercial Real Estate           $ —            

Ag Real Estate

         —               Ag Real Estate             —            

Commercial and Industrial

         —               Commercial and Industrial             —            

 

 

The following table represents three months ended and year ended December 31, 2011.

 

                                                 
        Pre-     Post-               Pre-     Post-  
    Number of   Modification     Modification         Number of     Modification     Modification  
    Contracts   Outstanding     Outstanding         Contracts     Outstanding     Outstanding  
December 31, 2011   Modified in the   Recorded     Recorded     December 31, 2011   Modified in the     Recorded     Recorded  

Troubled Debt Restructurings

  

Last 3 Months

   Investment     Investment    

Troubled Debt Restructurings

   Last 12 Months     Investment     Investment  

Commercial Real Estate

       $ —       $ —       Commercial Real Estate     2     $ 923     $ 702  

Ag Real Estate

         —         —       Ag Real Estate             —         —    

Commercial and Industrial

         —         —       Commercial and Industrial             —         —    
               
    Number of                   Number of              
    Contracts                   Contracts              
Troubled Debt Restructurings   Modified in the   Recorded           Troubled Debt Restructurings   Modified in the     Recorded        

That Subsequently Defaulted

  

Last 3 Months

   Investment          

That Subsequently Defaulted

   Last 12 Months     Investment        

Commercial Real Estate

       $ —               Commercial Real Estate     1     $ 207          

Ag Real Estate

         —               Ag Real Estate             —            

Commercial and Industrial

         —               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 of 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 down 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 portfolio segment of loans as of December 31, 2012 and 2011:

 

                                         
    (In Thousands)  
    Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		     YTD
Average
Recorded
Investment		     YTD
Interest
Income
Recognized		  

2012

                                        

With no related allowance recorded:

                                        

Residential

   $ 236     $ 236     $  —       $ 269     $ 12  

Agriculture real estate

     —         —         —                 —    

Agriculture

     —         —         —         —         —    

Commercial real estate

     207       384       —         206       —    

Commercial

     287       334       —         212       —    

Consumer

     —         —         —         —         —    

With a specific allowance recorded:

                                        

Residential

     411       512       70       454       1  

Agriculture real estate

     —         —         —         —         —    

Agriculture

     —         —         —         —         —    

Commercial real estate

     670       916       25       657       —    

Commercial

     2,780       2,780       770       1,636       13  

Consumer

     —         —         —         2       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals:

                                        

Residential

   $ 647     $ 748     $ 70     $ 723     $ 13  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture real estate

   $ —       $ —       $ —       $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture

   $ —       $ —       $ —       $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial real estate

   $ 877     $ 1,300     $ 25     $ 863     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial

   $  3,067     $  3,114     $ 770     $ 1,848     $ 13  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consumer

   $ —       $ —       $ —       $ 2     $  —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

                                         
    (In Thousands)  
    Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		     YTD
Average
Recorded
Investment		     YTD
Interest
Income
Recognized		  

2011

                                        

With no related allowance recorded:

                                        

Residential

   $  239     $ 239     $  —       $ 195     $ 36  

Agriculture real estate

     —         —         —         180       15  

Agriculture

     —         —         —         2,683       1,156  

Commercial real estate

     207       384       —         1,357       22  

Commercial

     —         —         —         55       1  

Consumer

     —         —         —         1       —    

With a specific allowance recorded:

                                        

Residential

     283       308       54       369       —    

Agriculture real estate

     —         —         —         —         —    

Agriculture

     —         —         —         —         —    

Commercial real estate

     704       854       29       188       —    

Commercial

     420       420       91       438       —    

Consumer

     —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals:

                                        

Residential

   $ 522     $ 547     $ 54     $ 564     $ 36  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture real estate

   $ —       $ —       $ —       $ 180     $ 15  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Agriculture

   $ —       $ —       $ —       $ 2,683     $ 1,156  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial real estate

   $ 911     $  1,238     $ 29     $ 1,545     $ 22  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Commercial

   $ 420     $ 420     $ 91     $ 493     $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consumer

   $ —       $ —       $ —       $ 1     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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.

The following is an analysis of the allowance for credit losses:

 

                         
    (In Thousands)  
    2012     2011     2010  

Allowance for Loan Losses

                        

Balance at beginning of year

   $ 5,091     $ 5,706     $ 6,008  

Provision for loan loss

     738       1,715       5,325  

Loans charged off

     (891 )      (2,681 )      (6,422 ) 

Recoveries

     286       351       795  
   

 

 

    

 

 

    

 

 

  

Balance at ending of year

   $ 5,224     $ 5,091     $ 5,706  
   

 

 

    

 

 

    

 

 

  

Allowance for Unfunded Loan Commitments & Letters of Credit

   $ 162     $ 130     $ 153  
   

 

 

    

 

 

    

 

 

  

Total Allowance for Credit Losses

   $ 5,386     $ 5,221     $ 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 following 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 December 31, 2012 and 2011 is as follows:

 

                                                                         
    (In Thousands)  
    Consumer
Real Estate		     Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial
and Industrial		     Consumer     Unfunded
Loan
Commitment
& Letters of
Credit		     Unallocated     Total  

2012

                                                                        

ALLOWANCE FOR CREDIT LOSSES:

                                                                        

Beginning balance

   $ 261     $ 140     $ 266     $ 2,088     $ 1,947     $ 315     $ 130     $ 74     $ 5,221  

Charge Offs

     (246 )      —         (6 )      (98 )      (47 )      (494 )      —         —         (891 ) 

Recoveries

     61       —         12       7       30       176       —         —         286  

Provision

     292       (27 )      18       (248 )      253       271       —         179       738  

Other Non-interest expense related to unfunded

     —         —         —         —         —         —         32       —         32  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance

   $ 368     $ 113     $ 290     $ 1,749     $ 2,183     $ 268     $ 162     $ 253     $ 5,386  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 70     $ —       $ —       $ 25     $ 770     $ —       $  —       $  —       $ 865  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 298     $ 113     $ 290     $ 1,724     $ 1,413     $ 268     $ 162     $ 253     $ 4,521  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 1     $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 1  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FINANCING RECEIVABLES:

                                                                        

Ending balance

   $ 80,287     $ 40,143     $ 57,770     $ 199,999     $ 102,923     $ 20,280     $ —       $ —       $ 501,402  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 648     $ —       $ —       $ 877     $ 3,066     $ —       $ —       $ —       $ 4,591  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 79,639     $ 40,143     $ 57,770     $ 199,122     $ 99,857     $ 20,280     $ —       $ —       $ 496,811  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 548     $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 548  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                                         
    (In Thousands)  
    Consumer Real
Estate		     Agriculture
Real Estate		     Agriculture     Commercial
Real Estate		     Commercial
and Industrial		     Consumer     Unfunded
Loan
Commitment
& Letters of
Credit		     Unallocated     Total  

2011

                                                                        

ALLOWANCE FOR CREDIT LOSSES:

                                                                        

Beginning balance

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

Charge Offs

     (422 )      —         (24 )      (360 )      (1,500 )      (375 )      —         —         (2,681 ) 

Recoveries

     61       —         67       32       19       172       —         —         351  

Provision

     364       18       (104 )      548       1,074       138       —         (323 )      1,715  

Other Non-interest expense related to unfunded

     —         —         —         —         —         —         (23 )      —         (23 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance

   $ 261     $ 140     $ 266     $ 2,088     $ 1,947     $ 315     $ 130     $ 74     $ 5,221  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 55     $ —       $ —       $ 29     $ 91     $ —       $  —       $ —       $ 175  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 206     $ 140     $ 266     $ 2,059     $ 1,856     $ 315     $ 130     $ 74     $ 5,046  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 2     $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 2  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FINANCING RECEIVABLES:

                                                                        

Ending balance

   $ 84,477     $ 31,993     $ 52,598     $ 198,266     $ 115,693     $ 23,188     $ —       $ —       $ 506,215  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: individually evaluated for impairment

   $ 523     $ —       $ —       $ 911     $ 420     $ —       $ —       $ —       $ 1,854  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: collectively evaluated for impairment

   $ 83,954     $ 31,993     $ 52,598     $ 197,355     $ 115,273     $ 23,188     $ —       $ —       $ 504,361  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance: loans acquired with deteriorated credit quality

   $ 856     $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ 856