Loans (Tables)

3 Months Ended

Mar. 31, 2016

Loan balances as of March 31, 2016 and December 31, 2015:


	(In Thousands)
Loans:	March 31, 2016			December 31, 2015
Consumer Real Estate	$	88,365		$	88,189
Agricultural Real Estate		59,533			58,525
Agricultural		77,909			82,654
Commercial Real Estate		345,223			322,762
Commercial and Industrial		102,892			100,125
Consumer		27,995			27,770
Industrial Development Bonds		6,420			6,491

		708,337			686,516
Less: Net deferred loan fees and costs		(677	)		(638	)

		707,660			685,878
Less: Allowance for loan losses		(6,285	)		(6,057	)

Loans - Net	$	701,375		$	679,821

Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans as of March 31, 2016:


	Maturities (In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years
Consumer Real Estate	$	1,033	$	12,132	$	75,200
Agricultural Real Estate		955		3,569		55,009
Agricultural		48,960		23,832		5,117
Commercial Real Estate		14,434		77,031		253,758
Commercial and Industrial		50,820		31,829		20,243
Consumer		5,186		17,525		5,284
Industrial Development Bonds		1,300		185		4,935

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of March 31, 2016. Variable rate loans whose current rates are equal to their floor or ceiling are classified as fixed in this table.


	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	55,792	$	32,573
Agricultural Real Estate		43,422		16,111
Agricultural		45,761		32,148
Commercial Real Estate		224,647		120,576
Commercial and Industrial		60,300		42,592
Consumer		23,957		4,038
Industrial Development Bonds		6,290		130

Contractual Aging of the Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment in past due loans by portfolio classification of loans as of March 31, 2016 and December 31, 2015, net of deferred loan fees and costs:


March 31, 2016	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
Consumer Real Estate	$	621	$	156	$	443	$	1,220	$	86,877	$	88,097	$	0
Agricultural Real Estate		—		57		162		219		59,260		59,479		—
Agricultural		—		3		—		3		78,018		78,021		—
Commercial Real Estate		148		—		422		570		344,091		344,661		—
Commercial and Industrial		—		—		19		19		109,367		109,386		—
Consumer		37		10		4		51		27,965		28,016		—

Total	$	806	$	226	$	1,050	$	2,082	$	705,578	$	707,660	$	0


December 31, 2015	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
Consumer Real Estate	$	303	$	47	$	357	$	707	$	87,240	$	87,947	$	0
Agricultural Real Estate		—		—		162		162		58,301		58,463		—
Agricultural		—		145		—		145		82,617		82,762		—
Commercial Real Estate		236		—		841		1,077		321,153		322,230		—
Commercial and Industrial		51		—		20		71		106,618		106,689		—
Consumer		19		9		—		28		27,759		27,787		—

Total	$	609	$	201	$	1,380	$	2,190	$	683,688	$	685,878	$	0

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by class of loans as of March 31, 2016 and December 31, 2015:


	(In Thousands)
	March 31,		December 31,
	2016		2015
Consumer Real Estate	$	1,196	$	1,155
Agricultural Real Estate		162		162
Agricultural		—		—
Commercial Real Estate		422		484
Commercial		200		202
Consumer		23		38

Total	$	2,003	$	2,041

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of March 31, 2016 and December 31, 2015:


	(In Thousands)
	Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Industrial Development Bonds
March 31, 2016
1-2	$	5,912	$	9,251	$	536	$	509	$	—
3		17,289		23,093		27,635		21,747		3,073
4		35,750		45,467		312,972		79,918		3,347
5		110		192		1,284		52		—
6		361		—		1,812		559		—
7		57		18		422		181		—
8		—		—		—		—		—

Total	$	59,479	$	78,021	$	344,661	$	102,966	$	6,420


	Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Industrial Development Bonds
December 31, 2015
1-2	$	5,841	$	12,025	$	597	$	261	$	—
3		16,593		21,247		24,264		22,300		3,100
4		35,475		49,220		293,381		76,855		3,391
5		192		250		1,738		57		—
6		362		—		1,828		543		—
7		—		20		422		182		—
8		—		—		—		—		—

Total	$	58,463	$	82,762	$	322,230	$	100,198	$	6,491

Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of March 31, 2016 and December 31, 2015.


	(In Thousands)
	Consumer Real Estate		Consumer Real Estate
	March 31, 2016		December 31, 2015
Grade
Pass	$	87,257	$	87,292
Special Mention (5)		—		48
Substandard (6)		330		332
Doubtful (7)		510		275

Total	$	88,097	$	87,947

	(In Thousands)
	Consumer—Credit				Consumer —Other
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
Performing	$	3,587	$	3,901	$	24,408	$	23,863
Nonperforming		—		—		21		23

Total	$	3,587	$	3,901	$	24,429	$	23,886

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2016, December 31, 2015 and March 31, 2015 are as follows:


	March 31, 2016		December 31, 2015		March 31, 2015
Impaired loans without a valuation allowance	$	1,042	$	1,257	$	624
Impaired loans with a valuation allowance		1,169		879		1,619

Total impaired loans	$	2,211	$	2,136	$	2,243

Valuation allowance related to impaired loans	$	426	$	330	$	428
Total non-accrual loans	$	2,003	$	2,041	$	2,424
Total loans past-due ninety days or more and still accruing	$	—	$	—	$	—
Quarter ended average investment in impaired loans	$	2,130	$	2,207	$	1,958
Year to date average investment in impaired loans	$	2,130	$	2,509	$	1,958

Impaired Loans Classified as Troubled Debt Restructured

The following table represents three months ended March 31, 2016.


Three Months March 31, 2016 Troubled Debt Restructurings	Number of Contracts Modified in the Last 3 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Real Estate		—	$	—	$	—
Commercial and Industrial		—		—		—
Consumer Real Estate		1		138		138

The following table represents three months ended March 31, 2015.


Three Months March 31, 2015 Troubled Debt Restructurings	Number of Contracts Modified in the Last 3 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Real Estate		1	$	528	$	430
Commercial and Industrial		1		28		24
Consumer Real Estate		—		—		—

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for three months ended March 31, 2016 and March 31, 2015.


	(In Thousands)
Three Months Ended March 31, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	365	$	365	$	—	$	156	$	3	$	3
Agricultural Real Estate		162		162		—		162		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		515		515		—		409		8		7
Commercial and Industrial		—		—		—		454		6		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		509		628		104		307		1		—
Agricultural Real Estate		57		57		57		38		1		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		422		422		152		422		—		—
Commercial and Industrial		181		239		113		182		—		—
Consumer		—		—		—		—		—		—

Totals:
Consumer Real Estate	$	874	$	993	$	104	$	463	$	4	$	3

Agricultural Real Estate	$	219	$	219	$	57	$	200	$	1	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate	$	937	$	937	$	152	$	831	$	8	$	7

Commercial and Industrial	$	181	$	239	$	113	$	636	$	6	$	—

Consumer	$	—	$	—	$	—	$	—	$	—	$	—


Three Months Ended March 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	157	$	157	$	—	$	173	$	—	$	—
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		—		—		—		—		—		—
Commercial and Industrial		467		467		—		469		7		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		96		96		35		96		3		3
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		24		24		24		24		—		—
Commercial Real Estate		1,139		1,139		131		852		—		—
Commercial and Industrial		360		360		238		337		—		—
Consumer		—		—		—		7		—		—

Totals:
Consumer Real Estate	$	253	$	253	$	35	$	269	$	3	$	3

Agricultural Real Estate	$	—	$	—	$	—	$	—	$	—	$	—

Agricultural	$	24	$	24	$	24	$	24	$	—	$	—

Commercial Real Estate	$	1,139	$	1,139	$	131	$	852	$	—	$	—

Commercial and Industrial	$	827	$	827	$	238	$	806	$	7	$	—

Consumer	$	—	$	—	$	—	$	7	$	—	$	—

Summary of Activities in Allowance for Credit Losses

The following tables summarize the activities in the allowance for credit losses.


	(In Thousands)
	Three Months Ended March 31, 2016			Twelve Months Ended December 31, 2015
Allowance for Loan & Lease Losses
Balance at beginning of year	$	6,057		$	5,905
Provision for loan loss		277			625
Loans charged off		(84	)		(1,030	)
Recoveries		35			557

Allowance for Loan & Lease Losses	$	6,285		$	6,057

Allowance for Unfunded Loan Commitments & Letters of Credit	$	220		$	208

Total Allowance for Credit Losses	$	6,505		$	6,265

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses for three months ended March 31, 2016 and March 31, 2015 is as follows:


	Consumer Real Estate		Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commetment & Letters of Credit		Unallocated			Total
Three Months Ended March 31, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	338	$	211	$	582		$	2,516		$	1,229		$	337		$	208	$	844		$	6,265
Charge Offs		—		—		—			(3	)		(20	)		(61	)		—		—			(84	)
Recoveries		2		—		4			1			3			25			—		—			35
Provision (Credit)		117		61		(38	)		164			39			34			—		(100	)		277
Other Non-interest expense related to unfunded		—		—		—			—			—			—			12		—			12

Ending Balance	$	457	$	272	$	548		$	2,678		$	1,251		$	335		$	220	$	744		$	6,505

Ending balance: individually evaluated for impairment	$	104	$	57	$	—		$	152		$	113		$	—		$	—	$	—		$	426

Ending balance: collectively evaluated for impairment	$	353	$	215	$	548		$	2,526		$	1,138		$	335		$	220	$	744		$	6,079

Ending balance: loans acquired with deteriorated credit quality	$	1		—		—			—			—			—			—		—		$	1

FINANCING RECEIVABLES:
Ending balance	$	88,097	$	59,479	$	78,021		$	344,661		$	109,386		$	28,016		$	—	$	—		$	707,660

Ending balance: individually evaluated for impairment	$	874	$	219	$	—		$	937		$	181		$	—		$	—	$	—		$	2,211

Ending balance: collectively evaluated for impairment	$	87,223	$	59,260	$	78,021		$	343,724		$	109,205		$	28,016		$	—	$	—		$	705,449

Ending balance: loans acquired with deteriorated credit quality	$	502	$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	502


	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated		Total
Three Months Ended March 31, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	537		$	184	$	547		$	2,367		$	1,421		$	323		$	207		$	526	$	6,112
Charge Offs		—			—		—			—			—			(92	)		—			—		(92	)
Recoveries		2			—		1			1			5			41			—			—		50
Provision (Credit)		(42	)		3		(24	)		(156	)		(7	)		12			—			328		114
Other Non-interest expense related to unfunded		—			—		—			—			—			—			(5	)		—		(5	)

Ending Balance	$	497		$	187	$	524		$	2,212		$	1,419		$	284		$	202		$	854	$	6,179

Ending balance: individually evaluated for impairment	$	35		$	—	$	24		$	131		$	238		$	—		$	—		$	—	$	428

Ending balance: collectively evaluated for impairment	$	462		$	187	$	500		$	2,081		$	1,181		$	284		$	202		$	854	$	5,751

Ending balance: loans acquired with deteriorated credit quality	$	1			—		—			—			—			—			—			—	$	1

FINANCING RECEIVABLES:
Ending balance	$	97,019		$	51,396	$	71,571		$	271,201		$	99,895		$	23,627		$	—		$	—	$	614,709

Ending balance: individually evaluated for impairment	$	253		$	—	$	24		$	1,139		$	827		$	—		$	—		$	—	$	2,243

Ending balance: collectively evaluated for impairment	$	96,766		$	51,396	$	71,547		$	270,062		$	99,068		$	23,627		$	—		$	—	$	612,466

Ending balance: loans acquired with deteriorated credit quality	$	520		$	—	$	—		$	—		$	—		$	—		$	—		$	—	$	520