Loans (Tables)

12 Months Ended

Dec. 31, 2016

Loans at December 31 are summarized below:


	(In Thousands)
	2016			2015
Loans:
Consumer Real Estate	$	87,273		$	88,189
Agricultural Real Estate		63,391			58,525
Agricultural		84,563			82,654
Commercial Real Estate		377,481			322,762
Commercial and Industrial		109,256			100,125
Consumer		33,179			27,770
Industrial Development Bonds		5,732			6,491

	$	760,875		$	686,516
Less: Net deferred loan fees and costs		(726	)		(638	)

		760,149			685,878
Less: Allowance for loan losses		(6,784	)		(6,057	)

Loans - Net	$	753,365		$	679,821

Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans at December 31, 2016:


	(In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years		Total
Consumer Real Estate	$	2,900	$	12,258	$	72,115	$	87,273
Agricultural Real Estate		911		3,156		59,324		63,391
Agricultural		51,411		22,771		10,381		84,563
Commercial Real Estate		7,636		105,377		264,468		377,481
Commercial and Industrial		49,757		35,400		24,099		109,256
Consumer		5,880		20,212		7,087		33,179
Industrial Development Bonds		1,031		85		4,616		5,732

	$	119,526	$	199,259	$	442,090	$	760,875

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 December 31, 2016:


	(In Thousands)
	Fixed Rate		Variable Rate
Consumer Real Estate	$	50,138	$	37,135
Agricultural Real Estate		47,109		16,282
Agricultural		41,821		42,742
Commercial Real Estate		257,805		119,676
Commercial and Industrial		52,616		56,640
Consumer		28,544		4,635
Industrial Development Bonds		5,732		—

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 December 31, 2016 and 2015, net of deferred loan fees and costs:


December 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	$	882	$	15	$	507	$	1,404	$	85,508	$	86,912	$	—
Agricultural Real Estate		12		—		132		144		63,208		63,352		—
Agricultural		101		—		—		101		84,591		84,692		—
Commercial Real Estate		60		—		—		60		376,827		376,887		—
Commercial and Industrial		—		—		—		—		115,093		115,093		—
Consumer		29		6		—		35		33,178		33,213		—

Total	$	1,084	$	21	$	639	$	1,744	$	758,405	$	760,149	$	—


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	$	—
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	$	—

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

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


	(In Thousands)
	2016		2015
Consumer Real Estate	$	1,091	$	1,155
Agricultural Real Estate		132		162
Agriculture		—		—
Commercial Real Estate		—		484
Commercial and Industrial		161		202
Consumer		—		38

Total	$	1,384	$	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, based on the most recent analysis performed as of the time periods shown of December 31, 2016 and December 31, 2015.


	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Industrial Development Bonds
	2016		2015		2016		2015		2016		2015		2016		2015		2016		2015
1-2	$	4,999	$	5,841	$	7,334	$	12,025	$	677	$	597	$	10,060	$	261	$	—	$	—
3		16,660		16,593		31,397		21,247		27,858		24,264		14,064		22,300		2,640		3,100
4		40,224		35,475		44,560		49,220		333,523		293,381		83,100		76,855		3,092		3,391
5		1,209		192		1,234		250		8,321		1,738		1,379		57		—		—
6		260		362		167		—		6,508		1,828		641		543		—		—
7		—		—		—		20		—		422		117		182		—		—
8		—		—		—		—		—		—		—		—		—		—

Total	$	63,352	$	58,463	$	84,692	$	82,762	$	376,887	$	322,230	$	109,361	$	100,198	$	5,732	$	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 December 31, 2016 and December 31, 2015.


	(In Thousands)
	Consumer Real Estate
	2016		2015
Grade
Pass	$	86,361	$	87,292
Special mention (5)		25		48
Substandard (6)		368		332
Doubtful (7)		158		275

Total	$	86,912	$	87,947


	Consumer - Credit Card				Consumer - Other
	2016		2015		2016		2015
Performing	$	4,061	$	3,901	$	29,120	$	23,863
Nonperforming		—		—		32		23

Total, net of deferred fees	$	4,061	$	3,901	$	29,152	$	23,886

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2016 and 2015 are as follows:


	(In Thousands)
	2016		2015
Impaired loans without a valuation allowance	$	1,141	$	1,257
Impaired loans with a valuation allowance		711		879

Total impaired loans	$	1,852	$	2,136

Valuation allowance related to impaired loans	$	135	$	330

Total non-accrual loans	$	1,384	$	2,041

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


	(In Thousands)
	2016		2015		2014
Average investment in impaired loans	$	1,802	$	2,509	$	1,929

Interest income recognized on impaired loans	$	64	$	96	$	87

Interest income recognized on a cash basis on impaired loans	$	27	$	60	$	51

Impaired Loans Classified as Troubled Debt Restructured

The following table represents the years ended December 31, 2016 and 2015.


December 31, 2016 Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		December 31, 2015 Troubled Debt Restructurings		Number of Contracts Modified in the Last 12 Months	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Real Estate	1	$	138	$	138		Commercial Real Estate	1	$	528	$	430
Commercial and Industrial	0		—		—		Commercial and Industrial	1		25		24

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by portfolio class of loans as of December 31, 2016 and 2015:


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
2016
With no related allowance recorded:
Consumer Real Estate	$	1,009	$	1,009	$	—	$	101	$	16	$	4
Agricultural Real Estate		132		132		—		147		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		—		—		—		427		24		23
Commercial and Industrial		—		—		—		337		—		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		94		94		34		344		—		—
Agricultural Real Estate		—		—		—		9		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		501		501		66		191		—		—
Commercial and Industrial		116		116		35		246		24		—
Consumer		—		—		—		—		—		—

Totals:
Consumer Real Estate	$	1,103	$	1,103	$	34	$	445	$	16	$	4

Agricultural Real Estate	$	132	$	132	$	—	$	156	$	—	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate	$	501	$	501	$	66	$	618	$	24	$	23

Commercial and Industrial	$	116	$	116	$	35	$	583	$	24	$	—

Consumer	$	—	$	—	$	—	$	—	$	—	$	—


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
2015
With no related allowance recorded:
Consumer Real Estate	$	156	$	156	$	—	$	158	$	5	$	5
Agricultural Real Estate		63		63		—		120		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		1,038		1,038		—		421		27		27
Commercial and Industrial		—		—		—		429		27		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		275		323		64		181		7		6
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		422		422		152		907		30		22
Commercial and Industrial		182		182		114		291		—		—
Consumer		—		—		—		2		—		—

Totals:
Consumer Real Estate	$	431	$	479	$	64	$	339	$	12	$	11

Agricultural Real Estate	$	63	$	63	$	—	$	120	$	—	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate	$	1,460	$	1,460	$	152	$	1,328	$	57	$	49

Commercial and Industrial	$	182	$	182	$	114	$	720	$	27	$	—

Consumer	$	—	$	—	$	—	$	2	$	—	$	—

Summary of Activities in Allowance for Credit Losses

The following is an analysis of the allowance for credit losses for the years ended December 31:


	(In Thousands)
	2016			2015			2014
Allowance for Loan Losses
Balance at beginning of year	$	6,057		$	5,905		$	5,194
Provision for loan loss		1,121			625			1,191
Loans charged off		(550	)		(1,030	)		(778	)
Recoveries		156			557			298

Balance at ending of year	$	6,784		$	6,057		$	5,905

Allowance for Unfunded Loan Commitments & Letters of Credit	$	217		$	208		$	207

Total Allowance for Credit Losses	$	7,001		$	6,265		$	6,112

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2016 and 2015 is as follows:


	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	338		$	211	$	582		$	2,516		$	1,229		$	337		$	208	$	844		$	6,265
Charge Offs		(106	)		—		(21	)		(93	)		(20	)		(310	)		—		—			(550	)
Recoveries		28			—		10			20			11			87			—		—			156
Provision (Credit)		56			30		45			807			98			280			—		(195	)		1,121
Other Non-interest expense related to unfunded		—			—		—			—			—			—			9		—			9

Ending Balance	$	316		$	241	$	616		$	3,250		$	1,318		$	394		$	217	$	649		$	7,001

Ending balance: individually evaluated for impairment	$	34		$	—	$	—		$	66		$	35		$	—		$	—	$	—		$	135

Ending balance: collectively evaluated for impairment	$	282		$	241	$	616		$	3,184		$	1,283		$	394		$	217	$	649		$	6,866

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

FINANCING RECEIVABLES:
Ending balance	$	86,912		$	63,352	$	84,692		$	376,887		$	115,093		$	33,213		$	—	$	—		$	760,149

Ending balance: individually evaluated for impairment	$	1,103		$	132	$	—		$	501		$	116		$	—		$	—	$	—		$	1,852

Ending balance: collectively evaluated for impairment	$	85,809		$	63,220	$	84,692		$	376,386		$	114,977		$	33,213		$	—	$	—		$	758,297

Ending balance: loans acquired with deteriorated credit quality	$	200		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	200


	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	537		$	184	$	547		$	2,367		$	1,421		$	323		$	207	$	526	$	6,112
Charge Offs		(38	)		—		—			(143	)		(536	)		(313	)		—		—		(1,030	)
Recoveries		41			—		64			204			91			157			—		—		557
Provision (Credit)		(202	)		27		(29	)		88			253			170			—		318		625
Other Non-interest expense related to unfunded		—			—		—			—			—			—			1		—		1

Ending Balance	$	338		$	211	$	582		$	2,516		$	1,229		$	337		$	208	$	844	$	6,265

Ending balance: individually evaluated for impairment	$	64		$	—	$	—		$	152		$	114		$	—		$	—	$	—	$	330

Ending balance: collectively evaluated for impairment	$	274		$	211	$	582		$	2,364		$	1,115		$	337		$	208	$	844	$	5,935

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

FINANCING RECEIVABLES:
Ending balance	$	87,947		$	58,463	$	82,762		$	322,230		$	106,689		$	27,787		$	—	$	—	$	685,878

Ending balance: individually evaluated for impairment	$	431		$	63	$	—		$	1,460		$	182		$	—		$	—	$	—	$	2,136

Ending balance: collectively evaluated for impairment	$	87,516		$	58,400	$	82,762		$	320,770		$	106,507		$	27,787		$	—	$	—	$	683,742

Ending balance: loans acquired with deteriorated credit quality	$	507		$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	507