Loans (Tables)

12 Months Ended

Dec. 31, 2017

Loans at December 31 are summarized below:


Loans:	2017			2016
Consumer Real Estate	$	83,620		$	86,234
Agricultural Real Estate		64,073			62,375
Agricultural		95,111			84,563
Commercial Real Estate		410,520			377,481
Commercial and Industrial		126,275			109,256
Consumer		37,757			33,179
Industrial Development Bonds		6,415			5,732

	$	823,771		$	758,820
Less: Net deferred loan fees and costs		(747	)		(726	)

		823,024			758,094
Less: Allowance for loan losses		(6,868	)		(6,784	)

Loans - Net	$	816,156		$	751,310

Contractual Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans at December 31, 2017:


	(In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years		Total
Consumer Real Estate	$	1,185	$	13,979	$	68,456	$	83,620
Agricultural Real Estate		756		5,910		57,407		64,073
Agricultural		60,164		25,499		9,448		95,111
Commercial Real Estate		29,728		125,694		255,098		410,520
Commercial and Industrial		71,521		36,402		18,352		126,275
Consumer		5,634		23,946		8,177		37,757
Industrial Development Bonds		800		65		5,550		6,415

	$	169,788	$	231,495	$	422,488	$	823,771

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, 2017:


	(In Thousands)
	Fixed Rate		Variable Rate
Consumer Real Estate	$	43,283	$	40,337
Agricultural Real Estate		46,121		17,952
Agricultural		32,585		62,526
Commercial Real Estate		262,713		147,807
Commercial and Industrial		43,434		82,841
Consumer		32,869		4,888
Industrial Development Bonds		6,415		—

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, 2017 and 2016, net of deferred loan fees and costs:


December 31, 2017	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	$	565	$	212	$	113	$	890	$	82,310	$	83,200	$	—
Agricultural Real Estate		—		—		101		101		63,943		64,044		—
Agricultural		—		—		—		—		95,238		95,238		—
Commercial Real Estate		—		—		38		38		409,915		409,953		—
Commercial and Industrial		—		42		—		42		132,745		132,787		—
Consumer		34		2		7		43		37,759		37,802		—

Total	$	599	$	256	$	259	$	1,114	$	821,910	$	823,024	$	—


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	$	84,469	$	85,873	$	—
Agricultural Real Estate		12		—		132		144		62,192		62,336		—
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	$	756,350	$	758,094	$	—

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, 2017 and December 31, 2016:


	(In Thousands)
	2017		2016
Consumer Real Estate	$	708	$	1,091
Agricultural Real Estate		101		132
Agriculture		—		—
Commercial Real Estate		38		—
Commercial and Industrial		149		161
Consumer		7		—

Total	$	1,003	$	1,384

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, 2017 and December 31, 2016.


	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Industrial Development Bonds
		2017		2016		2017		2016		2017		2016		2017		2016		2017		2016
1-2	$	4,143	$	4,399	$	6,558	$	7,334	$	1,244	$	677	$	9,205	$	10,060	$	—	$	—
3		15,244		16,660		37,267		31,397		32,498		27,858		15,277		14,064		3,489		2,640
4		43,416		39,808		51,312		44,560		359,600		333,523		99,581		83,100		2,926		3,092
5		1,125		1,209		101		1,234		7,758		8,321		1,381		1,379		—		—
6		116		260		—		167		8,853		6,508		817		641		—		—
7		—		—		—		—		—		—		111		117		—		—
8		—		—		—		—		—		—		—		—		—		—

Total	$	64,044	$	62,336	$	95,238	$	84,692	$	409,953	$	376,887	$	126,372	$	109,361	$	6,415	$	5,732

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, 2017 and December 31, 2016.


	(In Thousands)
	Consumer Real Estate
	2017		2016
Grade
Pass	$	82,632	$	85,322
Special mention (5)		—		25
Substandard (6)		488		368
Doubtful (7)		80		158

Total	$	83,200	$	85,873


	(In Thousands)
	Consumer - Credit Card				Consumer - Other
		2017		2016		2017		2016
Performing	$	4,108	$	4,061	$	33,666	$	29,120
Nonperforming		—		—		28		32

Total	$	4,108	$	4,061	$	33,694	$	29,152

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2017 and 2016 are as follows:


	(In Thousands)
	2017		2016
Impaired loans without a valuation allowance	$	1,131	$	1,141
Impaired loans with a valuation allowance		614		711

Total impaired loans	$	1,745	$	1,852

Valuation allowance related to impaired loans	$	106	$	135

Total non-accrual loans	$	1,003	$	1,384

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


	2017		2016		2015
Average investment in impaired loans	$	1,885	$	1,802	$	2,509

Interest income recognized on impaired loans	$	57	$	64	$	96

Interest income recognized on a cash basis on impaired loans	$	23	$	27	$	60

Impaired Loans Classified as Troubled Debt Restructured

The following table represents the years ended December 31, 2017 and 2016.


			(In thousands)							(In thousands)
December 31, 2017 Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		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
Commercial Real Estate		0	$	—	$	—	Commercial Real Estate		1	$	138	$	138
Commercial and Industrial		1		38		38	Commercial and Industrial		0		—		—

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, 2017 and 2016:


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
2017
With no related allowance recorded:
Consumer Real Estate	$	495	$	495	$	—	$	911	$	30	$	21
Agricultural Real Estate		101		101		—		123		—		—
Agricultural		—		—		—		27		—		—
Commercial Real Estate		202		202		—		51		1		—
Commercial and Industrial		333		333		—		85		2		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		80		80		21		88		—		—
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		423		423		46		486		24		2
Commercial and Industrial		111		111		39		114		—		—
Consumer		—		—		—		—		—		—

Totals:
Consumer Real Estate	$	575	$	575	$	21	$	999	$	30	$	21

Agricultural Real Estate	$	101	$	101	$	—	$	123	$	—	$	—

Agricultural	$	—	$	—	$	—	$	27	$	—	$	—

Commercial Real Estate	$	625	$	625	$	46	$	537	$	25	$	2

Commercial and Industrial	$	444	$	444	$	39	$	199	$	2	$	—

Consumer	$	—	$	—	$	—	$	—	$	—	$	—


	(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	$	—	$	—	$	—	$	—	$	—	$	—

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)
	2017			2016			2015
Allowance for Loan Losses
Balance at beginning of year	$	6,784		$	6,057		$	5,905
Provision for loan loss		222			1,121			625
Loans charged off		(288	)		(550	)		(1,030	)
Recoveries		150			156			557

Balance at ending of year	$	6,868		$	6,784		$	6,057

Allowance for Unfunded Loan Commitments & Letters of Credit	$	227		$	217		$	208

Total Allowance for Credit Losses	$	7,095		$	7,001		$	6,265

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2017 and 2016 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
2017
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	316		$	241	$	616	$	3,250		$	1,318	$	394		$	217	$	649		$	7,001
Charge Offs		(4	)		—		—		(21	)		—		(263	)		—		—			(288	)
Recoveries		13			—		8		15			12		102			—		—			150
Provision (Credit)		18			3		43		(95	)		216		208			—		(171	)		222
Other Non-interest expense related to unfunded		—			—		—		—			—		—			10		—			10
Ending Balance	$	343		$	244	$	667	$	3,149		$	1,546	$	441		$	227	$	478		$	7,095

Ending balance: individually evaluated for impairment	$	21		$	—	$	—	$	46		$	39	$	—		$	—	$	—		$	106

Ending balance: collectively evaluated for impairment	$	322		$	244	$	667	$	3,103		$	1,507	$	441		$	227	$	478		$	6,989

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

FINANCING RECEIVABLES:
Ending balance	$	83,200		$	64,044	$	95,238	$	409,953		$	132,787	$	37,802		$	—	$	—		$	823,024

Ending balance: individually evaluated for impairment	$	575		$	101	$	—	$	625		$	444	$	—		$	—	$	—		$	1,745

Ending balance: collectively evaluated for impairment	$	82,625		$	63,943	$	95,238	$	409,328		$	132,343	$	37,802		$	—	$	—		$	821,279

Ending balance: loans acquired with deteriorated credit quality	$	122		$	—	$	—	$	—		$	—	$	—		$	—	$	—		$	122


	(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	$	85,873		$	62,336	$	84,692		$	376,887		$	115,093		$	33,213		$	—	$	—		$	758,094

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

Ending balance: collectively evaluated for impairment	$	84,770		$	62,204	$	84,692		$	376,386		$	114,977		$	33,213		$	—	$	—		$	756,242

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