Loans (Tables)

3 Months Ended

Mar. 31, 2018

Loan balances as of March 31, 2018 and December 31, 2017:


	(In Thousands)
Loans:	March 31, 2018			December 31, 2017
Consumer Real Estate	$	84,501		$	83,620
Agricultural Real Estate		67,596			64,073
Agricultural		99,836			95,111
Commercial Real Estate		415,296			410,520
Commercial and Industrial		123,439			126,275
Consumer		38,569			37,757
Industrial Development Bonds		6,350			6,415

		835,587			823,771
Less: Net deferred loan fees and costs		(850	)		(747	)

		834,737			823,024
Less: Allowance for loan losses		(6,800	)		(6,868	)

Loans - Net	$	827,937		$	816,156

Contractual Maturity Schedule by Major Category of Loans

The following is a contractual maturity schedule by major category of loans as of March 31, 2018:


	(In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years
Consumer Real Estate	$	3,701	$	14,131	$	66,669
Agricultural Real Estate		978		6,055		60,563
Agricultural		61,155		27,656		11,025
Commercial Real Estate		18,333		140,155		256,808
Commercial and Industrial		65,252		41,008		17,179
Consumer		5,346		24,530		8,693
Industrial Development Bonds		800		65		5,485

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, 2018:


	(In Thousands)
	Fixed Rate		Variable Rate
Consumer Real Estate	$	41,497	$	43,004
Agricultural Real Estate		49,003		18,593
Agricultural		35,722		64,114
Commercial Real Estate		258,969		156,327
Commercial and Industrial		46,137		77,302
Consumer		33,838		4,731
Industrial Development Bonds		6,350		—

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 thousands) in past due loans by portfolio classification of loans as of March 31, 2018 and December 31, 2017, net of deferred loan fees and costs:


March 31, 2018	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	$	461	$	0	$	95	$	556	$	83,496	$	84,052	$	—
Agricultural Real Estate		18		—		—		18		67,551		67,569		—
Agricultural		—		—		—		—		99,954		99,954		—
Commercial Real Estate		—		—		1		1		414,665		414,666		—
Commercial and Industrial		115		—		—		115		129,750		129,865		—
Consumer		38		5		—		43		38,588		38,631		—

Total	$	632	$	5	$	96	$	733	$	834,004	$	834,737	$	0


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	$	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, 2018 and December 31, 2017:


	(In Thousands)
	March 31, 2018		December 31, 2017
Consumer Real Estate	$	790	$	708
Agricultural Real Estate		—		101
Agricultural		—		—
Commercial Real Estate		1		38
Commercial & Industrial		109		149
Consumer		—		7

Total	$	900	$	1,003

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, 2018 and December 31, 2017:


	(In Thousands)
	Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Industrial Development Bonds
March 31, 2018
1-2	$	4,076	$	2,109	$	1,167	$	9,065	$	—
3		13,087		34,434		31,227		16,752		3,460
4		49,057		62,856		365,841		95,150		2,890
5		1,335		555		7,676		1,696		—
6		14		—		8,755		743		—
7		—		—		—		109		—
8		—		—		—		—		—

Total	$	67,569	$	99,954	$	414,666	$	123,515	$	6,350


	Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Industrial Development Bonds
December 31, 2017
1-2	$	4,143	$	6,558	$	1,244	$	9,205	$	—
3		15,244		37,267		32,498		15,277		3,489
4		43,416		51,312		359,600		99,581		2,926
5		1,125		101		7,758		1,381		—
6		116		—		8,853		817		—
7		—		—		—		111		—
8		—		—		—		—		—

Total	$	64,044	$	95,238	$	409,953	$	126,372	$	6,415

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


	(In Thousands)
	Consumer Real Estate		Consumer Real Estate
	March 31, 2018		December 31, 2017
Grade
Pass	$	83,716	$	82,632
Special Mention (5)		—		—
Substandard (6)		256		488
Doubtful (7)		80		80

Total	$	84,052	$	83,200


	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Performing	$	3,826	$	4,108	$	34,791	$	33,666
Nonperforming		—		—		14		28

Total	$	3,826	$	4,108	$	34,805	$	33,694

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2018, December 31, 2017 and March 31, 2017 are as follows:


	(In Thousands)
	March 31, 2018		December 31, 2017		March 31, 2017
Impaired loans without a valuation allowance	$	999	$	1,131	$	1,099
Impaired loans with a valuation allowance		607		614		694

Total impaired loans	$	1,606	$	1,745	$	1,793

Valuation allowance related to impaired loans	$	104	$	106	$	117

Total non-accrual loans	$	900	$	1,003	$	1,430

Total loans past-due ninety days or more and still accruing	$	—	$	—	$	—
Quarter ended average investment in impaired loans	$	1,688	$	2,160	$	1,832
Year to date average investment in impaired loans	$	1,688	$	1,885	$	1,832

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, 2018 and March 31, 2017.


	(In Thousands)
Three Months Ended March 31, 2018	Recorded Investment		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		QTD Interest Income Recognized		QTD Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	489	$	489	$	—	$	492	$	8	$	6
Agricultural Real Estate		—		—		—		67		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		200		200		—		201		3		—
Commercial and Industrial		310		310		—		209		4		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		80		80		20		80		—		—
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		418		418		42		420		4		—
Commercial and Industrial		109		109		42		219		—		—
Consumer		—		—		—		—		—		—

Totals:
Consumer Real Estate	$	569	$	569	$	20	$	572	$	8	$	6

Agricultural Real Estate	$	—	$	—	$	—	$	67	$	—	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate	$	618	$	618	$	42	$	621	$	7	$	—

Commercial and Industrial	$	419	$	419	$	42	$	428	$	4	$	—

Consumer	$	—	$	—	$	—	$	—	$	—	$	—

[Remainder of this page intentionally left blank]


	(In Thousands)
Three Months Ended March 31, 2017	Recorded Investment		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		QTD Interest Income Recognized		QTD Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	998	$	998	$	—	$	1,003	$	8	$	6
Agricultural Real Estate		101		101		—		121		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		83		83		23		94		—		—
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		496		496		61		498		5		—
Commercial and Industrial		115		115		33		116		—		—
Consumer		—		—		—		—		—		—

Totals:
Consumer Real Estate	$	1,081	$	1,081	$	23	$	1,097	$	8	$	6

Agricultural Real Estate	$	101	$	101	$	—	$	121	$	—	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate	$	496	$	496	$	61	$	498	$	5	$	—

Commercial and Industrial	$	115	$	115	$	33	$	116	$	—	$	—

Consumer	$	—	$	—	$	—	$	—	$	—	$	—

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, 2018			Twelve Months Ended December 31, 2017
Allowance for Loan & Lease Losses
Balance at beginning of year	$	6,868		$	6,784
Provision for loan loss		40			222
Loans charged off		(145	)		(288	)
Recoveries		37			150

Allowance for Loan & Lease Losses	$	6,800		$	6,868

Allowance for Unfunded Loan Commitments & Letters of Credit	$	265		$	227

Total Allowance for Credit Losses	$	7,065		$	7,095

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for three months ended March 31, 2018 and March 31, 2017 is as follows:


	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, 2018
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	343		$	244	$	667	$	3,149		$	1,546		$	441		$	227	$	478		$	7,095
Charge Offs		(34	)		—		—		(14	)		—			(97	)		—		—			(145	)
Recoveries		—			—		3		2			2			30			—		—			37
Provision (Credit)		(55	)		19		36		537			(105	)		57			—		(449	)		40
Other Non-interest expense related to unfunded		—			—		—		—			—			—			38		—			38

Ending Balance	$	254		$	263	$	706	$	3,674		$	1,443		$	431		$	265	$	29		$	7,065

Ending balance: individually evaluated for impairment	$	20		$	—	$	—	$	42		$	42		$	—		$	—	$	—		$	104

Ending balance: collectively evaluated for impairment	$	234		$	263	$	706	$	3,632		$	1,401		$	431		$	265	$	29		$	6,961

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

FINANCING RECEIVABLES:
Ending balance	$	84,052		$	67,569	$	99,954	$	414,666		$	129,865		$	38,631		$	—	$	—		$	834,737

Ending balance: individually evaluated for impairment	$	569		$	—	$	—	$	618		$	419		$	—		$	—	$	—		$	1,606

Ending balance: collectively evaluated for impairment	$	83,483		$	67,569	$	99,954	$	414,048		$	129,446		$	38,631		$	—	$	—		$	833,131

Ending balance: loans acquired with deteriorated credit quality	$	121		$	—	$	—	$	—		$	—		$	—		$	—	$	—		$	121


	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, 2017
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	316		$	241	$	616	$	3,250		$	1,318		$	394		$	217	$	649	$	7,001
Charge Offs		—			—		—		—			—			(44	)		—		—		(44	)
Recoveries		10			—		1		2			3			21			—		—		37
Provision (Credit)		(49	)		3		17		(244	)		(22	)		26			—		342		73
Other Non-interest expense related to unfunded		—			—		—		—			—			—			2		—		2

Ending Balance	$	277		$	244	$	634	$	3,008		$	1,299		$	397		$	219	$	991	$	7,069

Ending balance: individually evaluated for impairment	$	23		$	—	$	—	$	61		$	33		$	—		$	—	$	—	$	117

Ending balance: collectively evaluated for impairment	$	254		$	244	$	634	$	2,947		$	1,266		$	397		$	219	$	991	$	6,952

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

FINANCING RECEIVABLES:
Ending balance	$	84,081		$	62,803	$	87,078	$	382,183		$	121,183		$	33,878		$	—	$	—	$	771,206

Ending balance: individually evaluated for impairment	$	1,081		$	101	$	—	$	496		$	115		$	—		$	—	$	—	$	1,793

Ending balance: collectively evaluated for impairment	$	83,000		$	62,702	$	87,078	$	381,687		$	121,068		$	33,878		$	—	$	—	$	769,413

Ending balance: loans acquired with deteriorated credit quality	$	198		$	—	$	—	$	—		$	—		$	—		$	—	$	—	$	198