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Loans (Tables)

12 Months Ended

Dec. 31, 2018

Loans at December 31 are summarized below:

	(In Thousands)
Loans:	2018			2017
Consumer Real Estate	$	80,766		$	83,620
Agricultural Real Estate		68,609			64,073
Agricultural		108,495			95,111
Commercial Real Estate		419,784			410,520
Commercial and Industrial		121,793			126,275
Consumer		41,953			37,757
Industrial Development Bonds		5,889			6,415
	$	847,289		$	823,771
Less: Net deferred loan fees and costs		(915	)		(747	)
		846,374			823,024
Less: Allowance for loan losses		(6,775	)		(6,868	)
Loans - Net	$	839,599		$	816,156

Contractual Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans at December 31, 2018:

	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years		Total
Consumer Real Estate	$	4,226	$	16,495	$	60,045	$	80,766
Agricultural Real Estate		615		4,818		63,176		68,609
Agricultural		70,505		28,073		9,917		108,495
Commercial Real Estate		16,339		160,783		242,662		419,784
Commercial and Industrial		61,382		52,678		7,733		121,793
Consumer		5,211		27,369		9,373		41,953
Industrial Development Bonds		600		270		5,019		5,889
	$	158,878	$	290,486	$	397,925	$	847,289

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, 2018:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	35,174	$	45,592
Agricultural Real Estate		49,717		18,892
Agricultural		37,053		71,442
Commercial Real Estate		265,197		154,587
Commercial and Industrial		45,934		75,859
Consumer		37,487		4,466
Industrial Development Bonds		5,889		-

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, 2018 and 2017, net of deferred loan fees and costs:

December 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	$	342	$	24	$	254	$	620	$	79,612	$	80,232	$	-
Agricultural Real Estate		-		-		-		-		68,588		68,588		-
Agricultural		-		-		-		-		108,616		108,616		-
Commercial Real Estate		-		-		-		-		419,131		419,131		-
Commercial and Industrial		-		-		-		-		127,752		127,752		-
Consumer		85		24		8		117		41,938		42,055		-
Total	$	427	$	48	$	262	$	737	$	845,637	$	846,374	$	-

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	$	-

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, 2018 and December 31, 2017:

	(In Thousands)
	2018		2017
Consumer Real Estate	$	462	$	708
Agricultural Real Estate		-		101
Agriculture		-		-
Commercial Real Estate		-		38
Commercial and Industrial		72		149
Consumer		8		7
Total	$	542	$	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, based on the most recent analysis performed as of the time periods shown of December 31, 2018 and December 31, 2017.

	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Industrial Development Bonds
	2018		2017		2018		2017		2018		2017		2018		2017		2018		2017
1-2	$	4,442	$	4,143	$	5,753	$	6,558	$	4,698	$	1,244	$	3,199	$	9,205	$	-	$	-
3		14,118		15,244		38,852		37,267		64,341		32,498		16,284		15,277		3,135		3,489
4		49,596		43,416		63,380		51,312		346,072		359,600		100,644		99,581		2,754		2,926
5		422		1,125		631		101		2,171		7,758		308		1,381		-		-
6		10		116		-		-		1,849		8,853		542		817		-		-
7		-		-		-		-		-		-		886		111		-		-
8		-		-		-		-		-		-		-		-		-		-
Total	$	68,588	$	64,044	$	108,616	$	95,238	$	419,131	$	409,953	$	121,863	$	126,372	$	5,889	$	6,415

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, 2018 and December 31, 2017.

	(In Thousands)
	Consumer Real Estate
	2018		2017
Grade
Pass	$	79,121	$	82,300
Special mention (5)		232		-
Substandard (6)		879		820
Doubtful (7)		-		80
Total	$	80,232	$	83,200

	(In Thousands)
	Consumer - Credit Card				Consumer - Other
	2018		2017		2018		2017
Performing	$	3,909	$	4,108	$	38,073	$	33,666
Nonperforming		19		-		54		28
Total	$	3,928	$	4,108	$	38,127	$	33,694

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2018 and 2017 are as follows:

	(In Thousands)
	2018		2017
Impaired loans without a valuation allowance	$	1,808	$	1,131
Impaired loans with a valuation allowance		246		614
Total impaired loans	$	2,054	$	1,745
Valuation allowance related to impaired loans	$	31	$	106
Total non-accrual loans	$	542	$	1,003
Total loans past-due ninety days or more and still accruing	$	-	$	-

	(In Thousands)
	2018		2017		2016
Average investment in impaired loans	$	1,958	$	1,885	$	1,802
Interest income recognized on impaired loans	$	69	$	57	$	64
Interest income recognized on a cash basis on impaired loans	$	17	$	23	$	27

Impaired Loans Classified as Troubled Debt Restructured

The following table represents the years ended December 31, 2018 and 2017.

December 31, 2018

December 31, 2017

(In thousands)

Troubled Debt Restructurings

Number of Contracts Modified in the

Last 12 Months

Pre- Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Troubled Debt Restructurings

Number of Contracts Modified in the

Last 12 Months

Pre- Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded Investment

Commercial and Industrial

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, 2018 and 2017:

	(In Thousands)
2018	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	$	583	$	583	$	-	$	562	$	31	$	17
Agricultural Real Estate		-		-		-		17		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		194		194		-		198		11		-
Commercial and Industrial		1,031		1,031		-		438		25		-
Consumer		-		-		-		-		-		-
With a specific allowance recorded:
Consumer Real Estate		174		174		26		158		-		-
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		-		-		-		140		-		-
Commercial and Industrial		72		72		5		445		2		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	757	$	757	$	26	$	720	$	31	$	17
Agricultural Real Estate	$	-	$	-	$	-	$	17	$	-	$	-
Agricultural	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Real Estate	$	194	$	194	$	-	$	338	$	11	$	-
Commercial and Industrial	$	1,103	$	1,103	$	5	$	883	$	27	$	-
Consumer	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
2017	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	$	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	$	-	$	-	$	-	$	-	$	-	$	-

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)
	2018			2017			2016
Allowance for Loan Losses
Balance at beginning of year	$	6,868		$	6,784		$	6,057
Provision for loan loss		324			222			1,121
Loans charged off		(580	)		(288	)		(550	)
Recoveries		163			150			156
Balance at ending of year	$	6,775		$	6,868		$	6,784
Allowance for Unfunded Loan Commitments & Letters of Credit	$	274		$	227		$	217
Total Allowance for Credit Losses	$	7,049		$	7,095		$	7,001

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2018 and 2017 is as follows:

	(In Thousands)
2018	Consumer Real Estate			Agricultural Real Estate		Agricultural		Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	343		$	244	$	667	$	3,149		$	1,546		$	441		$	227	$	478	$	7,095
Charge Offs		(63	)		-		-		(16	)		(142	)		(359	)		-		-		(580	)
Recoveries		18			-		8		10			13			114			-		-		163
Provision (Credit)		(51	)		6		93		74			(112	)		288			-		26		324
Other Non-interest expense related to unfunded		-			-		-		-			-			-			47		-		47
Ending Balance	$	247		$	250	$	768	$	3,217		$	1,305		$	484		$	274	$	504	$	7,049
Ending balance: individually evaluated for impairment	$	26		$	-	$	-	$	-		$	5		$	-		$	-	$	-	$	31
Ending balance: collectively evaluated for impairment	$	221		$	250	$	768	$	3,217		$	1,300		$	484		$	274	$	504	$	7,018
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-	$	-		$	-		$	-		$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	80,232		$	68,588	$	108,616	$	419,131		$	127,752		$	42,055		$	-	$	-	$	846,374
Ending balance: individually evaluated for impairment	$	757		$	-	$	-	$	194		$	1,103		$	-		$	-	$	-	$	2,054
Ending balance: collectively evaluated for impairment	$	79,475		$	68,588	$	108,616	$	418,937		$	126,649		$	42,055		$	-	$	-	$	844,320

	(In Thousands)
2017	Consumer Real Estate			Agricultural Real Estate		Agricultural		Commercial Real Estate			Commercial and Industrial		Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
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