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Loans (Tables)

12 Months Ended

Dec. 31, 2019

Loans at December 31 are summarized below:

	(In Thousands)
Loans:	2019			2018
Consumer Real Estate	$	165,349		$	80,766
Agricultural Real Estate		199,105			68,609
Agricultural		111,820			108,495
Commercial Real Estate		551,309			419,784
Commercial and Industrial		135,631			121,793
Consumer		49,237			41,953
Other		8,314			5,889
	$	1,220,765		$	847,289
Less: Net deferred loan fees and costs		(1,766	)		(915	)
		1,218,999			846,374
Less: Allowance for loan losses		(7,228	)		(6,775	)
Loans - Net	$	1,211,771		$	839,599

Contractual Maturity Schedule by Major Category of Loans Excluding Fair Value Adjustments

The following is a maturity schedule by major category of loans excluding fair value adjustments at December 31, 2019:

	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years		Total
Consumer Real Estate	$	5,163	$	19,025	$	141,231	$	165,419
Agricultural Real Estate		272		4,668		195,162		200,102
Agricultural		66,851		29,954		15,006		111,811
Commercial Real Estate		49,976		230,817		270,698		551,491
Commercial and Industrial		68,257		54,718		12,708		135,683
Consumer		6,215		32,711		10,227		49,153
Other		340		804		7,163		8,307
	$	197,074	$	372,697	$	652,195	$	1,221,966

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, 2019:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	88,907	$	76,442
Agricultural Real Estate		97,684		101,421
Agricultural		66,555		45,265
Commercial Real Estate		392,933		158,376
Commercial and Industrial		85,108		50,523
Consumer		44,422		4,815
Other		8,219		95

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, 2019 and 2018, net of deferred loan fees and costs:

December 31, 2019	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	$	355	$	70	$	-	$	425	$	164,266	$	164,691	$	-
Agricultural Real Estate		-		107		-		107		198,752		198,859		-
Agricultural		78		7		-		85		111,864		111,949		-
Commercial Real Estate		-		-		-		-		550,082		550,082		-
Commercial and Industrial		201		267		-		468		143,541		144,009		-
Consumer		54		-		-		54		49,355		49,409		-
Total	$	688	$	451	$	-	$	1,139	$	1,217,860	$	1,218,999	$	-

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	$	-

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, 2019 and December 31, 2018:

	(In Thousands)
	2019		2018
Consumer Real Estate	$	1,209	$	462
Agricultural Real Estate		88		-
Agriculture		1,769		-
Commercial Real Estate		37		-
Commercial and Industrial		288		72
Consumer		9		8
Total	$	3,400	$	542

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, 2019 and December 31, 2018.

	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Industrial Development Bonds
	2019		2018		2019		2018		2019		2018		2019		2018		2019		2018
1-2	$	14,655	$	4,442	$	4,093	$	5,753	$	7,860	$	4,698	$	3,844	$	3,199	$	-	$	-
3		33,951		14,118		36,913		38,852		131,780		64,341		19,790		16,284		3,168		3,135
4		116,834		49,596		65,414		63,380		401,404		346,072		103,527		100,644		5,146		2,754
5		14,836		422		2,300		631		3,699		2,171		2,465		308		-		-
6		18,583		10		3,229		-		5,339		1,849		4,983		542		-		-
7		-		-		-		-		-		-		1,086		886		-		-
8		-		-		-		-		-		-		-		-		-		-
Total	$	198,859	$	68,588	$	111,949	$	108,616	$	550,082	$	419,131	$	135,695	$	121,863	$	8,314	$	5,889

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, 2019 and December 31, 2018.

	(In Thousands)
	Consumer Real Estate
	2019		2018
Grade
Pass	$	160,930	$	79,121
Special mention (5)		415		232
Substandard (6)		3,346		879
Doubtful (7)				-
Total	$	164,691	$	80,232

	(In Thousands)
	Consumer - Credit Card				Consumer - Other
	2019		2018		2019		2018
Performing	$	4,076	$	3,909	$	44,831	$	38,073
Nonperforming		15		19		487		54
Total	$	4,091	$	3,928	$	45,318	$	38,127

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2019 and 2018 are as follows:

	(In Thousands)
	2019		2018
Impaired loans without a valuation allowance	$	2,420	$	1,808
Impaired loans with a valuation allowance		641		246
Total impaired loans	$	3,061	$	2,054
Valuation allowance related to impaired loans	$	197	$	31
Total non-accrual loans	$	3,400	$	542
Total loans past-due ninety days or more and still accruing	$	-	$	-

	(In Thousands)
	2019		2018		2017
Average investment in impaired loans	$	2,649	$	1,958	$	1,885
Interest income recognized on impaired loans	$	118	$	69	$	57
Interest income recognized on a cash basis on impaired loans	$	9	$	17	$	23

Impaired Loans Classified as Troubled Debt Restructured

The following table represents the years ended December 31, 2019 and 2018.

December 31, 2019							December 31, 2018
			(In thousands)							(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
Consumer Real Estate		1	$	74	$	74	Consumer Real Estate		-	$	-	$	-
Commercial and Industrial		4		812		812	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, 2019 and 2018:

	(In Thousands)
2019	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	$	648	$	648	$	-	$	626	$	32	$	9
Agricultural Real Estate		-		-		-		204		-		-
Agricultural		491		491		-		124		-		-
Commercial Real Estate		299		299		-		238		19		-
Commercial and Industrial		982		982		-		637		66		-
Consumer		-		-		-		-		-		-
With a specific allowance recorded:
Consumer Real Estate		181		184		30		211		-		-
Agricultural Real Estate		-		-		-		22		1		-
Agricultural		200		200		21		29		-		-
Commercial Real Estate		-		-		-		-		-		-
Commercial and Industrial		227		377		142		555		-		-
Consumer		33		33		4		3		-		-
Totals:
Consumer Real Estate	$	829	$	832	$	30	$	837	$	32	$	9
Agricultural Real Estate	$	-	$	-	$	-	$	226	$	1	$	-
Agricultural	$	691	$	691	$	21	$	153	$	-	$	-
Commercial Real Estate	$	299	$	299	$	-	$	238	$	19	$	-
Commercial and Industrial	$	1,209	$	1,359	$	142	$	1,192	$	66	$	-
Consumer	$	33	$	33	$	4	$	3	$	-	$	-

	(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	$	-	$	-	$	-	$	-	$	-	$	-

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)
	2019			2018			2017
Allowance for Loan Losses
Balance at beginning of year	$	6,775		$	6,868		$	6,784
Provision for loan loss		1,138			324			222
Loans charged off		(841	)		(580	)		(288	)
Recoveries		156			163			150
Balance at ending of year	$	7,228		$	6,775		$	6,868
Allowance for Unfunded Loan Commitments & Letters of Credit	$	479		$	274		$	227
Total Allowance for Credit Losses	$	7,707		$	7,049		$	7,095

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2019 and 2018 is as follows:

	(In Thousands)
2019	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	$	247		$	250	$	768		$	3,217	$	1,305		$	484		$	274	$	504		$	7,049
Charge Offs		(98	)		-		(37	)		-		(215	)		(491	)		-		-			(841	)
Recoveries		-			-		3			11		22			120			-		-			156
Provision (Credit)		162			64		(43	)		406		615			438			-		(504	)		1,138
Other Non-interest expense related to unfunded		-			-		-			-		-			-			205		-			205
Ending Balance	$	311		$	314	$	691		$	3,634	$	1,727		$	551		$	479	$	-		$	7,707
Ending balance: individually evaluated for impairment	$	30		$	-	$	21		$	-	$	142		$	4		$	-	$	-		$	197
Ending balance: collectively evaluated for impairment	$	281		$	314	$	670		$	3,634	$	1,585		$	547		$	479	$	-		$	7,510
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-		$	-		$	-	$	-		$	-
FINANCING RECEIVABLES:
Ending balance	$	164,691		$	198,859	$	111,949		$	550,082	$	144,009		$	49,409		$	-	$	-		$	1,218,999
Ending balance: individually evaluated for impairment	$	829		$	-	$	691		$	299	$	1,209		$	33		$	-	$	-		$	3,061
Ending balance: collectively evaluated for impairment	$	163,816		$	198,859	$	111,258		$	549,783	$	142,694		$	49,376		$	-	$	-		$	1,215,786
Ending balance: loans acquired with deteriorated credit quality	$	46		$	-	$	-		$	-	$	106		$	-		$	-	$	-		$	152

	(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	$	79,359		$	68,588	$	108,616	$	418,937		$	126,649		$	42,055		$	-	$	-	$	844,204
Ending balance: loans acquired with deteriorated credit quality	$	116		$	-	$	-	$	-		$	-		$	-		$	-	$	-	$	116