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Loans (Tables)

3 Months Ended

Mar. 31, 2020

Loan balances as of March 31, 2020 and December 31, 2019 are summarized below:

	(In Thousands)
Loans:	March 31, 2020			December 31, 2019
Consumer Real Estate	$	174,731		$	165,349
Agricultural Real Estate		194,383			199,105
Agricultural		109,584			111,820
Commercial Real Estate		570,217			551,309
Commercial and Industrial		143,261			135,631
Consumer		49,022			49,237
Other		8,336			8,314
		1,249,534			1,220,765
Less: Net deferred loan fees and costs		(1,893	)		(1,766	)
		1,247,641			1,218,999
Less: Allowance for loan losses		(8,533	)		(7,228	)
Loans - Net	$	1,239,108		$	1,211,771

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 March 31, 2020:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	116,954	$	57,777
Agricultural Real Estate		93,095		101,288
Agricultural		105,065		4,519
Commercial Real Estate		419,430		150,787
Commercial and Industrial		126,434		16,827
Consumer		45,055		3,967
Other		8,277		59

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, 2020 and December 31, 2019, net of deferred loan fees and costs:

March 31, 2020	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	$	842	$	4	$	-	$	846	$	173,130	$	173,976	$	-
Agricultural Real Estate		505		-		-		505		193,625		194,130		-
Agricultural		1,403		-		-		1,403		108,304		109,707		-
Commercial Real Estate		186		-		-		186		568,805		568,991		-
Commercial and Industrial		823		298		-		1,121		150,526		151,647		-
Consumer		89		13		-		102		49,088		49,190		-

Total	$	3,848	$	315	$	-	$	4,163	$	1,243,478	$	1,247,641	$	-

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	$	-

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, 2020 and December 31, 2019:

	(In Thousands)
	March 31, 2020		December 31, 2019

Consumer Real Estate	$	1,363	$	1,209
Agricultural Real Estate		967		88
Agricultural		382		1,769
Commercial Real Estate		36		37
Commercial & Industrial		590		288
Consumer		6		9
Total	$	3,344	$	3,400

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, 2020 and December 31, 2019:

	(In Thousands)
	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
March 31, 2020
1-2	$	13,407	$	2,635	$	7,684	$	4,124	$	-
3		32,710		36,033		147,559		24,329		3,344
4		117,824		67,419		404,548		103,357		4,992
5		15,492		1,094		3,191		5,166		-
6		14,697		2,526		6,009		5,259		-
7		-		-		-		1,076		-
8		-		-		-		-		-
Total	$	194,130	$	109,707	$	568,991	$	143,311	$	8,336

	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
December 31, 2019
1-2	$	14,655	$	4,093	$	7,860	$	3,844	$	-
3		33,951		36,913		131,780		19,790		3,168
4		116,834		65,414		401,404		103,527		5,146
5		14,836		2,300		3,699		2,465		-
6		18,583		3,229		5,339		4,983		-
7		-		-		-		1,086		-
8		-		-		-		-		-
Total	$	198,859	$	111,949	$	550,082	$	135,695	$	8,314

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 March 31, 2020 and December 31, 2019.

	(In Thousands)
	Consumer		Consumer
	Real Estate		Real Estate
	March 31, 2020		December 31, 2019
Grade
Pass	$	170,812	$	160,930
Special Mention (5)		1,125		415
Substandard (6)		2,039		3,346
Doubtful (7)		-		-
Total	$	173,976	$	164,691

	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Performing	$	3,576	$	4,076	$	45,424	$	44,831
Nonperforming		35		15		155		487
Total	$	3,611	$	4,091	$	45,579	$	45,318

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2020, December 31, 2019 and March 31, 2019 are as follows:

			(In Thousands)
	March 31, 2020		December 31, 2019		March 31, 2019

Impaired loans without a valuation allowance	$	1,393	$	2,420	$	1,915
Impaired loans with a valuation allowance		4,795		641		254
Total impaired loans	$	6,188	$	3,061	$	2,169
Valuation allowance related to impaired loans	$	766	$	197	$	59
Total non-accrual loans	$	3,344	$	3,400	$	1,188
Total loans past-due ninety days or more and still accruing	$	-	$	-	$	-
Quarter ended average investment in impaired loans	$	4,314	$	3,120	$	2,135
Year to date average investment in impaired loans	$	4,314	$	2,649	$	2,135

Impaired Loans Classified as Troubled Debt Restructured

The following tables represents three months ended March 31, 2020 and 2019:

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2020	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Commercial Real Estate		2	$	981	$	981

			Pre-		Post-
Three Months	Number of		Modification		Modification
March 31, 2019	Contracts		Outstanding		Outstanding
(in thousands)	Modified in the		Recorded		Recorded
Troubled Debt Restructurings	Last Three Months		Investment		Investment
Commercial Real Estate		-	$	-	$	-

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for the three months ended March 31, 2020 and March 31, 2019 and for the year ended December 31, 2019.

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2020			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	644	$	644	$	-	$	649	$	5	$	4
Agricultural Real Estate		30		30		-		291		3		-
Agricultural		348		348		-		386		5		-
Commercial Real Estate		186		186		-		224		3		-
Commercial and Industrial		154		154		-		699		12		-
Consumer		31		31		-		10		-		-
With a specific allowance recorded:
Consumer Real Estate		194		194		34		212		-		-
Agricultural Real Estate		92		92		15		93		2		-
Agricultural		121		121		12		121		-		-
Commercial Real Estate		3,109		3,109		95		1,036		39		-
Commercial and Industrial		1,279		1,429		610		572		7		-
Consumer		-		-		-		21		-		-
Totals:
Consumer Real Estate	$	838	$	838	$	34	$	861	$	5	$	4
Agricultural Real Estate	$	122	$	122	$	15	$	384	$	5	$	-
Agricultural	$	469	$	469	$	12	$	507	$	5	$	-
Commercial Real Estate	$	3,295	$	3,295	$	95	$	1,260	$	42	$	-
Commercial and Industrial	$	1,433	$	1,583	$	610	$	1,271	$	19	$	-
Consumer	$	31	$	31	$	-	$	31	$	-	$	-

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2019			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	648	$	648	$	-	$	603	$	7	$	1
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		192		192		-		193		3		-
Commercial and Industrial		1,075		1,075		-		1,085		15		-
Consumer		-		-		-		-		-		-
With a specific allowance recorded:
Consumer Real Estate		254		254		59		254		-		-
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		-		-		-		-		-		-
Commercial and Industrial		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	902	$	902	$	59	$	857	$	7	$	1
Agricultural Real Estate	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Real Estate	$	192	$	192	$	-	$	193	$	3	$	-
Commercial and Industrial	$	1,075	$	1,075	$	-	$	1,085	$	15	$	-
Consumer	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
											Interest
Year Ended December 31, 2019			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		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	$	-	$	-

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			Twelve Months Ended
	March 31, 2020			December 31, 2019
Allowance for Loan & Lease Losses
Balance at beginning of year	$	7,228		$	6,775
Provision for loan loss		1,430			1,138
Loans charged off		(164	)		(841	)
Recoveries		39			156
Allowance for Loan & Lease Losses	$	8,533		$	7,228
Allowance for Unfunded Loan Commitments & Letters of Credit	$	470		$	479
Total Allowance for Credit Losses	$	9,003		$	7,707

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for three months ended March 31, 2020 and March 31, 2019 in addition to the ending balances as of December 31, 2019 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, 2020
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	311		$	314	$	691		$	3,634	$	1,727	$	551		$	479		$	-	$	7,707
Charge Offs		(35	)		-		-			-		-		(129	)		-			-		(164	)
Recoveries		3			-		-			3		3		30			-			-		39
Provision (Credit)		66			13		(26	)		236		1,020		81			-			40		1,430
Other Non-interest expense related to unfunded		-			-		-			-		-		-			(9	)		-		(9	)
Ending Balance	$	345		$	327	$	665		$	3,873	$	2,750	$	533		$	470		$	40	$	9,003
Ending balance: individually evaluated for impairment	$	34		$	15	$	12		$	95	$	610	$	-		$	-		$	-	$	766
Ending balance: collectively evaluated for impairment	$	311		$	312	$	653		$	3,778	$	2,140	$	533		$	470		$	40	$	8,237
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-	$	-		$	-		$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	173,976		$	194,130	$	109,707		$	568,991	$	151,647	$	49,190		$	-		$	-	$	1,247,641
Ending balance: individually evaluated for impairment	$	838		$	122	$	469		$	3,295	$	1,433	$	31		$	-		$	-	$	6,188
Ending balance: collectively evaluated for impairment	$	173,093		$	194,008	$	109,238		$	565,695	$	150,111	$	49,159		$	-		$	-	$	1,241,304
Ending balance: loans acquired with deteriorated credit quality	$	45		$	-	$	-		$	-	$	103	$	-		$	-		$	-	$	148

December 31, 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:
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

	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, 2019
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	247		$	250	$	768		$	3,217		$	1,305	$	484		$	274	$	504		$	7,049
Charge Offs		(42	)		-		-			-			-		(165	)		-		-			(207	)
Recoveries		-			-		1			2			3		32			-		-			38
Provision (Credit)		63			20		(63	)		(16	)		182		145			-		(301	)		30
Other Non-interest expense related to unfunded		-			-		-			-			-		-			72		-			72
Ending Balance	$	268		$	270	$	706		$	3,203		$	1,490	$	496		$	346	$	203		$	6,982
Ending balance: individually evaluated for impairment	$	59		$	-	$	-		$	-		$	-	$	-		$	-	$	-		$	59
Ending balance: collectively evaluated for impairment	$	209		$	270	$	706		$	3,203		$	1,490	$	496		$	346	$	203		$	6,923
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-		$	-	$	-		$	-	$	-		$	-
FINANCING RECEIVABLES:
Ending balance	$	160,276		$	191,736	$	113,021		$	440,281		$	145,381	$	47,770		$	-	$	-		$	1,098,465
Ending balance: individually evaluated for impairment	$	902		$	-	$	-		$	192		$	1,075	$	-		$	-	$	-		$	2,169
Ending balance: collectively evaluated for impairment	$	159,028		$	191,736	$	113,021		$	440,089		$	142,263	$	47,770		$	-	$	-		$	1,093,907
Ending balance: loans acquired with deteriorated credit quality	$	346		$	-	$	-		$	-		$	2,043	$	-		$	-	$	-		$	2,389