Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. L oans The following table summarizes loans receivable, net, by category at September 30, 2017 December 31, 2016: September 30, December 31, (in thousands) 2017 2016 Residential real estate $ 152,257 $ 144,260 Commercial real estate 253,791 243,830 Construction, land acquisition and development 26,805 18,357 Commercial and industrial 146,048 150,758 Consumer 138,734 127,844 State and political subdivisions 39,271 43,709 Total loans, gross 756,906 728,758 Unearned income (84 ) (48 ) Net deferred loan costs 2,667 2,569 Allowance for loan and lease losses (8,862 ) (8,419 ) Loans, net $ 750,627 $ 722,860 FNCB has granted loans, letters of credit and lines of credit to certain of its executive officers and directors as well as to certain of their related parties. For more information about related party transactions, refer to Note 7, FNCB originates one four three nine September 30, 2017, one four $3.7 $10.0 three nine September 30, 2017 $106 $241 $99 $238 2016. September 30, 2017 December 31, 2016, $147 $596 one four During the three nine September 30, 2017, $322 $900 $23 $79 three nine September 30, 2017, three nine September 30, 2016 $ 51 FNCB does not There were no ’s loan segments, loan classification and credit grading systems and methodology for determining the adequacy of the ALLL during the nine September 30, 2017. 2, 2016 10 Each quarter, management evaluates the ALLL and adjusts the ALLL as appropriate through a provision or credit for loan losses. While management uses the best information available to make evaluations, future adjustments to the ALLL may may The following table s ummarizes activity in the ALLL by loan category for the three nine September 30, 2017 2016: Real Estate Residential Commercial Construction, Land Acquisition and Commercial State and Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total Three months ended September 30, 2017: Allowance for loan losses: Beginning balance, July 1, 2017 $ 1,148 $ 3,022 $ 236 $ 2,313 $ 1,442 $ 308 $ - $ 8,469 Charge-offs (32 ) (85 ) - (128 ) (132 ) - - (377 ) Recoveries 16 38 - 125 48 - - 227 Provisions (credits) 46 328 41 53 75 - - 543 Ending balance, September 30, 2017 $ 1,178 $ 3,303 $ 277 $ 2,363 $ 1,433 $ 308 $ - $ 8,862 Three months ended September 30, 2016: Allowance for loan losses: Beginning balance, July 1, 2016 $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Charge-offs (37 ) - - (18 ) (134 ) - - (189 ) Recoveries 2 1 - 184 167 - - 354 Provisions (credits) 49 185 (50 ) (232 ) 50 (236 ) - (234 ) Ending balance, September 30, 2016 $ 1,113 $ 3,281 $ 667 $ 1,499 $ 1,433 $ 497 $ - $ 8,490 Nine months ended September 30, 2017: Allowance for loan losses: Beginning balance, January 1, 2017 $ 1,171 $ 3,297 $ 268 $ 1,736 $ 1,457 $ 490 $ - $ 8,419 Charge-offs (112 ) (114 ) - (475 ) (438 ) - - (1,139 ) Recoveries 28 43 421 304 300 - - 1,096 Provisions (credits) 91 77 (412 ) 798 114 (182 ) - 486 Ending balance, September 30, 2017 $ 1,178 $ 3,303 $ 277 $ 2,363 $ 1,433 $ 308 $ - $ 8,862 Nine months ended September 30, 2016: Allowance for loan losses: Beginning balance, January 1, 2016 $ 1,333 $ 3,346 $ 853 $ 1,205 $ 1,494 $ 485 $ 74 $ 8,790 Charge-offs (61 ) (251 ) - (1,082 ) (652 ) - - (2,046 ) Recoveries 4 4 9 396 475 - - 888 Provisions (credits) (163 ) 182 (195 ) 980 116 12 (74 ) 858 Ending balance, September 30, 2016 $ 1,113 $ 3,281 $ 667 $ 1,499 $ 1,433 $ 497 $ - $ 8,490 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at September 30, 2017 December 31, 2016: Real Estate Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 7 $ 163 $ - $ 600 $ 2 $ - $ 772 Collectively evaluated for impairment 1,171 3,140 277 1,763 1,431 308 8,090 Total $ 1,178 $ 3,303 $ 277 $ 2,363 $ 1,433 $ 308 $ 8,862 Loans receivable: Individually evaluated for impairment $ 1,789 $ 8,256 $ 86 $ 795 $ 397 $ - $ 11,323 Collectively evaluated for impairment 150,468 245,535 26,719 145,253 138,337 39,271 745,583 Total $ 152,257 $ 253,791 $ 26,805 $ 146,048 $ 138,734 $ 39,271 $ 756,906 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 29 $ 254 $ - $ 18 $ 1 $ - $ 302 Collectively evaluated for impairment 1,142 3,043 268 1,718 1,456 490 8,117 Total $ 1,171 $ 3,297 $ 268 $ 1,736 $ 1,457 $ 490 $ 8,419 Loans receivable: Individually evaluated for impairment $ 1,929 $ 2,937 $ 350 $ 91 $ 297 $ - $ 5,604 Collectively evaluated for impairment 142,331 240,893 18,007 150,667 127,547 43,709 723,154 Total $ 144,260 $ 243,830 $ 18,357 $ 150,758 $ 127,844 $ 43,709 $ 728,758 Credit Quality Indicators – Commercial Loans Management continuously monitors and evaluates the credit quality of FNCB’s commercial loans by regularly reviewing certain credit quality indicators. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of FNCB’s loan receivables. FNCB ’s loan rating system assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial and industrial loans include commercial indirect auto loans which are not not 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass – Assets rated 1 5 no not Special Mention – Assets classified as special mention do not not Substandard – Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that FNCB will sustain some loss if the deficiencies are not Doubtful – Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that such weaknesses make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss – Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not Credit Quality Indicators – Other Loans Certain residential real estate loans, consumer loans, and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 unless collection of the loan is in process and reasonably assured. FNCB utilizes accruing versus non-accrual status as the credit quality indicator for these loan pools. The following table s present the recorded investment in loans receivable by loan category and credit quality indicator at September 30, 2017 December 31, 2016: Credit Quality Indicators September 30, 2017 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 22,866 $ 331 $ 317 $ - $ - $ 23,514 $ 128,287 $ 456 $ 128,743 $ 152,257 Commercial real estate 237,484 7,695 8,612 - - 253,791 - - - 253,791 Construction, land acquisition and development 23,716 333 6 - - 24,055 2,750 - 2,750 26,805 Commercial and industrial 140,427 882 1,176 - - 142,485 3,563 - 3,563 146,048 Consumer 2,373 94 35 - - 2,502 136,002 230 136,232 138,734 State and political subdivisions 38,864 - 407 - - 39,271 - - - 39,271 Total $ 465,730 $ 9,335 $ 10,553 $ - $ - $ 485,618 $ 270,602 $ 686 $ 271,288 $ 756,906 Credit Quality Indicators December 31, 2016 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 25,506 $ 394 $ 466 $ - $ - $ 26,366 $ 117,286 $ 608 $ 117,894 $ 144,260 Commercial real estate 233,523 4,911 5,396 - - 243,830 - - - 243,830 Construction, land acquisition and development 14,101 346 448 - - 14,895 3,462 - 3,462 18,357 Commercial and industrial 142,794 2,794 1,128 - - 146,716 4,042 - 4,042 150,758 Consumer 2,699 - 37 - - 2,736 124,935 173 125,108 127,844 State and political subdivisions 40,424 2,964 321 - - 43,709 - - - 43,709 Total $ 459,047 $ 11,409 $ 7,796 $ - $ - $ 478,252 $ 249,725 $ 781 $ 250,506 $ 728,758 Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $2.6 $2.2 September 30, 2017 December 31, 2016, 90 six no may may 90 no 90 September 30, 2017 December 31, 2016. The following tables present the delinquency status of past due and non-accrual loans at September 30, 2017 December 31, 2016: September 30, 2017 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 151,136 $ 271 $ 328 $ - $ 151,735 Commercial real estate 251,467 519 704 - 252,690 Construction, land acquisition and development 26,777 28 - - 26,805 Total real estate 429,380 818 1,032 - 431,230 Commercial and industrial 144,896 272 91 - 145,259 Consumer 137,235 992 277 - 138,504 State and political subdivisions 39,262 9 - - 39,271 Total performing (accruing) loans 750,773 2,091 1,400 - 754,264 Non-accrual loans: Real estate: Residential real estate 230 - 191 101 522 Commercial real estate - - - 1,101 1,101 Construction, land aquisition and development - - - - - Total real estate 230 - 191 1,202 1,623 Commercial and industrial 750 - - 39 789 Consumer 76 18 6 130 230 State and political subdivisions - - - - - Total non-accrual loans 1,056 18 197 1,371 2,642 Total loans receivable $ 751,829 $ 2,109 $ 1,597 $ 1,371 $ 756,906 December 31, 2016 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 143,142 $ 229 $ 107 $ - $ 143,478 Commercial real estate 241,477 830 553 - 242,860 Construction, land acquisition and development 17,766 346 - - 18,112 Total real estate 402,385 1,405 660 - 404,450 Commercial and industrial 150,378 307 9 - 150,694 Consumer 126,341 1,030 300 - 127,671 State and political subdivisions 43,709 - - - 43,709 Total peforming (accruing) loans 722,813 2,742 969 - 726,524 Non-accrual loans: Real estate: Residential real estate 176 202 17 387 782 Commercial real estate 201 23 - 746 970 Construction, land acquisition and development - 245 - - 245 Total real estate 377 470 17 1,133 1,997 Commercial and industrial - - - 64 64 Consumer 56 25 2 90 173 State and political subdivisions - - - - - Total non-accrual loans 433 495 19 1,287 2,234 Total loans receivable $ 723,246 $ 3,237 $ 988 $ 1,287 $ 728,758 The following tables present a distribution of the recorded investment, unpaid principal balance and the related allowance for FNCB’s impaired loans, which have been analyzed for impairment under ASC 310, September 30, 2017 December 31, 2016. $100 not not 450. $100 450 $0.6 September 30, 2017 $0.8 December 31, 2016. September 30, 2017 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 220 $ 281 $ - Commercial real estate 5,233 5,302 - Construction, land acquisition and development 86 86 - Total real estate 5,539 5,669 - Commercial and industrial 21 53 - Consumer 30 30 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 5,590 5,752 - With a related allowance recorded: Real estate: Residential real estate 1,569 1,569 7 Commercial real estate 3,023 3,023 163 Construction, land acquisition and development - - - Total real estate 4,592 4,592 170 Commercial and industrial 774 774 600 Consumer 367 367 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,733 5,733 772 Total impaired loans: Real estate: Residential real estate 1,789 1,850 7 Commercial real estate 8,256 8,325 163 Construction, land acquisition and development 86 86 - Total real estate 10,131 10,261 170 Commercial and industrial 795 827 600 Consumer 397 397 2 State and political subdivisions - - - Total impaired loans $ 11,323 $ 11,485 $ 772 December 31, 2016 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 386 $ 477 $ - Commercial real estate 1,066 1,143 - Construction, land acquisition and development 350 766 - Total real estate 1,802 2,386 - Commercial and industrial 73 105 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 1,875 2,491 - With a related allowance recorded: Real estate: Residential real estate 1,543 1,543 29 Commercial real estate 1,871 1,871 254 Construction, land acquisition and development - - - Total real estate 3,414 3,414 283 Commercial and industrial 18 18 18 Consumer 297 297 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 3,729 3,729 302 Total impaired loans: Real estate: Residential real estate 1,929 2,020 29 Commercial real estate 2,937 3,014 254 Construction, land acquisition and development 350 766 - Total real estate 5,216 5,800 283 Commercial and industrial 91 123 18 Consumer 297 297 1 State and political subdivisions - - - Total impaired loans $ 5,604 $ 6,220 $ 302 The following table presents the average balance and interest income by loan category recognized on impa ired loans for the three nine September 30, 2017 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Real estate: Residential real estate $ 1,815 $ 21 $ 1,933 $ 21 $ 1,828 $ 63 $ 2,416 $ 69 Commercial real estate 8,431 82 2,835 23 7,941 194 3,476 69 Construction, land acquisition and development 86 1 379 1 87 3 452 5 Total real estate 10,332 104 5,147 45 9,856 260 6,344 143 Commercial and industrial 1,212 1 196 - 1,136 15 315 2 Consumer 328 3 299 1 329 9 301 7 State and political subdivisions - - - - - - - - Total impaired loans $ 11,872 $ 108 $ 5,642 $ 46 $ 11,321 $ 284 $ 6,960 $ 152 ( 1 The additional interest income that would have been earned on non-accrual and restructured loans had these loans performed in accordance with their original terms approximated $50 $116 three nine September 30, 2017, $48 $175 three nine September 30, 2016. Troubled Debt Restructured Loans TDRs at September 30, 2017 December 31, 2016 $10.2 $4.3 $9.3 $0.9 September 30, 2017, $4.2 $0.1 December 31, 2016. $772 $261 September 30, 2017 December 31, 2016, not September 30, 2017. The modification of the terms of such loans may one The following table s show the pre- and post-modification recorded investment in loans modified as TDRs during the three nine September 30, 2017 2016. Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Contracts Investment Investment Contracts Investment Investment Troubled debt restructurings: Residential real estate - $ - $ - 1 $ 63 $ 63 Commercial real estate - - - 8 5,250 5,250 Construction, land acquisition and development - - - - - - Commercial and industrial - - - 4 1,845 1,845 Consumer 2 85 104 2 85 104 States and political subdivisions - - - - - - Total new troubled debt restructurings 2 $ 85 $ 104 15 $ 7,243 $ 7,262 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Contracts Investment Investment Contracts Investment Investment Troubled debt restructurings: Residential real estate 1 $ 95 $ 99 1 $ 95 $ 99 Commercial real estate - - - - - - Construction, land acquisition and development - - - - - - Commercial and industrial - - - - - - Consumer - - - - - - States and political subdivisions - - - - - - Total new troubled debt restructurings 1 $ 95 $ 99 1 $ 95 $ 99 The following table presents the types of modifications made during the three nine September 30, 2017 2016: Three months ended September 30, 2017 Nine months ended September 30, 2017 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forbearance Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forbearance Forbearance Total Modifications Types of modification: Residential real estate $ - $ - $ - $ - $ - $ 63 $ - $ - $ - $ 63 Commercial real estate - - - - - - - - 5,250 5,250 Construction, land acquisition and development - - - - - - - - - - Commercial and industrial - - - - - - - 25 1,820 1,845 Consumer - 85 - - 85 - 85 - - 85 State and political subdivisions - - - - - - - - - - Total modifications $ - $ 85 $ - $ - $ 85 $ 63 $ 85 $ 25 $ 7,070 $ 7,243 Three months ended September 30, 2016 Nine months ended September 30, 2016 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forbearance Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forbearance Forbearance Total Modifications Types of modification: Residential real estate $ - $ 95 $ - $ - $ 95 $ - $ 95 $ - $ - $ 95 Commercial real estate - - - - - - - - - - Construction, land acquisition and development - - - - - - - - - - Commercial and industrial - - - - - - - - - - Consumer - - - - - - - - - - State and political subdivisions - - - - - - - - - - Total modifications $ - $ 95 $ - $ - $ 95 $ - $ 95 $ - $ - $ 95 There were eight nine September 30, 2017, fifteen three eight $5.3 two four $1.8 nine September 30, 2017. two $85 one $63 one $4.0 seven two $1.2 four $0.3 three $1.8 one third 2017, two four $0.8 nine September 30, 2017 The following table presents the number and recorded investment of TDRs that were modified within the previous 12 90 nine September 30, 2017 2016: Nine Months Ended September 30, 2017 2016 Number of Recorded Number of Recorded (dollars in thousands) Contracts Investment Contracts Investment Troubled debt restructurings: Residential real estate - $ - 3 $ 145 Commercial real estate - - 1 680 Construction, land acquisition and development 1 10 - - Commercial and industrial - - - - Consumer - - - - State and political subdivisions - - - - Total TDR defaults 1 $ 10 4 $ 825 There were no 12 three September 30, 2017 2016. For the nine September 30, 2016, one three $37 one nine September 30, 2016 third 2016. Residential Real Estate Loan Foreclosures There were two 14 September 30, 2017. no three September 30, 2017. nine September 30, 2017, two $125 two nine September 30, 2017, one $30 one $237 nine September 30, 2016. There were four $1 49 September 30, 2017, two $41 December 31, 2016. |