Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans receivable, net, by category at March 31, 2018 December 31, 2017: March 31, December 31, (in thousands) 2018 2017 Residential real estate $ 164,747 $ 158,020 Commercial real estate 248,984 261,783 Construction, land acquisition and development 26,260 20,981 Commercial and industrial 162,381 150,103 Consumer 156,684 134,653 State and political subdivisions 45,801 42,529 Total loans, gross 804,857 768,069 Unearned income (78 ) (80 ) Net deferred loan costs 3,423 2,654 Allowance for loan and lease losses (9,562 ) (9,034 ) Loans, net $ 798,640 $ 761,609 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 March 31, 2018, one four $2.8 three March 31, 2018 2017 $49 $25 March 31, 2018 December 31, 2017, $366 $1.1 one four During the three March 31, 2018, $5.0 March 31, 2018 $251 no three March 31, 2017. $107.8 March 31, 2018 $103.0 December 31, 2017. FNCB does not There were no three March 31, 2018. 2, 2017 10 Management evaluates the credit quality of the loan portfolio on an ongoing basis, and performs a formal review of the adequacy of the ALLL on a quarterly basis. This evaluation is inherently subjective, as it requires material estimates that may may may may The following table summarizes activity in the ALLL by loan category for the three March 31, 2018 2017. Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Total Three months ended March 31, 2018: Allowance for loan losses: Beginning balance, January 1, 2018 $ 1,236 $ 3,499 $ 209 $ 2,340 $ 1,395 $ 355 $ 9,034 Charge-offs (63 ) - - (77 ) (260 ) - (400 ) Recoveries 6 1 30 72 99 - 208 Provisions (credits) 70 (158 ) 17 170 588 33 720 Ending balance, March 31, 2018 $ 1,249 $ 3,342 $ 256 $ 2,505 $ 1,822 $ 388 $ 9,562 Three months ended March 31, 2017: Allowance for loan losses: Beginning balance, January 1, 2017 $ 1,171 $ 3,297 $ 268 $ 1,736 $ 1,457 $ 490 $ 8,419 Charge-offs (49 ) - - (30 ) (218 ) - (297 ) Recoveries 1 4 421 69 167 - 662 Provisions (credits) 21 200 (466 ) (96 ) 4 (141 ) (478 ) Ending balance, March 31, 2017 $ 1,144 $ 3,501 $ 223 $ 1,679 $ 1,410 $ 349 $ 8,306 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at March 31, 2018 December 31, 2017: Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Total March 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 7 $ 104 $ - $ 600 $ 2 $ - $ 713 Collectively evaluated for impairment 1,242 3,238 256 1,905 1,820 388 8,849 Total $ 1,249 $ 3,342 $ 256 $ 2,505 $ 1,822 $ 388 $ 9,562 Loans receivable: Individually evaluated for impairment $ 1,815 $ 7,674 $ 84 $ 795 $ 392 $ - $ 10,760 Collectively evaluated for impairment 162,932 241,310 26,176 161,586 156,292 45,801 794,097 Total $ 164,747 $ 248,984 $ 26,260 $ 162,381 $ 156,684 $ 45,801 $ 804,857 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 33 $ 138 $ - $ 600 $ 2 $ - $ 773 Collectively evaluated for impairment 1,203 3,361 209 1,740 1,393 355 8,261 Total $ 1,236 $ 3,499 $ 209 $ 2,340 $ 1,395 $ 355 $ 9,034 Loans receivable: Individually evaluated for impairment $ 1,902 $ 8,164 $ 85 $ 795 $ 395 $ - $ 11,341 Collectively evaluated for impairment 156,118 253,619 20,896 149,308 134,258 42,529 756,728 Total $ 158,020 $ 261,783 $ 20,981 $ 150,103 $ 134,653 $ 42,529 $ 768,069 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. Minimal Risk 2. Above Average Credit Quality 3. Average Risk 4. Acceptable Risk 5. Pass - Watch 6. Special Mention 7. Substandard - Accruing 8. Substandard - Non-Accrual 9. Doubtful 10. Loss 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 The following tables present the recorded investment in loans receivable by loan category and credit quality indicator at March 31, 2018 December 31, 2017: Credit Quality Indicators March 31, 2018 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 $ 32,910 $ 416 $ 64 $ - $ - $ 33,390 $ 131,012 $ 345 $ 131,357 $ 164,747 Commercial real estate 234,138 1,990 12,856 - - 248,984 - - - 248,984 Construction, land acquisition and development 22,914 327 393 - - 23,634 2,626 - 2,626 26,260 Commercial and industrial 153,124 699 2,314 - - 156,137 6,244 - 6,244 162,381 Consumer 1,710 35 - - - 1,745 154,677 262 154,939 156,684 State and political subdivisions 44,868 711 140 - - 45,719 82 - 82 45,801 Total $ 489,664 $ 4,178 $ 15,767 $ - $ - $ 509,609 $ 294,641 $ 607 $ 295,248 $ 804,857 Credit Quality Indicators December 31, 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 $ 27,186 $ 421 $ 62 $ - $ - $ 27,669 $ 129,887 $ 464 $ 130,351 $ 158,020 Commercial real estate 245,779 2,461 13,543 - - 261,783 - - - 261,783 Construction, land acquisition and development 18,280 330 6 - - 18,616 2,365 - 2,365 20,981 Commercial and industrial 142,019 479 1,597 - - 144,095 6,008 - 6,008 150,103 Consumer 1,731 - 34 - - 1,765 132,584 304 132,888 134,653 State and political subdivisions 42,040 - 396 - - 42,436 93 - 93 42,529 Total $ 477,035 $ 3,691 $ 15,638 $ - $ - $ 496,364 $ 270,937 $ 768 $ 271,705 $ 768,069 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 $2.4 $2.6 March 31, 2018 December 31, 2017, 90 six no may may 90 no 90 March 31, 2018 December 31, 2017. The following tables present the delinquency status of past due and non-accrual loans at March 31, 2018 December 31, 2017: March 31, 2018 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: Residential real estate $ 163,909 $ 306 $ 136 $ - $ 164,351 Commercial real estate 247,116 464 452 - 248,032 Construction, land acquisition and development 26,257 - 3 - 26,260 Commercial and industrial 160,681 908 - - 161,589 Consumer 155,249 1,070 102 - 156,421 State and political subdivisions 45,801 - - - 45,801 Total performing (accruing) loans 799,013 2,748 693 - 802,454 Non-accrual loans: Residential real estate 329 - - 67 396 Commercial real estate - - - 952 952 Construction, land aquisition and development - - - - - Commercial and industrial 750 - - 42 792 Consumer 94 44 48 77 263 State and political subdivisions - - - - - Total non-accrual loans 1,173 44 48 1,138 2,403 Total loans receivable $ 800,186 $ 2,792 $ 741 $ 1,138 $ 804,857 December 31, 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: Residential real estate $ 156,701 $ 793 $ - $ - $ 157,494 Commercial real estate 260,276 70 473 - 260,819 Construction, land acquisition and development 20,954 27 - - 20,981 Commercial and industrial 149,046 185 88 - 149,319 Consumer 133,034 1,028 287 - 134,349 State and political subdivisions 42,529 - - - 42,529 Total performing (accruing) loans 762,540 2,103 848 - 765,491 Non-accrual loans: Residential real estate 342 63 - 120 525 Commercial real estate - - - 964 964 Construction, land aquisition and development - - - - - Commercial and industrial 750 - - 35 785 Consumer 25 92 53 134 304 State and political subdivisions - - - - - Total non-accrual loans 1,117 155 53 1,253 2,578 Total loans receivable $ 763,657 $ 2,258 $ 901 $ 1,253 $ 768,069 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, March 31, 2018 December 31, 2017. $100 not not 450. $100 450 $0.4 March 31, 2018 $0.5 December 31, 2017. March 31, 2018 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 210 $ 278 $ - Commercial real estate 5,345 5,474 - Construction, land acquisition and development 84 84 - Commercial and industrial 21 53 - Consumer 29 29 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 5,689 5,918 - With a related allowance recorded: Residential real estate 1,605 1,605 7 Commercial real estate 2,329 2,329 104 Construction, land acquisition and development - - - Commercial and industrial 774 774 600 Consumer 363 363 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,071 5,071 713 Total impaired loans: Residential real estate 1,815 1,883 7 Commercial real estate 7,674 7,803 104 Construction, land acquisition and development 84 84 - Commercial and industrial 795 827 600 Consumer 392 392 2 State and political subdivisions - - - Total impaired loans $ 10,760 $ 10,989 $ 713 December 31, 2017 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 190 $ 216 $ - Commercial real estate 5,174 5,295 - Construction, land acquisition and development 85 85 - Commercial and industrial 21 53 - Consumer 30 30 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 5,500 5,679 - With a related allowance recorded: Residential real estate 1,712 1,751 33 Commercial real estate 2,990 2,990 138 Construction, land acquisition and development - - - Commercial and industrial 774 774 600 Consumer 365 365 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,841 5,880 773 Total impaired loans: Residential real estate 1,902 1,967 33 Commercial real estate 8,164 8,285 138 Construction, land acquisition and development 85 85 - Commercial and industrial 795 827 600 Consumer 395 395 2 State and political subdivisions - - - Total impaired loans $ 11,341 $ 11,559 $ 773 The following table presents the average balance and interest income by loan category recognized on impaired loans for the three March 31, 2018 2017: Three Months Ended March 31, 2018 2017 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Residential real estate $ 1,868 $ 21 $ 1,906 $ 21 Commercial real estate 7,839 77 4,241 40 Construction, land acquisition and development 84 1 159 1 Commercial and industrial 795 - 315 5 Consumer 393 4 296 3 State and political subdivisions - - - - Total impaired loans $ 10,979 $ 103 $ 6,917 $ 70 ( 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 $40 $27 three March 31, 2018 2017, Troubled Debt Restructured Loans TDRs at March 31, 2018 December 31, 2017 $9.7 $10.2 $8.8 $0.9 March 31, 2018, $9.3 $0.9 December 31, 2017. $713 $750 March 31, 2018 December 31, 2017, not March 31, 2018. The modification of the terms of such loans may one There were no three March 31, 2018. three March 31, 2017: Three months ended March 31, 2017 Pre-Modification Outstanding Recorded Investment by Type of Modification (in thousands) Number of Contracts Forbearance Total Post-Modification Outstanding Recorded Investment Types of modification: Residential real estate - $ - $ - $ - Commercial real estate 1 4,022 4,022 4,022 Construction, land acquisition and development - - - - Commercial and industrial 1 695 695 695 Consumer - - - - State and political subdivisions - - - - Total modifications 2 $ 4,717 $ 4,717 $ 4,717 The two three March 31, 2017 $337 There were no 12 90 three March 31, 2018. one $10 12 three March 31, 2017. Residential Real Estate Loan Foreclosures There were four no March 31, 2018. three March 31, 2018, no two $75 March 31, 2018. There were four $91 March 31, 2017. one $45 three March 31, 2017. three $86 March 31, 2017. |