Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans receivable, net, by category at September 30, 2018 December 31, 2017: September 30, December 31, (in thousands) 2018 2017 Residential real estate $ 165,942 $ 158,020 Commercial real estate 268,979 261,783 Construction, land acquisition and development 19,342 20,981 Commercial and industrial 162,325 150,103 Consumer 184,473 134,653 State and political subdivisions 59,033 42,529 Total loans, gross 860,094 768,069 Unearned income (72 ) (80 ) Net deferred loan costs 4,294 2,654 Allowance for loan and lease losses (9,827 ) (9,034 ) Loans, net $ 854,489 $ 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 three nine September 30, 2018, one four $2.7 $7.7 three nine September 30, 2018 $71 $171 $106 $241 2017. September 30, 2018 December 31, 2017, $0.9 $1.1 one four During the nine September 30, 2018, $5.7 $322 nine September 30, 2018. no three September 30, 2018. three nine September 30, 2017, $0.3 $0.9 $23 $79 three nine September 30, 2017, $109.3 September 30, 2018 $103.0 December 31, 2017. FNCB does not There were no nine September 30, 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 nine September 30, 2018 2017: Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total Three months ended September 30, 2018: Allowance for loan losses: Beginning balance, July 1, 2018 $ 1,201 $ 3,107 $ 251 $ 2,455 $ 2,006 $ 439 $ - $ 9,459 Charge-offs - (719 ) - (5 ) (313 ) - - (1,037 ) Recoveries 5 39 - 58 154 - - 256 Provisions (credits) (39 ) 803 (56 ) 83 273 61 24 1,149 Ending balance, September 30, 2018 $ 1,167 $ 3,230 $ 195 $ 2,591 $ 2,120 $ 500 $ 24 $ 9,827 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 Nine months ended September 30, 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 ) (1,845 ) - (86 ) (753 ) - - (2,747 ) Recoveries 132 42 30 205 382 - - 791 Provisions (credits) (138 ) 1,534 (44 ) 132 1,096 145 24 2,749 Ending balance, September 30, 2018 $ 1,167 $ 3,230 $ 195 $ 2,591 $ 2,120 $ 500 $ 24 $ 9,827 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 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, 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 Unallocated Total September 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 16 $ 61 $ - $ 600 $ 2 $ - $ - $ 679 Collectively evaluated for impairment 1,151 3,169 195 1,991 2,118 500 24 9,148 Total $ 1,167 $ 3,230 $ 195 $ 2,591 $ 2,120 $ 500 $ 24 $ 9,827 Loans receivable: Individually evaluated for impairment $ 1,863 $ 9,356 $ 83 $ 751 $ 385 $ - $ - $ 12,438 Collectively evaluated for impairment 164,079 259,623 19,259 161,574 184,088 59,033 - 847,656 Total $ 165,942 $ 268,979 $ 19,342 $ 162,325 $ 184,473 $ 59,033 $ - $ 860,094 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. 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 The following tables present the recorded investment in loans receivable by loan category and credit quality indicator at September 30, 2018 December 31, 2017: Credit Quality Indicators September 30, 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 $ 33,932 $ 379 $ 117 $ - $ - $ 34,428 $ 130,901 $ 613 $ 131,514 $ 165,942 Commercial real estate 256,398 1,897 10,684 - - 268,979 - - - 268,979 Construction, land acquisition and development 16,084 322 759 - - 17,165 2,177 - 2,177 19,342 Commercial and industrial 149,651 4,094 2,238 - - 155,983 6,341 1 6,342 162,325 Consumer 2,245 - - - - 2,245 182,031 197 182,228 184,473 State and political subdivisions 57,456 1,463 65 - - 58,984 49 - 49 59,033 Total $ 515,766 $ 8,155 $ 13,863 $ - $ - $ 537,784 $ 321,499 $ 811 $ 322,310 $ 860,094 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 $4.4 $2.6 September 30, 2018 December 31, 2017, 90 six no may may 90 no 90 September 30, 2018 December 31, 2017. The following tables present the delinquency status of past due and non-accrual loans at September 30, 2018 December 31, 2017: September 30, 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 $ 164,499 $ 209 $ 613 $ - $ 165,321 Commercial real estate 265,282 268 652 - 266,202 Construction, land acquisition and development 19,342 - - - 19,342 Commercial and industrial 161,491 37 1 - 161,529 Consumer 182,663 1,233 380 - 184,276 State and political subdivisions 59,033 - - - 59,033 Total performing (accruing) loans 852,310 1,747 1,646 - 855,703 Non-accrual loans: Residential real estate 298 - 295 28 621 Commercial real estate 2,070 - - 707 2,777 Construction, land aquisition and development - - - - - Commercial and industrial 717 - 50 29 796 Consumer 99 17 29 52 197 State and political subdivisions - - - - - Total non-accrual loans 3,184 17 374 816 4,391 Total loans receivable $ 855,494 $ 1,764 $ 2,020 $ 816 $ 860,094 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 peforming (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 acquisition 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, September 30, 2018 December 31, 2017. $100 not not 450. $100 450 $0.5 September 30, 2018 December 31, 2017. September 30, 2018 Unpaid Recorded Principal Related (in thousands) Recorded Investment Balance Related Allowance With no related allowance recorded: Residential real estate $ 410 $ 469 $ - Commercial real estate 7,075 8,698 - Construction, land acquisition and development 83 83 - Commercial and industrial 15 50 - Consumer 27 28 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 7,610 9,328 - With a related allowance recorded: Residential real estate 1,453 1,453 16 Commercial real estate 2,281 2,281 61 Construction, land acquisition and development - - - Commercial and industrial 736 736 600 Consumer 358 358 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 4,828 4,828 679 Total impaired loans: Residential real estate 1,863 1,922 16 Commercial real estate 9,356 10,979 61 Construction, land acquisition and development 83 83 - Commercial and industrial 751 786 600 Consumer 385 386 2 State and political subdivisions - - - Total impaired loans $ 12,438 $ 14,156 $ 679 December 31, 2017 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no related 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 of, and interest income recognized on, impaired loans summarized by loan category for the three nine September 30, 2018 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Residential real estate $ 1,783 $ 21 $ 1,815 $ 21 $ 1,819 $ 63 $ 1,828 $ 63 Commercial real estate 9,296 79 8,431 82 8,320 231 7,941 194 Construction, land acquisition and development 83 1 86 1 84 3 87 3 Commercial and industrial 752 - 1,212 1 780 1 1,136 15 Consumer 386 5 328 3 389 12 329 9 State and political subdivisions - - - - - - - - Total impaired loans $ 12,300 $ 106 $ 11,872 $ 108 $ 11,392 $ 310 $ 11,321 $ 284 ( 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 $65 $150 three nine September 30, 2018, $50 $116 three nine September 30, 2017, Troubled Debt Restructured Loans TDRs at September 30, 2018 December 31, 2017 $9.3 $10.2 $8.5 $0.8 September 30, 2018, $9.3 $0.9 December 31, 2017. $671 $750 September 30, 2018, December 31, 2017, not September 30, 2018. The modification of the terms of loans classified as TDRs may one There were no three nine September 30, 2018. three nine September 30, 2017. Three Months Ended September 30, 2017 Pre-Modification Outstanding Recorded Investment by Type of Modification (in thousands) Number of Contracts Forebearance Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forebearance Total Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Residential real estate - $ - $ - $ - $ - $ - $ - Commercial real estate - - - - - - - Construction, land acquisition and development - - - - - - - Commercial and industrial - - - - - - - Consumer 2 - - 85 - 85 104 States and political subdivisions - - - - - - - Total new troubled debt restructurings 2 $ - $ - $ 85 $ - $ 85 $ 104 Nine Months Ended September 30, 2017 Pre-Modification Outstanding Recorded Investment by Type of Modification (in thousands) Number of Contracts Forebearance Extension of Term Extension of Term and Capitalization of Taxes Extension of Term and Forebearance Total Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Residential real estate 1 $ - $ 63 $ - $ - $ 63 $ 63 Commercial real estate 8 5,250 - - - 5,250 5,250 Construction, land acquisition and development - - - - - - - Commercial and industrial 4 1,820 - - 25 1,845 1,845 Consumer 2 - - 85 - 85 104 States and political subdivisions - - - - - - - Total new troubled debt restructurings 15 $ 7,070 $ 63 $ 85 $ 25 $ 7,243 $ 7,262 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 There were no 12 90 three nine September 30, 2018. one $10 12 nine September 30, 2017. Residential Real Estate Loan Foreclosures There were four $20 September 30, 2018. three nine September 30, 2018, no one $59 September 30, 2018. 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 four $149 September 30, 2017. |