Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans receivable, net, by category at September 30, 2019 December 31, 2018 : September 30, December 31, (in thousands) 2019 2018 Residential real estate $ 165,850 $ 164,833 Commercial real estate 279,591 262,778 Construction, land acquisition and development 39,371 20,813 Commercial and industrial 163,464 150,962 Consumer 148,435 176,784 State and political subdivisions 37,636 59,037 Total loans, gross 834,347 835,207 Unearned income (71 ) (70 ) Net deferred loan costs 2,601 3,963 Allowance for loan and lease losses (9,315 ) (9,519 ) Loans, net $ 827,562 $ 829,581 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 6 FNCB originates 1 4 three nine September 30, 2019 , one four $2.9 $7.1 three nine 30, 2018, 1 4 $2.7 $7.7 three nine September 30, 2019 69 198 $71 $171 2018. September 30, 2019 December 31, 2018 , $1.1 $0.8 1 4 During th e nine months ended September 30, 2018 , $5.7 nine September 30, 2018, $6.0 $0.3 no three nine September 30, 2019 . $106.1 September 30, 2019 $108.4 December 31, 2018 . FNCB does not There were no nine September 30, 2019 . 2, 2018 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, 2019 2018 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, 2019: Allowance for loan losses: Beginning balance, July 1, 2019 $ 1,152 $ 3,429 $ 178 $ 2,071 $ 1,839 $ 211 $ 65 $ 8,945 Charge-offs - - - (216 ) (201 ) - - (417 ) Recoveries 1 - 1 58 90 - - 150 Provisions (credits) 5 422 47 78 68 5 12 637 Ending balance, September 30, 2019 $ 1,158 $ 3,851 $ 226 $ 1,991 $ 1,796 $ 216 $ 77 $ 9,315 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 Nine months ended September 30, 2019: Allowance for loan losses: Beginning balance, January 1, 2019 $ 1,175 $ 3,107 $ 188 $ 2,552 $ 2,051 $ 417 $ 29 $ 9,519 Charge-offs (27 ) - (18 ) (976 ) (973 ) - - (1,994 ) Recoveries 7 14 82 265 592 - - 960 Provisions (credits) 3 730 (26 ) 150 126 (201 ) 48 830 Ending balance, September 30, 2019 $ 1,158 $ 3,851 $ 226 $ 1,991 $ 1,796 $ 216 $ 77 $ 9,315 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 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, 2019 December 31, 2018 : 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, 2019 Allowance for loan losses: Individually evaluated for impairment $ 25 $ 228 $ - $ 38 $ 1 $ - $ - $ 292 Collectively evaluated for impairment 1,133 3,623 226 1,953 1,795 216 77 9,023 Total $ 1,158 $ 3,851 $ 226 $ 1,991 $ 1,796 $ 216 $ 77 $ 9,315 Loans receivable: Individually evaluated for impairment $ 2,638 $ 9,383 $ 78 $ 733 $ 197 $ - $ - $ 13,029 Collectively evaluated for impairment 163,212 270,208 39,293 162,731 148,238 37,636 - 821,318 Total $ 165,850 $ 279,591 $ 39,371 $ 163,464 $ 148,435 $ 37,636 $ - $ 834,347 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 14 $ 41 $ - $ 600 $ 2 $ - $ - $ 657 Collectively evaluated for impairment 1,161 3,066 188 1,952 2,049 417 29 8,862 Total $ 1,175 $ 3,107 $ 188 $ 2,552 $ 2,051 $ 417 $ 29 $ 9,519 Loans receivable: Individually evaluated for impairment $ 1,847 $ 9,408 $ 82 $ 697 $ 383 $ - $ - $ 12,417 Collectively evaluated for impairment 162,986 253,370 20,731 150,265 176,401 59,037 - 822,790 Total $ 164,833 $ 262,778 $ 20,813 $ 150,962 $ 176,784 $ 59,037 $ - $ 835,207 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 September 30, 2019 December 31, 2018 : Credit Quality Indicators September 30, 2019 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 $ 32,373 $ 214 $ 226 $ - $ - $ 32,813 $ 131,809 $ 1,228 $ 133,037 $ 165,850 Commercial real estate 261,053 6,655 11,883 - - 279,591 - - - 279,591 Construction, land acquisition and development 37,543 - - - - 37,543 1,828 - 1,828 39,371 Commercial and industrial 153,618 2,474 1,878 - - 157,970 5,494 - 5,494 163,464 Consumer 2,907 - - - - 2,907 144,899 629 145,528 148,435 State and political subdivisions 37,615 - - - - 37,615 21 - 21 37,636 Total $ 525,109 $ 9,343 $ 13,987 $ - $ - $ 548,439 $ 284,051 $ 1,857 $ 285,908 $ 834,347 Credit Quality Indicators December 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 $ 33,573 $ 291 $ 154 $ - $ - $ 34,018 $ 130,132 $ 683 $ 130,815 $ 164,833 Commercial real estate 250,674 1,858 10,246 - - 262,778 - - - 262,778 Construction, land acquisition and development 17,704 - 757 - - 18,461 2,352 - 2,352 20,813 Commercial and industrial 137,888 4,193 2,448 - - 144,529 6,421 12 6,433 150,962 Consumer 2,024 - - - - 2,024 174,373 387 174,760 176,784 State and political subdivisions 57,345 1,665 27 - - 59,037 - - - 59,037 Total $ 499,208 $ 8,007 $ 13,632 $ - $ - $ 520,847 $ 313,278 $ 1,082 $ 314,360 $ 835,207 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 $6.1 $4.7 September 30, 2019 December 31, 2018 , 90 six no may may 90 no 90 September 30, 2019 December 31, 2018 . The following tables present the delinquency status of past due and non-accrual loans at September 30, 2019 December 31, 2018 : September 30, 2019 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 $ 163,591 $ 851 $ - $ - $ 164,442 Commercial real estate 275,847 - 414 - 276,261 Construction, land acquisition and development 39,371 - - - 39,371 Commercial and industrial 162,247 262 203 - 162,712 Consumer 145,989 1,500 317 - 147,806 State and political subdivisions 37,636 - - - 37,636 Total performing (accruing) loans 824,681 2,613 934 - 828,228 Non-accrual loans: Residential real estate 552 - - 856 1,408 Commercial real estate 1,133 - 428 1,769 3,330 Construction, land acquisition and development - - - - - Commercial and industrial 487 - - 265 752 Consumer 226 73 153 177 629 State and political subdivisions - - - - - Total non-accrual loans 2,398 73 581 3,067 6,119 Total loans receivable $ 827,079 $ 2,686 $ 1,515 $ 3,067 $ 834,347 December 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 $ 163,690 $ 319 $ 136 $ - $ 164,145 Commercial real estate 259,904 - - - 259,904 Construction, land acquisition and development 20,813 - - - 20,813 Commercial and industrial 150,108 87 20 - 150,215 Consumer 173,890 2,221 286 - 176,397 State and political subdivisions 59,037 - - - 59,037 Total performing (accruing) loans 827,442 2,627 442 - 830,511 Non-accrual loans: Residential real estate 443 - 136 109 688 Commercial real estate 1,061 - - 1,813 2,874 Construction, land acquisition and development - - - - - Commercial and industrial 677 50 - 20 747 Consumer 91 61 74 161 387 State and political subdivisions - - - - - Total non-accrual loans 2,272 111 210 2,103 4,696 Total loans receivable $ 829,714 $ 2,738 $ 652 $ 2,103 $ 835,207 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, 2019 December 31, 2018 . $100 not not 450. $100 450 $0.9 September 30, 2019 $0.7 December 31, 2018 . September 30, 2019 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 714 $ 777 $ - Commercial real estate 6,328 7,717 - Construction, land acquisition and development 78 78 - Commercial and industrial 675 880 - Consumer 24 26 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 7,819 9,478 - With a related allowance recorded: Residential real estate 1,924 1,924 25 Commercial real estate 3,055 3,774 228 Construction, land acquisition and development - - - Commercial and industrial 58 658 38 Consumer 173 173 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,210 6,529 292 Total impaired loans: Residential real estate 2,638 2,701 25 Commercial real estate 9,383 11,491 228 Construction, land acquisition and development 78 78 - Commercial and industrial 733 1,538 38 Consumer 197 199 1 State and political subdivisions - - - Total impaired loans $ 13,029 $ 16,007 $ 292 December 31, 2018 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 313 $ 375 $ - Commercial real estate 7,149 8,795 - Construction, land acquisition and development 82 82 - Commercial and industrial - - - Consumer 26 28 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 7,570 9,280 - With a related allowance recorded: Residential real estate 1,534 1,534 14 Commercial real estate 2,259 2,259 41 Construction, land acquisition and development - - - Commercial and industrial 697 697 600 Consumer 357 357 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 4,847 4,847 657 Total impaired loans: Residential real estate 1,847 1,909 14 Commercial real estate 9,408 11,054 41 Construction, land acquisition and development 82 82 - Commercial and industrial 697 697 600 Consumer 383 385 2 State and political subdivisions - - - Total impaired loans $ 12,417 $ 14,127 $ 657 The following table presents the average balance and interest income by loan category recognized on impaired loans for the three nine September 30, 2019 2018 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest (in thousands) Balance Income (1) Balance Income (1) Balance Income (1) Balance Income (1) Residential real estate $ 2,193 $ 21 $ 1,783 $ 21 $ 1,970 $ 62 $ 1,819 $ 63 Commercial real estate 9,012 73 9,296 79 9,290 226 8,320 231 Construction, land acquisition and development 78 1 83 1 80 4 84 3 Commercial and industrial 861 - 752 - 1,082 1 780 1 Consumer 198 2 386 5 259 9 389 12 State and political subdivisions - - - - - - - - Total impaired loans $ 12,342 $ 97 $ 12,300 $ 106 $ 12,681 $ 302 $ 11,392 $ 310 ( 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 $90 $267 three nine September 30, 2019 $65 $150 three nine September 30, 2018 Troubled Debt Restructured Loans TDRs at September 30, 2019 December 31, 2018 $8.1 $9.2 $7.8 $0.3 September 30, 2019 , $8.5 $0.7 December 31, 2018 . $123 $651 September 30, 2019 December 31, 2018 , not September 30, 2019 . The modification of the terms of loans classified as TDRs may one three nine 30, 2019. Three months ended September 30, 2019 Pre-Modification Outstanding Recorded Investment by Type of Modification (in thousands) Number of Contracts Forbearance Extension of Terms Capitalization of Taxes Total Post-Modification Outstanding Recorded Investment Types of modification: Residential real estate 3 $ 208 - $ 42 $ 250 $ 261 Commercial real estate - - - - - - Construction, land acquisition and development - - - - - - Commercial and industrial - - - - - - Consumer - - - - - - State and political subdivisions - - - - - - Total modifications 3 $ 208 $ - $ 42 $ 250 $ 261 Nine months ended September 30, 2019 Pre-Modification Outstanding Recorded Investment by Type of Modification (in thousands) Number of Contracts Forbearance Extension of Terms Capitalization of Taxes Total Post-Modification Outstanding Recorded Investment Types of modification: Residential real estate 4 $ 208 24 $ 42 $ 274 $ 285 Commercial real estate - - - - - - Construction, land acquisition and development - - - - - - Commercial and industrial - - - - - - Consumer - - - - - - State and political subdivisions - - - - - - Total modifications 4 $ 208 $ 24 $ 42 $ 274 $ 285 There were no three nine September 30, 2018. no 12 90 nine 30, 2019 2018. Residential Real Estate Loan Foreclosures There were two consumer mortgage loans with an aggregate recorded investment of $154 thousand secured by residential real estate properties in the process of foreclosure at September 30, 2019 three nine September 30, 2019 nine September 30, 2019, two $256 September 30, 2019. There were four $20 September 30, 2018 three nine September 30, 2018, no one $59 September 30, 2018 . |