Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans receivable, net, by category at June 30, 2020 December 31, 2019 : June 30, December 31, (in thousands) 2020 2019 Residential real estate $ 170,517 $ 170,723 Commercial real estate 281,950 278,379 Construction, land acquisition and development 51,144 47,484 Commercial and industrial 280,270 147,623 Consumer 120,578 138,239 State and political subdivisions 46,443 43,908 Total loans, gross 950,902 826,356 Unearned income (123 ) (69 ) Net deferred loan (fees) costs (2,351 ) 2,192 Allowance for loan and lease losses (11,024 ) (8,950 ) Loans, net $ 937,404 $ 819,529 Included in commercial and industrial loans at June 30, 2020 June 30, 2020 may 100.0% no June 30, 2020. 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 9 FNCB originates 1 4 three six June 30, 2020 , the principal balance of 1-4 three six June 30, 2019, 1 4 three six June 30, 2020 , 2019. June 30, 2020 December 31, 2019 , 1 4 There were no three six 30, 2020 2019. June 30, 2020 December 31, 2019 . FNCB does not There were no six June 30, 2020 . 2, 2019 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 19 June 30, 2020. may may may The following table summarizes activity in the ALLL by loan category for the three six June 30, 2020 2019 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 June 30, 2020 Allowance for loan losses: Beginning balance, April 1, 2020 $ 1,307 $ 3,557 $ 283 $ 2,304 $ 1,714 $ 270 $ 472 $ 9,907 Charge-offs - - - (92 ) (224 ) - - (316 ) Recoveries 37 1 - 425 139 - - 602 Provisions (credits) 7 384 77 (294 ) 60 67 530 831 Ending balance, June 30, 2020 $ 1,351 $ 3,942 $ 360 $ 2,343 $ 1,689 $ 337 $ 1,002 $ 11,024 Three months ended June 30, 2019 Allowance for loan losses: Beginning balance, April 1, 2019 $ 1,155 $ 3,051 $ 106 $ 2,499 $ 1,963 $ 423 $ 56 $ 9,253 Charge-offs (27 ) - (18 ) (621 ) (457 ) - - (1,123 ) Recoveries 2 14 - 123 329 - - 468 Provisions (credits) 22 364 90 70 4 (212 ) 9 347 Ending balance, June 30, 2019 $ 1,152 $ 3,429 $ 178 $ 2,071 $ 1,839 $ 211 $ 65 $ 8,945 Six months ended June 30, 2020 Allowance for loan losses: Beginning balance, January 1, 2020 $ 1,147 $ 3,198 $ 271 $ 1,997 $ 1,658 $ 253 $ 426 $ 8,950 Charge-offs - (56 ) - (127 ) (462 ) - - (645 ) Recoveries 39 1 - 484 213 - - 737 Provisions (credits) 165 799 89 (11 ) 280 84 576 1,982 Ending balance, June 30, 2020 $ 1,351 $ 3,942 $ 360 $ 2,343 $ 1,689 $ 337 $ 1,002 $ 11,024 Six months ended June 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 ) (760 ) (772 ) - - (1,577 ) Recoveries 6 14 81 207 502 - - 810 Provisions (credits) (2 ) 308 (73 ) 72 58 (206 ) 36 193 Ending balance, June 30, 2019 $ 1,152 $ 3,429 $ 178 $ 2,071 $ 1,839 $ 211 $ 65 $ 8,945 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at June 30, 2020 December 31, 2019 : Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total June 30, 2020 Allowance for loan losses: Individually evaluated for impairment $ 8 $ 267 $ - $ 237 $ 1 $ - $ - $ 513 Collectively evaluated for impairment 1,343 3,675 360 2,106 1,688 337 1002 10,511 Total $ 1,351 $ 3,942 $ 360 $ 2,343 $ 1,689 $ 337 $ 1,002 $ 11,024 Loans receivable: Individually evaluated for impairment $ 2,234 $ 10,647 $ 72 $ 1,050 $ 280 $ - $ - $ 14,283 Collectively evaluated for impairment 168,283 271,303 51,072 279,220 120,298 46,443 - 936,619 Total $ 170,517 $ 281,950 $ 51,144 $ 280,270 $ 120,578 $ 46,443 $ - $ 950,902 December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 9 $ 221 $ - $ 242 $ 1 $ - $ - $ 473 Collectively evaluated for impairment 1,138 2,977 271 1,755 1,657 253 426 8,477 Total $ 1,147 $ 3,198 $ 271 $ 1,997 $ 1,658 $ 253 $ 426 $ 8,950 Loans receivable: Individually evaluated for impairment $ 2,711 $ 11,640 $ 76 $ 1,164 $ 195 $ - $ - $ 15,786 Collectively evaluated for impairment 168,012 266,739 47,408 146,459 138,044 43,908 - 810,570 Total $ 170,723 $ 278,379 $ 47,484 $ 147,623 $ 138,239 $ 43,908 $ - $ 826,356 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, commercial and municipal indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status 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 tables present the recorded investment in loans receivable by loan category and credit quality indicator at June 30, 2020 December 31, 2019 : Credit Quality Indicators June 30, 2020 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 $ 29,511 $ 256 $ 252 $ - $ - $ 30,019 $ 139,646 $ 852 $ 140,498 $ 170,517 Commercial real estate 265,355 7,568 9,027 - - 281,950 - - - 281,950 Construction, land acquisition and development 49,326 - - - - 49,326 1,818 - 1,818 51,144 Commercial and industrial 274,337 599 1,205 - - 276,141 4,129 - 4,129 280,270 Consumer 3,627 - - - - 3,627 116,212 739 116,951 120,578 State and political subdivisions 46,430 - - - - 46,430 13 - 13 46,443 Total $ 668,586 $ 8,423 $ 10,484 $ - $ - $ 687,493 $ 261,818 $ 1,591 $ 263,409 $ 950,902 Credit Quality Indicators December 31, 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 $ 32,219 $ 177 $ 307 $ - $ - $ 32,703 $ 136,709 $ 1,311 $ 138,020 $ 170,723 Commercial real estate 266,112 1,668 10,599 - - 278,379 - - - 278,379 Construction, land acquisition and development 46,361 - - - - 46,361 1,123 - 1,123 47,484 Commercial and industrial 140,589 426 1,484 - - 142,499 5,124 - 5,124 147,623 Consumer 3,111 - - - - 3,111 134,457 671 135,128 138,239 State and political subdivisions 43,908 - - - - 43,908 - - - 43,908 Total $ 532,300 $ 2,271 $ 12,390 $ - $ - $ 546,961 $ 277,413 $ 1,982 $ 279,395 $ 826,356 Loans classified as special mention were $8.4 million at June 30, 2020 December 31, 2019, June 30, 2020 December 31, 2020, three one six June 30, 2020. two 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 $6.7 million and $9.1 million at June 30, 2020 December 31, 2019 , six no may may 90 no 90 June 30, 2020 December 31, 2019 . The following tables present the delinquency status of past due and non-accrual loans at June 30, 2020 December 31, 2019 : June 30, 2020 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 $ 169,374 $ 79 $ - $ - $ 169,453 Commercial real estate 277,561 232 - - 277,793 Construction, land acquisition and development 51,144 - - - 51,144 Commercial and industrial 279,351 139 - - 279,490 Consumer 118,519 1,073 247 - 119,839 State and political subdivisions 46,443 - - - 46,443 Total performing (accruing) loans 942,392 1,523 247 - 944,162 Non-accrual loans: Residential real estate 510 21 - 533 1,064 Commercial real estate 1,589 - - 2,568 4,157 Construction, land acquisition and development - - - - - Commercial and industrial 682 - - 98 780 Consumer 295 133 116 195 739 State and political subdivisions - - - - - Total non-accrual loans 3,076 154 116 3,394 6,740 Total loans receivable $ 945,468 $ 1,677 $ 363 $ 3,394 $ 950,902 December 31, 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 $ 168,754 $ 134 $ 261 $ - $ 169,149 Commercial real estate 272,561 75 106 - 272,742 Construction, land acquisition and development 47,484 - - - 47,484 Commercial and industrial 146,221 200 - - 146,421 Consumer 135,384 1,695 489 - 137,568 State and political subdivisions 43,908 - - - 43,908 Total performing (accruing) loans 814,312 2,104 856 - 817,272 Non-accrual loans: Residential real estate 873 17 228 456 1,574 Commercial real estate 2,520 893 434 1,790 5,637 Construction, land acquisition and development - - - - - Commercial and industrial 943 - 114 145 1,202 Consumer 193 93 38 347 671 State and political subdivisions - - - - - Total non-accrual loans 4,529 1,003 814 2,738 9,084 Total loans receivable $ 818,841 $ 3,107 $ 1,670 $ 2,738 $ 826,356 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, June 30, 2020 December 31, 2019 . not not 450. $100 450 June 30, 2020 December 31, 2019 . June 30, 2020 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 815 $ 893 $ - Commercial real estate 3,388 4,902 - Construction, land acquisition and development 72 72 - Commercial and industrial 179 179 - Consumer 112 116 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 4,565 6,162 - With a related allowance recorded: Residential real estate 1,419 1,419 8 Commercial real estate 7,259 7,978 267 Construction, land acquisition and development - - - Commercial and industrial 871 1,107 237 Consumer 168 168 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 9,717 10,672 513 Total impaired loans: Residential real estate 2,234 2,312 8 Commercial real estate 10,647 12,880 267 Construction, land acquisition and development 72 72 - Commercial and industrial 1,050 1,286 237 Consumer 280 284 1 State and political subdivisions - - - Total impaired loans $ 14,283 $ 16,834 $ 513 December 31, 2019 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 1,217 $ 1,303 $ - Commercial real estate 4,548 6,007 - Construction, land acquisition and development 76 76 - Commercial and industrial 593 850 - Consumer 23 26 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 6,457 8,262 - With a related allowance recorded: Residential real estate 1,494 1,494 9 Commercial real estate 7,092 7,811 221 Construction, land acquisition and development - - - Commercial and industrial 571 573 242 Consumer 172 172 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 9,329 10,050 473 Total impaired loans: Residential real estate 2,711 2,797 9 Commercial real estate 11,640 13,818 221 Construction, land acquisition and development 76 76 - Commercial and industrial 1,164 1,423 242 Consumer 195 198 1 State and political subdivisions - - - Total impaired loans $ 15,786 $ 18,312 $ 473 The following table presents the average balance and interest income by loan category recognized on impaired loans for the three six June 30, 2020 2019 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 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 $ 2,274 $ 20 $ 1,878 $ 20 $ 2,422 $ 40 $ 1,858 $ 41 Commercial real estate 10,980 70 9,229 76 11,150 138 9,430 153 Construction, land acquisition and development 73 1 80 2 74 2 81 3 Commercial and industrial 1,236 6 1,337 1 1,125 6 1,192 1 Consumer 282 1 200 2 237 3 290 7 State and political subdivisions - - - - - - - - Total impaired loans $ 14,845 $ 98 $ 12,724 $ 101 $ 15,008 $ 189 $ 12,851 $ 205 ( 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 $94 thousand and $205 thousand for the three six June 30, 2020 three six June 30, 2019, Troubled Debt Restructured Loans TDRs at both June 30, 2020 December 31, 2019 June 30, 2020, December 31, 2019. June 30, 2020 December 31, 2019, not June 30, 2020. The modification of the terms of loans classified as TDRs may one There were three one three six June 30, 2020. three one one three six June 30, 2019. no 12 90 three six June 30, 2020 2019 one 12 $103 90 three six June 30, 2019. Modifications Related to COVID- 19 In late March 2020, 19 not 4013 19 December 31, 2019 not June 30, 2020, The following table presents the number, and aggregate recorded investment, of COVID- 19 June 30, 2020. Deferrals Remaining (in thousands) As of June 30, 2020 COVID -19 related loan modifications: Number of Loans Recorded Investment Residential real estate 213 $ 20,338 Commercial real estate 160 108,100 Construction, land acquisition and development 16 16,340 Commercial and industrial 110 23,880 Consumer 406 7,920 State and political subdivisions - - Total 905 $ 176,578 As of July 30, 2020, July 30, 2020 not Residential Real Estate Loan Foreclosures There were no three six June 30, 2020 June 30, 2020 There were two June 30, 2019. no two June 30, 2019. one one three six June 30, 2019 June 30, 2019. |