Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 The following tables present the activity in the allowance for loan and lease losses by portfolio segment for the periods ending September 30, 2018 2017: (in thousands) Commercial Commercial and agricultural real estate Residential 1 – 4 family real estate Consumer Total Balance at December 31, 2017 $ 501 $ 1,746 $ 545 $ 43 $ 2,835 Provision charged to expenses 79 231 22 18 350 Losses charged off (21 ) (114 ) (52 ) (6 ) (193 ) Recoveries 38 249 35 - 322 Balance at September 30, 2018 $ 597 $ 2,112 $ 550 $ 55 $ 3,314 Balance at December 31, 2016 $ 896 $ 1,876 $ 542 $ 31 $ 3,345 Provision (credit) charged to expenses (374 ) (65 ) 65 24 (350 ) Losses charged off (36 ) (553 ) (45 ) (23 ) (657 ) Recoveries 78 381 12 8 479 Balance at September 30, 2017 $ 564 $ 1,639 $ 574 $ 40 $ 2,817 The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment method as of September 30, 2018 December 31, 2017: (in thousands) September 30, 2018 Commercial Commercial and agricultural real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ 59 $ - $ - $ - $ 59 Collectively evaluated for impairment 538 2,112 550 55 3,255 Total allowance for loan and lease losses $ 597 $ 2,112 $ 550 $ 55 $ 3,314 Loans and leases: Individually evaluated for impairment $ 113 $ 302 $ - $ - $ 415 Acquired with deteriorated credit quality - 328 56 - 384 Collectively evaluated for impairment 85,169 338,978 119,795 6,036 549,978 Total ending loans and leases balance $ 85,282 $ 339,608 $ 119,851 $ 6,036 $ 550,777 December 31, 2017 Commercial Commercial and agricultural real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ - $ - $ - $ - $ - Collectively evaluated for impairment 501 1,746 545 43 2,835 Total allowance for loan and lease losses $ 501 $ 1,746 $ 545 $ 43 $ 2,835 Loans and leases: Individually evaluated for impairment $ 501 $ 384 $ - $ - $ 885 Acquired with deteriorated credit quality - 984 194 - 1,178 Collectively evaluated for impairment 67,571 310,890 121,224 4,664 504,349 Total ending loans and leases balance $ 68,072 $ 312,258 $ 121,418 $ 4,664 $ 506,412 The average recorded investment in impaired loans and leases (excluding loans and leases acquired with deteriorated credit quality) for the nine September 30, 2018 2017 $415,000 $1.8 $59,000 September 30, 2018 no September 30, 2017. $36,000 $86,000 nine September 30, 2018 2017, The following tables present the recorded investment in nonaccrual loans and leases, loans and leases past due over 90 September 30, 2018 December 31, 2017. (in thousands) September 30, 2018 Nonaccrual Loans and leases past due over 90 days still accruing Troubled Debt Restructurings Commercial $ 19 $ - $ 25 Commercial real estate 880 - 214 Agricultural real estate 230 - - Agriculture - - - Consumer 1 - - Residential: 1 – 4 family 429 315 238 Home equity - - - Total $ 1,559 $ 315 $ 477 December 31, 2017 Commercial $ 532 $ 60 $ 27 Commercial real estate 1,411 - 257 Agricultural real estate 233 - - Agriculture - - - Consumer - - - Residential: 1 – 4 family 591 110 428 Home equity - - - Total $ 2,767 $ 170 $ 712 The following table presents the aging of the recorded investment in past due loans and leases as of September 30, 2018 December 31, 2017 (in thousands) September 30, 2018 30 – 59 days past due 60 – 89 days past due Greater than 90 days past due Total past due Loans and leases not past due Total Commercial $ 346 $ 106 $ - $ 452 $ 71,543 $ 71,995 Commercial real estate 528 87 240 855 307,957 308,812 Agriculture 20 - - 20 13,267 13,287 Agricultural real estate - - 254 254 30,542 30,796 Consumer - 3 1 4 6,032 6,036 Residential real estate 4,378 41 449 4,868 114,983 119,851 Total $ 5,272 $ 237 $ 944 $ 6,453 $ 544,324 $ 550,777 December 31, 2017 Commercial $ 419 $ 34 $ 60 $ 513 $ 55,410 $ 55,923 Commercial real estate 636 354 631 1,621 278,276 279,897 Agriculture - 145 - 145 12,318 12,463 Agricultural real estate 25 - - 25 32,022 32,047 Consumer 1 - - 1 4,663 4,664 Residential real estate 3,418 195 392 4,005 117,413 121,418 Total $ 4,499 $ 728 $ 1,083 $ 6,310 $ 500,102 $ 506,412 Credit Quality Indicators: The Corporation categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current final financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans and leases individually by classifying the loans and leases as to the credit risk. This analysis is completed on all non-homogenous loans and leases, such as commercial and commercial real estate loans and leases at origination and at the renewal of line of credit. For amortizing loan relationships, an annual assessment is performed on relationships with outstanding aggregate balance greater than $500,000. ● Special Mention: not not 1 2 ● Substandard: may may ● Doubtful: Loans and leases not March 2018, not March 31, 2018, $500,000 As of September 30, 2018 December 31, 2017, (in thousands) September 30, 2018 Pass Special Mention Substandard Doubtful Not rated Commercial $ 82,796 $ 45 $ 2,441 $ - $ - Commercial and multi-family real estate 330,848 5,406 3,291 - 63 Residential 1 - 4 family 10,546 - - - 109,305 Consumer - - - - 6,036 Total $ 424,190 $ 5,451 $ 5,732 $ - $ 115,404 December 31, 2017 Commercial $ 47,054 $ - $ 1,845 $ - $ 19,173 Commercial and multi-family real estate 234,428 2,344 3,868 - 71,618 Residential 1 - 4 family 11,637 - 174 - 109,607 Consumer - - - - 4,664 Total $ 293,119 $ 2,344 $ 5,887 $ - $ 205,062 The Corporation considers the performance of the loan and lease portfolio and its impact on the allowance for loan and lease losses. For all loan classes that are not not 90 not September 30, 2018 December 31, 2017: (in thousands) September 30, 2018 Commercial Commercial and agricultural real estate Residential 1-4 family Consumer Performing $ - $ 63 $ 108,856 $ 6,035 Nonperforming - - 449 1 Total $ - $ 63 $ 109,305 $ 6,036 December 31, 2017 Performing $ 19,113 $ 70,987 $ 109,214 $ 4,664 Nonperforming 60 631 393 - Total $ 19,173 $ 71,618 $ 109,607 $ 4,664 Modifications: The Corporation’s loan and lease portfolio also includes certain loans and leases that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Corporation’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. When the Corporation modifies a loan or lease, management evaluates any possible concession based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, except when the sole (remaining) source of repayment for the loan or lease is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If management determines that the value of the modified loan or lease is less than the recorded investment in the loan or lease (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), an impairment is recognized through a specific reserve in the allowance or a direct write down of the loan or lease balance if collection is not There were no nine September 30, 2018. The Corporation acquired The Ohio State Bank (“OSB”) in November 2014 September 2017. not The following is information related to loans and leases acquired in these transactions, including purchased impaired loans: The Ohio State Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at December 31, 2017 $ 25,509 $ (929 ) $ 24,580 Change due to payments received (4,076 ) 192 (3,884 ) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2018 $ 21,433 $ (737 ) $ 20,696 Purchased Impaired Loans and Leases Balance at December 31, 2017 $ 496 $ (232 ) $ 264 Change due to payments received (254 ) 42 (212 ) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2018 $ 242 $ (190 ) $ 52 Benchmark Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at December 31, 2017 $ 89,151 $ (2,066 ) $ 87,085 Change due to payments received (12,011 ) 437 (11,574 ) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2018 $ 77,140 $ (1,629 ) $ 75,511 Purchased Impaired Loans and Leases Balance at December 31, 2017 $ 1,588 $ (674 ) $ 914 Change due to payments received (980 ) 398 (582 ) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2018 $ 608 $ (276 ) $ 332 There was no nine September 30, 2018 no $101,000 nine September 30, 2017 one |