Financing Receivables [Text Block] | 5. The Company separates its loan portfolio into segments to perform the calculation and analysis of the allowance for loan losses. The six not not not . The majority of this segment is student loans, and it also includes loans for autos, boats, and recreational vehicles. Activity in the allowance f or loan losses during the three six June 30, 2017 000s Agriculture and Agricultural Real Estate Commercial Commercial Real Estate Construction Real Estate Residential Real Estate Consumer and Other Total Allowance for loan losses: For the three months ended June 30, 2017 Beginning Balance $ 200 $ 1,579 $ 3,438 $ 534 $ 1,570 $ 1,013 $ 8,334 Charge-offs - - (384 ) - - (12 ) (396 ) Recoveries - 42 37 13 92 15 199 Provision 120 (125 ) 268 (6 ) (264 ) 7 - Ending balance $ 320 $ 1,496 $ 3,359 $ 541 $ 1,398 $ 1,023 $ 8,137 Allowance for loan losses: For the six months ended June 30, 2017 Beginning Balance $ 201 $ 1,632 $ 3,336 $ 525 $ 1,599 $ 1,165 $ 8,458 Charge-offs - - (409 ) - (50 ) (49 ) (508 ) Recoveries 3 98 74 26 146 40 387 Provision 116 (234 ) 358 (10 ) (297 ) (133 ) (200 ) Ending balance $ 320 $ 1,496 $ 3,359 $ 541 $ 1,398 $ 1,023 $ 8,137 Allowance for loan losses as of June 30, 2017 Ending balance individually evaluated for impairment $ - $ 143 $ 44 $ 374 $ 221 $ 181 $ 963 Ending balance collectively evaluated for impairment 320 1,353 3,315 167 1,177 842 7,174 Ending balance $ 320 $ 1,496 $ 3,359 $ 541 $ 1,398 $ 1,023 $ 8,137 Loans as of June 30, 2017 Ending balance individually evaluated for impairment $ 1,209 $ 286 $ 3,025 $ 1,689 $ 6,101 $ 442 $ 12,752 Ending balance collectively evaluated for impairment 21,480 119,764 260,365 21,822 207,547 39,019 669,997 Ending balance $ 22,689 $ 120,050 $ 263,390 $ 23,511 $ 213,648 $ 39,461 $ 682,749 Activity in the allowance for loan losses during the three six June 30, 2016 000s Agriculture and Agricultural Real Estate Commercial Commercial Real Estate Construction Real Estate Residential Real Estate Consumer and Other Total Allowance for loan losses: For the three months ended June 30, 2016 Beginning Balance $ 487 $ 1,597 $ 5,018 $ 475 $ 1,920 $ 1,040 $ 10,537 Charge-offs (221 ) (12 ) (296 ) - (65 ) (24 ) (618 ) Recoveries - 44 46 14 45 35 184 Provision (66 ) (103 ) (298 ) (29 ) (109 ) 405 (200 ) Ending balance $ 200 $ 1,526 $ 4,470 $ 460 $ 1,791 $ 1,456 $ 9,903 Allowance for loan losses: For the six months ended June 30, 2016 Beginning Balance $ 389 $ 2,279 $ 4,350 $ 420 $ 2,235 $ 1,223 $ 10,896 Charge-offs (221 ) (12 ) (352 ) - (156 ) (86 ) (827 ) Recoveries - 77 69 27 103 58 334 Provision 32 (818 ) 403 13 (391 ) 261 (500 ) Ending balance $ 200 $ 1,526 $ 4,470 $ 460 $ 1,791 $ 1,456 $ 9,903 Allowance for loan losses as of June 30, 2016 Ending balance individually evaluated for impairment $ 1 $ 468 $ 447 $ 262 $ 309 $ 188 $ 1,675 Ending balance collectively evaluated for impairment 199 1,058 4,023 198 1,482 1,268 8,228 Ending balance $ 200 $ 1,526 $ 4,470 $ 460 $ 1,791 $ 1,456 $ 9,903 Loans as of June 30, 2016 Ending balance individually evaluated for impairment $ 1,366 $ 823 $ 10,805 $ 1,779 $ 7,212 $ 496 $ 22,481 Ending balance collectively evaluated for impairment 19,798 85,903 236,551 14,991 208,024 50,532 615,799 Ending balance $ 21,164 $ 86,726 $ 247,356 $ 16,770 $ 215,236 $ 51,028 $ 638,280 Each period the provision for loan losses in the income statement results from the combination of an estimate by Management of loan losses that occurred during the current period and the ongoing adjustment of prior estimates of losses occurring in prior periods. The provision for loan losses increases the allowance for loan losses, a valuation account which appears on the consolidated balance sheets. As the specific customer and amount of a loan loss is confirmed by gathering additional information, taking collateral in full or partial settlement of the loan, bankruptcy of the borrower, etc., the loan is charged off, reducing the allowance for loan losses. If, subsequent to a charge off, the Bank is able to collect additional amounts from the customer or sell collateral worth more than earlier estimated, a recovery is recorded. To serve as a basis for making this provision, the Bank maintains an extensive credit risk monitoring process that considers several factors including: current economic conditions affecting the Bank ’s customers, the payment performance of individual loans and pools of homogeneous loans, portfolio seasoning, changes in collateral values, and detailed reviews of specific loan relationships. The Company utilizes an internal loan grading system to assign a risk grade to all commercial loans, all renegotiated loans, and each commercial credit relationship. Grades 1 0 45 50 55 60 50 60 70 90 • Grade 10– • Grade 20– may • Grade 30– may not • Grades 40 45 not • Grades 50 55 may • Grade 60– one 1 2 3 4 not 5 6 7 8 9 10 • Grade 70– one 1 not 2 3 may • Grades 80 90 not The assessment of compensating factors may one not The portfolio segments in each credit risk grade as of June 30, 2017 000s Credit Quality Indicators as of June 30, 2017 Credit Risk by Internally Assigned Grade Agriculture and Agricultural Real Estate Commercial Commercial Real Estate Construction Real Estate Residential Real Estate Consumer and Other Total Not Rated $ 1 $ 1,757 $ 188 $ 13,663 $ 131,120 $ 33,011 $ 179,740 10 - 5,742 - - - - 5,742 20 424 304 400 - - - 1,128 30 600 32,915 7,528 - 826 4,174 46,043 40 15,181 71,915 213,775 4,578 68,307 2,171 375,927 45 1,552 2,564 12,076 3,032 5,497 - 24,721 50 2,072 2,946 21,792 369 2,521 9 29,709 55 1,807 1,406 3,184 1,555 1,189 - 9,141 60 1,052 501 4,126 314 4,188 96 10,277 7 - - - - - - - 80 - - 321 - - - 321 90 - - - - - - - Total $ 22,689 $ 120,050 $ 263,390 $ 23,511 $ 213,648 $ 39,461 $ 682,749 Performing $ 21,922 $ 119,609 $ 259,704 $ 21,663 $ 206,641 $ 38,961 $ 668,500 Nonperforming 767 441 3,686 1,848 7,007 500 14,249 Total $ 22,689 $ 120,050 $ 263,390 $ 23,511 $ 213,648 $ 39,461 $ 682,749 The portfolio segments in each credit risk grade as of December 31, 2016 000s Credit Quality Indicators as of December 31, 2016 Credit Risk by Internally Assigned Grade Agriculture and Agricultural Real Estate Commercial Commercial Real Estate Construction Real Estate Residential Real Estate Consumer and Other Total Not Rated $ 2 $ 1,768 $ 214 $ 9,960 $ 132,144 $ 39,114 $ 183,202 10 - 5,787 - - - - 5,787 20 293 348 447 - - 145 1,233 30 645 17,373 8,128 - 218 - 26,364 40 15,827 63,687 198,416 4,211 70,275 6,626 359,042 45 1,507 2,142 16,227 2,974 4,513 - 27,363 50 1,769 4,090 16,828 448 3,393 12 26,540 55 263 927 4,081 1,574 989 - 7,834 60 1,212 639 7,828 287 4,904 102 14,972 70 - - - - - - - 80 - - - - - - - 90 - - - - - - - Total $ 21,518 $ 96,761 $ 252,169 $ 19,454 $ 216,436 $ 45,999 $ 652,337 Performing $ 20,834 $ 96,240 $ 244,816 $ 17,734 $ 208,458 $ 45,428 $ 633,510 Nonperforming 684 521 7,353 1,720 7,978 571 18,827 Total $ 21,518 $ 96,761 $ 252,169 $ 19,454 $ 216,436 $ 45,999 $ 652,337 Loans are considered past due when contractually required payment of interest or principal has not not June 30, 2017 December 31, 2016 ( 000s June 30, 2017 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Recorded Investment >90 Days Past Due and Accruing Agriculture and Agricultural Real Estate $ - $ - $ 113 $ 113 $ 22,576 $ 22,689 $ - Commercial 204 5 48 $ 257 119,793 120,050 3 Commercial Real Estate 681 719 824 2,224 261,166 263,390 - Construction Real Estate 567 - 159 726 22,785 23,511 - Residential Real Estate 1,103 117 1,377 2,597 211,051 213,648 - Consumer and Other 35 88 3 126 39,335 39,461 - Total $ 2,590 $ 929 $ 2,524 $ 6,043 $ 676,706 $ 682,749 $ 3 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Recorded Investment >90 Days Past Due and Accruing Agriculture and Agricultural Real Estate $ 93 $ - $ 113 $ 206 $ 21,312 $ 21,518 $ - Commercial 77 46 23 146 96,615 96,761 10 Commercial Real Estate 708 363 828 1,899 250,270 252,169 - Construction Real Estate - - - - 19,454 19,454 - Residential Real Estate 1,523 192 1,558 3,273 213,163 216,436 - Consumer and Other 149 46 - 195 45,804 45,999 - Total $ 2,550 $ 647 $ 2,522 $ 5,719 $ 646,618 $ 652,337 $ 10 Loans are placed on non-accrual status when, in the opinion of Management, the collection of additional interest is doubtful. Loans are automatically placed on non-accrual status upon becoming ninety may not The following is a summary of non-accrual loans as of June 30, 2017 December 31, 2016 ( 000s June 30, 2017 December 31, 2016 Agriculture and Agricultural Real Estate $ 199 $ 113 Commercial 152 169 Commercial Real Estate 1,337 1,625 Construction Real Estate 181 31 Residential Real Estate 2,216 2,623 Consumer and Other 58 95 Total $ 4,143 $ 4,656 For loans deemed to be impaired due to an expectation that all contractual payments will probably not ’s recorded investment in the loan to the present value of expected cash flows discounted at the loan’s effective interest rate, the fair value of the collateral, or the loan’s observable market price. The following is a summary of impaired loans as of June 30, 2017 June 30, December 31, 2016 ( 000s June 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment for the Three Months Ended Interest Income Recognized in the Three Months Ended Average Recorded Investment for the Six Months Ended Interest Income Recognized in the Six Months Ended With no related allowance recorded: Agriculture and Agricultural Real Estate $ 1,209 $ 1,404 $ - $ 1,215 $ 14 $ 1,217 $ 28 Commercial 61 61 - 62 1 64 1 Commercial Real Estate 1,270 1,530 - 1,278 - 1,288 19 Construction Real Estate 134 167 - 154 2 156 4 Residential Real Estate 4,336 4,524 - 4,540 47 4,570 107 Consumer and Other 1 1 - 1 - 1 - With an allowance recorded: Agriculture and Agricultural Real Estate - - - - - - - Commercial 225 225 143 253 2 272 5 Commercial Real Estate 1,755 1,774 44 1,776 18 1,787 37 Construction Real Estate 1,555 1,555 374 1,560 18 1,564 36 Residential Real Estate 1,765 1,828 221 1,802 18 1,809 35 Consumer and Other 441 441 181 445 5 449 10 Total: Agriculture and Agricultural Real Estate $ 1,209 $ 1,404 $ - $ 1,215 $ 14 $ 1,217 $ 28 Commercial 286 286 143 315 3 336 6 Commercial Real Estate 3,025 3,304 44 3,054 18 3,075 56 Construction Real Estate 1,689 1,722 374 1,714 20 1,720 40 Residential Real Estate 6,101 6,352 221 6,342 65 6,379 142 Consumer and Other 442 442 181 446 5 450 10 Total $ 12,752 $ 13,510 $ 963 $ 13,086 $ 125 $ 13,177 $ 282 Recorded Investment as of December 31, 2016 Unpaid Principal Balance as of December 31, 2016 Related Allowance as of December 31, 2016 Average Recorded Investment for the Three Months Ended June 30, 2016 Interest Income Recognized in the Three Months Ended June 30, 2016 Average Recorded Investment for the Six Months Ended June 30, 2016 Interest Income Recognized in the Six Months Ended June 30, 2016 With no related allowance recorded: Agriculture and Agricultural Real Estate $ 966 $ 1,164 $ - $ 1,026 $ 10 $ 1,028 $ 25 Commercial 88 140 - 146 3 148 5 Commercial Real Estate 4,295 4,502 - 7,217 70 7,255 133 Construction Real Estate 144 177 - 127 2 130 4 Residential Real Estate 4,916 5,157 - 4,292 47 4,335 98 Consumer and Other 11 11 - 34 1 35 1 With an allowance recorded: Agriculture and Agricultural Real Estate 246 246 5 352 3 417 3 Commercial 267 274 199 726 8 754 17 Commercial Real Estate 2,558 2,610 129 4,140 44 4,272 98 Construction Real Estate 1,573 1,573 388 1,676 19 1,681 38 Residential Real Estate 2,182 2,224 236 3,269 26 3,292 63 Consumer and Other 465 465 184 467 6 471 11 Total: Agriculture and Agricultural Real Estate $ 1,212 $ 1,410 $ 5 $ 1,378 $ 13 $ 1,445 $ 28 Commercial 355 414 199 872 11 902 22 Commercial Real Estate 6,853 7,112 129 11,357 114 11,527 231 Construction Real Estate 1,717 1,750 388 1,803 21 1,811 42 Residential Real Estate 7,098 7,381 236 7,561 73 7,627 161 Consumer and Other 476 476 184 501 7 506 12 Total $ 17,711 $ 18,543 $ 1,141 $ 23,472 $ 239 $ 23,818 $ 496 The Bank may ’s ability to collect amounts due. These modifications may Loans that have been clas sified as TDRs during the three six June 30, 2017 June 30, 2016 000s Three months ended Six months ended June 30, 2017 June 30, 2017 Number of Contracts Pre- Modification Recorded Principal Balance Post- Modification Recorded Principal Balance Number of Contracts Pre- Modification Recorded Principal Balance Post- Modification Recorded Principal Balance Agriculture and Agricultural Real Estate - $ - $ - - $ - $ - Commercial - - - 2 29 29 Commercial Real Estate 1 280 279 3 353 332 Construction Real Estate - - - - - - Residential Real Estate - - - 3 212 180 Consumer and Other - - - 1 1 - Total 1 $ 280 $ 279 9 $ 595 $ 541 Three months ended Six months ended June 30, 2016 June 30, 2016 Number of Contracts Pre- Modification Recorded Principal Balance Post- Modification Recorded Principal Balance Number of Contracts Pre- Modification Recorded Principal Balance Post- Modification Recorded Principal Balance Agriculture and Agricultural Real Estate 1 $ 362 $ 362 1 $ 362 $ 362 Commercial - - - - - - Commercial Real Estate - - - - - - Construction Real Estate - - - - - - Residential Real Estate 6 251 250 7 451 447 Consumer and Other 1 57 57 1 57 57 Total 8 $ 670 $ 669 9 $ 870 $ 866 The Bank considers TDRs that become past due under the modified terms as defaulted. There were no six June 30, 2017 June 30, 2016 six June 30, 2017 June 30, 2016, The Company has allocated $ 963,000 June 30, 2017. no June 30, 2017 June 30, 2016. |