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 nine September 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 September 30, 2017 Beginning Balance $ 320 $ 1,496 $ 3,359 $ 541 $ 1,398 $ 1,023 $ 8,137 Charge-offs - (6 ) (163 ) - (49 ) (88 ) (306 ) Recoveries 77 18 23 13 31 17 179 Provision (67 ) (199 ) 56 (56 ) (134 ) 400 - Ending balance $ 330 $ 1,309 $ 3,275 $ 498 $ 1,246 $ 1,352 $ 8,010 Allowance for loan losses: For the nine months ended September 30, 2017 Beginning Balance $ 201 $ 1,632 $ 3,336 $ 525 $ 1,599 $ 1,165 $ 8,458 Charge-offs - (6 ) (572 ) - (99 ) (137 ) (814 ) Recoveries 80 116 97 39 177 57 566 Provision 49 (433 ) 414 (66 ) (431 ) 267 (200 ) Ending balance $ 330 $ 1,309 $ 3,275 $ 498 $ 1,246 $ 1,352 $ 8,010 Allowance for loan losses as of September 30, 2017 Ending balance individually evaluated for impairment $ 1 $ 139 $ 16 $ 367 $ 174 $ 206 $ 903 Ending balance collectively evaluated for impairment 329 1,170 3,259 131 1,072 1,146 7,107 Ending balance $ 330 $ 1,309 $ 3,275 $ 498 $ 1,246 $ 1,352 $ 8,010 Loans as of September 30, 2017 Ending balance individually evaluated for impairment $ 1,095 $ 220 $ 2,622 $ 1,598 $ 5,368 $ 433 $ 11,336 Ending balance collectively evaluated for impairment 22,346 122,773 268,893 20,544 211,046 36,928 682,530 Ending balance $ 23,441 $ 122,993 $ 271,515 $ 22,142 $ 216,414 $ 37,361 $ 693,866 Activity in the allowance for loan losses during the three nine September 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 September 30, 2016 Beginning Balance $ 200 $ 1,526 $ 4,470 $ 460 $ 1,791 $ 1,456 $ 9,903 Charge-offs - (14 ) (61 ) - (39 ) - (114 ) Recoveries 3 24 114 13 132 30 316 Provision 18 (84 ) (140 ) (104 ) (68 ) (322 ) (700 ) Ending balance $ 221 $ 1,452 $ 4,383 $ 369 $ 1,816 $ 1,164 $ 9,405 Allowance for loan losses: For the nine months ended September 30, 2016 Beginning Balance $ 389 $ 2,279 $ 4,350 $ 420 $ 2,235 $ 1,223 $ 10,896 Charge-offs (221 ) (26 ) (413 ) - (195 ) (86 ) (941 ) Recoveries 3 102 182 40 235 88 650 Provision 50 (903 ) 264 (91 ) (459 ) (61 ) (1,200 ) Ending balance $ 221 $ 1,452 $ 4,383 $ 369 $ 1,816 $ 1,164 $ 9,405 Allowance for loan losses as of September 30, 2016 Ending balance individually evaluated for impairment $ 5 $ 340 $ 629 $ 255 $ 347 $ 187 $ 1,763 Ending balance collectively evaluated for impairment 216 1,112 3,754 114 1,469 977 7,642 Ending balance $ 221 $ 1,452 $ 4,383 $ 369 $ 1,816 $ 1,164 $ 9,405 Loans as of September 30, 2016 Ending balance individually evaluated for impairment $ 1,251 $ 717 $ 9,431 $ 1,761 $ 7,729 $ 487 $ 21,376 Ending balance collectively evaluated for impairment 20,710 94,109 245,209 16,011 209,523 48,871 634,433 Ending balance $ 21,961 $ 94,826 $ 254,640 $ 17,772 $ 217,252 $ 49,358 $ 655,809 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 September 30, 2017 000s Credit Quality Indicators as of September 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 $ - $ 2,856 $ 250 $ 12,431 $ 134,662 $ 31,128 $ 181,327 10 - 7,023 - - - - 7,023 20 423 294 375 - - - 1,092 30 522 31,523 7,555 - 821 4,074 44,495 40 16,017 75,510 222,669 4,746 68,319 2,057 389,318 45 1,517 2,592 13,389 2,968 5,334 - 25,800 50 2,077 1,882 21,508 358 2,962 8 28,795 55 1,950 894 1,677 1,546 738 4 6,809 60 935 419 4,092 93 3,577 90 9,206 70 - - - - - - - 80 - - - - 1 - 1 90 - - - - - - - Total $ 23,441 $ 122,993 $ 271,515 $ 22,142 $ 216,414 $ 37,361 $ 693,866 Performing $ 22,790 $ 122,671 $ 268,182 $ 20,502 $ 209,900 $ 36,907 $ 680,952 Nonperforming 651 322 3,333 1,640 6,514 454 12,914 Total $ 23,441 $ 122,993 $ 271,515 $ 22,142 $ 216,414 $ 37,361 $ 693,866 The portfolio segments in each credit risk grade as of December 31, 201 6 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 September 30, 2017 December 31, 2016 ( 000s September 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 $ 83 $ - $ - $ 83 $ 23,358 $ 23,441 $ - Commercial 23 153 101 $ 277 122,716 122,993 5 Commercial Real Estate 2,192 - 402 2,594 268,921 271,515 - Construction Real Estate - - - - 22,142 22,142 - Residential Real Estate 1,307 270 1,204 2,781 213,633 216,414 - Consumer and Other 23 - - 23 37,338 37,361 - Total $ 3,628 $ 423 $ 1,707 $ 5,758 $ 688,108 $ 693,866 $ 5 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 September 30, 2017 December 31, 2016 ( 000s September 30, 2017 December 31, 2016 Agriculture and Agricultural Real Estate $ 83 $ 113 Commercial 97 169 Commercial Real Estate 1,033 1,625 Construction Real Estate 60 31 Residential Real Estate 1,756 2,623 Consumer and Other 21 95 Total $ 3,050 $ 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 September 30, 2017 September 30, December 31, 2016 ( 000s September 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 Nine Months Ended Interest Income Recognized in the Nine Months Ended With no related allowance recorded: Agriculture and Agricultural Real Estate $ 852 $ 848 $ - $ 849 $ 11 $ 850 $ 32 Commercial - - - - - - - Commercial Real Estate 2,010 2,061 - 2,177 23 2,238 59 Construction Real Estate - - - - - - - Residential Real Estate 3,860 4,030 - 4,054 51 4,110 150 Consumer and Other - - - - - 1 - With an allowance recorded: Agriculture and Agricultural Real Estate 243 242 1 242 3 244 10 Commercial 220 219 139 220 2 224 7 Commercial Real Estate 612 612 16 614 6 621 17 Construction Real Estate 1,598 1,631 367 1,622 19 1,635 57 Residential Real Estate 1,508 1,547 174 1,537 16 1,552 45 Consumer and Other 433 433 206 437 5 444 15 Total: Agriculture and Agricultural Real Estate $ 1,095 $ 1,090 $ 1 $ 1,091 $ 14 $ 1,094 $ 42 Commercial 220 219 139 220 2 224 7 Commercial Real Estate 2,622 2,673 16 2,791 29 2,859 76 Construction Real Estate 1,598 1,631 367 1,622 19 1,635 57 Residential Real Estate 5,368 5,577 174 5,591 67 5,662 195 Consumer and Other 433 433 206 437 5 445 15 Total $ 11,336 $ 11,623 $ 903 $ 11,752 $ 136 $ 11,919 $ 392 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 September 30, 2016 Interest Income Recognized in the Three Months Ended September 30, 2016 Average Recorded Investment for the Nine Months Ended September 30, 2016 Interest Income Recognized in the Nine Months Ended September 30, 2016 With no related allowance recorded: Agriculture and Agricultural Real Estate $ 966 $ 1,164 $ - $ 1,017 $ 11 $ 1,024 $ 36 Commercial 88 140 - 152 2 157 8 Commercial Real Estate 4,295 4,502 - 5,390 49 5,456 152 Construction Real Estate 144 177 - 120 2 126 6 Residential Real Estate 4,916 5,157 - 5,433 69 5,553 198 Consumer and Other 11 11 - 34 1 36 2 With an allowance recorded: Agriculture and Agricultural Real Estate 246 246 5 248 3 249 10 Commercial 267 274 199 651 7 729 24 Commercial Real Estate 2,558 2,610 129 4,431 45 4,590 153 Construction Real Estate 1,573 1,573 388 1,668 19 1,677 57 Residential Real Estate 2,182 2,224 236 2,659 33 2,726 84 Consumer and Other 465 465 184 457 5 465 17 Total: Agriculture and Agricultural Real Estate $ 1,212 $ 1,410 $ 5 $ 1,265 $ 14 $ 1,273 $ 46 Commercial 355 414 199 803 9 886 32 Commercial Real Estate 6,853 7,112 129 9,821 94 10,046 305 Construction Real Estate 1,717 1,750 388 1,788 21 1,803 63 Residential Real Estate 7,098 7,381 236 8,092 102 8,279 282 Consumer and Other 476 476 184 491 6 501 19 Total $ 17,711 $ 18,543 $ 1,141 $ 22,260 $ 246 $ 22,788 $ 747 The Bank may ’s ability to collect amounts due. These modifications may Loans that have been clas sified as TDRs during the three nine September 30, 2017 September 30, 2016 000s Three months ended Nine months ended September 30, 2017 September 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 1 225 202 4 578 492 Construction Real Estate - - - - - - Residential Real Estate 1 99 99 5 371 229 Consumer and Other - - - 1 1 - Total 2 $ 324 $ 301 12 $ 979 $ 750 Three months ended Nine months ended September 30, 2016 September 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 $ 361 Commercial 1 250 250 1 250 250 Commercial Real Estate 1 215 215 1 215 215 Construction Real Estate - - - - - - Residential Real Estate 2 242 241 9 693 653 Consumer and Other - - - 1 57 55 Total 4 $ 707 $ 706 13 $ 1,577 $ 1,534 The Bank considers TDRs that become past due under the modified terms as defaulted. The following table shows the loans that became TDRs during the nine September 30, 2017 September 30, 2016 nine September 30, 2017 September 30, 2016, Nine months ended Nine months ended September 30, 2017 September 30, 2016 Number of Contracts Recorded Principal Balance Number of Contracts Recorded Principal Balance Agriculture and Agricultural Real Estate - $ - - $ - Commercial - - - - Commercial Real Estate - - - - Construction Real Estate - - - - Residential Real Estate 1 99 - - Consumer and Other - - - - Total 1 $ 99 - $ - The Company has allocated $903,000 September 30, 2017. no September 30, 2017 September 30, 2016. |