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 Activity in the allowance for loan losses during the three six June 30, 2018 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, 2018 Beginning Balance $ 210 $ 1,397 $ 3,088 $ 461 $ 1,089 $ 1,640 $ 7,885 Charge-offs - - - - (51 ) - (51 ) Recoveries - 16 49 14 31 14 124 Provision 52 36 (188 ) (1 ) 73 28 - Ending balance $ 262 $ 1,449 $ 2,949 $ 474 $ 1,142 $ 1,682 $ 7,958 Allowance for loan losses: For the six months ended June 30, 2018 Beginning Balance $ 195 $ 1,443 $ 3,297 $ 491 $ 1,279 $ 961 $ 7,666 Charge-offs - - (3 ) - (58 ) (2 ) (63 ) Recoveries 2 31 289 34 73 26 455 Provision 65 (25 ) (634 ) (51 ) (152 ) 697 (100 ) Ending balance $ 262 $ 1,449 $ 2,949 $ 474 $ 1,142 $ 1,682 $ 7,958 Allowance for loan losses as of June 30, 2018 Ending balance individually evaluated for impairment $ - $ 141 $ 223 $ 347 $ 128 $ 196 $ 1,035 Ending balance collectively evaluated for impairment 262 1,308 2,726 127 1,014 1,486 6,923 Ending balance $ 262 $ 1,449 $ 2,949 $ 474 $ 1,142 $ 1,682 $ 7,958 Loans as of June 30, 2018 Ending balance individually evaluated for impairment $ 1,133 $ 254 $ 3,732 $ 1,562 $ 4,516 $ 416 $ 11,613 Ending balance collectively evaluated for impairment 21,991 142,659 266,360 21,667 224,736 51,760 729,173 Ending balance $ 23,124 $ 142,913 $ 270,092 $ 23,229 $ 229,252 $ 52,176 $ 740,786 Activity in the allowance for 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 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 10 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, 2018 000s Credit Quality Indicators as of June 30, 2018 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 $ 441 $ 1,621 $ 267 $ 11,509 $ 142,604 $ 46,545 $ 202,987 10 - 6,757 - - - - 6,757 20 281 116 218 - - - 615 30 584 36,651 22,142 - 1,201 3,767 64,345 40 15,883 89,358 211,981 7,048 76,395 1,839 402,504 45 1,485 3,145 15,399 1,484 2,657 - 24,170 50 1,836 3,654 13,142 1,626 2,509 3 22,770 55 1,518 1,407 2,242 1,519 796 - 7,482 60 1,096 204 4,701 43 3,090 22 9,156 70 - - - - - - - 80 - - - - - - - 90 - - - - - - - Total $ 23,124 $ 142,913 $ 270,092 $ 23,229 $ 229,252 $ 52,176 $ 740,786 Performing $ 22,440 $ 142,635 $ 267,084 $ 21,667 $ 223,645 $ 51,744 $ 729,215 Nonperforming 684 278 3,008 1,562 5,607 432 11,571 Total $ 23,124 $ 142,913 $ 270,092 $ 23,229 $ 229,252 $ 52,176 $ 740,786 The portfolio segments in each credit risk grade as of December 31, 2017 000s Credit Quality Indicators as of December 31, 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 $ - $ 1,341 $ 160 $ 13,903 $ 135,311 $ 30,359 $ 181,074 10 - 6,870 - - - - 6,870 20 281 293 353 - - - 927 30 503 29,655 6,300 - 941 3,972 41,371 40 14,819 76,792 223,468 4,857 72,634 1,947 394,517 45 1,414 2,391 12,244 1,528 5,363 - 22,940 50 1,864 3,778 21,802 1,667 3,590 6 32,707 55 1,441 594 1,857 1,537 867 2 6,298 60 909 505 3,460 66 3,308 27 8,275 70 - - - - - - - 80 - - - - - - - 90 - - - - - - - Total $ 21,231 $ 122,219 $ 269,644 $ 23,558 $ 222,014 $ 36,313 $ 694,979 Performing $ 20,665 $ 121,768 $ 265,801 $ 21,955 $ 215,643 $ 35,861 $ 681,693 Nonperforming 566 451 3,843 1,603 6,371 452 13,286 Total $ 21,231 $ 122,219 $ 269,644 $ 23,558 $ 222,014 $ 36,313 $ 694,979 Loans are considered past due when contractually required payment of interest or principal has not not June 30, 2018 December 31, 2017 ( 000s June 30, 2018 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 $ 353 $ - $ 80 $ 433 $ 22,691 $ 23,124 $ - Commercial 172 2 - $ 174 142,739 142,913 - Commercial Real Estate 2,100 855 72 3,027 267,065 270,092 - Construction Real Estate 31 - - 31 23,198 23,229 - Residential Real Estate 1,258 228 921 2,407 226,845 229,252 - Consumer and Other 26 - - 26 52,150 52,176 - Total $ 3,940 $ 1,085 $ 1,073 $ 6,098 $ 734,688 $ 740,786 $ - December 31, 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 $ - $ - $ - $ - $ 21,231 $ 21,231 $ - Commercial 111 8 5 124 122,095 122,219 3 Commercial Real Estate 834 783 56 1,673 267,971 269,644 - Construction Real Estate 17 - - 17 23,541 23,558 - Residential Real Estate 1,361 58 871 2,290 219,724 222,014 - Consumer and Other 55 2 - 57 36,256 36,313 - Total $ 2,378 $ 851 $ 932 $ 4,161 $ 690,818 $ 694,979 $ 3 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, 2018 December 31, 2017 ( 000s June 30, 2018 December 31, 2017 Agriculture and Agricultural Real Estate $ 124 $ - Commercial 82 243 Commercial Real Estate 1,585 1,580 Construction Real Estate 11 33 Residential Real Estate 1,542 1,783 Consumer and Other 16 19 Total $ 3,360 $ 3,658 For loans deemed to be impaired due to an expectation that all contractual payments will probably not The following is a summary of impaired loans as of June 30, 2018 June 30, December 31, 2017 ( 000s June 30, 2018 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 $ 895 $ 891 $ - $ 878 $ 12 $ 912 $ 23 Commercial - - - - - - - Commercial Real Estate 1,753 1,817 - 1,708 18 1,706 38 Construction Real Estate - - - - - - - Residential Real Estate 3,874 4,059 - 3,986 52 4,103 104 Consumer and Other 79 80 - 81 1 82 3 With an allowance recorded: Agriculture and Agricultural Real Estate 238 237 - 238 3 239 6 Commercial 254 260 141 261 3 264 6 Commercial Real Estate 1,979 2,025 223 2,046 27 2,055 59 Construction Real Estate 1,562 1,595 347 1,585 18 1,591 37 Residential Real Estate 642 653 128 655 8 657 15 Consumer and Other 337 337 196 340 3 342 7 Total: Agriculture and Agricultural Real Estate $ 1,133 $ 1,128 $ - $ 1,116 $ 15 $ 1,151 $ 29 Commercial 254 260 141 261 3 264 6 Commercial Real Estate 3,732 3,842 223 3,754 45 3,761 97 Construction Real Estate 1,562 1,595 347 1,585 18 1,591 37 Residential Real Estate 4,516 4,712 128 4,641 60 4,760 119 Consumer and Other 416 417 196 421 4 424 10 Total $ 11,613 $ 11,954 $ 1,035 $ 11,778 $ 145 $ 11,951 $ 298 Recorded Investment as of December 31, 2017 Unpaid Principal Balance as of December 31, 2017 Related Allowance as of December 31, 2017 Average Recorded Investment for the Three Months Ended June 30, 2017 Interest Income Recognized in the Three Months Ended June 30, 2017 Average Recorded Investment for the Six Months Ended June 30, 2017 Interest Income Recognized in the Six Months Ended June 30, 2017 With no related allowance recorded: Agriculture and Agricultural Real Estate $ 829 $ 826 $ - $ 1,215 $ 14 $ 1,217 $ 28 Commercial - - - 62 1 64 1 Commercial Real Estate 1,977 2,034 - 1,278 - 1,288 19 Construction Real Estate 17 21 - 154 2 156 4 Residential Real Estate 3,757 3,935 - 4,540 47 4,570 107 Consumer and Other 30 30 - 1 - 1 - With an allowance recorded: Agriculture and Agricultural Real Estate 241 240 1 - - - - Commercial 265 268 148 253 2 272 5 Commercial Real Estate 1,776 1,783 219 1,776 18 1,787 37 Construction Real Estate 1,586 1,619 360 1,560 18 1,564 36 Residential Real Estate 1,464 1,515 177 1,802 18 1,809 35 Consumer and Other 402 403 205 445 5 449 10 Total: Agriculture and Agricultural Real Estate $ 1,070 $ 1,066 $ 1 $ 1,215 $ 14 $ 1,217 $ 28 Commercial 265 268 148 315 3 336 6 Commercial Real Estate 3,753 3,817 219 3,054 18 3,075 56 Construction Real Estate 1,603 1,640 360 1,714 20 1,720 40 Residential Real Estate 5,221 5,450 177 6,342 65 6,379 142 Consumer and Other 432 433 205 446 5 450 10 Total $ 12,344 $ 12,674 $ 1,110 $ 13,086 $ 125 $ 13,177 $ 282 The Bank may may Loans that have been classified as TDRs during the three six June 30, 2018 June 30, 2017 000s Three months ended Six months ended June 30, 2018 June 30, 2018 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 - - - - - - Commercial Real Estate - - - 1 283 282 Construction Real Estate - - - - - - Residential Real Estate 1 22 - 2 172 150 Consumer and Other - - - - - - Total 1 $ 22 $ - 3 $ 455 $ 432 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 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 six June 30, 2018 June 30, 2017 six June 30, 2018 June 30, 2017, Six months ended Six months ended June 30, 2018 June 30, 2017 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 - - - - Consumer and Other - - - - Total - $ - - $ - The Company has allocated $954,000 June 30, 2018. no June 30, 2018 June 30, 2017. |