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 March 31, 2019 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 March 31, 2019 Beginning Balance $ 205 $ 1,266 $ 3,012 $ 184 $ 1,218 $ 1,886 $ 7,771 Charge-offs - (252 ) (151 ) - - (8 ) (411 ) Recoveries - 27 24 12 75 5 143 Provision 35 720 153 (158 ) (82 ) (668 ) - Ending balance $ 240 $ 1,761 $ 3,038 $ 38 $ 1,211 $ 1,215 $ 7,503 Allowance for loan losses as of March 31, 2019 Ending balance individually evaluated for impairment $ - $ 138 $ 118 $ - $ 83 $ 127 $ 466 Ending balance collectively evaluated for impairment 240 1,623 2,920 38 1,128 1,088 7,037 Ending balance $ 240 $ 1,761 $ 3,038 $ 38 $ 1,211 $ 1,215 $ 7,503 Loans as of March 31, 2019 Ending balance individually evaluated for impairment $ 2,556 $ 287 $ 3,503 $ 32 $ 3,051 $ 401 $ 9,830 Ending balance collectively evaluated for impairment 19,531 162,159 275,149 27,909 228,023 44,276 757,047 Ending balance $ 22,087 $ 162,446 $ 278,652 $ 27,941 $ 231,074 $ 44,677 $ 766,877 Activity in the allowance for loan losses during the three March 31, 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 March 31, 2018 Beginning Balance $ 195 $ 1,443 $ 3,297 $ 491 $ 1,279 $ 961 $ 7,666 Charge-offs - - (3 ) - (7 ) (2 ) (12 ) Recoveries 2 15 240 20 42 12 331 Provision 13 (61 ) (446 ) (50 ) (225 ) 669 (100 ) Ending balance $ 210 $ 1,397 $ 3,088 $ 461 $ 1,089 $ 1,640 $ 7,885 Allowance for loan losses as of March 31, 2018 Ending balance individually evaluated for impairment $ 1 $ 146 $ 315 $ 354 $ 131 $ 199 $ 1,146 Ending balance collectively evaluated for impairment 209 1,251 2,773 107 958 1,441 6,739 Ending balance $ 210 $ 1,397 $ 3,088 $ 461 $ 1,089 $ 1,640 $ 7,885 Loans as of March 31, 2018 Ending balance individually evaluated for impairment $ 1,139 $ 260 $ 3,720 $ 1,574 $ 4,566 $ 424 $ 11,683 Ending balance collectively evaluated for impairment 21,180 131,642 266,608 18,354 218,752 54,421 710,957 Ending balance $ 22,319 $ 131,902 $ 270,328 $ 19,928 $ 223,318 $ 54,845 $ 722,640 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 March 31, 2019 000s Credit Quality Indicators as of March 31, 2019 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 $ - $ 1,731 $ 44 $ 11,948 $ 147,437 $ 39,747 $ 200,907 10 - 3,998 - - - - 3,998 20 64 116 185 - - - 365 30 267 46,455 24,609 - 1,363 3,424 76,118 40 13,977 103,187 219,492 13,051 73,934 1,495 425,136 45 1,589 1,909 19,787 1,360 2,719 - 27,364 50 3,755 4,582 6,866 245 2,590 - 18,038 55 72 255 2,363 - 693 - 3,383 60 2,363 213 5,306 1,337 2,338 11 11,568 70 - - - - - - - 80 - - - - - - - 90 - - - - - - - Total $ 22,087 $ 162,446 $ 278,652 $ 27,941 $ 231,074 $ 44,677 $ 766,877 Performing $ 19,490 $ 162,181 $ 275,374 $ 27,909 $ 227,091 $ 44,219 $ 756,264 Nonperforming 2,597 265 3,278 32 3,983 458 10,613 Total $ 22,087 $ 162,446 $ 278,652 $ 27,941 $ 231,074 $ 44,677 $ 766,877 The portfolio segments in each credit risk grade as of December 31, 2018 000s Credit Quality Indicators as of December 31, 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 $ - $ 3,652 $ 60 $ 12,878 $ 147,167 $ 42,259 $ 206,016 10 - 6,877 - - - - 6,877 20 64 117 196 - - - 377 30 481 47,263 24,899 - 1,268 3,556 77,467 40 16,038 97,598 219,079 11,555 74,141 1,618 420,029 45 1,472 2,024 19,462 1,381 2,623 - 26,962 50 1,852 3,851 9,084 249 1,896 - 16,932 55 - 305 2,132 - 713 - 3,150 60 2,579 339 4,380 1,337 2,200 13 10,848 70 - - - - - - - 80 - - 2 - - - 2 90 - - - - - - - Total $ 22,486 $ 162,026 $ 279,294 $ 27,400 $ 230,008 $ 47,446 $ 768,660 Performing $ 20,305 $ 161,749 $ 276,021 $ 27,368 $ 226,119 $ 47,037 $ 758,599 Nonperforming 2,181 277 3,273 32 3,889 409 10,061 Total $ 22,486 $ 162,026 $ 279,294 $ 27,400 $ 230,008 $ 47,446 $ 768,660 Loans are considered past due when contractually required payment of interest or principal has not not March 31, 2019 December 31, 2018 ( 000s March 31, 2019 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 $ 264 $ 16 $ 1,719 $ 1,999 $ 20,088 $ 22,087 $ - Commercial 149 21 46 $ 216 162,230 162,446 15 Commercial Real Estate 914 936 636 2,486 276,166 278,652 - Construction Real Estate - - 32 32 27,909 27,941 - Residential Real Estate 1,810 81 387 2,278 228,796 231,074 - Consumer and Other 153 50 47 250 44,427 44,677 46 Total $ 3,290 $ 1,104 $ 2,867 $ 7,261 $ 759,616 $ 766,877 $ 61 December 31, 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 $ 632 $ 1,235 $ - $ 1,867 $ 20,619 $ 22,486 $ - Commercial 186 110 31 327 161,699 162,026 - Commercial Real Estate 804 - 1,849 2,653 276,641 279,294 - Construction Real Estate - - - - 27,400 27,400 - Residential Real Estate 1,217 340 376 1,933 228,075 230,008 - Consumer and Other 79 13 - 92 47,354 47,446 - Total $ 2,918 $ 1,698 $ 2,256 $ 6,872 $ 761,788 $ 768,660 $ - 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 March 31, 2019 December 31, 2018 ( 000s March 31, 2019 December 31, 2018 Agriculture and Agricultural Real Estate $ 2,363 $ 1,624 Commercial 85 106 Commercial Real Estate 3,277 2,907 Construction Real Estate 32 5 Residential Real Estate 1,366 912 Consumer and Other 11 12 Total $ 7,134 $ 5,566 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 March 31, 2019 March 31, December 31, 2018 ( 000s March 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment for the Three Months Ended Interest Income Recognized in the Three Months Ended With no related allowance recorded: Agriculture and Agricultural Real Estate $ 2,556 $ 2,555 $ - $ 2,595 $ (14 ) Commercial 67 67 - 91 1 Commercial Real Estate 1,899 2,116 - 2,076 61 Construction Real Estate 32 67 - 52 - Residential Real Estate 2,660 2,822 - 2,842 39 Consumer and Other 134 135 - 137 2 With an allowance recorded: Agriculture and Agricultural Real Estate - - - - - Commercial 220 229 138 231 2 Commercial Real Estate 1,604 1,697 118 1,698 5 Construction Real Estate - - - - - Residential Real Estate 391 403 83 405 5 Consumer and Other 267 267 127 270 3 Total: Agriculture and Agricultural Real Estate $ 2,556 $ 2,555 $ - $ 2,595 $ (14 ) Commercial 287 296 138 322 3 Commercial Real Estate 3,503 3,813 118 3,774 66 Construction Real Estate 32 67 - 52 - Residential Real Estate 3,051 3,225 83 3,247 44 Consumer and Other 401 402 127 407 5 Total $ 9,830 $ 10,358 $ 466 $ 10,397 $ 104 Recorded Investment as of December 31, 2018 Unpaid Principal Balance as of December 31, 2018 Related Allowance as of December 31, 2018 Average Recorded Investment for the Three Months Ended March 31, 2018 Interest Income Recognized in the Three Months Ended March 31, 2018 With no related allowance recorded: Agriculture and Agricultural Real Estate $ 2,388 $ 2,384 $ - $ 820 $ 11 Commercial - - - - - Commercial Real Estate 1,863 1,871 - 1,706 21 Construction Real Estate - - - - - Residential Real Estate 3,015 3,174 - 4,129 52 Consumer and Other 58 59 - 84 1 With an allowance recorded: Agriculture and Agricultural Real Estate 234 234 - 240 3 Commercial 226 234 142 266 3 Commercial Real Estate 1,299 1,380 146 2,064 32 Construction Real Estate 32 67 4 1,597 19 Residential Real Estate 306 316 94 660 7 Consumer and Other 339 339 143 345 4 Total: Agriculture and Agricultural Real Estate $ 2,622 $ 2,618 $ - $ 1,060 $ 14 Commercial 226 234 142 266 3 Commercial Real Estate 3,162 3,251 146 3,770 53 Construction Real Estate 32 67 4 1,597 19 Residential Real Estate 3,321 3,490 94 4,789 59 Consumer and Other 397 398 143 429 5 Total $ 9,760 $ 10,058 $ 529 $ 11,911 $ 153 The Bank may may Loans that have been classified as TDRs during the three March 31, 2019 March 31, 2018 000s Three months ended Three months ended March 31, 2019 March 31, 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 2 $ 77 $ 16 - $ - $ - Commercial - - - - - - Commercial Real Estate 1 39 36 1 283 283 Construction Real Estate - - - - - - Residential Real Estate - - - 1 150 150 Consumer and Other 1 15 14 - - - Total 4 $ 131 $ 66 2 $ 433 $ 433 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 three March 31, 2019 March 31, 2018 three March 31, 2019 March 31, 2018, Three months ended Three months ended March 31, 2019 March 31, 2018 Number of Contracts Post- Modification Recorded Principal Balance Number of Contracts Post- Modification Recorded Principal Balance Agriculture and Agricultural Real Estate - $ - - $ - Commercial - - - - Commercial Real Estate - - 1 283 Construction Real Estate - - - - Residential Real Estate - - - - Consumer and Other - - - - Total - $ - 1 $ 283 The Company has allocated $417,000 March 31, 2019. no March 31, 2019 March 31, 2018. |