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, 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 June 30, 2019 Beginning Balance $ 240 $ 1,761 $ 3,038 $ 38 $ 1,211 $ 1,215 $ 7,503 Charge-offs - (5 ) - - (17 ) (46 ) (68 ) Recoveries 4 20 24 26 41 73 188 Provision 35 (545 ) (57 ) (37 ) (49 ) 653 - Ending balance $ 279 $ 1,231 $ 3,005 $ 27 $ 1,186 $ 1,895 $ 7,623 Allowance for loan losses: For the six months ended June 30, 2019 Beginning Balance $ 205 $ 1,266 $ 3,012 $ 184 $ 1,218 $ 1,886 $ 7,771 Charge-offs - (257 ) (151 ) - (17 ) (54 ) (479 ) Recoveries 4 47 48 38 116 78 331 Provision 70 175 96 (195 ) (131 ) (15 ) - Ending balance $ 279 $ 1,231 $ 3,005 $ 27 $ 1,186 $ 1,895 $ 7,623 Allowance for loan losses as of June 30, 2019 Ending balance individually evaluated for impairment $ - $ 13 $ 275 $ - $ 67 $ 124 $ 479 Ending balance collectively evaluated for impairment 279 1,218 2,730 27 1,119 1,771 7,144 Ending balance $ 279 $ 1,231 $ 3,005 $ 27 $ 1,186 $ 1,895 $ 7,623 Loans as of June 30, 2019 Ending balance individually evaluated for impairment $ 2,213 $ 307 $ 3,451 $ 1,289 $ 3,144 $ 390 $ 10,794 Ending balance collectively evaluated for impairment 22,466 162,320 278,888 27,400 226,611 40,934 758,619 Ending balance $ 24,679 $ 162,627 $ 282,339 $ 28,689 $ 229,755 $ 41,324 $ 769,413 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 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, 2019 000s Credit Quality Indicators as of June 30, 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 $ 2 $ 1,719 $ 30 $ 11,847 $ 146,226 $ 36,740 $ 196,564 10 - 3,958 - - - - 3,958 20 - 115 175 - - - 290 30 390 43,254 21,782 - 514 3,196 69,136 40 16,690 106,413 222,376 14,216 75,105 1,380 436,180 45 1,725 1,909 20,073 1,337 2,591 - 27,635 50 3,783 4,769 10,440 - 2,520 - 21,512 55 70 220 2,295 - 661 - 3,246 60 2,019 270 5,168 1,289 2,138 8 10,892 70 - - - - - - - 80 - - - - - - - 90 - - - - - - - Total $ 24,679 $ 162,627 $ 282,339 $ 28,689 $ 229,755 $ 41,324 $ 769,413 Performing $ 22,425 $ 162,290 $ 279,112 $ 27,400 $ 225,961 $ 40,914 $ 758,102 Nonperforming 2,254 337 3,227 1,289 3,794 410 11,311 Total $ 24,679 $ 162,627 $ 282,339 $ 28,689 $ 229,755 $ 41,324 $ 769,413 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 June 30, 2019 December 31, 2018 ( 000s June 30, 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 $ - $ - $ 1,093 $ 1,093 $ 23,586 $ 24,679 $ - Commercial 74 9 113 $ 196 162,431 162,627 20 Commercial Real Estate 168 - 1,572 1,740 280,599 282,339 - Construction Real Estate - - - - 28,689 28,689 - Residential Real Estate 1,802 532 111 2,445 227,310 229,755 - Consumer and Other 19 61 12 92 41,232 41,324 12 Total $ 2,063 $ 602 $ 2,901 $ 5,566 $ 763,847 $ 769,413 $ 32 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 June 30, 2019 December 31, 2018 ( 000s June 30, 2019 December 31, 2018 Agriculture and Agricultural Real Estate $ 2,019 $ 1,624 Commercial 94 106 Commercial Real Estate 3,114 2,907 Construction Real Estate 1,289 5 Residential Real Estate 1,199 912 Consumer and Other 8 12 Total $ 7,723 $ 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 June 30, 2019 June 30, December 31, 2018 ( 000s June 30, 2019 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 $ 2,213 $ 2,211 $ - $ 2,364 $ 4 $ 2,413 $ (10 ) Commercial 84 84 - 81 1 86 2 Commercial Real Estate 1,844 2,082 - 1,946 26 2,011 86 Construction Real Estate 1,289 1,289 - 1,299 8 1,302 21 Residential Real Estate 2,758 2,922 - 2,945 40 2,968 72 Consumer and Other 92 93 - 96 2 99 4 With an allowance recorded: Agriculture and Agricultural Real Estate - - - - - - - Commercial 223 226 13 227 3 229 5 Commercial Real Estate 1,607 1,693 275 1,695 2 1,697 7 Construction Real Estate - - - - - - - Residential Real Estate 386 398 67 400 4 402 10 Consumer and Other 298 298 124 301 3 303 6 Total: Agriculture and Agricultural Real Estate $ 2,213 $ 2,211 $ - $ 2,364 $ 4 $ 2,413 $ (10 ) Commercial 307 310 13 308 4 315 7 Commercial Real Estate 3,451 3,775 275 3,641 28 3,708 93 Construction Real Estate 1,289 1,289 - 1,299 8 1,302 21 Residential Real Estate 3,144 3,320 67 3,345 44 3,370 82 Consumer and Other 390 391 124 397 5 402 10 Total $ 10,794 $ 11,296 $ 479 $ 11,354 $ 93 $ 11,510 $ 203 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 June 30, 2018 Interest Income Recognized in the Three Months Ended June 30, 2018 Average Recorded Investment for the Six Months Ended June 30, 2018 Interest Income Recognized in the Six Months Ended June 30, 2018 With no related allowance recorded: Agriculture and Agricultural Real Estate $ 2,388 $ 2,384 $ - $ 878 $ 12 $ 912 $ 23 Commercial - - - - - - - Commercial Real Estate 1,863 1,871 - 1,708 18 1,706 38 Construction Real Estate - - - - - - - Residential Real Estate 3,015 3,174 - 3,986 52 4,103 104 Consumer and Other 58 59 - 81 1 82 3 With an allowance recorded: Agriculture and Agricultural Real Estate 234 234 - 238 3 239 6 Commercial 226 234 142 261 3 264 6 Commercial Real Estate 1,299 1,380 146 2,046 27 2,055 59 Construction Real Estate 32 67 4 1,585 18 1,591 37 Residential Real Estate 306 316 94 655 8 657 15 Consumer and Other 339 339 143 340 3 342 7 Total: Agriculture and Agricultural Real Estate $ 2,622 $ 2,618 $ - $ 1,116 $ 15 $ 1,151 $ 29 Commercial 226 234 142 261 3 264 6 Commercial Real Estate 3,162 3,251 146 3,754 45 3,761 97 Construction Real Estate 32 67 4 1,585 18 1,591 37 Residential Real Estate 3,321 3,490 94 4,641 60 4,760 119 Consumer and Other 397 398 143 421 4 424 10 Total $ 9,760 $ 10,058 $ 529 $ 11,778 $ 145 $ 11,951 $ 298 The Bank may may Loans that have been classified as TDRs during the three six June 30, 2019 June 30, 2018 000s Three months ended Six months ended June 30, 2019 June 30, 2019 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 $ 13 Commercial - - - - - - Commercial Real Estate - - - 1 39 34 Construction Real Estate - - - - - - Residential Real Estate 1 129 129 1 129 129 Consumer and Other - - - 1 15 14 Total 1 $ 129 $ 129 5 $ 260 $ 190 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 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, 2019 June 30, 2018 six June 30, 2019 June 30, 2018, Six months ended Six months ended June 30, 2019 June 30, 2018 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 $24,000 June 30, 2019. no June 30, 2019 June 30, 2018. |