Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 3 ) Loans The following table presents the composition of loans segregated by class of loans, as of June 30, 2018 December 31, 2017. June 30, 2018 December 31, 2017 Commercial and Agricultural Commercial $ 45,029 $ 48,122 Agricultural 20,037 16,443 Real Estate Commercial Construction 48,909 45,214 Residential Construction 11,541 8,583 Commercial 352,063 351,172 Residential 187,591 194,049 Farmland 67,867 67,768 Consumer and Other Consumer 18,746 18,956 Other 15,013 14,977 Total Loans $ 766,796 $ 765,284 Commercial and industrial loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer loans are originated at the Bank level. These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk. Credit Quality Indicators The Company uses a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 8. ● Grades 1 2 may ● Grades 3 4 no one ● Grade 5 ● Grade 6 ● Grades 7 8 no 6. The following table presents the loan portfolio by credit quality indicator (risk grade) as of June 30, 2018 December 31, 2017. 1, 2, 3 4 June 30, 2018, not June 30, 2018 Pass Special Mention Substandard Total Loans Commercial and Agricultural Commercial $ 43,619 $ 755 $ 655 $ 45,029 Agricultural 19,255 438 344 20,037 Real Estate Commercial Construction 47,606 618 685 48,909 Residential Construction 11,541 - - 11,541 Commercial 338,114 7,591 6,358 352,063 Residential 172,844 4,318 10,429 187,591 Farmland 63,869 2,039 1,959 67,867 Consumer and Other Consumer 18,350 41 355 18,746 Other 15,006 7 - 15,013 Total Loans $ 730,204 $ 15,807 $ 20,785 $ 766,796 December 31, 2017 Pass Special Mention Substandard Total Loans Commercial and Agricultural Commercial $ 46,469 $ 825 $ 828 $ 48,122 Agricultural 15,868 175 400 16,443 Real Estate Commercial Construction 41,282 578 3,354 45,214 Residential Construction 8,583 - - 8,583 Commercial 338,776 7,663 4,733 351,172 Residential 177,963 4,865 11,221 194,049 Farmland 66,335 444 989 67,768 Consumer and Other Consumer 18,496 53 407 18,956 Other 14,969 8 - 14,977 Total Loans $ 728,741 $ 14,611 $ 21,932 $ 765,284 A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to reassessment at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 6 $250,000 may not In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination. Loans are considered past due if the required principal and interest payments have not 90 may may not The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of June 30, 2018 December 31, 2017: June 30, 2018 Accruing Loans 90 Days 30-89 Days or More Total Accruing Nonaccrual Past Due Past Due Loans Past Due Loans Current Loans Total Loans Commercial and Agricultural Commercial $ 280 $ - $ 280 $ 367 $ 44,382 $ 45,029 Agricultural 177 - 177 290 19,570 20,037 Real Estate Commercial Construction 354 - 354 428 48,127 48,909 Residential Construction - - - - 11,541 11,541 Commercial 1,382 - 1,382 1,228 349,453 352,063 Residential 2,286 - 2,286 2,140 183,165 187,591 Farmland 79 - 79 979 66,809 67,867 Consumer and Other Consumer 112 - 112 200 18,434 18,746 Other - - - - 15,013 15,013 Total Loans $ 4,670 $ - $ 4,670 $ 5,632 $ 756,494 $ 766,796 December 31, 2017 Accruing Loans 90 Days 30-89 Days or More Total Accruing Nonaccrual Past Due Past Due Loans Past Due Loans Current Loans Total Loans Commercial and Agricultural Commercial $ 329 $ - $ 329 $ 598 $ 47,195 $ 48,122 Agricultural 111 - 111 399 15,933 16,443 Real Estate Commercial Construction 27 - 27 477 44,710 45,214 Residential Construction 119 - 119 - 8,464 8,583 Commercial 919 - 919 2,172 348,081 351,172 Residential 2,482 - 2,482 2,830 188,737 194,049 Farmland 318 - 318 839 66,611 67,768 Consumer and Other Consumer 246 - 246 188 18,522 18,956 Other 7 - 7 - 14,970 14,977 Total Loans $ 4,558 $ - $ 4,558 $ 7,503 $ 753,223 $ 765,284 The following table details impaired loan data as of June 30, 2018: June 30, 2018 Unpaid Contractual Average Interest Interest Principal Impaired Related Recorded Income Income Balance Balance Allowance Investment Recognized Collected With No Related Allowance Recorded Commercial $ 367 $ 367 $ - $ 520 $ 5 $ 5 Agricultural 311 290 - 360 9 12 Commercial Construction 16 16 - 38 1 1 Residential Construction - - - - - - Commercial Real Estate 10,201 10,201 - 11,092 235 236 Residential Real Estate 3,892 3,805 - 4,113 87 89 Farmland 980 978 - 896 5 7 Consumer 200 200 - 199 6 6 Other - - - - - - 15,967 15,857 - 17,218 348 356 With An Allowance Recorded Commercial - - - - - - Agricultural - - - - - - Commercial Construction 482 482 54 487 2 2 Residential Construction - - - - - - Commercial Real Estate 5,047 5,047 1,371 5,371 106 99 Residential Real Estate 36 36 21 60 1 1 Farmland 367 367 28 369 12 12 Consumer - - - - - - Other - - - - - - 5,932 5,932 1,474 6,287 121 114 Total Commercial 367 367 - 520 5 5 Agricultural 311 290 - 360 9 12 Commercial Construction 498 498 54 525 3 3 Residential Construction - - - - - - Commercial Real Estate 15,248 15,248 1,371 16,463 341 335 Residential Real Estate 3,928 3,841 21 4,173 88 90 Farmland 1,347 1,345 28 1,265 17 19 Consumer 200 200 - 199 6 6 Other - - - - - - $ 21,899 $ 21,789 $ 1,474 $ 23,505 $ 469 $ 470 The following table details impaired loan data as of December 31, 2017: December 31, 2017 Unpaid Contractual Average Interest Interest Principal Impaired Related Recorded Income Income Balance Balance Allowance Investment Recognized Collected With No Related Allowance Recorded Commercial $ 599 $ 599 $ - $ 634 $ 33 $ 34 Agricultural 485 398 - 297 11 19 Commercial Construction 54 54 - 141 3 4 Residential Contruction - - 79 - - Commercial Real Estate 12,637 12,637 - 12,808 560 550 Residential Real Estate 4,978 4,580 - 4,566 212 227 Farmland 840 839 - 791 54 58 Consumer 188 188 - 186 9 9 19,781 19,295 - 19,502 882 901 With An Allowance Recorded Commercial - - - - - - Agricultural - - - - - - Commercial Construction 493 493 66 241 23 33 Residential Contruction - - - - - - Commercial Real Estate 5,729 5,729 1,713 6,599 229 237 Residential Real Estate 109 109 27 482 4 7 Farmland 371 371 21 376 22 22 Consumer - - - - - - 6,702 6,702 1,827 7,698 278 299 Total Commercial 599 599 - 634 33 34 Agricultural 485 398 - 297 11 19 Commercial Construction 547 547 66 382 26 37 Residential Contruction - - - 79 - - Commercial Real Estate 18,366 18,366 1,713 19,407 789 787 Residential Real Estate 5,087 4,689 27 5,048 216 234 Farmland 1,211 1,210 21 1,167 76 80 Consumer 188 188 - 186 9 9 $ 26,483 $ 25,997 $ 1,827 $ 27,200 $ 1,160 $ 1,200 The following table details impaired loan data as of June 30, 2017: June 30, 2017 Unpaid Contractual Average Interest Interest Principal Impaired Related Recorded Income Income Balance Balance Allowance Investment Recognized Collected With No Related Allowance Recorded Commercial $ 608 $ 608 $ - $ 639 $ 11 $ 15 Agricultural 370 349 - 254 11 13 Commercial Construction 102 102 - 159 1 1 Residential Construction 199 199 - 66 5 5 Commercial Real Estate 10,454 10,454 - 13,543 226 222 Residential Real Estate 5,667 4,871 - 4,511 98 115 Farmland 679 678 - 759 56 56 Consumer 149 149 - 188 3 3 18,228 17,410 - 20,119 411 430 With An Allowance Recorded Commercial - - - - - - Agricultural - - - - - - Commercial Construction 71 71 4 72 2 2 Residential Construction - - - - - - Commercial Real Estate 7,169 7,169 1,517 6,714 135 134 Residential Real Estate 49 41 20 755 (2 ) 2 Farmland 376 376 26 378 11 11 Consumer - - - - - - 7,665 7,657 1,567 7,919 146 149 Total Commercial 608 608 - 639 11 15 Agricultural 370 349 - 254 11 13 Commercial Construction 173 173 4 231 3 3 Residential Construction 199 199 - 66 5 5 Commercial Real Estate 17,623 17,623 1,517 20,257 361 356 Residential Real Estate 5,716 4,912 20 5,266 96 117 Farmland 1,055 1,054 26 1,137 67 67 Consumer 149 149 - 188 3 3 $ 25,893 $ 25,067 $ 1,567 $ 28,038 $ 557 $ 579 TDRs are troubled loans on which the original terms of the loan have been modified in favor of the borrower due to deterioration in the borrower’s financial condition. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time. Not ● Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not ● Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral. ● Principal reductions – These are often the result of commercial real estate loan workouts where two no no As discussed in Note 1, no June 30, 2018. no three six June 30, 2018 2017. 90 may six not The Company did not three June 30, 2018 one six June 30, 2018. $131 |