Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 4 ) Loans The following table presents the composition of loans segregated by legacy and purchased loans and by class of loans, as of June 30, 2019 December 31, 2018. June 30, 2019 Legacy Loans Purchased Loans Total Commercial and Agricultural Commercial $ 43,561 $ 24,974 $ 68,535 Agricultural 18,561 300 18,861 Real Estate Commercial Construction 60,949 12,029 72,978 Residential Construction 13,193 5,429 18,622 Commercial 376,063 57,753 433,816 Residential 177,183 28,005 205,188 Farmland 70,413 3,859 74,272 Consumer and Other Consumer 17,860 5,206 23,066 Other 18,262 1,671 19,933 Total Loans $ 796,045 $ 139,226 $ 935,271 December 31, 2018 Legacy Loans Purchased Loans Total Commercial and Agricultural Commercial $ 50,181 $ 7,229 $ 57,410 Agricultural 15,993 806 16,799 Real Estate Commercial Construction 46,609 1,240 47,849 Residential Construction 12,242 258 12,500 Commercial 366,792 6,742 373,534 Residential 185,699 2,015 187,714 Farmland 62,674 35 62,709 Consumer and Other Consumer 18,423 62 18,485 Other 5,027 - 5,027 Total Loans $ 763,640 $ 18,387 $ 782,027 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, excluding purchased loans, by credit quality indicator (risk grade) as of June 30, 2019 December 31, 2018. 1, 2, 3 4 June 30, 2019, not Pass Special Mention Substandard Total Loans June 30, 2019 Commercial and Agricultural Commercial $ 41,376 $ 1,471 $ 714 $ 43,561 Agricultural 16,050 1,137 1,374 18,561 Real Estate Commercial Construction 60,546 117 286 60,949 Residential Construction 12,839 - 354 13,193 Commercial 360,806 8,048 7,209 376,063 Residential 162,927 4,015 10,241 177,183 Farmland 64,519 3,000 2,894 70,413 Consumer and Other Consumer 17,550 84 226 17,860 Other 18,262 - - 18,262 Total Loans $ 754,875 $ 17,872 $ 23,298 $ 796,045 December 31, 2018 Commercial and Agricultural Commercial $ 48,579 $ 729 $ 873 $ 50,181 Agricultural 14,858 637 498 15,993 Real Estate Commercial Construction 45,847 45 717 46,609 Residential Construction 12,242 - - 12,242 Commercial 351,397 7,662 7,733 366,792 Residential 168,035 7,107 10,557 185,699 Farmland 58,678 1,912 2,084 62,674 Consumer and Other Consumer 18,042 59 322 18,423 Other 5,018 5 4 5,027 Total Loans $ 722,696 $ 18,156 $ 22,788 $ 763,640 The following table presents the purchased loan portfolio by credit quality indicator (risk grade) as of June 30, 2019 December 31, 2018. 1, 2, 3 4 June 30, 2019, not Pass Special Mention Substandard Total Loans June 30, 2019 Commercial and Agricultural Commercial $ 24,632 $ 121 $ 221 $ 24,974 Agricultural 300 - - 300 Real Estate Commercial Construction 11,960 - 69 12,029 Residential Construction 5,429 - - 5,429 Commercial 57,364 389 - 57,753 Residential 27,682 298 25 28,005 Farmland 3,820 - 39 3,859 Consumer and Other Consumer 5,202 - 4 5,206 Other 1,671 - - 1,671 Total Loans $ 138,060 $ 808 $ 358 $ 139,226 December 31, 2018 Commercial and Agricultural Commercial $ 7,229 $ - $ - $ 7,229 Agricultural 806 - - 806 Real Estate Commercial Construction 1,240 - - 1,240 Residential Construction 258 - - 258 Commercial 6,742 - - 6,742 Residential 2,015 - - 2,015 Farmland 35 - - 35 Consumer and Other Consumer 62 - - 62 Other - - - - Total Loans $ 18,387 $ - $ - $ 18,387 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 for legacy loans, segregated by class of loans, excluding purchased loans as of June 30, 2019 December 31, 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 June 30, 2019 Commercial and Agricultural Commercial $ 365 $ - $ 365 $ 442 $ 42,754 $ 43,561 Agricultural - - - 1,304 17,257 18,561 Real Estate Commercial Construction 123 - 123 36 60,790 60,949 Residential Construction - - - 354 12,839 13,193 Commercial 822 - 822 1,849 373,392 376,063 Residential 2,276 - 2,276 2,786 172,121 177,183 Farmland 139 - 139 2,669 67,605 70,413 Consumer and Other Consumer 61 2 63 131 17,666 17,860 Other - - - - 18,262 18,262 Total Loans $ 3,786 $ 2 $ 3,788 $ 9,571 $ 782,686 $ 796,045 December 31, 2018 Commercial and Agricultural Commercial $ 282 $ - $ 282 $ 637 $ 49,262 $ 50,181 Agricultural 117 - 117 413 15,463 15,993 Real Estate Commercial Construction 88 - 88 463 46,058 46,609 Residential Construction - - - - 12,242 12,242 Commercial 679 - 679 2,966 363,147 366,792 Residential 6,882 - 6,882 2,734 176,083 185,699 Farmland 76 - 76 2,052 60,546 62,674 Consumer and Other Consumer 110 - 110 213 18,100 18,423 Other - - - 4 5,023 5,027 Total Loans $ 8,234 $ - $ 8,234 $ 9,482 $ 745,924 $ 763,640 The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, for purchased loans as of June 30, 2019 December 31, 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 June 30, 2019 Commercial and Agricultural Commercial $ 178 $ - $ 178 $ 43 $ 24,753 $ 24,974 Agricultural - - - - 300 300 Real Estate Commercial Construction - - - 69 11,960 12,029 Residential Construction - - - - 5,429 5,429 Commercial - - - - 57,753 57,753 Residential 9 - 9 25 27,971 28,005 Farmland - - - 39 3,820 3,859 Consumer and Other Consumer 16 - 16 4 5,186 5,206 Other - - - - 1,671 1,671 Total Loans $ 203 $ - $ 203 $ 180 $ 138,843 $ 139,226 December 31, 2018 Commercial and Agricultural Commercial $ - $ - $ - $ - $ 7,229 $ 7,229 Agricultural - - - - 806 806 Real Estate Commercial Construction - - - - 1,240 1,240 Residential Construction - - - - 258 258 Commercial - - - - 6,742 6,742 Residential - - - - 2,015 2,015 Farmland - - - - 35 35 Consumer and Other Consumer - - - - 62 62 Other - - - - - - Total Loans $ - $ - $ - $ - $ 18,387 $ 18,387 The following table details impaired loan data, including purchased credit impaired loans, as of June 30, 2019. June 30, 2019 Unpaid Contractual Average Interest Interest Principal Impaired Related Recorded Income Income Balance Balance Allowance Investment Recognized Collected With No Related Allowance Recorded Commercial $ 442 $ 442 $ - $ 525 $ 15 $ 16 Agricultural 736 716 - 544 9 21 Commercial Construction 104 104 - 115 3 3 Residential Construction 354 354 - 118 4 4 Commercial Real Estate 12,372 11,504 - 12,341 291 293 Residential Real Estate 3,872 3,849 - 3,979 83 98 Farmland 2,670 2,668 - 2,246 (25 ) 17 Consumer 132 132 - 159 3 4 Other - - - 2 - - 20,682 19,769 - 20,029 383 456 With An Allowance Recorded Commercial - - - 14 - - Agricultural 588 588 588 196 9 33 Commercial Construction - - - 133 - - Residential Construction - - - - - - Commercial Real Estate 3,031 3,031 897 2,902 61 62 Residential Real Estate 267 267 49 270 11 11 Farmland 359 359 32 361 13 12 Consumer - - - - - - Other - - - - - - 4,245 4,245 1,566 3,876 94 118 Purchased Credit Impaired Loans Commercial 68 42 - 14 - - Commercial Construction 122 69 - 23 - - Residential Real Estate 23 14 - 5 - - Farmland 237 40 - 13 - - Consumer 195 - - - - - 645 165 - 55 - - Total Commercial 510 484 - 553 15 16 Agricultural 1,324 1,304 588 740 18 54 Commercial Construction 226 173 - 271 3 3 Residential Construction 354 354 - 118 4 4 Commercial Real Estate 15,403 14,535 897 15,243 352 355 Residential Real Estate 4,162 4,130 49 4,254 94 109 Farmland 3,266 3,067 32 2,620 (12 ) 29 Consumer 327 132 - 159 3 4 Other - - - 2 - - $ 25,572 $ 24,179 $ 1,566 $ 23,960 $ 477 $ 574 The following table details impaired loan data as of December 31, 2018. no December 31, 2018. December 31, 2018 Unpaid Contractual Average Interest Interest Principal Impaired Related Recorded Income Income Balance Balance Allowance Investment Recognized Collected With No Related Allowance Recorded Commercial $ 595 $ 595 $ - $ 526 $ 21 $ 24 Agricultural 434 413 - 383 18 25 Commercial Construction 132 132 - 69 8 8 Residential Contruction - - - - - Commercial Real Estate 12,164 12,164 - 11,040 582 583 Residential Real Estate 4,214 4,130 - 4,067 208 213 Farmland 2,054 2,052 - 1,361 53 82 Consumer 213 213 - 197 14 14 Other 4 4 - 1 - - 19,810 19,703 - 17,644 904 949 With An Allowance Recorded Commercial 42 42 6 8 2 2 Agricultural - - - - - - Commercial Construction 399 399 39 466 - - Residential Contruction - - - - - - Commercial Real Estate 3,691 3,691 1,276 5,121 135 142 Residential Real Estate 274 274 61 98 8 8 Farmland 364 364 36 368 24 25 Consumer - - - - - - Other - - - - - - 4,770 4,770 1,418 6,061 169 177 Total Commercial 637 637 6 534 23 26 Agricultural 434 413 - 383 18 25 Commercial Construction 531 531 39 535 8 8 Residential Contruction - - - - - - Commercial Real Estate 15,855 15,855 1,276 16,161 717 725 Residential Real Estate 4,488 4,404 61 4,165 216 221 Farmland 2,418 2,416 36 1,729 77 107 Consumer 213 213 - 197 14 14 Other 4 4 - 1 - - $ 24,580 $ 24,473 $ 1,418 $ 23,705 $ 1,073 $ 1,126 The following table details impaired loan data as of June 30, 2018. no 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 Contruction - - - - - - 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 Contruction - - - - - - 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 Contruction - - - - - - 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 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, 2019. no three six June 30, 2019 2018. 90 may six not The Company had no three June 30, 2019 2018, no six June 30, 2019 one six June 30, 2018. $131 |