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 September 30, 2019 December 31, 2018. September 30, 2019 Legacy Loans Purchased Loans Total Commercial and Agricultural Commercial $ 52,085 $ 24,147 $ 76,232 Agricultural 20,462 279 20,741 Real Estate Commercial Construction 64,280 9,720 74,000 Residential Construction 15,080 4,959 20,039 Commercial 392,681 58,019 450,700 Residential 172,853 25,801 198,654 Farmland 71,206 3,135 74,341 Consumer and Other Consumer 18,071 4,685 22,756 Other 19,591 1,669 21,260 Total Loans $ 826,309 $ 132,414 $ 958,723 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 September 30, 2019 December 31, 2018. 1, 2, 3 4 September 30, 2019, not Pass Special Mention Substandard Total Loans September 30, 2019 Commercial and Agricultural Commercial $ 50,098 $ 1,379 $ 608 $ 52,085 Agricultural 17,997 1,211 1,254 20,462 Real Estate Commercial Construction 63,776 224 280 64,280 Residential Construction 15,080 - - 15,080 Commercial 376,850 9,502 6,329 392,681 Residential 160,763 4,388 7,702 172,853 Farmland 64,291 3,787 3,128 71,206 Consumer and Other Consumer 17,680 172 219 18,071 Other 19,591 - - 19,591 Total Loans $ 786,126 $ 20,663 $ 19,520 $ 826,309 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 September 30, 2019 December 31, 2018. 1, 2, 3 4 September 30, 2019, not Pass Special Mention Substandard Total Loans September 30, 2019 Commercial and Agricultural Commercial $ 22,473 $ 1,232 $ 442 $ 24,147 Agricultural 279 - - 279 Real Estate Commercial Construction 9,654 - 66 9,720 Residential Construction 4,959 - - 4,959 Commercial 57,634 385 - 58,019 Residential 25,384 382 35 25,801 Farmland 3,098 - 37 3,135 Consumer and Other Consumer 4,682 - 3 4,685 Other 1,669 - - 1,669 Total Loans $ 129,832 $ 1,999 $ 583 $ 132,414 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 September 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 September 30, 2019 Commercial and Agricultural Commercial $ 165 $ - $ 165 $ 460 $ 51,460 $ 52,085 Agricultural 71 - 71 1,214 19,177 20,462 Real Estate Commercial Construction 89 - 89 10 64,181 64,280 Residential Construction 59 - 59 - 15,021 15,080 Commercial 497 - 497 1,567 390,617 392,681 Residential 1,083 - 1,083 3,605 168,165 172,853 Farmland 150 - 150 2,592 68,464 71,206 Consumer and Other Consumer 109 - 109 124 17,838 18,071 Other - - - - 19,591 19,591 Total Loans $ 2,223 $ - $ 2,223 $ 9,572 $ 814,514 $ 826,309 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 September 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 September 30, 2019 Commercial and Agricultural Commercial $ 491 $ - $ 491 $ 442 $ 23,214 $ 24,147 Agricultural - - - - 279 279 Real Estate Commercial Construction - - - 66 9,654 9,720 Residential Construction - - - - 4,959 4,959 Commercial - - - - 58,019 58,019 Residential 35 - 35 23 25,743 25,801 Farmland - - - 37 3,098 3,135 Consumer and Other Consumer 4 - 4 3 4,678 4,685 Other - - - - 1,669 1,669 Total Loans $ 530 $ - $ 530 $ 571 $ 131,313 $ 132,414 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 September 30, 2019. September 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 $ 460 $ 459 $ - $ 508 $ 29 $ 30 Agricultural 648 628 - 565 9 20 Commercial Construction 77 77 - 105 3 3 Residential Construction - - - 89 - - Commercial Real Estate 9,300 9,300 - 11,581 346 352 Residential Real Estate 3,908 3,817 - 3,939 129 148 Farmland 2,593 2,591 - 2,332 (23 ) 14 Consumer 163 128 - 151 4 5 Other - - - 2 - - 17,149 17,000 - 19,272 497 572 With An Allowance Recorded Commercial 398 403 152 111 8 8 Agricultural 587 587 586 294 9 33 Commercial Construction - - - 100 - - Residential Construction - - - - - - Commercial Real Estate 2,956 2,956 823 2,916 95 95 Residential Real Estate 266 266 48 268 17 17 Farmland 357 357 30 360 20 19 Consumer - - - - - - Other - - - - - - 4,564 4,569 1,639 4,049 149 172 Purchased Credit Impaired Loans Commercial 67 39 - 20 - - Commercial Construction 120 66 - 34 1 1 Residential Real Estate 21 13 8 7 - - Farmland 237 37 - 19 1 1 Consumer 195 - - - - - 640 155 8 80 2 2 Total Commercial 925 901 152 639 37 38 Agricultural 1,235 1,215 586 859 18 53 Commercial Construction 197 143 - 239 4 4 Residential Construction - - - 89 - - Commercial Real Estate 12,256 12,256 823 14,497 441 447 Residential Real Estate 4,195 4,096 56 4,214 146 165 Farmland 3,187 2,985 30 2,711 (2 ) 34 Consumer 358 128 - 151 4 5 Other - - - 2 - - $ 22,353 $ 21,724 $ 1,647 $ 23,401 $ 648 $ 746 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 September 30, 2018. no September 30, 2018. September 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 $ 472 $ 472 $ - $ 508 $ 13 $ 15 Agricultural 444 423 - 375 14 21 Commercial Construction 102 102 - 54 3 3 Residential Contruction - - - - - - Commercial Real Estate 9,758 9,758 - 10,759 345 352 Residential Real Estate 3,954 3,868 - 4,052 141 145 Farmland 2,067 2,065 - 1,189 46 75 Consumer 175 175 - 193 9 10 Other - - - - - - 16,972 16,863 - 17,130 571 621 With An Allowance Recorded Commercial - - - - - - Agricultural - - - - - - Commercial Construction 471 471 44 483 3 3 Residential Contruction - - - - - - Commercial Real Estate 5,800 5,800 1,394 5,478 185 187 Residential Real Estate 35 35 20 54 2 2 Farmland 366 366 29 368 18 18 Consumer - - - - - - Other - - - - - - 6,672 6,672 1,487 6,383 208 210 Total Commercial 472 472 - 508 13 15 Agricultural 444 423 - 375 14 21 Commercial Construction 573 573 44 537 6 6 Residential Contruction - - - - - - Commercial Real Estate 15,558 15,558 1,394 16,237 530 539 Residential Real Estate 3,989 3,903 20 4,106 143 147 Farmland 2,433 2,431 29 1,557 64 93 Consumer 175 175 - 193 9 10 Other - - - - - - $ 23,644 $ 23,535 $ 1,487 $ 23,513 $ 779 $ 831 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 September 30, 2019. no three nine September 30, 2019 2018. 90 may six not The Company had one $859 three September 30, 2019 no three September 30, 2018. one $859 nine September 30, 2019 one $131 nine September 30, 2018. $859 $131 |