| Loans | NOTE 4 LOANS
The Company had $1.8 million in loans held for sale at
June 30, 2016 as compared to $1.2 million in loans held for
sale at December 31, 2015. Due to materiality, these loans are
included in the Consumer Real Estate and Agricultural Real Estate
loan numbers.
Loan balances as of June 30, 2016 and December 31,
2015:
(In Thousands)
June 30, 2016 December 31, 2015
Loans:
Consumer Real Estate $ 89,090 $ 88,189
Agricultural Real Estate 61,403 58,525
Agricultural 83,287 82,654
Commercial Real Estate 357,838 322,762
Commercial and Industrial 104,336 100,125
Consumer 30,458 27,770
Industrial Development Bonds 5,952 6,491
732,364 686,516
Less: Net deferred loan fees and costs (673 ) (638 )
731,691 685,878
Less: Allowance for loan losses (6,493 ) (6,057 )
Loans - Net $ 725,198 $ 679,821
The following is a maturity schedule by major category of loans as
of June 30, 2016:
(In Thousands)
Within After One After
Consumer Real Estate $ 1,428 $ 12,371 $ 75,291
Agricultural Real Estate 284 3,305 57,814
Agricultural 53,956 23,328 6,003
Commercial Real Estate 15,117 78,393 264,328
Commercial and Industrial 45,681 37,640 21,015
Consumer 5,808 18,331 6,319
Industrial Development Bonds 1,000 185 4,767
The distribution of fixed rate loans and variable rate loans by
major loan category is as follows as of June 30, 2016.
Variable rate loans whose current rates are equal to their floor or
ceiling are classified as fixed in this table.
(In Thousands)
Fixed Variable
Rate Rate
Consumer Real Estate $ 55,672 $ 33,418
Agricultural Real Estate 44,680 16,723
Agricultural 51,164 32,123
Commercial Real Estate 225,756 132,082
Commercial and Industrial 66,330 38,006
Consumer 26,215 4,243
Industrial Development Bonds 5,952
—
As of June 30, 2016 and December 31, 2015 one to four
family residential mortgage loans amounting to $19.1 and $20.0
million, respectively, have been pledged as security for future
loans the Bank has received from the Federal Home Loan Bank.
Unless listed separately, Industrial Development Bonds are included
in the commercial and industrial category for the remainder of the
tables in this Note 4.
The following table represents the contractual aging of the
recorded investment (in thousands) in past due loans by portfolio
classification of loans as of June 30, 2016 and
December 31, 2015, net of deferred loan fees and costs:
June 30, 2016 30-59 Days 60-89 Days Greater Than Total Current Total Recorded
Consumer Real Estate $ 414 $ 176 $ 336 $ 926 $ 87,865 $ 88,791 $ 0
Agricultural Real Estate
—
— 163 163 61,190 61,353
—
Agricultural
—
— 3 3 83,430 83,433
—
Commercial Real Estate
—
— 231 231 357,012 357,243
—
Commercial and Industrial 49
—
— 49 110,337 110,386
—
Consumer 10 25
— 35 30,450 30,485
—
Total $ 473 $ 201 $ 733 $ 1,407 $ 730,284 $ 731,691 $ 0
December 31, 2015 30-59 Days 60-89 Days Greater Than Total Current Total Recorded
Consumer Real Estate $ 303 $ 47 $ 357 $ 707 $ 87,240 $ 87,947 $ 0
Agricultural Real Estate
—
— 162 162 58,301 58,463
—
Agricultural
— 145
— 145 82,617 82,762
—
Commercial Real Estate 236
— 841 1,077 321,153 322,230
—
Commercial and Industrial 51
— 20 71 106,618 106,689
—
Consumer 19 9
— 28 27,759 27,787
—
Total $ 609 $ 201 $ 1,380 $ 2,190 $ 683,688 $ 685,878 $ 0
The following table presents the recorded investment in nonaccrual
loans by class of loans as of June 30, 2016 and
December 31, 2015:
(In Thousands)
June 30, December 31,
Consumer Real Estate $ 1,013 $ 1,155
Agricultural Real Estate 162 162
Agricultural
—
—
Commercial Real Estate 232 484
Commercial 118 202
Consumer 3 38
Total $ 1,528 $ 2,041
Following are the characteristics and underwriting criteria for
each major type of loan the Bank offers:
Commercial Real Estate – Construction, purchase, and
refinance of business purpose real estate. Risks discussed during
the approval process include construction delays and overruns,
vacancies, collateral value subject to market value fluctuations,
interest rate, market demands, borrower’s ability to repay in
a timely fashion, and others. The Bank does employ stress testing
on higher balance loans to mitigate risk by ensuring the
customer’s ability to repay in a changing rate
environment.
Agricultural Real Estate – Purchase of farm real estate or
for permanent improvements to the farm real estate. Cash flow from
the farm operation is the repayment source and is therefore subject
to the financial success of the farm operation.
Consumer Real Estate – Purchase, refinance, or equity
financing of one to four family owner occupied dwelling. Success in
repayment is subject to borrower’s income, debt level,
character in fulfilling payment obligations, employment, and
others.
Commercial and Industrial – Loans to proprietorships,
partnerships, or corporations to provide temporary working capital
and seasonal loans as well as long term loans for capital asset
acquisition. Risks include adequacy of cash flow, reasonableness of
projections, financial leverage, economic trends, management
ability and estimated capital expenditures during the fiscal year.
The Bank does employ stress testing on higher balance loans to
mitigate risk by ensuring the customer’s ability to repay in
a changing rate environment before granting loan approval.
Agricultural – Loans for the production and housing of crops,
fruits, vegetables, and livestock or to fund the purchase or
re-finance of capital assets such as machinery and equipment and
livestock. The production of crops and livestock is especially
vulnerable to commodity prices and weather. The vulnerability to
commodity prices is offset by the farmer’s ability to hedge
their position by the use of the future contracts. The risk related
to weather is often mitigated by requiring federal crop
insurance.
Consumer – Funding for individual and family purposes.
Success in repayment is subject to borrower’s income, debt
level, character in fulfilling payment obligations, employment, and
others.
Industrial Development Bonds – Funds for public improvements
in the Bank’s service area. Repayment ability is based on the
continuance of the taxation revenue as the source of repayment.
The Bank uses a nine tier risk rating system to grade its loans.
The grade of a loan may change during the life of the loan.
The risk ratings are described as follows.
1. Zero (0) Unclassified. Any loan
which has not been assigned a classification.
2. One (1) Excellent. Credit to
premier customers having the highest credit rating based on an
extremely strong financial condition, which compares favorably with
industry standards (upper quartile of Risk Management Association
ratios). Financial statements indicate a sound earnings and
financial ratio trend for several years with satisfactory profit
margins and excellent liquidity exhibited. Prime credits may also
be borrowers with loans fully secured by highly liquid collateral
such as traded stocks, bonds, certificates of deposit, savings
account, etc. No credit or collateral exceptions exist and the loan
adheres to the Bank’s loan policy in every respect. Financing
alternatives would be readily available and would qualify for
unsecured credit. This grade is summarized by high liquidity,
minimum risk, strong ratios, and low handling costs.
3. Two (2) Good. Desirable loans of
somewhat less stature than Grade 1, but with strong financial
statements. Loan supported by financial statements containing
strong balance sheets, generally with a leverage position less than
1.50, and a history of profitability. Probability of serious
financial deterioration is unlikely. Possessing a sound repayment
source (and a secondary source), which would allow repayment in a
reasonable period of time. Individual loans backed by liquid
personal assets, established history and unquestionable
character.
4. Three (3) Satisfactory.
Satisfactory loans of average or slightly above average risk
– having some deficiency or vulnerability to changing
economic conditions, but still fully collectible. Projects should
normally demonstrate acceptable debt service coverage. Generally,
customers should have a leverage position less than 2.00. May be
some weakness but with offsetting features of other support readily
available. Loans that are meeting the terms of repayment.
Loans may be graded 3 when there is no recent information on which
to base a current risk evaluation and the following conditions
apply:
At inception, the loan was properly underwritten and did not
possess an unwarranted level of credit risk:
a. At inception, the loan was secured
with collateral possessing a loan value adequate to protect the
Bank from loss;
b. The loan exhibited two or more years
of satisfactory repayment with a reasonable reduction of the
principal balance;
c. During the period that the loan has
been outstanding, there has been no evidence of any credit
weakness. Some examples of weakness include slow payment, lack of
cooperation by the borrower, breach of loan covenants, or the
business is in an industry which is known to be experiencing
problems. If any of the credit weaknesses is observed, a lower risk
grade is warranted.
5. Four (4) Satisfactory /
Monitored. A “4” (Satisfactory/Monitored) risk grade
may be established for a loan considered satisfactory but which is
of average credit risk due to financial weakness or uncertainty.
The loans warrant a higher than average level of monitoring to
ensure that weaknesses do not advance. The level of risk in
Satisfactory/Monitored classification is considered acceptable and
within normal underwriting guidelines, so long as the loan is given
management supervision.
6. Five (5) Special Mention. Loans
that possess some credit deficiency or potential weakness which
deserves close attention, but which do not yet warrant substandard
classification. Such loans pose unwarranted financial risk that, if
not corrected, could weaken the loan and increase risk in the
future. The key distinctions of a 5 (Special Mention)
classification are that (1) it is indicative of an unwarranted
level of risk, and (2) weaknesses are considered
“potential”, versus “defined”, impairments
to the primary source of loan repayment and collateral.
7. Six (6) Substandard. One or more
of the following characteristics may be exhibited in loans
classified substandard:
a. Loans, which possess a defined credit
weakness and the likelihood that a loan will be paid from the
primary source, are uncertain. Financial deterioration is underway
and very close attention is warranted to ensure that the loan is
collected without loss.
b. Loans are inadequately protected by
the current net worth and paying capacity of the borrower.
c. The primary source of repayment is
weakened, and the Bank is forced to rely on a secondary source of
repayment such as collateral liquidation or guarantees.
d. Loans are characterized by the
distinct possibility that the Bank will sustain some loss if
deficiencies are not corrected.
e. Unusual courses of action are needed
to maintain a high probability of repayment.
f. The borrower is not generating enough
cash flow to repay loan principal; however, continues to make
interest payments.
g. The lender is forced into a
subordinate position or unsecured collateral position due to flaws
in documentation.
h. Loans have been restructured so that
payment schedules, terms and collateral represent concessions to
the borrower when compared to the normal loan terms.
i. The lender is seriously contemplating
foreclosure or legal action due to the apparent deterioration in
the loan.
j. There is significant deterioration in
the market conditions and the borrower is highly vulnerable to
these conditions.
8. Seven (7) Doubtful. One or more
of the following characteristics may be exhibited in loans
classified Doubtful:
a. Loans have all of the weaknesses of
those classified as Substandard. Additionally, however, these
weaknesses make collection or liquidation in full based on existing
conditions improbable.
b. The primary source of repayment is
gone, and there is considerable doubt as to the quality of the
secondary source of repayment.
c. The possibility of loss is high, but,
because of certain important pending factors which may strengthen
the loan, loss classification is deferred until its exact status is
known. A Doubtful classification is established deferring the
realization of the loss.
9. Eight (8) Loss. Loans are
considered uncollectable and of such little value that continuing
to carry them as assets on the institution’s financial
statements is not feasible. Loans will be classified Loss when it
is neither practical nor desirable to defer writing off or
reserving all or a portion of a basically worthless asset, even
though partial recovery may be possible at some time in the
future.
The following table represents the risk category of loans by
portfolio class, net of deferred fees and costs, based on the most
recent analysis performed as of June 30, 2016 and
December 31, 2015:
(In Thousands)
Agricultural Agricultural Commercial Commercial Industrial
June 30, 2016
1-2 $ 4,826 $ 6,846 $ 1,424 $ 696 $
—
3 19,001 28,329 26,336 17,836 2,770
4 36,432 47,737 326,125 85,015 3,182
5 739 521 1,532 291
—
6 355
— 1,736 478
—
7
—
— 90 118
—
8
—
—
—
—
—
Total $ 61,353 $ 83,433 $ 357,243 $ 104,434 $ 5,952
Agricultural Agricultural Commercial Commercial Industrial
December 31, 2015
1-2 $ 5,841 $ 12,025 $ 597 $ 261 $
—
3 16,593 21,247 24,264 22,300 3,100
4 35,475 49,220 293,381 76,855 3,391
5 192 250 1,738 57
—
6 362
— 1,828 543
—
7
— 20 422 182
—
8
—
—
—
—
—
Total $ 58,463 $ 82,762 $ 322,230 $ 100,198 $ 6,491
For consumer residential real estate, and other, the Company also
evaluates credit quality based on the aging status of the loan,
which was previously stated, and by payment activity. The following
tables present the recorded investment in those classes based on
payment activity and assigned risk grading as of June 30, 2016
and December 31, 2015.
(In Thousands)
Consumer Consumer
June 30, December 31,
Grade
Pass $ 87,977 $ 87,292
Special Mention (5) 72 48
Substandard (6) 328 332
Doubtful (7) 414 275
Total $ 88,791 $ 87,947
(In Thousands)
Consumer - Credit Consumer - Other
June 30, December 31, June 30, December 31,
Performing $ 3,626 $ 3,901 $ 26,831 $ 23,863
Nonperforming
—
— 28 23
Total $ 3,626 $ 3,901 $ 26,859 $ 23,886
Information about impaired loans as of June 30,
2016, December 31, 2015 and June 30, 2015 are as
follows:
(In Thousands)
June 30, 2016 December 31, 2015 June 30, 2015
Impaired loans without a valuation allowance $ 997 $ 1,257 $ 3,239
Impaired loans with a valuation allowance 622 879 1,783
Total impaired loans $ 1,619 $ 2,136 $ 5,022
Valuation allowance related to impaired loans $ 217 $ 330 $ 475
Total non-accrual loans $ 1,528 $ 2,041 $ 3,063
Total loans past-due ninety days or more and still accruing $
— $
— $
—
Quarter ended average investment in impaired loans $ 1,899 $ 2,207 $ 3,435
Year to date average investment in impaired loans $ 1,995 $ 2,509 $ 2,451
No additional funds are committed to be advanced in connection with
impaired loans.
The Bank had approximately $656 thousand of its impaired loans
classified as troubled debt restructured (TDR) as of June 30,
2016, $1.1 million as of December 31, 2015 and $1.3 million as
of June 30, 2015. During the year-to-date 2016, one new loan
was considered TDR. This loan is making interest-only payments.
The following table represents three and six months ended
June 30, 2016.
Three Months
June 30, 2016
(in thousands)
Troubled Debt Restructurings Number of Pre- Post- Six Months Number of Pre- Post-
Consumer Real Estate
—
—
— Consumer Real Estate 1 $ 138 $ 138
The following table represents three and six months ended
June 30, 2015.
Three Months
June 30, 2015
(in thousands)
Troubled Debt Restructurings Number of Pre- Post- Six Months Number of Pre- Post-
Commercial Real Estate
— $
— $
— Commercial Real Estate 1 $ 528 $ 430
Commercial and Industrial
—
—
—
Commercial and Industrial 1 25 24
For the three and six month period ended June 30, 2016 and
2015, there were no TDRs that subsequently defaulted after
modification.
For the majority of the Bank’s impaired loans, the Bank will
apply the fair value of collateral or use a measurement
incorporating the present value of expected future cash flows
discounted at the loan’s effective rate of interest. To
determine fair value of collateral, collateral asset values
securing an impaired loan are periodically evaluated. Maximum time
of re-evaluation is every 12 months for chattels and titled
vehicles and every two years for real estate. In this process,
third party evaluations are obtained. Until such time that updated
appraisals are received, the Bank may discount the collateral value
used.
The Bank uses the following guidelines as stated in policy to
determine when to realize a charge-off, whether a partial or full
loan balance. A charge-off in whole or in part is realized when
unsecured consumer loans, credit card credits and overdraft lines
of credit reach 90 days delinquency. At 120 days delinquent,
secured consumer loans are charged down to the value of the
collateral, if repossession of the collateral is assured and/or in
the process of repossession. Consumer mortgage loan deficiencies
are charged down upon the sale of the collateral or sooner upon the
recognition of collateral deficiency. Commercial and agricultural
credits are charged down at 120 days delinquency, unless an
established and approved work-out plan is in place or litigation of
the credit will likely result in recovery of the loan balance. Upon
notification of bankruptcy, unsecured debt is charged off.
Additional charge-off may be realized as further unsecured
positions are recognized.
The following tables present loans individually evaluated for
impairment by class of loans for three months ended June 30,
2016 and June 30, 2015.
(In Thousands)
Three Months Ended
June 30, 2016 Recorded Unpaid Related QTD QTD QTD
With no related allowance recorded:
Consumer Real Estate $ 40 $ 40 $
— $ 25 $
— $
—
Agricultural Real Estate 162 162
— 162
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 346 346
— 346 6 6
Commercial and Industrial 449 449
— 450 6
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 414 414 61 478 7 6
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 90 90 90 311
—
—
Commercial and Industrial 118 118 66 127
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 454 $ 454 $ 61 $ 503 $ 7 $ 6
Agricultural Real Estate $ 162 $ 162 $
— $ 162 $
— $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 436 $ 436 $ 90 $ 657 $ 6 $ 6
Commercial and Industrial $ 567 $ 567 $ 66 $ 577 $ 6 $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
Three Months Ended
June 30, 2015 Recorded Unpaid Related QTD QTD QTD
With no related allowance recorded:
Consumer Real Estate $ 557 $ 557 $
— $ 145 $
— $
—
Agricultural Real Estate 222 222
— 74
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 1,460 1,546
— 634
— 9
Commercial and Industrial 1,000 1,364
— 798 13
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 121 121 39 120
— 1
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 1,339 1,339 235 1,340 7
—
Commercial and Industrial 323 323 201 324
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 678 $ 678 $ 39 $ 265 $
— $ 1
Agricultural Real Estate $ 222 $ 222 $
— $ 74 $
— $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 2,799 $ 2,885 $ 235 $ 1,974 $ 7 $ 9
Commercial and Industrial $ 1,323 $ 1,687 $ 201 $ 1,122 $ 13 $
—
Consumer $
— $
— $
— $
— $
— $
—
The following tables present loans individually evaluated for
impairment by class of loans for six months ended June 30,
2016 and June 30, 2015.
(In Thousands)
Six Months Ended June 30,
2016 Recorded Unpaid Related YTD YTD YTD
With no related allowance recorded:
Consumer Real Estate $ 40 $ 40 $
— $ 91 $
— $
—
Agricultural Real Estate 162 162
— 162 1
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 346 346
— 378 14 13
Commercial and Industrial 449 449
— 452 12
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 414 414 61 392 11 9
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 90 90 90 366
—
—
Commercial and Industrial 118 118 66 154
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 454 $ 454 $ 61 $ 483 $ 11 $ 9
Agricultural Real Estate $ 162 $ 162 $
— $ 162 $ 1 $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 436 $ 436 $ 90 $ 744 $ 14 $ 13
Commercial and Industrial $ 567 $ 567 $ 66 $ 606 $ 12 $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
Six Months Ended June 30,
2015 Recorded Unpaid Related YTD YTD YTD
With no related allowance recorded:
Consumer Real Estate $ 557 $ 557 $
— $ 159 $
— $
—
Agricultural Real Estate 222 222
— 37
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 1,460 1,546
— 317
— 9
Commercial and Industrial 1,000 1,364
— 399 13
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 121 121 39 108
— 4
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 1,339 1,339 235 1,096 8
Commercial and Industrial 323 323 201 331
—
—
Consumer
—
—
— 4
—
—
Totals:
Consumer Real Estate $ 678 $ 678 $ 39 $ 267 $
— $ 4
Agricultural Real Estate $ 222 $ 222 $
— $ 37 $
— $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 2,799 $ 2,885 $ 235 $ 1,413 $ 8 $ 9
Commercial and Industrial $ 1,323 $ 1,687 $ 201 $ 730 $ 13 $
—
Consumer $
— $
— $
— $ 4 $
— $
—
As of June 30, 2016, the Company had $673 thousand of
foreclosed residential real estate property obtained by physical
possession and $512 thousand of consumer mortgage loans secured by
residential real estate properties for which foreclosure
proceedings are in process according to local jurisdictions. As of
June 30, 2015, the Company had $452 thousand of foreclosed
residential real estate property obtained by physical possession
and $138 thousand of consumer mortgage loans secured by residential
real estate properties for which foreclosure proceedings are in
process according to local jurisdictions.
The Allowance for Loan and Lease Losses (ALLL) has a direct impact
on the provision expense. An increase in the ALLL is funded through
recoveries and provision expense. The following tables summarize
the activities in the allowance for credit losses.
(In Thousands)
Six Months Ended
Twelve Months Ended
June 30, 2016 December 31, 2015
Allowance for Loan & Lease Losses
Balance at beginning of year $ 6,057 $ 5,905
Provision for loan loss 616 625
Loans charged off (258 ) (1,030 )
Recoveries 78 557
Allowance for Loan & Lease Losses $ 6,493 $ 6,057
Allowance for Unfunded Loan Commitments & Letters of
Credit $ 219 $ 208
Total Allowance for Credit Losses $ 6,712 $ 6,265
The Company segregates its ALLL into two reserves: The ALLL and the
Allowance for Unfunded Loan Commitments and Letters of Credit
(AULC). When combined, these reserves constitute the total
Allowance for Credit Losses (ACL).
The AULC is reported within other liabilities on the balance sheet
while the ALLL is netted within the loans, net asset line. The ACL
presented above represents the full amount of reserves available to
absorb possible credit losses. [Remainder of this page intentionally left
blank]
The following table breaks down the activity within ACL for each
loan portfolio classification and shows the contribution provided
by both the recoveries and the provision along with the reduction
of the allowance caused by charge-offs.
Additional analysis, presented in thousands, related to the
allowance for credit losses for three months ended June 30,
2016 and June 30, 2015 is as follows:
Consumer Agricultural Agricultural Commercial Commercial and Consumer Unfunded Loan Unallocated Total
Three Months Ended June 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 457 $ 272 $ 548 $ 2,678 $ 1,251 $ 335 $ 220 $ 744 $ 6,505
Charge Offs (63 )
— (18 )
—
— (93 )
—
— (174 )
Recoveries 19
— 1 3 3 17
—
— 43
Provision (Credit)
— (43 ) 60 36 (39 ) 106
— 219 339
Other Non-interest expense related to unfunded
—
—
—
—
—
— (1 )
— (1 )
Ending Balance $ 413 $ 229 $ 591 $ 2,717 $ 1,215 $ 365 $ 219 $ 963 $ 6,712
Ending balance: individually evaluated for impairment $ 61 $
— $
— $ 90 $ 66 $
— $
— $
— $ 217
Ending balance: collectively evaluated for impairment $ 352 $ 229 $ 591 $ 2,627 $ 1,149 $ 365 $ 219 $ 963 $ 6,495
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 88,791 $ 61,353 $ 83,433 $ 357,243 $ 110,386 $ 30,485 $
— $
— $ 731,691
Ending balance: individually evaluated for impairment $ 454 $ 162 $
— $ 436 $ 567 $
— $
— $
— $ 1,619
Ending balance: collectively evaluated for impairment $ 88,337 $ 61,191 $ 83,433 $ 356,807 $ 109,819 $ 30,485 $
— $
— $ 730,072
Ending balance: loans acquired with deteriorated credit quality $ 410 $
— $
— $
— $
— $
— $
— $
— $ 410
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Three Months Ended June 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 497 $ 187 $ 524 $ 2,212 $ 1,419 $ 284 $ 202 $ 854 $ 6,179
Charge Offs
—
—
— (85 ) (389 ) (55 )
—
— (529 )
Recoveries 25
— 2 201 17 51
—
— 296
Provision (Credit) (213 ) 2 (7 ) (42 ) 241 29
— 173 183
Other Non-interest expense related to unfunded
—
—
—
—
—
— (1 )
— (1 )
Ending Balance $ 309 $ 189 $ 519 $ 2,286 $ 1,288 $ 309 $ 201 $ 1,027 $ 6,128
Ending balance: individually evaluated for impairment $ 39 $
— $
— $ 235 $ 201 $
— $
— $
— $ 475
Ending balance: collectively evaluated for impairment $ 270 $ 189 $ 519 $ 2,051 $ 1,087 $ 309 $ 201 $ 1,027 $ 5,653
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 86,641 $ 52,614 $ 74,352 $ 279,002 $ 102,822 $ 25,160 $
— $
— $ 620,591
Ending balance: individually evaluated for impairment $ 678 $ 222 $
— $ 2,799 $ 1,323 $
— $
— $
— $ 5,022
Ending balance: collectively evaluated for impairment $ 85,963 $ 52,392 $ 74,352 $ 276,203 $ 101,499 $ 25,160 $
— $
— $ 615,569
Ending balance: loans acquired with deteriorated credit quality $ 517 $
— $
— $
— $
— $
— $
— $
— $ 517
Additional analysis, presented in thousands, related to the
allowance for credit losses for six months ended June 30, 2016
and June 30, 2015 is as follows:
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Six Months Ended June 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 338 $ 211 $ 582 $ 2,516 $ 1,229 $ 337 $ 208 $ 844 $ 6,265
Charge Offs (64 )
— (18 ) (3 ) (20 ) (153 )
—
— (258 )
Recoveries 21
— 5 5 5 42
—
— 78
Provision (Credit) 117 18 22 199 2 139
— 119 616
Other Non-interest expense related to unfunded
—
—
—
—
—
— 11
— 11
Ending Balance $ 412 $ 229 $ 591 $ 2,717 $ 1,216 $ 365 $ 219 $ 963 $ 6,712
Ending balance: individually evaluated for impairment $ 61 $
— $
— $ 90 $ 66 $
— $
— $
— $ 217
Ending balance: collectively evaluated for impairment $ 351 $ 229 $ 591 $ 2,627 $ 1,150 $ 365 $ 219 $ 963 $ 6,495
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 88,791 $ 61,353 $ 83,433 $ 357,243 $ 110,386 $ 30,485 $
— $
— $ 731,691
Ending balance: individually evaluated for impairment $ 454 $ 162 $
— $ 436 $ 567 $
— $
— $
— $ 1,619
Ending balance: collectively evaluated for impairment $ 88,337 $ 61,191 $ 83,433 $ 356,807 $ 109,819 $ 30,485 $
— $
— $ 730,072
Ending balance: loans acquired with deteriorated credit quality $ 410 $
— $
— $
— $
— $
— $
— $
— $ 410
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Six Months Ended June 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 537 $ 184 $ 547 $ 2,367 $ 1,421 $ 323 $ 207 $ 526 $ 6,112
Charge Offs
—
—
— (85 ) (390 ) (146 )
—
— (621 )
Recoveries 27
— 3 202 23 91
—
— 346
Provision (Credit) (255 ) 5 (31 ) (198 ) 234 41
— 501 297
Other Non-interest expense related to unfunded
—
—
—
—
—
— (6 )
— (6 )
Ending Balance $ 309 $ 189 $ 519 $ 2,286 $ 1,288 $ 309 $ 201 $ 1,027 $ 6,128
Ending balance: individually evaluated for impairment $ 39 $
— $
— $ 235 $ 201 $
— $
— $
— $ 475
Ending balance: collectively evaluated for impairment $ 270 $ 189 $ 519 $ 2,051 $ 1,087 $ 309 $ 201 $ 1,027 $ 5,653
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 86,641 $ 52,614 $ 74,352 $ 279,002 $ 102,822 $ 25,160 $
— $
— $ 620,591
Ending balance: individually evaluated for impairment $ 678 $ 222 $
— $ 2,799 $ 1,323 $
— $
— $
— $ 5,022
Ending balance: collectively evaluated for impairment $ 85,963 $ 52,392 $ 74,352 $ 276,203 $ 101,499 $ 25,160 $
— $
— $ 615,569
Ending balance: loans acquired with deteriorated credit quality $ 517 $
— $
— $
— $
— $
— $
— $
— $ 517 |
