| Loans | NOTE 4 LOANS
The Company had $1.6 million in loans held for sale at September
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 September 30, 2016 and December 31, 2015:
(In Thousands)
Loans: September 30, 2016 December 31, 2015
Consumer Real Estate $ 87,222 $ 88,189
Agricultural Real Estate 60,206 58,525
Agricultural 79,191 82,654
Commercial Real Estate 370,315 322,762
Commercial and Industrial 105,961 100,125
Consumer 30,585 27,770
Industrial Development Bonds 5,892 6,491
739,372 686,516
Less: Net deferred loan fees and costs (690 ) (638 )
738,682 685,878
Less: Allowance for loan losses (6,612 ) (6,057 )
Loans - Net $ 732,070 $ 679,821
The following is a maturity schedule by major category of loans as
of September 30, 2016:
(In Thousands)
Within After One After Five
Consumer Real Estate $ 944 $ 12,183 $ 74,095
Agricultural Real Estate 745 3,189 56,272
Agricultural 50,164 23,273 5,754
Commercial Real Estate 13,808 91,293 265,214
Commercial and Industrial 47,474 32,484 26,003
Consumer 5,230 19,157 6,198
Industrial Development Bonds 1,000 185 4,707
The distribution of fixed rate loans and variable rate loans by
major loan category is as follows as of September 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 $ 55,459 $ 31,763
Agricultural Real Estate 43,065 17,141
Agricultural 49,358 29,833
Commercial Real Estate 233,377 136,938
Commercial and Industrial 61,617 44,344
Consumer 26,283 4,302
Industrial Development Bonds 5,892
—
As of September 30, 2016 and December 31, 2015 one to four family
residential mortgage loans amounting to $21.3 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 September 30, 2016 and December 31,
2015, net of deferred loan fees and costs:
September 30, 2016 30-59 Days 60-89 Days Greater Than Total Current Total Recorded
Consumer Real Estate $ 160 $ 0 $ 211 $ 371 $ 86,527 $ 86,898 $ 0
Agricultural Real Estate
—
— 132 132 60,030 60,162
—
Agricultural
—
—
—
— 79,332 79,332
—
Commercial Real Estate
— 395
— 395 369,326 369,721
—
Commercial and Industrial
—
— 46 46 111,907 111,953
—
Consumer 10 4
— 14 30,602 30,616
—
Total $ 170 $ 399 $ 389 $ 958 $ 737,724 $ 738,682 $ 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 September 30, 2016 and December 31,
2015:
(In Thousands)
September 30,
December 31,
2016 2015
Consumer Real Estate $ 837 $ 1,155
Agricultural Real Estate 132 162
Agricultural
—
—
Commercial Real Estate
— 484
Commercial & Industrial 163 202
Consumer
— 38
Total $ 1,132 $ 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 September 30, 2016 and December 31,
2015:
(In Thousands)
Industrial
Agricultural Commercial Commercial Development
Real Estate Agricultural Real Estate and Industrial Bonds
September 30, 2016
1-2 $ 4,120 $ 8,062 $ 1,806 $ 1,623 $
—
3 17,861 23,442 25,792 22,225 2,745
4 36,512 46,157 334,827 81,177 3,147
5 1,346 1,671 1,282 431
—
6 323
— 5,570 487
—
7
—
— 444 118
—
8
—
—
—
—
—
Total $ 60,162 $ 79,332 $ 369,721 $ 106,061 $ 5,892
Industrial
Agricultural Commercial Commercial Development
Real Estate Agricultural Real Estate and Industrial Bonds
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, as
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 September 30, 2016
and December 31, 2015.
(In Thousands)
Consumer Consumer
September 30, December 31,
Grade
Pass $ 86,423 $ 87,292
Special Mention (5) 10 48
Substandard (6) 136 332
Doubtful (7) 329 275
Total $ 86,898 $ 87,947
(In Thousands)
Consumer - Credit Consumer - Other
September 30, December 31, September 30, December 31,
Performing $ 3,726 $ 3,901 $ 26,870 $ 23,863
Nonperforming
—
— 20 23
Total $ 3,726 $ 3,901 $ 26,890 $ 23,886
Information about impaired loans as of September 30, 2016, December
31, 2015 and September 30, 2015 are as follows:
(In Thousands)
September 30, 2016 December 31, 2015 September 30, 2015
Impaired loans without a valuation allowance $ 515 $ 1,257 $ 1,483
Impaired loans with a valuation allowance 891 879 1,058
Total impaired loans $ 1,406 $ 2,136 $ 2,541
Valuation allowance related to impaired loans $ 125 $ 330 $ 465
Total non-accrual loans $ 1,132 $ 2,041 $ 2,294
Total loans past-due ninety days or more and still accruing $
— $
— $
—
Quarter ended average investment in impaired loans $ 1,499 $ 2,207 $ 2,924
Year to date average investment in impaired loans $ 1,843 $ 2,509 $ 2,609
No additional funds are committed to be advanced in connection with
impaired loans.
The Bank had approximately $562 thousand of its impaired loans
classified as troubled debt restructured (TDR) as of September 30,
2016, $1.1 million as of December 31, 2015 and $1.2 million as of
September 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 nine months ended
September 30, 2016.
Pre- Post- Pre- Post-
Three Months Number of Modification Modification Nine Months Number of Modification Modification
September 30, 2016 Contracts Outstanding Outstanding September 30, 2016 Contracts Outstanding Outstanding
(in thousands)
Modified in the Recorded Recorded (in thousands)
Modified in the Recorded Recorded
Troubled Debt Restructurings Last 3 Months Investment Investment Troubled Debt Restructurings Last 6 Months Investment Investment
Consumer Real Estate
—
—
— Consumer Real Estate 1 $ 138 $ 138
The following table represents three and nine months ended
September 30, 2015.
Pre- Post- Pre- Post-
Three Months Number of Modification Modification Nine Months Number of Modification Modification
September 30, 2015 Contracts Outstanding Outstanding September 30, 2015 Contracts Outstanding Outstanding
(in thousands) Modified in the Recorded Recorded (in thousands) Modified in the Recorded Recorded
Troubled Debt Restructurings Last 3 Months Investment Investment Troubled Debt Restructurings Last 9 Months Investment Investment
Commercial Real Estate
— $
— $
— Commercial Real Estate 1 $ 528 $ 430
Commercial and Industrial
—
—
— Commercial and Industrial 1 25 21
For the three and nine month period ended September 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 September 30,
2016 and September 30, 2015.
(In Thousands)
QTD
QTD QTD Interest
Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Three Months Ended September
30, 2016 Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 383 $ 383 $
— $ 51 $
— $
—
Agricultural Real Estate 132 132
— 132
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate
—
—
— 345 4 4
Commercial and Industrial
—
—
— 446 6
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 329 329 35 377 4 1
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 444 444 68 30
—
—
Commercial and Industrial 118 118 22 118
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 712 $ 712 $ 35 $ 428 $ 4 $ 1
Agricultural Real Estate $ 132 $ 132 $
— $ 132 $
— $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 444 $ 444 $ 68 $ 375 $ 4 $ 4
Commercial and Industrial $ 118 $ 118 $ 22 $ 564 $ 6 $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
QTD
QTD QTD Interest
Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Three Months Ended September
30, 2015 Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 201 $ 201 $
— $ 159 $ 2 $ 2
Agricultural Real Estate 222 222
— 222
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 482 482
— 567 10 10
Commercial and Industrial 578 578
— 462 7
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 305 305 76 182 1
—
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 560 560 201 1,013
—
—
Commercial and Industrial 193 193 188 319
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 506 $ 506 $ 76 $ 341 $ 3 $ 2
Agricultural Real Estate $ 222 $ 222 $
— $ 222 $
— $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 1,042 $ 1,042 $ 201 $ 1,580 $ 10 $ 10
Commercial and Industrial $ 771 $ 771 $ 188 $ 781 $ 7 $
—
Consumer $
— $
— $
— $
— $
— $
—
The following tables present loans individually evaluated for
impairment by class of loans for nine months ended September 30,
2016 and September 30, 2015.
(In Thousands)
YTD
YTD YTD Interest
Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Nine Months Ended September 30,
2016 Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 383 $ 383 $
— $ 78 $ 1 $ 1
Agricultural Real Estate 132 132
— 152 1
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate
—
—
— 367 17 16
Commercial and Industrial
—
—
— 450 18
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 329 329 35 387 11 7
Agricultural Real Estate
—
—
— 13
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 444 444 68 254
—
—
Commercial and Industrial 118 118 22 142
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 712 $ 712 $ 35 $ 465 $ 12 $ 8
Agricultural Real Estate $ 132 $ 132 $
— $ 165 $ 1 $
—
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 444 $ 444 $ 68 $ 621 $ 17 $ 16
Commercial and Industrial $ 118 $ 118 $ 22 $ 592 $ 18 $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
YTD
YTD YTD Interest
Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Nine Months Ended September 30,
2015 Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 201 $ 201 $
— $ 159 $ 2 $ 2
Agricultural Real Estate 222 222
— 99
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 482 482
— 400 10 10
Commercial and Industrial 578 578
— 420 20
—
Consumer
—
—
—
— 13
—
With a specific allowance recorded:
Consumer Real Estate 305 305 76 133 8 7
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 560 560 201 1,069
—
Commercial and Industrial 193 193 188 327
—
—
Consumer
—
—
— 2
— —
Totals:
Consumer Real Estate $ 506 $ 506 $ 76 $ 292 $ 10 $ 9
Agricultural Real Estate $ 222 $ 222 $
— $ 99 $
— $ —
Agricultural $
— $
— $
— $
— $
— $
—
Commercial Real Estate $ 1,042 $ 1,042 $ 201 $ 1,469 $ 10 $ 10
Commercial and Industrial $ 771 $ 771 $ 188 $ 747 $ 20 $
—
Consumer $
— $
— $
— $ 2 $ 13 $
—
As of September 30, 2016, the Company had $808 thousand of
foreclosed residential real estate property obtained by physical
possession and $211 thousand of consumer mortgage loans secured by
residential real estate properties for which foreclosure
proceedings are in process according to local jurisdictions. As of
September 30, 2015, the Company had $452 thousand of foreclosed
residential real estate property obtained by physical possession
and $411 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)
Nine Months Ended
Twelve Months Ended
September 30, 2016 December 31, 2015
Allowance for Loan & Lease Losses
Balance at beginning of year $ 6,057 $ 5,905
Provision for loan loss 924 625
Loans charged off (476 ) (1,030 )
Recoveries 107 557
Allowance for Loan & Lease Losses $ 6,612 $ 6,057
Allowance for Unfunded Loan Commitments & Letters of Credit $ 227 $ 208
Total Allowance for Credit Losses $ 6,839 $ 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 September 30,
2016 and September 30, 2015 is as follows:
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Three Months Ended September 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 413 $ 229 $ 591 $ 2,717 $ 1,215 $ 365 $ 219 $ 963 $ 6,712
Charge Offs (42 )
— (3 ) (90 )
— (83 )
—
— (218 )
Recoveries 1
— 4 2 3 19
—
— 29
Provision (Credit) (86 ) 5 (12 ) 376 (23 ) 59
— (11 ) 308
Other Non-interest expense related to unfunded
—
—
—
—
—
— 8
— 8
Ending Balance $ 286 $ 234 $ 580 $ 3,005 $ 1,195 $ 360 $ 227 $ 952 $ 6,839
Ending balance: individually evaluated for impairment $ 35 $
— $
— $ 68 $ 22 $
— $
— $
— $ 125
Ending balance: collectively evaluated for impairment $ 251 $ 234 $ 580 $ 2,937 $ 1,173 $ 360 $ 227 $ 952 $ 6,714
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 86,898 $ 60,162 $ 79,332 $ 369,721 $ 111,953 $ 30,616 $
— $
— $ 738,682
Ending balance: individually evaluated for impairment $ 712 $ 132 $
— $ 444 $ 118 $
— $
— $
— $ 1,406
Ending balance: collectively evaluated for impairment $ 86,186 $ 60,030 $ 79,332 $ 369,277 $ 111,835 $ 30,616 $
— $
— $ 737,276
Ending balance: loans acquired with deteriorated credit quality $ 265 $
— $
— $
— $
— $
— $
— $
— $ 265
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Three Months Ended September 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 309 $ 189 $ 519 $ 2,286 $ 1,288 $ 309 $ 201 $ 1,027 $ 6,128
Charge Offs
—
—
— (25 ) (79 ) (73 )
—
— (177 )
Recoveries 12
— 61 1 66 32
—
— 172
Provision (Credit) 32 7 (60 ) 144 (125 ) 56
— 189 243
Other Non-interest expense related to unfunded
—
—
—
—
—
— (5 )
— (5 )
Ending Balance $ 353 $ 196 $ 520 $ 2,406 $ 1,150 $ 324 $ 196 $ 1,216 $ 6,361
Ending balance: individually evaluated for impairment $ 76 $
— $
— $ 201 $ 188 $
— $
— $
— $ 465
Ending balance: collectively evaluated for impairment $ 277 $ 196 $ 520 $ 2,205 $ 962 $ 324 $ 196 $ 1,216 $ 5,896
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 88,020 $ 54,995 $ 73,310 $ 301,342 $ 91,114 $ 26,458 $
— $
— $ 635,239
Ending balance: individually evaluated for impairment $ 506 $ 222 $
— $ 1,042 $ 771 $
— $
— $
— $ 2,541
Ending balance: collectively evaluated for impairment $ 87,514 $ 54,773 $ 73,310 $ 300,300 $ 90,343 $ 26,458 $
— $
— $ 632,698
Ending balance: loans acquired with deteriorated credit quality $ 512 $
— $
— $
— $
— $
— $
— $
— $ 512
Additional analysis, presented in thousands, related to the
allowance for credit losses for nine months ended September 30,
2016 and September 30, 2015 is as follows:
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Nine Months Ended September 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 338 $ 211 $ 582 $ 2,516 $ 1,229 $ 337 $ 208 $ 844 $ 6,265
Charge Offs (106 )
— (21 ) (93 ) (20 ) (236 )
—
— (476 )
Recoveries 23
— 9 7 8 60
—
— 107
Provision (Credit) 31 23 10 575 (22 ) 199
— 108 924
Other Non-interest expense related to unfunded
—
—
—
—
—
— 19
— 19
Ending Balance $ 286 $ 234 $ 580 $ 3,005 $ 1,195 $ 360 $ 227 $ 952 $ 6,839
Ending balance: individually evaluated for impairment $ 35 $
— $
— $ 68 $ 22 $
— $
— $
— $ 125
Ending balance: collectively evaluated for impairment $ 251 $ 234 $ 580 $ 2,937 $ 1,173 $ 360 $ 227 $ 952 $ 6,714
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 86,898 $ 60,162 $ 79,332 $ 369,721 $ 111,953 $ 30,616 $
— $
— $ 738,682
Ending balance: individually evaluated for impairment $ 712 $ 132 $
— $ 444 $ 118 $
— $
— $
— $ 1,406
Ending balance: collectively evaluated for impairment $ 86,186 $ 60,030 $ 79,332 $ 369,277 $ 111,835 $ 30,616 $
— $
— $ 737,276
Ending balance: loans acquired with deteriorated credit quality $ 265 $
— $
— $
— $
— $
— $
— $
— $ 265
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Nine Months Ended September 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 537 $ 184 $ 547 $ 2,367 $ 1,421 $ 323 $ 207 $ 526 $ 6,112
Charge Offs
—
—
— (111 ) (468 ) (219 )
—
— (798 )
Recoveries 39
— 64 203 88 124
—
— 518
Provision (Credit) (223 ) 12 (91 ) (53 ) 109 96
— 690 540
Other Non-interest expense related to unfunded
—
—
—
—
—
— (11 )
— (11 )
Ending Balance $ 353 $ 196 $ 520 $ 2,406 $ 1,150 $ 324 $ 196 $ 1,216 $ 6,361
Ending balance: individually evaluated for impairment $ 76 $
— $
— $ 201 $ 188 $
— $
— $
— $ 465
Ending balance: collectively evaluated for impairment $ 277 $ 196 $ 520 $ 2,205 $ 962 $ 324 $ 196 $ 1,216 $ 5,896
Ending balance: loans acquired with deteriorated credit quality $ 1
—
—
—
—
—
—
— $ 1
FINANCING RECEIVABLES:
Ending balance $ 88,020 $ 54,995 $ 73,310 $ 301,342 $ 91,114 $ 26,458 $
— $
— $ 635,239
Ending balance: individually evaluated for impairment $ 506 $ 222 $
— $ 1,042 $ 771 $
— $
— $
— $ 2,541
Ending balance: collectively evaluated for impairment $ 87,514 $ 54,773 $ 73,310 $ 300,300 $ 90,343 $ 26,458 $
— $
— $ 632,698
Ending balance: loans acquired with deteriorated credit quality $ 512 $
— $
— $
— $
— $
— $
— $
— $ 512 |
