| Loans | NOTE 4 LOANS
Loan balances as of September 30, 2017 and
December 31, 2016:
(In Thousands)
Loans: September 30, 2017 December 31, 2016
Consumer Real Estate $ 84,283 $ 86,234
Agricultural Real Estate 63,603 62,375
Agricultural 87,095 84,563
Commercial Real Estate 394,481 377,481
Commercial and Industrial 124,078 109,256
Consumer 35,843 33,179
Industrial Development Bonds 6,555 5,732
795,938 758,820
Less: Net deferred loan fees and costs (733 ) (726 )
795,205 758,094
Less: Allowance for loan losses (6,870 ) (6,784 )
Loans – Net $ 788,335 $ 751,310
The following is a contractual maturity schedule by
major category of loans as of September 30, 2017:
(In Thousands)
Within After One After
Consumer Real Estate $ 2,153 $ 14,237 $ 67,893
Agricultural Real Estate 401 5,495 57,707
Agricultural 51,979 25,915 9,201
Commercial Real Estate 10,875 120,924 262,682
Commercial and Industrial 68,139 34,860 21,079
Consumer 5,077 23,025 7,741
Industrial Development Bonds 831 85 5,639
The distribution of fixed rate loans and variable
rate loans by major loan category is as follows as of
September 30, 2017:
(In Thousands)
Fixed Variable
Consumer Real Estate $ 47,662 $ 36,621
Agricultural Real Estate 46,557 17,046
Agricultural 35,708 51,387
Commercial Real Estate 266,316 128,165
Commercial and Industrial 58,560 65,518
Consumer 31,554 4,289
Industrial Development Bonds 6,555
—
As of September 30, 2017 and December 31,
2016 one to four family residential mortgage loans amounting to
$17.7 and $17.9 million, respectively, have been pledged as
security for future loans and existing 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. [Remainder of this page intentionally
left blank]
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, 2017 and
December 31, 2016, net of deferred loan fees and
costs:
September 30, 2017 30-59 Days 60-89 Days Greater Than Total Current Total Recorded
Consumer Real Estate $ 532 $ 0 $ 505 $ 1,037 $ 82,838 $ 83,875 $
—
Agricultural Real Estate 104
— 101 205 63,366 63,571
—
Agricultural
— 2 124 126 87,113 87,239
—
Commercial Real Estate
—
— 98 98 393,815 393,913
—
Commercial and Industrial
—
—
—
— 130,720 130,720
—
Consumer 37 8
— 45 35,842 35,887
—
Total $ 673 $ 10 $ 828 $ 1,511 $ 793,694 $ 795,205 $ 0
December 31, 2016 30-59 Days 60-89 Days Greater Than Total Current Total Recorded
Consumer Real Estate $ 882 $ 15 $ 507 $ 1,404 $ 84,469 $ 85,873 $
—
Agricultural Real Estate 12
— 132 144 62,192 62,336
—
Agricultural 101
—
— 101 84,591 84,692
—
Commercial Real Estate 60
—
— 60 376,827 376,887
—
Commercial and Industrial
—
—
—
— 115,093 115,093
—
Consumer 29 6
— 35 33,178 33,213
—
Total $ 1,084 $ 21 $ 639 $ 1,744 $ 756,350 $ 758,094 $ 0
The following table presents the recorded investment
in nonaccrual loans by class of loans as of September 30, 2017
and December 31, 2016:
(In Thousands)
September 30, December 31,
Consumer Real Estate $ 1,176 $ 1,091
Agricultural Real Estate 101 132
Agricultural 193
—
Commercial Real Estate 98
—
Commercial & Industrial 152 161
Consumer 9
—
Total $ 1,729 $ 1,384
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 include potential
construction delays and overruns, vacancies, collateral value
subject to market value fluctuations, interest rate, market
demands, borrower’s ability to repay in orderly 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 before granting loan
approval.
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 (IDB): 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. [Remainder of this page intentionally
left blank]
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, 2017
and December 31, 2016:
(In Thousands)
Agricultural Agricultural Commercial Commercial Industrial
September 30, 2017
1-2 $ 3,973 $ 5,316 $ 1,639 $ 10,166 $
—
3 14,762 31,796 26,253 15,037 3,568
4 43,491 49,712 349,120 96,923 2,987
5 1,124 254 10,686 1,379
—
6 221 161 6,215 547
—
7
—
—
— 113
—
8
—
—
—
—
—
Total $ 63,571 $ 87,239 $ 393,913 $ 124,165 $ 6,555
Agricultural Agricultural Commercial Commercial Industrial
December 31, 2016
1-2 $ 4,399 $ 7,334 $ 677 $ 10,060 $
—
3 16,660 31,397 27,858 14,064 2,640
4 39,808 44,560 333,523 83,100 3,092
5 1,209 1,234 8,321 1,379
—
6 260 167 6,508 641
—
7
—
—
— 117
—
8
—
—
—
—
—
Total $ 62,336 $ 84,692 $ 376,887 $ 109,361 $ 5,732
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, 2017 and December 31, 2016.
(In Thousands)
Consumer Consumer
September 30, December 31,
Grade
Pass $ 83,471 $ 85,322
Special Mention (5)
— 25
Substandard (6) 320 368
Doubtful (7) 84 158
Total $ 83,875 $ 85,873
(In Thousands)
Consumer - Credit Consumer - Other
September 30, December 31, September 30, December 31,
Performing $ 3,845 $ 4,061 $ 32,013 $ 29,120
Nonperforming 1
— 28 32
Total $ 3,846 $ 4,061 $ 32,041 $ 29,152
Information about impaired loans as of
September 30, 2017, December 31, 2016 and
September 30, 2016 are as follows:
(In Thousands)
September 30, 2017 December 31, 2016 September 30, 2016
Impaired loans without a valuation allowance $ 1,294 $ 1,141 $ 515
Impaired loans with a valuation allowance 685 711 891
Total impaired loans $ 1,979 $ 1,852 $ 1,406
Valuation allowance related to impaired loans $ 123 $ 135 $ 125
Total non-accrual loans $ 1,729 $ 1,384 $ 1,132
Total loans past-due ninety days or more and still accruing $
— $
— $
—
Quarter ended average investment in impaired loans $ 1,804 $ 1,684 $ 1,499
Year to date average investment in impaired loans $ 1,793 $ 1,802 $ 1,843
No additional funds are committed to be advanced in
connection with impaired loans.
The Bank had approximately $540 thousand of its
impaired loans classified as troubled debt restructured (TDR) as of
September 30, 2017, $557 thousand as of December 31, 2016
and $562 thousand as of September 30, 2016. During the year to
date 2017, there were no new loans considered
TDR.
The following table represents three and nine months
ended September 30, 2017.
Pre- Post- Pre- Post-
Three Months Number of Modification Modification Nine Months Number of Modification Modification
September 30, 2017 Contracts Outstanding Outstanding September 30,
2017 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
None
— $
— $
— None
— $
— $
—
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 9 Months Investment Investment
Consumer Real Estate
— $
— $
—
Consumer Real Estate 1 $ 138 $ 138
For the three and nine month period ended
September 30, 2017 and 2016, 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, 2017 and September 30, 2016.
(In Thousands)
QTD
QTD QTD Interest
Three Months Ended
September 30, 2017 Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 928 $ 928 $
— $ 926 $ 8 $ 5
Agricultural Real Estate 205 205
— 136
—
—
Agricultural 161 161
— 54
—
—
Commercial Real Estate
—
—
—
—
—
—
Commercial and Industrial
—
—
—
—
—
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 84 84 25 85
—
—
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 488 488 67 489 5
—
Commercial and Industrial 113 113 31 114
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 1,012 $ 1,012 $ 25 $ 1,011 $ 8 $ 5
Agricultural Real Estate $ 205 $ 205 $
— $ 136 $
— $
—
Agricultural $ 161 $ 161 $
— $ 54 $
— $
—
Commercial Real Estate $ 488 $ 488 $ 67 $ 489 $ 5 $
—
Commercial and Industrial $ 113 $ 113 $ 31 $ 114 $
— $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
QTD
QTD QTD Interest
Three Months Ended
September 30, 2016 Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
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 $
— $
— $
— $
— $
— $
—
The following tables present loans individually
evaluated for impairment by class of loans for nine months ended
September 30, 2017 and September 30, 2016.
(In Thousands)
YTD
YTD YTD Interest
Nine Months Ended
September 30, 2017 Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
Investment Balance Allowance Investment Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate $ 928 $ 928 $
— $ 959 $ 25 $ 17
Agricultural Real Estate 205 205
— 119
—
—
Agricultural 161 161
— 18
—
—
Commercial Real Estate
—
—
—
—
—
—
Commercial and Industrial
—
—
—
—
—
—
Consumer
—
—
—
—
—
—
With a specific allowance recorded:
Consumer Real Estate 84 84 25 89
—
—
Agricultural Real Estate
—
—
—
—
—
—
Agricultural
—
—
—
—
—
—
Commercial Real Estate 488 488 67 493 17 2
Commercial and Industrial 113 113 31 115
—
—
Consumer
—
—
—
—
—
—
Totals:
Consumer Real Estate $ 1,012 $ 1,012 $ 25 $ 1,048 $ 25 $ 17
Agricultural Real Estate $ 205 $ 205 $
— $ 119 $
— $
—
Agricultural $ 161 $ 161 $
— $ 18 $
— $
—
Commercial Real Estate $ 488 $ 488 $ 67 $ 493 $ 17 $ 2
Commercial and Industrial $ 113 $ 113 $ 31 $ 115 $
— $
—
Consumer $
— $
— $
— $
— $
— $
—
(In Thousands)
YTD
YTD YTD Interest
Nine Months Ended
September 30, 2016 Unpaid Average Interest Income
Recorded Principal Related Recorded Income Recognized
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 $
— $
— $
— $
— $
— $
—
As of September 30, 2017, the Company had $25
thousand of foreclosed residential real estate property obtained by
physical possession and $59 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, 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 were 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, 2017 December 31, 2016
Allowance for Loan & Lease Losses
Balance at beginning of year $ 6,784 $ 6,057
Provision for loan loss 197 1,121
Loans charged off (208 ) (550 )
Recoveries 97 156
Allowance for Loan & Lease Losses $ 6,870 $ 6,784
Allowance for Unfunded Loan Commitments & Letters
of Credit $ 228 $ 217
Total Allowance for Credit Losses $ 7,098 $ 7,001
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, 2017 and September 30, 2016 is as
follows:
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Three Months Ended September 30, 2017
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 250 $ 253 $ 596 $ 3,076 $ 1,352 $ 407 $ 219 $ 924 $ 7,077
Charge Offs
—
—
— (19 )
— (92 )
—
— (111 )
Recoveries
—
—
— 4 2 18
—
— 24
Provision (Credit) 26 (5 ) 17 56 38 90
— (123 ) 99
Other Non-interest expense related to unfunded
—
—
—
—
—
— 9
— 9
Ending Balance $ 276 $ 248 $ 613 $ 3,117 $ 1,392 $ 423 $ 228 $ 801 $ 7,098
Ending balance: individually evaluated for impairment $ 25 $
— $
— $ 67 $ 31 $
— $
— $
— $ 123
Ending balance: collectively evaluated for impairment $ 251 $ 248 $ 613 $ 3,050 $ 1,361 $ 423 $ 228 $ 801 $ 6,975
Ending balance: loans acquired with deteriorated credit quality $
— $
— $
— $
— $
— $
— $
— $
— $
—
FINANCING RECEIVABLES:
Ending balance $ 83,875 $ 63,571 $ 87,239 $ 393,913 $ 130,720 $ 35,887 $
— $
— $ 795,205
Ending balance: individually evaluated for impairment $ 1,012 $ 205 $ 161 $ 488 $ 113 $
— $
— $
— $ 1,979
Ending balance: collectively evaluated for impairment $ 82,863 $ 63,366 $ 87,078 $ 393,425 $ 130,607 $ 35,887 $
— $
— $ 793,226
Ending balance: loans acquired with deteriorated credit quality $ 194 $
— $
— $
— $
— $
— $
— $
— $ 194
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 $ 85,977 $ 59,458 $ 79,332 $ 369,721 $ 111,953 $ 30,616 $
— $
— $ 737,057
Ending balance: individually evaluated for impairment $ 712 $ 132 $
— $ 444 $ 118 $
— $
— $
— $ 1,406
Ending balance: collectively evaluated for impairment $ 85,265 $ 59,326 $ 79,332 $ 369,277 $ 111,835 $ 30,616 $
— $
— $ 735,651
Ending balance: loans acquired with deteriorated credit quality $ 265 $
— $
— $
— $
— $
— $
— $
— $ 265
Additional analysis, presented in thousands, related
to the allowance for credit losses for nine months ended
September 30, 2017 and September 30, 2016 is as
follows:
Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total
Nine Months Ended September 30, 2017
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance $ 316 $ 241 $ 616 $ 3,250 $ 1,318 $ 394 $ 217 $ 649 $ 7,001
Charge Offs
—
—
— (19 )
— (189 )
—
— (208 )
Recoveries 13
— 2 11 8 63
—
— 97
Provision (Credit) (53 ) 7 (5 ) (125 ) 66 155
— 152 197
Other Non-interest expense related to unfunded
—
—
—
—
—
— 11
— 11
Ending Balance $ 276 $ 248 $ 613 $ 3,117 $ 1,392 $ 423 $ 228 $ 801 $ 7,098
Ending balance: individually evaluated for impairment $ 25 $
— $
— $ 67 $ 31 $
— $
— $
— $ 123
Ending balance: collectively evaluated for impairment $ 251 $ 248 $ 613 $ 3,050 $ 1,361 $ 423 $ 228 $ 801 $ 6,975
Ending balance: loans acquired with deteriorated credit quality $
— $
— $
— $
— $
— $
— $
— $
— $
—
FINANCING RECEIVABLES:
Ending balance $ 83,875 $ 63,571 $ 87,239 $ 393,913 $ 130,720 $ 35,887 $
— $
— $ 795,205
Ending balance: individually evaluated for impairment $ 1,012 $ 205 $ 161 $ 488 $ 113 $
— $
— $
— $ 1,979
Ending balance: collectively evaluated for impairment $ 82,863 $ 63,366 $ 87,078 $ 393,425 $ 130,607 $ 35,887 $
— $
— $ 793,226
Ending balance: loans acquired with deteriorated credit quality $ 194 $
— $
— $
— $
— $
— $
— $
— $ 194
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 $ 85,977 $ 59,458 $ 79,332 $ 369,721 $ 111,953 $ 30,616 $
— $
— $ 737,057
Ending balance: individually evaluated for impairment $ 712 $ 132 $
— $ 444 $ 118 $
— $
— $
— $ 1,406
Ending balance: collectively evaluated for impairment $ 85,265 $ 59,326 $ 79,332 $ 369,277 $ 111,835 $ 30,616 $
— $
— $ 735,651
Ending balance: loans acquired with deteriorated credit quality $ 265 $
— $
— $
— $
— $
— $
— $
— $ 265 |
