Loans | NOTE 4 LOANS Loan balances as of June 30, 2019 and December 31, 2018: (In Thousands) Loans: June 30, 2019 December 31, 2018 Consumer Real Estate $ 159,540 $ 80,766 Agricultural Real Estate 193,768 68,609 Agricultural 113,755 108,495 Commercial Real Estate 443,257 419,784 Commercial and Industrial 125,609 121,793 Consumer 48,952 41,953 Other 7,341 5,889 1,092,222 847,289 Less: Net deferred loan fees and costs (1,091 ) (915 ) 1,091,131 846,374 Less: Allowance for loan losses (6,683 ) (6,775 ) Loans - Net $ 1,084,448 $ 839,599 Other loans primarily fund public improvement in the Bank’s service area. The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of June 30, 2019: (In Thousands) Fixed Variable Rate Rate Consumer Real Estate $ 66,403 $ 93,137 Agricultural Real Estate 89,487 104,281 Agricultural 60,789 52,966 Commercial Real Estate 270,572 172,685 Commercial and Industrial 63,473 62,136 Consumer 44,346 4,606 Other 7,242 99 As of June 30, 2019 and December 31, 2018 one to four family residential mortgage loans amounting to $93.4 and $14.9 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, Other loans 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, 2019 and December 31, 2018, net of deferred loan fees and costs: June 30, 2019 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 1,124 $ 47 $ 524 $ 1,695 $ 157,262 $ 158,957 $ - Agricultural Real Estate 771 - 198 969 192,647 193,616 - Agricultural 1,473 - 74 1,547 112,359 113,906 - Commercial Real Estate - - - - 442,538 442,538 - Commercial and Industrial - 14 - 14 133,000 133,014 - Consumer 124 9 13 146 48,954 49,100 - Total $ 3,492 $ 70 $ 809 $ 4,371 $ 1,086,760 $ 1,091,131 $ - December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 342 $ 24 $ 254 $ 620 $ 79,612 $ 80,232 $ - Agricultural Real Estate - - - - 68,588 68,588 - Agricultural - - - - 108,616 108,616 - Commercial Real Estate - - - - 419,131 419,131 - Commercial and Industrial - - - - 127,752 127,752 - Consumer 85 24 8 117 41,938 42,055 - Total $ 427 $ 48 $ 262 $ 737 $ 845,637 $ 846,374 $ - The following table presents the recorded investment in nonaccrual loans by class of loans as of June 30, 2019 and December 31, 2018: (In Thousands) June 30, 2019 December 31, 2018 Consumer Real Estate $ 953 $ 462 Agricultural Real Estate 198 - Agricultural 74 - Commercial Real Estate - - Commercial & Industrial 67 72 Consumer 36 8 Total $ 1,328 $ 542 Following are the characteristics and underwriting criteria for each major type of loan the Bank offers: 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. 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. 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 future contracts. The risk related to weather is often mitigated by requiring crop insurance. 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. 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. Other: Primarily funds public improvements in the Bank’s service area. Repayment ability is based on the continuance of the taxation revenue as the source of repayment. 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. 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-to-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 these credit weaknesses are 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 deserve close attention but 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 and 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 but 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, 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 June 30, 2019 and December 31, 2018: (In Thousands) Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other June 30, 2019 1-2 $ 33,993 $ 7,892 $ 7,724 $ 4,394 $ - 3 53,521 40,275 83,706 19,312 2,463 4 84,260 60,437 341,424 95,720 4,878 5 17,548 5,055 8,046 4,753 - 6 4,294 247 1,638 615 - 7 - - - 879 - 8 - - - - - Total $ 193,616 $ 113,906 $ 442,538 $ 125,673 $ 7,341 Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other December 31, 2018 1-2 $ 4,442 $ 5,753 $ 4,698 $ 3,199 $ - 3 14,118 38,852 64,341 16,284 3,135 4 49,596 63,380 346,072 100,644 2,754 5 422 631 2,171 308 - 6 10 - 1,849 542 - 7 - - - 886 - 8 - - - - - Total $ 68,588 $ 108,616 $ 419,131 $ 121,863 $ 5,889 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 June 30, 2019 and December 31, 2018. (In Thousands) Consumer Consumer Real Estate Real Estate June 30, 2019 December 31, 2018 Grade Pass $ 156,743 $ 79,121 Special Mention (5) 228 232 Substandard (6) 1,986 879 Doubtful (7) - - Total $ 158,957 $ 80,232 (In Thousands) Consumer - Credit Consumer - Other June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Performing $ 3,858 $ 3,909 $ 45,144 $ 38,073 Nonperforming 33 19 65 54 Total $ 3,891 $ 3,928 $ 45,209 $ 38,127 Information about impaired loans as of June 30, 2019, December 31, 2018 and June 30, 2018 are as follows: (In Thousands) June 30, 2019 December 31, 2018 June 30, 2018 Impaired loans without a valuation allowance $ 1,071 $ 1,808 $ 804 Impaired loans with a valuation allowance 1,105 246 648 Total impaired loans $ 2,176 $ 2,054 $ 1,452 Valuation allowance related to impaired loans $ 235 $ 31 $ 132 Total non-accrual loans $ 1,328 $ 542 $ 903 Total loans past-due ninety days or more and still accruing $ - $ - $ - Quarter ended average investment in impaired loans $ 2,201 $ 2,533 $ 1,452 Year to date average investment in impaired loans $ 2,168 $ 1,958 $ 1,570 There were no additional funds available to be advanced in connection with impaired loans. The Bank had approximately $981 thousand of its impaired loans classified as troubled debt restructured (TDR) as of June 30, 2019, $178 thousand as of December 31, 2018 and $218 thousand as of June 30, 2018. During the year to date 2019, there were 4 new loans considered TDR. There were no new loans considered TDR year to date 2018. The following table represents three and six months ended June 30, 2019: Pre- Post- Pre- Post- Three Months Number of Modification Modification Six Months Number of Modification Modification June 30, 2019 Contracts Outstanding Outstanding June 30, 2019 Contracts Outstanding Outstanding (in thousands) Modified in the Recorded Recorded (in thousands) Modified in the Recorded Recorded Troubled Debt Restructurings Last Three Months Investment Investment Troubled Debt Restructurings Last Six Months Investment Investment Commercial and Industrial 4 $ 812 $ 812 Commercial and Industrial 4 $ 812 $ 812 For the three and six month period ended June 30, 2019 and 2018, there were no TDRs that subsequently defaulted after modification. For the three and six month period ended June 30, 2019, there were no impaired loans classified as TDR paid off. 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, 2019 and June 30, 2018. (In Thousands) QTD QTD QTD Interest Three Months Ended June 30, 2019 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 $ 643 $ 643 $ - $ 644 $ 8 $ 3 Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate 191 191 - 191 3 - Commercial and Industrial 237 237 - 787 3 - Consumer - - - - - - With a specific allowance recorded: Consumer Real Estate 219 219 54 235 - - Agricultural Real Estate - - - - - - Agricultural 74 74 26 74 - - Commercial Real Estate - - - - - - Commercial and Industrial 812 812 155 270 12 - Consumer - - - - - - Totals: Consumer Real Estate $ 862 $ 862 $ 54 $ 879 $ 8 $ 3 Agricultural Real Estate $ - $ - $ - $ - $ - $ - Agricultural $ 74 $ 74 $ 26 $ 74 $ - $ - Commercial Real Estate $ 191 $ 191 $ - $ 191 $ 3 $ - Commercial and Industrial $ 1,049 $ 1,049 $ 155 $ 1,057 $ 15 $ - Consumer $ - $ - $ - $ - $ - $ - (In Thousands) QTD QTD QTD Interest Three Months Ended June 30, 2018 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 $ 606 $ 606 $ - $ 526 $ 6 $ 4 Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate 198 198 - 199 3 - Commercial and Industrial - - - - - - Consumer - - - - - - With a specific allowance recorded: Consumer Real Estate 254 254 46 152 - - Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate - - - 139 - - Commercial and Industrial 394 394 86 436 4 - Consumer - - - - - - Totals: Consumer Real Estate $ 860 $ 860 $ 46 $ 678 $ 6 $ 4 Agricultural Real Estate $ - $ - $ - $ - $ - $ - Agricultural $ - $ - $ - $ - $ - $ - Commercial Real Estate $ 198 $ 198 $ - $ 338 $ 3 $ - Commercial and Industrial $ 394 $ 394 $ 86 $ 436 $ 4 $ - Consumer $ - $ - $ - $ - $ - $ - (In Thousands) YTD YTD YTD Interest Six Months Ended June 30, 2019 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 $ 643 $ 643 $ - $ 624 $ 15 $ 4 Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate 191 191 - 192 7 - Commercial and Industrial 237 237 - 936 6 - Consumer - - - - - - With a specific allowance recorded: Consumer Real Estate 219 219 54 244 - - Agricultural Real Estate - - - - - - Agricultural 74 74 26 37 - - Commercial Real Estate - - - - - - Commercial and Industrial 812 812 155 135 23 - Consumer - - - - - - Totals: Consumer Real Estate $ 862 $ 862 $ 54 $ 868 $ 15 $ 4 Agricultural Real Estate $ - $ - $ - $ - $ - $ - Agricultural $ 74 $ 74 $ 26 $ 37 $ - $ - Commercial Real Estate $ 191 $ 191 $ - $ 192 $ 7 $ - Commercial and Industrial $ 1,049 $ 1,049 $ 155 $ 1,071 $ 29 $ - Consumer $ - $ - $ - $ - $ - $ - (In Thousands) YTD YTD YTD Interest Six Months Ended June 30, 2018 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 $ 606 $ 606 $ - $ 509 $ 14 $ 10 Agricultural Real Estate - - - 34 - - Agricultural - - - - - - Commercial Real Estate 198 198 - 200 5 - Commercial and Industrial - - - 104 - - Consumer - - - - - - With a specific allowance recorded: Consumer Real Estate 254 254 46 116 - - Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate - - - 279 - - Commercial and Industrial 394 394 86 328 8 - Consumer - - - - - - Totals: Consumer Real Estate $ 860 $ 860 $ 46 $ 625 $ 14 $ 10 Agricultural Real Estate $ - $ - $ - $ 34 $ - $ - Agricultural $ - $ - $ - $ - $ - $ - Commercial Real Estate $ 198 $ 198 $ - $ 479 $ 5 $ - Commercial and Industrial $ 394 $ 394 $ 86 $ 432 $ 8 $ - Consumer $ - $ - $ - $ - $ - $ - As of June 30, 2019, the Company had [ Remainder of this page intentionally left blank ] 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, 2019 December 31, 2018 Allowance for Loan & Lease Losses Balance at beginning of year $ 6,775 $ 6,868 Provision for loan loss 163 324 Loans charged off (335 ) (580 ) Recoveries 80 163 Allowance for Loan & Lease Losses $ 6,683 $ 6,775 Allowance for Unfunded Loan Commitments & Letters of Credit $ 370 $ 274 Total Allowance for Credit Losses $ 7,053 $ 7,049 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, 2019 and June 30, 2018 in addition to the ending balances as of December 31, 2018 is as follows: Consumer Real Estate Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Consumer Unfunded Loan Commitment & Letters of Credit Unallocated Total Three Months Ended June 30, 2019 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 268 $ 270 $ 706 $ 3,203 $ 1,490 $ 496 $ 346 $ 203 $ 6,982 Charge Offs (14 ) - - - - (114 ) - - (128 ) Recoveries - - 1 3 5 33 - - 42 Provision (Credit) 21 70 49 114 (34 ) 111 - (198 ) 133 Other Non-interest expense related to unfunded - - - - - - 24 - 24 Ending Balance $ 275 $ 340 $ 756 $ 3,320 $ 1,461 $ 526 $ 370 $ 5 $ 7,053 Ending balance: individually evaluated for impairment $ 54 $ - $ 26 $ - $ 155 $ - $ - $ - $ 235 Ending balance: collectively evaluated for impairment $ 221 $ 340 $ 730 $ 3,320 $ 1,306 $ 526 $ 370 $ 5 $ 6,818 Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 158,957 $ 193,616 $ 113,906 $ 442,538 $ 133,014 $ 49,100 $ - $ - $ 1,091,131 Ending balance: individually evaluated for impairment $ 862 $ - $ 74 $ 191 $ 1,049 $ - $ - $ - $ 2,176 Ending balance: collectively evaluated for impairment $ 157,909 $ 193,616 $ 113,832 $ 442,347 $ 131,848 $ 49,068 $ - $ - $ 1,088,620 Ending balance: loans acquired with deteriorated credit quality $ 186 $ - $ - $ - $ 117 $ 32 $ - $ - $ 335 December 31, 2018 Consumer Real Estate Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Consumer Unfunded Loan Commitment & Letters of Credit Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Ending Balance $ 247 $ 250 $ 768 $ 3,217 $ 1,305 $ 484 $ 274 $ 504 $ 7,049 Ending balance: individually evaluated for impairment $ 26 $ - $ - $ - $ 5 $ - $ - $ - $ 31 Ending balance: collectively evaluated for impairment $ 221 $ 250 $ 768 $ 3,217 $ 1,300 $ 484 $ 274 $ 504 $ 7,018 Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 80,232 $ 68,588 $ 108,616 $ 419,131 $ 127,752 $ 42,055 $ - $ - $ 846,374 Ending balance: individually evaluated for impairment $ 757 $ - $ - $ 194 $ 1,103 $ - $ - $ - $ 2,054 Ending balance: collectively evaluated for impairment $ 79,359 $ 68,588 $ 108,616 $ 418,937 $ 126,649 $ 42,055 $ - $ - $ 844,204 Ending balance: loans acquired with deteriorated credit quality $ 116 $ - $ - $ - $ - $ - $ - $ - $ 116 Consumer Real Estate Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Consumer Unfunded Loan Commitment & Letters of Credit Unallocated Total Three Months Ended June 30, 2018 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 254 $ 263 $ 706 $ 3,674 $ 1,443 $ 431 $ 265 $ 29 $ 7,065 Charge Offs - - - (1 ) (100 ) (81 ) - - (182 ) Recoveries - - 3 2 3 31 - - 39 Provision (Credit) (3 ) (8 ) 42 (415 ) 74 78 - 364 132 Other Non-interest expense related to unfunded - - - - - - 50 - 50 Ending Balance $ 251 $ 255 $ 751 $ 3,260 $ 1,420 $ 459 $ 315 $ 393 $ 7,104 Ending balance: individually evaluated for impairment $ 46 $ - $ - $ - $ 86 $ - $ - $ - $ 132 Ending balance: collectively evaluated for impairment $ 205 $ 255 $ 751 $ 3,260 $ 1,334 $ 459 $ 315 $ 393 $ 6,972 Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 82,368 $ 69,676 $ 104,980 $ 410,886 $ 122,510 $ 40,595 $ - $ - $ 831,015 Ending balance: individually evaluated for impairment $ 860 $ - $ - $ 198 $ 394 $ - $ - $ - $ 1,452 Ending balance: collectively evaluated for impairment $ 81,389 $ 69,676 $ 104,980 $ 410,688 $ 122,116 $ 40,595 $ - $ - $ 829,444 Ending balance: loans acquired with deteriorated credit quality $ 119 $ - $ - $ - $ - $ - $ - $ - $ 119 Consumer Real Estate Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Consumer Unfunded Loan Commitment & Letters of Credit Unallocated Total Six Months Ended June 30, 2019 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 247 $ 250 $ 768 $ 3,217 $ 1,305 $ 484 $ 274 $ 504 $ 7,049 Charge Offs (56 ) - - - - (279 ) - - (335 ) Recoveries - - 2 5 8 65 - - 80 Provision (Credit) 84 90 (14 ) 98 148 256 - (499 ) 163 Other Non-interest expense related to unfunded - - - - - - 96 - 96 Ending Balance $ 275 $ 340 $ 756 $ 3,320 $ 1,461 $ 526 $ 370 $ 5 $ 7,053 Ending balance: individually evaluated for impairment $ 54 $ - $ 26 $ - $ 155 $ - $ - $ - $ 235 Ending balance: collectively evaluated for impairment $ 221 $ 340 $ 730 $ 3,320 $ 1,306 $ 526 $ 370 $ 5 $ 6,818 Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 158,957 $ 193,616 $ 113,906 $ 442,538 $ 133,014 $ 49,100 $ - $ - $ 1,091,131 Ending balance: individually evaluated for impairment $ 862 $ - $ 74 $ 191 $ 1,049 $ - $ - $ - $ 2,176 Ending balance: collectively evaluated for impairment $ 157,909 $ 193,616 $ 113,832 $ 442,347 $ 131,848 $ 49,068 $ - $ - $ 1,088,620 Ending balance: loans acquired with deteriorated credit quality $ 186 $ - $ - $ - $ 117 $ 32 $ - $ - $ 335 Consumer Real Estate Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Consumer Unfunded Loan Commitment & Letters of Credit Unallocated Total Six Months Ended June 30, 2018 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 343 $ 244 $ 667 $ 3,149 $ 1,546 $ 441 $ 227 $ 478 $ 7,095 Charge Offs (34 ) - - (16 ) (100 ) (177 ) - - (327 ) Recoveries - - 6 4 6 60 - - 76 Provision (Credit) (58 ) 11 78 123 (32 ) 135 - (85 ) 172 Other Non-interest expense related to unfunded - - - - - - 88 - 88 Ending Balance $ 251 $ 255 $ 751 $ 3,260 $ 1,420 $ 459 $ 315 $ 393 $ 7,104 Ending balance: individually evaluated for impairment $ 46 $ - $ - $ - $ 86 $ - $ - $ - $ 132 Ending balance: collectively evaluated for impairment $ 205 $ 255 $ 751 $ 3,260 $ 1,334 $ 459 $ 315 $ 393 $ 6,972 Ending balance: loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 82,368 $ 69,676 $ 104,980 $ 410,886 $ 122,510 $ 40,595 $ - $ - $ 831,015 Ending balance: individually evaluated for impairment $ 860 $ - $ - $ 198 $ 394 $ - $ - $ - $ 1,452 Ending balance: collectively evaluated for impairment $ 81,389 $ 69,676 $ 104,980 $ 410,688 $ 122,116 $ 40,595 $ - $ - $ 829,444 Ending balance: loans acquired with deteriorated credit quality $ 119 $ - $ - $ - $ - $ - $ - $ - $ 119 |