Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8. LOANS Loans outstanding at December 31, 2015 and 2014 are summarized as follows: Summary of Loans by Type (In Thousands) Dec. 31, Dec. 31, 2015 2014 Residential mortgage: Residential mortgage loans - first liens $ 304,783 $ 291,882 Residential mortgage loans - junior liens 21,146 21,166 Home equity lines of credit 39,040 36,629 1-4 Family residential construction 21,121 16,739 Total residential mortgage 386,090 366,416 Commercial: Commercial loans secured by real estate 154,779 145,878 Commercial and industrial 75,196 50,157 Political subdivisions 40,007 17,534 Commercial construction and land 5,122 6,938 Loans secured by farmland 7,019 7,916 Multi-family (5 or more) residential 9,188 8,917 Agricultural loans 4,671 3,221 Other commercial loans 12,152 13,334 Total commercial 308,134 253,895 Consumer 10,656 10,234 Total 704,880 630,545 Less: allowance for loan losses (7,889 ) (7,336 ) Loans, net $ 696,991 $ 623,209 The Corporation grants loans to individuals as well as commercial and tax-exempt entities. Commercial, residential and personal loans are made to customers geographically concentrated in the Pennsylvania and New York counties that make up the market serviced by Citizens & Northern Bank. Although the Corporation has a diversified loan portfolio, a significant portion of its debtors’ ability to honor their contracts is dependent on the local economic conditions within the region. There is no concentration of loans to borrowers engaged in similar businesses or activities that exceed 10% of total loans at December 31, 2015. Transactions within the allowance for loan losses, summarized by segment and class, were as follows: Year Ended December 31, 2015 (In Thousands) Dec. 31, Balance Charge-offs Recoveries Provision (Credit) Dec. 31, Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 2,941 $ (175 ) $ 1 $ (122 ) $ 2,645 Residential mortgage loans - junior liens 176 (42 ) 0 85 219 Home equity lines of credit 322 0 0 25 347 1-4 Family residential construction 214 0 0 (7 ) 207 Total residential mortgage 3,653 (217 ) 1 (19 ) 3,418 Commercial: Commercial loans secured by real estate 1,758 (115 ) 208 88 1,939 Commercial and industrial 688 (21 ) 6 308 981 Political subdivisions 0 0 0 0 0 Commercial construction and land 283 (115 ) 0 (110 ) 58 Loans secured by farmland 165 0 0 (59 ) 106 Multi-family (5 or more) residential 87 0 0 588 675 Agricultural loans 31 0 0 14 45 Other commercial loans 131 0 0 (13 ) 118 Total commercial 3,143 (251 ) 214 816 3,922 Consumer 145 (94 ) 55 16 122 Unallocated 395 0 0 32 427 Total Allowance for Loan Losses $ 7,336 $ (562 ) $ 270 $ 845 $ 7,889 Year Ended December 31, 2014 (In Thousands) Dec. 31, Provision Dec. 31, Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 2,974 $ (164 ) $ 25 $ 106 $ 2,941 Residential mortgage loans - junior liens 294 (101 ) 0 (17 ) $ 176 Home equity lines of credit 269 (62 ) 0 115 $ 322 1-4 Family residential construction 168 0 0 46 $ 214 Total residential mortgage 3,705 (327 ) 25 250 3,653 Commercial: Commercial loans secured by real estate 3,123 (1,521 ) 250 (94 ) 1,758 Commercial and industrial 591 (24 ) 9 112 688 Political subdivisions 0 0 0 0 0 Commercial construction and land 267 (170 ) 5 181 283 Loans secured by farmland 115 0 0 50 165 Multi-family (5 or more) residential 103 0 0 (16 ) 87 Agricultural loans 30 0 0 1 31 Other commercial loans 138 0 0 (7 ) 131 Total commercial 4,367 (1,715 ) 264 227 3,143 Consumer 193 (97 ) 47 2 145 Unallocated 398 0 0 (3 ) 395 Total Allowance for Loan Losses $ 8,663 $ (2,139 ) $ 336 $ 476 $ 7,336 Year Ended December 31, 2013 (In Thousands) Dec. 31, Provision Dec. 31, Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Residential mortgage: Residential mortgage loans - first liens $ 2,619 $ (84 ) $ 24 $ 415 $ 2,974 Residential mortgage loans - junior liens 247 0 0 47 294 Home equity lines of credit 255 0 0 14 269 1-4 Family residential construction 96 (11 ) 0 83 168 Total residential mortgage 3,217 (95 ) 24 559 3,705 Commercial: Commercial loans secured by real estate 1,930 (169 ) 344 1,018 3,123 Commercial and industrial 581 (286 ) 4 292 591 Political subdivisions 0 0 0 0 0 Commercial construction and land 234 (4 ) 0 37 267 Loans secured by farmland 129 0 0 (14 ) 115 Multi-family (5 or more) residential 67 0 0 36 103 Agricultural loans 27 0 0 3 30 Other commercial loans 3 0 0 135 138 Total commercial 2,971 (459 ) 348 1,507 4,367 Consumer 228 (117 ) 58 24 193 Unallocated 441 0 0 (43 ) 398 Total Allowance for Loan Losses $ 6,857 $ (671 ) $ 430 $ 2,047 $ 8,663 In the evaluation of the loan portfolio, management determines two major components for the allowance for loan losses – (1) a specific component based on an assessment of certain larger relationships, mainly commercial purpose loans, on a loan-by-loan basis; and (2) a general component for the remainder of the portfolio based on a collective evaluation of pools of loans with similar risk characteristics. In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” column in the table below. The following tables summarize the aggregate credit quality classification of outstanding loans by risk rating as of December 31, 2015 and 2014: December 31, 2015 (In Thousands) Special Pass Mention Substandard Doubtful Total Residential Mortgage: Residential mortgage loans - first liens $ 295,302 $ 407 $ 9,007 $ 67 $ 304,783 Residential mortgage loans - junior liens 20,558 185 403 0 21,146 Home equity lines of credit 38,071 543 426 0 39,040 1-4 Family residential construction 21,104 17 0 0 21,121 Total residential mortgage 375,035 1,152 9,836 67 386,090 Commercial: Commercial loans secured by real estate 140,381 5,862 8,536 0 154,779 Commercial and Industrial 71,225 2,106 1,737 128 75,196 Political subdivisions 40,007 0 0 0 40,007 Commercial construction and land 4,957 60 105 0 5,122 Loans secured by farmland 5,084 483 1,432 20 7,019 Multi-family (5 or more) residential 7,943 0 1,245 0 9,188 Agricultural loans 4,655 0 16 0 4,671 Other commercial loans 12,073 0 79 0 12,152 Total commercial 286,325 8,511 13,150 148 308,134 Consumer 10,490 21 145 0 10,656 Totals $ 671,850 $ 9,684 $ 23,131 $ 215 $ 704,880 December 31, 2014 (In Thousands) Special Pass Mention Substandard Doubtful Total Residential Mortgage: Residential mortgage loans - first liens $ 280,094 $ 1,246 $ 10,464 $ 78 $ 291,882 Residential mortgage loans - junior liens 20,502 112 552 0 21,166 Home equity lines of credit 35,935 294 400 0 36,629 1-4 Family residential construction 16,719 20 0 0 16,739 Total residential mortgage 353,250 1,672 11,416 78 366,416 Commercial: Commercial loans secured by real estate 133,204 2,775 9,899 0 145,878 Commercial and Industrial 41,751 7,246 1,042 118 50,157 Political subdivisions 17,534 0 0 0 17,534 Commercial construction and land 4,650 266 2,022 0 6,938 Loans secured by farmland 5,990 433 1,468 25 7,916 Multi-family (5 or more) residential 8,629 288 0 0 8,917 Agricultural loans 3,196 0 25 0 3,221 Other commercial loans 13,248 86 0 0 13,334 Total commercial 228,202 11,094 14,456 143 253,895 Consumer 10,095 22 117 0 10,234 Totals $ 591,547 $ 12,788 $ 25,989 $ 221 $ 630,545 The scope of loans evaluated individually for impairment include all loan relationships greater than $200,000 for which there is at least one extension of credit graded Special Mention, Substandard or Doubtful. Also, all loans classified as troubled debt restructurings (discussed in more detail below) and all loan relationships less than $200,000 in the aggregate, but with an estimated loss of $100,000 or more, are individually evaluated for impairment. Loans that are individually evaluated for impairment, but which are not determined to be impaired, are combined with all remaining loans that are not reviewed on a specific basis, and such loans are included within larger pools of loans based on similar risk and loss characteristics for purposes of determining the general component of the allowance. The loans that have been individually evaluated, but which have not been determined to be impaired, are included in the “Collectively Evaluated” column in the table summarizing the allowance and associated loan balances as of December 31, 2015 and 2014. The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of December 31, 2015 and 2014: December 31, 2015 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 884 $ 303,899 $ 304,783 $ 1 $ 2,644 $ 2,645 Residential mortgage loans - junior liens 74 21,072 21,146 0 219 219 Home equity lines of credit 0 39,040 39,040 0 347 347 1-4 Family residential construction 0 21,121 21,121 0 207 207 Total residential mortgage 958 385,132 386,090 1 3,417 3,418 Commercial: Commercial loans secured by real estate 6,262 148,517 154,779 97 1,842 1,939 Commercial and industrial 324 74,872 75,196 75 906 981 Political subdivisions 0 40,007 40,007 0 0 0 Commercial construction and land 0 5,122 5,122 0 58 58 Loans secured by farmland 1,427 5,592 7,019 52 54 106 Multi-family (5 or more) residential 987 8,201 9,188 595 80 675 Agricultural loans 16 4,655 4,671 0 45 45 Other commercial loans 0 12,152 12,152 0 118 118 Total commercial 9,016 299,118 308,134 819 3,103 3,922 Consumer 0 10,656 10,656 0 122 122 Unallocated 427 Total $ 9,974 $ 694,906 $ 704,880 $ 820 $ 6,642 $ 7,889 December 31, 2014 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Residential mortgage: Residential mortgage loans - first liens $ 1,665 $ 290,217 $ 291,882 $ 358 $ 2,583 $ 2,941 Residential mortgage loans - junior liens 17 21,149 21,166 0 176 176 Home equity lines of credit 0 36,629 36,629 0 322 322 1-4 Family residential construction 0 16,739 16,739 0 214 214 Total residential mortgage 1,682 364,734 366,416 358 3,295 3,653 Commercial: Commercial loans secured by real estate 6,537 139,341 145,878 16 1,742 1,758 Commercial and industrial 663 49,494 50,157 82 606 688 Political subdivisions 0 17,534 17,534 0 0 0 Commercial construction and land 1,939 4,999 6,938 211 72 283 Loans secured by farmland 1,470 6,446 7,916 102 63 165 Multi-family (5 or more) residential 0 8,917 8,917 0 87 87 Agricultural loans 25 3,196 3,221 0 31 31 Other commercial loans 0 13,334 13,334 0 131 131 Total commercial 10,634 243,261 253,895 411 2,732 3,143 Consumer 0 10,234 10,234 0 145 145 Unallocated 395 Total $ 12,316 $ 618,229 $ 630,545 $ 769 $ 6,172 $ 7,336 Summary information related to impaired loans as of December 31, 2015 and 2014 is as follows: (In Thousands) December 31, 2015 December 31, 2014 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Residential mortgage loans - first liens $ 842 $ 842 $ - $ 950 $ 950 $ - Residential mortgage loans - junior liens 74 74 - 17 17 - Commercial loans secured by real estate 7,580 5,945 - 8,062 6,521 - Commercial and industrial 249 249 - 513 513 - Commercial construction and land 0 0 - 124 124 - Loans secured by farmland 915 915 - 925 925 - Agricultural loans 16 16 - 25 25 - Total with no related allowance recorded 9,676 8,041 - 10,616 9,075 - With a related allowance recorded: Residential mortgage loans - first liens 42 42 1 715 715 358 Commercial loans secured by real estate 317 317 97 16 16 16 Commercial and industrial 75 75 75 150 150 82 Commercial construction and land 0 0 0 1,815 1,815 211 Loans secured by farmland 512 512 52 545 545 102 Multi-family (5 or more) residential 987 987 595 0 0 0 Total with a related allowance recorded 1,933 1,933 820 3,241 3,241 769 Total $ 11,609 $ 9,974 $ 820 $ 13,857 $ 12,316 $ 769 The average balance of impaired loans and interest income recognized on impaired loans is as follows: Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis (In Thousands) Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 Residential mortgage: Residential mortgage loans - first lien $ 2,206 $ 4,272 $ 3,334 $ 86 $ 81 $ 199 Residential mortgage loans - junior lien 64 168 245 4 3 17 Total residential mortgage 2,270 4,440 3,579 90 84 216 Commercial: Commercial loans secured by real estate 6,357 7,192 2,931 380 469 90 Commercial and industrial 438 877 941 20 37 35 Commercial construction and land 40 395 999 0 9 14 Loans secured by farmland 1,459 1,413 1,171 103 101 66 Multi-family (5 or more) residential 790 0 22 0 0 2 Agricultural loans 21 41 43 3 3 3 Total commercial 9,105 9,918 6,107 506 619 210 Consumer 0 1 4 0 0 0 Total $ 11,375 $ 14,359 $ 9,690 $ 596 $ 703 $ 426 The breakdown by portfolio segment and class of nonaccrual loans and loans past due ninety days or more and still accruing is as follows: (In Thousands) December 31, 2015 December 31, 2014 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Residential mortgage: Residential mortgage loans - first liens $ 2,381 $ 3,044 $ 1,989 $ 3,440 Residential mortgage loans - junior liens 79 0 82 50 Home equity lines of credit 130 0 49 22 Total residential mortgage 2,590 3,044 2,120 3,512 Commercial: Commercial loans secured by real estate 503 5,730 653 5,804 Commercial and industrial 65 313 5 379 Commercial construction and land 0 0 35 1,915 Loans secured by farmland 0 1,427 0 951 Multi-family (5 or more) residential 0 987 0 0 Agricultural loans 0 16 0 25 Total commercial 568 8,473 693 9,074 Consumer 71 0 30 24 Totals $ 3,229 $ 11,517 $ 2,843 $ 12,610 The amounts shown in the table immediately above include loans classified as troubled debt restructurings (described in more detail below), if such loans are considered past due ninety days or more, or nonaccrual. The tables below present a summary of the contractual aging of loans as of December 31, 2015 and 2014: As of December 31, 2015 As of December 31, 2014 Current & Current & (In Thousands) Past Due Past Due Past Due Past Due Past Due Past Due Less than 30-89 90+ Less than 30-89 90+ 30 Days Days Days Total 30 Days Days Days Total Residential mortgage: Residential mortgage loans - first liens $ 294,703 $ 6,156 $ 3,924 $ 304,783 $ 282,766 $ 5,443 $ 3,673 $ 291,882 Residential mortgage loans - junior liens 20,816 251 79 21,146 20,853 190 123 21,166 Home equity lines of credit 38,581 329 130 39,040 36,300 258 71 36,629 1-4 Family residential construction 21,121 0 0 21,121 16,739 0 0 16,739 Total residential mortgage 375,221 6,736 4,133 386,090 356,658 5,891 3,867 366,416 Commercial: Commercial loans secured by real estate 153,427 108 1,244 154,779 143,713 883 1,282 145,878 Commercial and industrial 75,002 118 76 75,196 49,994 43 120 50,157 Political subdivisions 40,007 0 0 40,007 17,534 0 0 17,534 Commercial construction and land 5,018 104 0 5,122 4,897 91 1,950 6,938 Loans secured by farmland 5,970 223 826 7,019 6,811 254 851 7,916 Multi-family (5 or more) residential 8,201 0 987 9,188 8,720 197 0 8,917 Agricultural loans 4,642 13 16 4,671 3,105 91 25 3,221 Other commercial loans 12,152 0 0 12,152 13,334 0 0 13,334 Total commercial 304,419 566 3,149 308,134 248,108 1,559 4,228 253,895 Consumer 10,537 48 71 10,656 10,164 40 30 10,234 Totals $ 690,177 $ 7,350 $ 7,353 $ 704,880 $ 614,930 $ 7,490 $ 8,125 $ 630,545 Nonaccrual loans are included in the contractual aging immediately above. A summary of the contractual aging of nonaccrual loans at December 31, 2015 and 2014 is as follows: Current & (In Thousands) Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total December 31, 2015 Nonaccrual Totals $ 7,100 $ 293 $ 4,124 $ 11,517 December 31, 2014 Nonaccrual Totals $ 6,959 $ 369 $ 5,282 $ 12,610 Loans whose terms are modified are classified as Troubled Debt Restructurings (TDRs) if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Loans classified as TDRs are designated as impaired. The outstanding balance of loans subject to TDRs, as well as the contractual aging information at December 31, 2015 and 2014 is as follows: Troubled Debt Restructurings (TDRs): Current & (In Thousands) Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total December 31, 2015 Totals $ 1,186 $ 0 $ 81 $ 5,097 $ 6,364 December 31, 2014 Totals $ 1,725 $ 82 $ 0 $ 5,388 $ 7,195 A summary of TDRs that occurred during 2015, 2014 and 2013 is as follows: Year Ended December 31, 2015 Pre- Post- (Balances in Thousands) Modification Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment Residential mortgage: Residential mortgage loans - first liens 2 $ 298 $ 298 Residential mortgage loans - junior liens 1 32 32 Consumer 1 30 30 Year Ended December 31, 2014 Pre- Post- (Balances in Thousands) Modification Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment Residential mortgage, Residential mortgage loans - first liens 3 $ 150 $ 150 Commercial: Commercial loans secured by real estate 5 6,679 5,193 Commercial and industrial 1 80 80 Year Ended December 31, 2013 Pre- Post- (Balances in Thousands) Modification Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment Residential mortgage: Residential mortgage loans - first liens 6 $ 677 $ 677 Residential mortgage loans - junior liens 3 102 102 Commercial: Commercial loans secured by real estate 2 866 866 Commercial and industrial 3 701 701 Loans secured by farmland 4 512 512 Agricultural loans 1 13 13 Consumer 1 6 6 The TDRs that occurred in 2015 related to residential mortgage loans – first liens that included an extended maturity date and a reduction in interest rate on one contract and a reduced payment amount on one contract. The TDR related to a residential mortgage – junior lien included a lowered interest rate and reduced payment amount. The TDR related to the consumer loan included a lowered interest rate and reduced payment amount. There was no allowance for loan losses on these loans at December 31, 2015, and no change in the allowance for loan losses resulting from these TDRs. The TDRs that occurred in 2014 related to residential mortgage loans that included a reduction in payment amount on one contract, an interest only period on one contract and a reduction in interest rate and payment on one contract. The TDRs related to commercial loans in the period ended December 31, 2014 relate to six contracts associated with one relationship. The Corporation entered into a forbearance agreement with this commercial borrower which includes a reduction in monthly payment amounts over a fifteen-month period. At the end of the fifteen-month period, the monthly payment amounts would revert to the original amounts, unless the forbearance agreement is extended or the payment requirements are otherwise modified. In July 2015, the forbearance agreement was extended for twelve months. The Corporation recorded a charge-off of $1,486,000 in the second quarter 2014 as a result of these modifications, as the payment amounts based on the forbearance agreement are not sufficient to fully amortize the contractual amount of principal outstanding on the loans. The amount of the charge-off was determined based on the excess of the contractual principal due over the present value of the payment amounts provided for in the forbearance agreement, assuming the revised payment amounts would continue until maturity, at the contractual interest rates. After the effect of the $1,486,000 charge-off related to loans to one commercial borrower described above, there was no allowance for loan losses on loans to that borrower at December 31, 2015 and 2014, while the allowance on the loans amounted to $1,552,000 at December 31, 2013. There were no other changes in the allowance for loan losses related to TDRs that occurred during the year ended December 31, 2014. The TDRs in 2013 included interest only payments for an extended period of time on fourteen contracts, extensions of the final maturity date on three contracts, reduction in interest rate on two contracts, and reduction in payment amount for one year on one contract. There was no allowance for loan losses on these loans at December 31, 2013 and no change in the allowance for loan losses resulting from these TDRs in the year ended December 31, 2013. For 2015, 2014 and 2013, defaults on loans for which modifications considered to be TDRs were entered into within the previous 12 months are summarized as follows: Number of Recorded Contracts Investment Year Ended December 31, 2015 (Balances in Thousands) Residential mortgage: Residential mortgage loans - first liens 1 $ 32 Number of Recorded Contracts Investment Year Ended December 31, 2014 (Balances in Thousands) Residential mortgage, 3 $ 257 Residential mortgage loans - junior liens 1 62 Commercial, Commercial loans secured by real estate 1 429 Commercial construction and land 1 25 Loans secured by farmland 4 490 Agricultural loans 1 13 Number of Recorded Contracts Investment Year Ended December 31, 2013 (Balances in Thousands) Residential mortgage, 1 $ 85 Commercial: Commercial loans secured by real estate 2 588 Commercial construction and land 1 110 Agricultural 1 13 The events of default in 2015 in the table listed above resulted from the borrower’s failure to make timely payments after reduced payment amount for a period of six months on the first lien residential mortgage. There was no allowance for loan losses recorded on this loan at December 31, 2015. The events of default in 2014 in the table listed above included the borrowers’ failure to make timely payments under the following circumstances: (1) for one customer relationship including one of the first lien Residential mortgages, the junior lien Residential mortgage, the Loans secured by farmland and the Agricultural loan, monthly payments of interest only were missed; however, in the fourth quarter 2014, the total principal balance of all of the loans except one of the Loans secured by farmland were fully paid off, and the balance on that loan was paid down to a balance at December 31, 2014 of $75,000 and at December 31, 2015 of $69,000; (2) for one of the Residential mortgage loans, monthly payments were missed after the interest rate and monthly payment amount had been reduced; (3) for one of the Residential mortgage loans and the Commercial loan secured by real estate, monthly payments of interest only were missed; and (4) for the Commercial construction and land loan, a monthly payment was missed after the term of the loan had been extended. There were no allowances for loan losses recorded on these loans at December 31, 2014. The events of default in 2013 in the table above included the borrowers’ failure to make timely payments under the following circumstances: (1) for the Residential mortgage loan, the monthly payment amount had been reduced; (2) for the two Commercial loans secured by real estate, monthly payments of interest only were missed; (3) for the Commercial construction and land loan, a monthly payment was missed after the term of the loan had been extended; and (4) for the Agricultural loan, payment at maturity was not made on a loan that had been in interest only status. There were no adjustments to the allowance for loan losses in 2013 as a result of these events of default. At December 31, 2015 and 2014, the Corporation evaluated loans to the borrowers who defaulted subsequent to restructurings, in determining the specific allowance for loan loss amounts related to the underlying loans. Based on the estimated value of the underlying collateral, net of estimated costs to sell the collateral, the Corporation determined that no allowance for loan losses was required at December 31, 2015 and 2014 for loans for which an event of default had occurred subsequent to restructuring. At December 31, 2015, the carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in Foreclosed assets held for sale in the consolidated balance sheet) was $555,000. At December 31, 2015, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $1,173,000. |