Loans (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Information About Loans Modified During Period That Were Determined To Be Troubled Debt Restructurings [Table Text Block]

nformation concerning loans that were modified during the nine months ended September 30, 2020 and 2019 and that were determined to be troubled debt restructurings follows (in thousands):

	2020		2019
Impaired loans without a valuation allowance	$	5	282
Impaired loans with a valuation allowance	14		96

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

Loan modifications that were classified as TDRs during the three and nine months ended September 30, 2020 and 2019 were as follows (dollars in thousands):

	2020					2019
	Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance
Three Months Ended September 30,
Commercial and industrial	—	$	—	—		—	$	—	—
Commercial, secured by real estate	—	—		—		—	—		—
Residential real estate	1	14		14		1	66		66
Consumer	—	—		—		—	—		—
Total	1	$	14	14		1	$	66	66
Nine Months Ended September 30,
Commercial and industrial	1	$	4	$	5	—	$	—	$	—
Commercial, secured by real estate	—	—		—		2	258		258
Residential real estate	1	14		14		3	120		120
Consumer	—	—		—		—	—		—
Total	2	$	18	$	19	5	$	378	$	378

Major Classifications of Loans

Major classifications of loans at September 30, 2020 and December 31, 2019 were as follows (in thousands):

	September 30, 2020		December 31, 2019
Commercial and industrial	$	124,628	78,306
Commercial, secured by real estate	843,943		804,953
Residential real estate	327,689		322,533
Consumer	36,504		25,232
Agricultural	8,920		11,509
Other loans, including deposit overdrafts	403		1,193
Loans, gross	1,342,087		1,243,726
Deferred origination fees, net	(1,927)		(275)
Loans, net of deferred origination fees	1,340,160		1,243,451
Less allowance for loan losses	5,974		4,045
Loans, net	$	1,334,186	1,239,406

Non-accrual, Past Due, and Accruing Restructured Loans

Non-accrual, past-due, and accruing restructured loans as of September 30, 2020 and December 31, 2019 were as follows (in thousands):

	September 30, 2020		December 31, 2019
Non-accrual loans:
Commercial and industrial	$	444	—
Commercial, secured by real estate	2,621		2,467
Residential real estate	1,045		743
Total non-accrual loans	4,110		3,210
Past-due 90 days or more and still accruing	94		—
Total non-accrual and past-due 90 days or more and still accruing	4,204		3,210
Accruing restructured loans	3,700		6,609
Total	$	7,904	9,819

Allowance for Loan Losses and Recorded Investments in Loans

The allowance for loan losses for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):

	Commercial & Industrial		Commercial, Secured by Real Estate	Residential Real Estate	Consumer	Agricultural	Other	Total
Three Months Ended September 30, 2020
Balance, beginning of period	$	691	3,465	697	133	26	4	5,016
Provision (credit) charged to expenses	114		466	353	32	(1)	12	976
Losses charged off	—		—	(3)	(5)	—	(30)	(38)
Recoveries	—		—	1	3	—	16	20
Balance, end of period	$	805	3,931	1,048	163	25	2	5,974
Nine Months Ended September 30, 2020
Balance, beginning of year	$	456	2,924	528	99	34	4	4,045
Provision (credit) charged to expenses	345		1,277	452	63	(9)	37	2,165
Losses charged off	(14)		(270)	(6)	(20)	—	(93)	(403)
Recoveries	18		—	74	21	—	54	167
Balance, end of period	$	805	3,931	1,048	163	25	2	5,974
Three Months Ended September 30, 2019
Balance, beginning of period	$	497	2,720	773	81	38	3	4,112
Provision (credit) charged to expenses	(50)		372	(101)	10	1	32	264
Losses charged off	(47)		—	(204)	(5)	—	(52)	(308)
Recoveries	—		—	73	4	—	22	99
Balance, end of period	$	400	3,092	541	90	39	5	4,167
Nine Months Ended September 30, 2019
Balance, beginning of year	$	400	2,745	767	87	46	1	4,046
Provision (credit) charged to expenses	47		298	(189)	(12)	(7)	76	213
Losses charged off	(47)		(7)	(272)	(15)	—	(126)	(467)
Recoveries	—		56	235	30	—	54	375
Balance, end of period	$	400	3,092	541	90	39	5	4,167

A breakdown of the allowance for loan losses and the loan portfolio by loan segment at September 30, 2020 and December 31, 2019 were as follows (in thousands):

	Commercial & Industrial		Commercial, Secured by Real Estate	Residential Real Estate	Consumer	Agricultural	Other	Total
September 30, 2020
Allowance for loan losses:
Individually evaluated for impairment	$	9	83	102	—	—	—	194
Collectively evaluated for impairment	796		3,848	946	163	25	2	5,780
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	805	3,931	1,048	163	25	2	5,974
Loans:
Individually evaluated for impairment	$	647	5,274	1,421	8	—	—	7,350
Collectively evaluated for impairment	121,863		835,528	324,335	36,640	8,938	173	1,327,477
Acquired credit impaired loans	675		2,104	2,324	—	—	230	5,333
Balance, end of period	$	123,185	842,906	328,080	36,648	8,938	403	1,340,160
December 31, 2019
Allowance for loan losses:
Individually evaluated for impairment	$	6	272	17	—	—	—	295
Collectively evaluated for impairment	450		2,652	511	99	34	4	3,750
Acquired credit impaired loans	—		—	—	—	—	—	—
Balance, end of period	$	456	2,924	528	99	34	4	4,045
Loans:
Individually evaluated for impairment	$	230	7,432	949	27	—	—	8,638
Collectively evaluated for impairment	77,430		793,191	319,188	25,328	11,523	930	1,227,590
Acquired credit impaired loans	711		3,531	2,718	—	—	263	7,223
Balance, end of period	$	78,371	804,154	322,855	25,355	11,523	1,193	1,243,451

Analysis of the Company's Loan Portfolio by Credit Quality Indicators

A breakdown of the loan portfolio by credit quality indicators at September 30, 2020 and December 31, 2019 is as follows (in thousands):

	Pass		OAEM	Substandard	Doubtful	Total
September 30, 2020
Commercial & industrial	$	122,186	—	999	—	123,185
Commercial, secured by real estate	821,099		9,333	12,474	—	842,906
Residential real estate	322,572		2,079	3,429	—	328,080
Consumer	36,646		—	2	—	36,648
Agricultural	8,925		—	13	—	8,938
Other	403		—	—	—	403
Total	$	1,311,831	11,412	16,917	—	1,340,160
December 31, 2019
Commercial & industrial	$	76,236	233	1,902	—	78,371
Commercial, secured by real estate	789,319		3,007	11,828	—	804,154
Residential real estate	319,075		267	3,513	—	322,855
Consumer	25,342		—	13	—	25,355
Agricultural	11,523		—	—	—	11,523
Other	1,193		—	—	—	1,193
Total	$	1,222,688	3,507	17,256	—	1,243,451

Loan Portfolio Aging Analysis

A loan portfolio aging analysis at September 30, 2020 and December 31, 2019 is as follows (in thousands):

	30-59 Days Past Due		60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total Loans Receivable	Total Loans Greater Than 90 Days and Accruing
September 30, 2020
Commercial & industrial	$	—	76	—	76	123,109	123,185	—
Commercial, secured by real estate	—		224	1,584	1,808	841,098	842,906	—
Residential real estate	343		534	1,055	1,932	326,148	328,080	94
Consumer	7		9	—	16	36,632	36,648	—
Agricultural	—		—	—	—	8,938	8,938	—
Other	55		—	—	55	348	403	—
Total	$	405	843	2,639	3,887	1,336,273	1,340,160	94
December 31, 2019
Commercial & industrial	$	283	—	—	283	78,088	78,371	—
Commercial, secured by real estate	339		—	1,171	1,510	802,644	804,154	—
Residential real estate	1,573		260	423	2,256	320,599	322,855	—
Consumer	27		9	—	36	25,319	25,355	—
Agricultural	—		—	—	—	11,523	11,523	—
Other	930		—	—	930	263	1,193	—
Total	$	3,152	269	1,594	5,015	1,238,436	1,243,451	—

Impaired Loans

Impaired loans, including acquired credit impaired loans, at September 30, 2020 and December 31, 2019 were as follows (in thousands):

	September 30, 2020				December 31, 2019
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Recorded Investment	Unpaid Principal Balance	Related Allowance
With no related allowance recorded:
Commercial & industrial	$	1,119	1,449	—	711	1,253	—
Commercial, secured by real estate	6,209		6,859	—	8,625	9,373	—
Residential real estate	2,740		3,185	—	3,118	3,651	—
Consumer	6		6	—	10	10	—
Agricultural	—		—	—	—	—	—
Other	230		348	—	263	392	—
Total	$	10,304	11,847	—	12,727	14,679	—
With an allowance recorded:
Commercial & industrial	$	203	208	9	230	235	6
Commercial, secured by real estate	1,169		1,384	83	2,338	2,485	272
Residential real estate	1,005		1,006	102	549	549	17
Consumer	2		2	—	17	17	—
Agricultural	—		—	—	—	—	—
Other	—		—	—	—	—	—
Total	$	2,379	2,600	194	3,134	3,286	295
Total:
Commercial & industrial	$	1,322	1,657	9	941	1,488	6
Commercial, secured by real estate	7,378		8,243	83	10,963	11,858	272
Residential real estate	3,745		4,191	102	3,667	4,200	17
Consumer	8		8	—	27	27	—
Agricultural	—		—	—	—	—	—
Other	230		348	—	263	392	—
Total	$	12,683	14,447	194	15,861	17,965	295

The following presents information related to the average recorded investment and interest income recognized on impaired loans, including acquired credit impaired loans, for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	2020			2019
	Average Recorded Investment		Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
Three Months Ended September 30,
With no related allowance recorded:
Commercial & industrial	$	1,192	25	960	11
Commercial, secured by real estate	6,258		61	11,409	290
Residential real estate	2,862		68	3,600	51
Consumer	7		—	12	—
Agricultural	—		—	—	—
Other	227		6	304	8
Total	$	10,546	160	16,285	360
With an allowance recorded:
Commercial & industrial	$	207	2	244	4
Commercial, secured by real estate	1,174		2	2,514	13
Residential real estate	827		4	741	12
Consumer	2		—	19	—
Agricultural	—		—	—	—
Other	—		—	—	—
Total	$	2,210	8	3,518	29
Total:
Commercial & industrial	$	1,399	27	1,204	15
Commercial, secured by real estate	7,432		63	13,923	303
Residential real estate	3,689		72	4,341	63
Consumer	9		—	31	—
Agricultural	—		—	—	—
Other	227		6	304	8
Total	$	12,756	168	19,803	389
Nine Months Ended September 30,
With no related allowance recorded:
Commercial & industrial	$	1,240	314	866	20
Commercial, secured by real estate	7,343		609	13,891	787
Residential real estate	3,057		217	3,724	161
Consumer	11		1	12	1
Agricultural	—		—	—	—
Other	247		21	322	26
Total	$	11,898	1,162	18,815	995
With an allowance recorded:
Commercial & industrial	$	216	10	253	11
Commercial, secured by real estate	1,190		6	2,563	47
Residential real estate	522		28	725	34
Consumer	4		—	21	1
Agricultural	—		—	—	—
Other	—		—	—	—
Total	$	1,932	44	3,562	93
Total:
Commercial & industrial	$	1,456	324	1,119	31
Commercial, secured by real estate	8,533		615	16,454	834
Residential real estate	3,579		245	4,449	195
Consumer	15		1	33	2
Agricultural	—		—	—	—
Other	247		21	322	26
Total	$	13,830	1,206	22,377	1,088

Schedule of Troubled Debt Restructurings, Modification Type [Table Text Block]