XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
LOANS (Tables)
 9 Months Ended
Sep. 30, 2022
LOANS [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, as of September 30, 2022  and December 31, 2021 was as follows:
($ in thousands)
  
September 30,
2022
    
December 31,
2021
  
 
            
Commercial
  
$
107,958
    
$
135,894
  
Commercial Real Estate
    
646,365
      
526,924
  
Agriculture
    
118,929
      
107,183
  
Residential Mortgage
    
88,765
      
76,160
  
Residential Construction
    
7,407
      
4,482
  
Consumer
    
15,569
      
17,258
  
      984,993       867,901  
 
                
Allowance for loan losses
    
(14,771
)
    
(13,952
)
Net deferred origination fees and costs
    
1,027
      
(1,232
)
                 
Loans, net
  
$
971,249
    
$
852,717
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of September 30, 2022 and December 31, 2021, were as follows:
($ in thousands)
  
Current & Accruing
    
30-59 Days Past Due & Accruing
    
60-89 Days Past Due & Accruing
    
90 Days or
More Past
Due &
Accruing
    
Nonaccrual
    
Total Loans
  
September 30, 2022
                                    
Commercial
  
$
106,987
    
$
164
    
$
404
    
$
403
    
$
—
    
$
107,958
  
Commercial Real Estate
    
646,365
      
—
      
—
      
—
      
—
      
646,365
  
Agriculture
    
111,304
      
—
      
—
      
—
      
7,625
      
118,929
  
Residential Mortgage
    
88,520
      
78
      
41
      
—
      
126
      
88,765
  
Residential Construction
    
7,260
      
147
      
—
      
—
      
—
      
7,407
  
Consumer
    
14,846
      
—
      
—
      
—
      
723
      
15,569
  
Total
  
$
975,282
    
$
389
    
$
445
    
$
403
    
$
8,474
    
$
984,993
  
 
                                                
December 31, 2021
                                                
Commercial
  
$
134,890
    
$
394
    
$
477
    
$
—
    
$
133
    
$
135,894
  
Commercial Real Estate
    
526,337
      
32
      
—
      
—
      
555
      
526,924
  
Agriculture
    
98,471
      
—
      
—
      
—
      
8,712
      
107,183
  
Residential Mortgage
    
75,861
      
161
      
—
      
—
      
138
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,523
      
—
      
76
      
—
      
659
      
17,258
  
Total
  
$
856,564
    
$
587
    
$
553
    
$
—
    
$
10,197
    
$
867,901
  
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of September 30, 2022 and December 31, 2021 were as follows:
($ in thousands)
  
Unpaid Contractual
Principal Balance
    
Recorded
Investment
with
No Allowance
    
Recorded
Investment with
Allowance
    
Total
Recorded
Investment
    
Related Allowance
  
September 30, 2022
                              
Commercial
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
Commercial Real Estate
    
—
      
—
      
—
      
—
      
—
  
Agriculture
    
10,127
      
7,625
      
—
      
7,625
      
—
  
Residential Mortgage
    
680
      
126
      
503
      
629
      
76
  
Residential Construction
    
—
      
—
      
—
      
—
      
—
  
Consumer
    
902
      
723
      
64
      
787
      
4
  
Total
  
$
11,709
    
$
8,474
    
$
567
    
$
9,041
    
$
80
  
 
                                        
December 31, 2021
                                        
Commercial
  
$
142
    
$
133
    
$
—
    
$
133
    
$
—
  
Commercial Real Estate
    
555
      
555
      
—
      
555
      
—
  
Agriculture
    
10,680
      
8,712
      
—
      
8,712
      
—
  
Residential Mortgage
    
701
      
138
      
517
      
655
      
81
  
Residential Construction
    
241
      
—
      
241
      
241
      
10
  
Consumer
    
815
      
659
      
64
      
723
      
2
  
Total
  
$
13,134
    
$
10,197
    
$
822
    
$
11,019
    
$
93
  
Average Recorded Investment and Interest Income in Impaired Loans Recognized Using Accrual Basis Method of Accounting
The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2022 and September 30, 2021 was as follows:
($ in thousands)
  
Three Months Ended
September 30, 2022
    
Three Months Ended
September 30, 2021
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
17
    
$
—
    
$
30
    
$
—
  
Commercial Real Estate
    
681
      
19
      
4,297
      
466
  
Agriculture
    
7,855
      
—
      
9,130
      
—
  
Residential Mortgage
    
634
      
5
      
666
      
5
  
Residential Construction
    
—
      
—
      
248
      
4
  
Consumer
    
741
      
1
      
747
      
3
  
Total
  
$
9,928
    
$
25
    
$
15,118
    
$
478
  

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2022 and September 30, 2021 was as follows:
($ in thousands)
  
Nine Months Ended
September 30, 2022
    
Nine Months Ended
September 30, 2021
  
 
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
50
    
$
2
    
$
342
    
$
7
  
Commercial Real Estate
    
479
      
32
      
5,068
      
466
  
Agriculture
    
8,205
      
—
      
9,130
      
—
  
Residential Mortgage
    
643
      
14
      
848
      
18
  
Residential Construction
    
60
      
—
      
351
      
11
  
Consumer
    
746
      
16
      
750
      
5
  
Total
  
$
10,183
    
$
64
    
$
16,489
    
$
507
  
Loans Modified as TDRs
Loans modified as TDRs during the nine months ended September 30, 2022 were as follows:
($ in thousands)
  
Nine Months Ended September 30, 2022
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer     1     $
 75     $
 75  
Total
    
1
    
$
75
    
$
75
  

Loans modified as TDRs during the three months ended September 30, 2021 were as follows:
($ in thousands)
  
Three Months Ended September 30, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Agriculture
     3       9,130       9,130  
Consumer     1     $
494     $
 494  
Total
    
4
    
$
9,624
    
$
9,624
  

Loans modified as TDRs during the nine months ended September 30, 2021 were as follows:

($ in thousands)
  
Nine Months Ended September 30, 2021
  
   
Number of
  Contracts
    
Pre-modification
  outstanding  
recorded
  investment
    
Post- 
modification 
outstanding 
recorded 
investment
  
Agriculture     3       9,130       9,130  
Consumer     2     $
 593     $
 593  
Total
    
5
    
$
9,723
    
$
9,723
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of September 30, 2022 and December 31, 2021:
($ in thousands)
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
September 30, 2022
                                    
Commercial
  
$
105,357
    
$
2,376
    
$
225
    
$
—
    
$
—
    
$
107,958
  
Commercial Real Estate
    
628,377
      
14,927
      
3,061
      
—
      
—
      
646,365
  
Agriculture
    
109,005
      
2,299
      
7,625
      
—
      
—
      
118,929
  
Residential Mortgage
    
88,376
      
220
      
169
      
—
      
—
      
88,765
  
Residential Construction
    
7,407
      
—
      
—
      
—
      
—
      
7,407
  
Consumer
    
14,846
      
—
      
723
      
—
      
—
      
15,569
  
Total
  
$
953,368
    
$
19,822
    
$
11,803
    
$
—
    
$
—
    
$
984,993
  
 
                                                
December 31, 2021
                                                
Commercial
  
$
132,425
    
$
2,376
    
$
1,093
    
$
—
    
$
—
    
$
135,894
  
Commercial Real Estate
    
516,120
      
6,524
      
4,280
      
—
      
—
      
526,924
  
Agriculture
    
98,471
      
—
      
8,712
      
—
      
—
      
107,183
  
Residential Mortgage
    
76,020
      
—
      
140
      
—
      
—
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,599
      
—
      
659
      
—
      
—
      
17,258
  
Total
  
$
844,117
    
$
8,900
    
$
14,884
    
$
—
    
$
—
    
$
867,901
  
Allowance for Loan Losses
The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2022.
Three months ended September 30, 2022
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of June 30, 2022
  
$
1,650
    
$
9,571
    
$
1,694
    
$
802
    
$
151
    
$
179
    
$
228
    
$
14,275
  
Provision for loan losses
    
(385
)
    
566
      
128
      
45
      
(21
)
    
26
      
(59
)
    
300
  
 
                                                                
Charge-offs
    
—
      
—
      
—
      
—
      
—
      
(30
)
    
—
      
(30
)
Recoveries
    
225
      
—
      
—
      
—
      
—
      
1
      
—
      
226
  
Net charge-offs
    
225
      
—
      
—
      
—
      
—
      
(29
)
    
—
      
196
  
Balance as of September 30, 2022
  
$
1,490
    
$
10,137
    
$
1,822
    
$
847
    
$
130
    
$
176
    
$
169
    
$
14,771
  

Nine months ended September 30, 2022
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2021
  
$
1,604
    
$
8,808
    
$
1,482
    
$
742
    
$
74
    
$
167
    
$
1,075
    
$
13,952
  
Provision for loan losses
    
(66
)
    
1,329
      
340
      
105
      
56
      
42
      
(906
)
    
900
  
 
                                                                
Charge-offs
    
(297
)
    
—
      
—
      
—
      
—
      
(39
)
    
—
      
(336
)
Recoveries
    
249
      
—
      
—
      
—
      
—
      
6
      
—
      
255
  
Net charge-offs
    
(48
)
    
—
      
—
      
—
      
—
      
(33
)
    
—
      
(81
)
Balance as of September 30, 2022
  
$
1,490
    
$
10,137
    
$
1,822
    
$
847
    
$
130
    
$
176
    
$
169
    
$
14,771
  

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2022.
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Period-end amount allocated to:
                                                
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
—
    
$
76
    
$
—
    
$
4
    
$
—
    
$
80
  
Loans collectively evaluated for impairment
    
1,490
      
10,137
      
1,822
      
771
      
130
      
172
      
169
      
14,691
  
Ending Balance
  
$
1,490
    
$
10,137
    
$
1,822
    
$
847
    
$
130
    
$
176
    
$
169
    
$
14,771
  

The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2021.
Three months ended September 30, 2021
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of June 30, 2021
  
$
1,555
    
$
7,338
    
$
5,259
    
$
634
    
$
55
    
$
186
    
$
352
    
$
15,379
  
Provision for loan losses
    
119
      
797
      
(3,227
)
    
91
      
26
      
(55
)
    
449
      
(1,800
)
 
                                                                
Charge-offs
    
(36
)
    
—
      
—
      
—
      
—
      
(6
)
    
—
      
(42
)
Recoveries
    
415
      
—
      
—
      
—
      
—
      
49
      
—
      
464
  
Net charge-offs
    
379
      
—
      
—
      
—
      
—
      
43
      
—
      
422
  
Balance as of September 30, 2021
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

Nine months ended September 30, 2021
  
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2020
  
$
2,252
    
$
7,915
    
$
3,834
    
$
635
    
$
128
    
$
214
    
$
438
    
$
15,416
  
Provision for loan losses
    
(239
)
    
220
      
(1,802
)
    
90
      
(47
)
    
(85
)
    
363
      
(1,500
)
 
                                                                
Charge-offs
    
(383
)
    
—
      
—
      
—
      
—
      
(12
)
    
—
      
(395
)
Recoveries
    
423
      
—
      
—
      
—
      
—
      
57
      
—
      
480
  
Net charge-offs
    
40
      
—
      
—
      
—
      
—
      
45
      
—
      
85
  
Balance as of September 30, 2021
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2021.
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Period-end amount allocated to:
                                                
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
818
    
$
82
    
$
7
    
$
3
    
$
—
    
$
910
  
Loans collectively evaluated for impairment
    
2,053
      
8,135
      
1,214
      
643
      
74
      
171
      
801
      
13,091
  
Ending Balance
  
$
2,053
    
$
8,135
    
$
2,032
    
$
725
    
$
81
    
$
174
    
$
801
    
$
14,001
  

The Company’s investment in loans as of September 30, 2022 and December 31, 2021 related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company’s impairment methodology was as follows:
($ in thousands)
  
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Total
  
September 30, 2022
  
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
7,625
    
$
629
    
$
—
    
$
787
    
$
9,041
  
Loans collectively evaluated for impairment
    
107,958
      
646,365
      
111,304
      
88,136
      
7,407
      
14,782
      
975,952
  
Ending Balance
  
$
107,958
    
$
646,365
    
$
118,929
    
$
88,765
    
$
7,407
    
$
15,569
    
$
984,993
  
 
                                                        
December 31, 2021
  
Loans individually evaluated for impairment
  
$
133
    
$
555
    
$
8,712
    
$
655
    
$
241
    
$
723
    
$
11,019
  
Loans collectively evaluated for impairment
    
135,761
      
526,369
      
98,471
      
75,505
      
4,241
      
16,535
      
856,882
  
Ending Balance
  
$
135,894
    
$
526,924
    
$
107,183
    
$
76,160
    
$
4,482
    
$
17,258
    
$
867,901