XML 24 R14.htm IDEA: XBRL DOCUMENT

Note 4 - Loans Receivable

6 Months Ended

Jun. 30, 2020

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 4. LOANS RECEIVABLE

Loans receivable consisted of the following:

	June 30,			December 31,
	2020			2019
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	150,818		$	157,898
Commercial real estate		432,631			434,025

Other loans:
Home equity		58,755			56,414
Consumer		20,231			18,882
Commercial		181,005			113,319

Total		843,440			780,538

Deferred loan fees, net		(2,611	)		(1,303	)
Allowance for loan losses		(10,500	)		(8,600	)
Total loans, net	$	830,329		$	770,635

Within the loan categories above, $11,457,000 and $13,602,000 was guaranteed by the United States Department of Agriculture Rural Development at June 30, 2020 and December 31, 2019, respectively. Also within the loan categories above, $14,618,000 and $5,701,000 was guaranteed by the United States Department of Agriculture Farm Service Agency at June 30, 2020 and December 31, 2019, respectively. In addition, $44,855,000 was guaranteed by the Small Business Administration ("SBA") under their Payroll Protection Program ("PPP") at June 30, 2020.

Allowance for loan losses activity was as follows:

	Residential		Commercial			Home
	1-4 Family		Real Estate			Equity		Consumer			Commercial			Total
	(In Thousands)
Allowance for loan losses:
Balance, April, 1 2020	$	1,301	$	5,214		$	477	$	354		$	1,904		$	9,250
Charge-offs		-		-			-		(3	)		(8	)		(11	)
Recoveries		-		2			-		3			29			34
Provision		68		880			14		17			248			1,227
Balance, June 30, 2020	$	1,369	$	6,096		$	491	$	371		$	2,173		$	10,500

Allowance for loan losses:
Balance, January 1, 2020	$	1,301	$	4,826		$	477	$	284		$	1,712		$	8,600
Charge-offs		-		(18	)		-		(11	)		(18	)		(47	)
Recoveries		-		8			-		11			31			50
Provision		68		1,280			14		87			448			1,897
Balance, June 30, 2020	$	1,369	$	6,096		$	491	$	371		$	2,173		$	10,500

Balance, June 30, 2020 allocated to loans individually evaluated for impairment	$	97	$	-		$	-	$	-		$	70		$	167

Balance, June 30, 2020 allocated to loans collectively evaluated for impairment	$	1,272	$	6,096		$	491	$	371		$	2,103		$	10,333

Loans receivable:
Balance, June 30, 2020	$	150,818	$	432,631		$	58,755	$	20,231		$	181,005		$	843,440

Balance, June 30, 2020 of loans individually evaluated for impairment	$	1,266	$	3,922		$	191	$	198		$	2,284		$	7,861

Balance, June 30, 2020 of loans collectively evaluated for impairment	$	149,552	$	428,709		$	58,564	$	20,033		$	178,721		$	835,579

	Residential		Commercial			Home
	1-4 Family		Real Estate			Equity			Consumer			Commercial			Total
	(In Thousands)
Allowance for loan losses:
Balance, April, 1 2019	$	1,301	$	3,923		$	477		$	197		$	1,202		$	7,100
Charge-offs		-		-			(75	)		(4	)		(2	)		(81	)
Recoveries		-		3			-			9			22			34
Provision		-		350			75			22			250			697
Balance, June 30, 2019	$	1,301	$	4,276		$	477		$	224		$	1,472		$	7,750

Allowance for loan losses:
Balance, January 1, 2019	$	1,301	$	3,593		$	477		$	190		$	1,039		$	6,600
Charge-offs		-		(20	)		(75	)		(13	)		(97	)		(205	)
Recoveries		-		9			-			15			30			54
Provision		-		694			75			32			500			1,301
Balance, June 30, 2019	$	1,301	$	4,276		$	477		$	224		$	1,472		$	7,750

Balance, June 30, 2019 allocated to loans individually evaluated for impairment	$	-	$	-		$	-		$	-		$	-		$	-

Balance, June 30, 2019 allocated to loans collectively evaluated for impairment	$	1,301	$	4,276		$	477		$	224		$	1,472		$	7,750

Loans receivable:
Balance, June 30, 2019	$	145,148	$	412,690		$	55,582		$	19,181		$	121,048		$	753,649

Balance, June 30, 2019 of loans individually evaluated for impairment	$	680	$	1,156		$	199		$	132		$	1,462		$	3,629

Balance, June 30, 2019 of loans collectively evaluated for impairment	$	144,468	$	411,534		$	55,383		$	19,049		$	119,586		$	750,020

Internal classification of the loan portfolio was as follows:

	June 30, 2020
			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	110,754	$	-	$	1,200	$	-	$	-	$	111,954
Residential 1-4 family construction		38,527		-		337		-		-		38,864
Commercial real estate		315,953		1,818		2,863		-		-		320,634
Commercial construction and development		53,294		94		-		-		-		53,388
Farmland		57,298		83		1,175		53		-		58,609
Other loans:
Home equity		58,431		133		191		-		-		58,755
Consumer		20,033		-		198				-		20,231
Commercial		120,323		845		1,014		-		-		122,182
Agricultural		56,729		297		1,366		431		-		58,823
Total	$	831,342	$	3,270	$	8,344	$	484	$	-	$	843,440

	December 31, 2019
			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	118,116	$	-	$	1,180	$	-	$	-	$	119,296
Residential 1-4 family construction		38,265		-		337		-		-		38,602
Commercial real estate		328,750		-		2,312		-		-		331,062
Commercial construction and development		52,620		-		50		-		-		52,670
Farmland		49,959		108		168		58		-		50,293
Other loans:
Home equity		56,039		78		297		-		-		56,414
Consumer		18,694		-		188		-		-		18,882
Commercial		71,868		159		707		63		-		72,797
Agricultural		39,347		138		570		467		-		40,522
Total	$	773,658	$	483	$	5,809	$	588	$	-	$	780,538

The following tables include information regarding delinquencies within the loan portfolio.

	June 30, 2020
	Loans Past Due and Still Accruing
			90 Days
	30-89 Days		and				Non-Accrual		Current		Total
	Past Due		Greater		Total		Loans		Loans		Loans
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	1,397	$	-	$	1,397	$	832	$	109,725	$	111,954
Residential 1-4 family construction		-		427		427		337		38,100		38,864
Commercial real estate		327		-		327		939		319,368		320,634
Commercial construction and development		26		-		26		-		53,362		53,388
Farmland		998		-		998		1,255		56,356		58,609
Other loans:
Home equity		67		-		67		191		58,497		58,755
Consumer		30		-		30		198		20,003		20,231
Commercial		345		115		460		793		120,929		122,182
Agricultural		883		124		1,007		1,331		56,485		58,823
Total	$	4,073	$	666	$	4,739	$	5,876	$	832,825	$	843,440

	December 31, 2019
	Loans Past Due and Still Accruing
			90 Days
	30-89 Days		and				Non-Accrual		Current		Total
	Past Due		Greater		Total		Loans		Loans		Loans
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	702	$	4	$	706	$	618	$	117,972	$	119,296
Residential 1-4 family construction		260		-		260		337		38,005		38,602
Commercial real estate		793		-		793		583		329,686		331,062
Commercial construction and development		72		-		72		50		52,548		52,670
Farmland		1,039		-		1,039		476		48,778		50,293
Other loans:
Home equity		420		-		420		98		55,896		56,414
Consumer		128		-		128		156		18,598		18,882
Commercial		484		-		484		824		71,489		72,797
Agricultural		702		1,805		2,507		499		37,516		40,522
Total	$	4,600	$	1,809	$	6,409	$	3,641	$	770,488	$	780,538

The following tables include information regarding impaired loans.

June 30, 2020

Unpaid

Recorded

Principal

Related

Investment

Balance

Allowance

(In Thousands)

Real estate loans:

Residential 1-4 family
$ 929 $ 981 $ 97

Residential 1-4 family construction
337 387 -

Commercial real estate
2,573 2,793 -

Commercial construction and development
94 94 -

Farmland
1,255 1,266 -

Other loans:

Home equity
191 214 -

Consumer
198 218 -

Commercial
793 854 70

Agricultural
1,491 1,757 -

Total
$ 7,861 $ 8,564 $ 167

December 31, 2019

Unpaid

Recorded

Principal

Related

Investment

Balance

Allowance

(In Thousands)

Real estate loans:

Residential 1-4 family
$ 618 $ 657 $ -

Residential 1-4 family construction
337 387 -

Commercial real estate
583 766 -

Commercial construction and development
50 225 -

Farmland
476 513 -

Other loans:

Home equity
98 115 -

Consumer
156 169 -

Commercial
824 887 74

Agricultural
499 756 -

Total
$ 3,641 $ 4,475 $ 74

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Average Recorded Investment

Average Recorded Investment

(In Thousands)

(In Thousands)

Real estate loans:

Residential 1-4 family
$ 833 $ 346 $ 773 $ 298

Residential 1-4 family construction 337 486 337 485

Commercial real estate 1,772 614 1,578 556

Commercial construction and development 94 - 72 7

Farmland 1,152 584 865 238

Other loans:

Home equity 164 316 145 345

Consumer 189 130 177 130

Commercial 750 781 809 525

Agricultural 1,136 822 995 376

Total
$ 6,427 $ 4,079 $ 5,751 $ 2,960

Interest income recognized on impaired loans for the three and six months ended June 30, 2020 and 2019 is considered insignificant. Interest payments received on a cash basis related to impaired loans were $458,000 and $394,000 for June 30, 2020 and December 31, 2019, respectively.

As of June 30, 2020 and December 31, 2019, there were troubled debt restructured (“TDR”) loans of $2,132,000 and $246,000, respectively.

During the three months ended June 30, 2020, there were two new TDR loans. During the six months ended June 30, 2020 there were a total of three new TDR loans. The recorded investment at time of restructure was $94,000 for a commercial construction and development loan, $1,634,000 for a commercial real estate loan and $160,000 for an agricultural loan. No charge-offs were incurred and the loans are on accrual status. The recorded investments were $94,000, $1,634,000 and $160,000, respectively at June 30, 2020. There were no new TDR loans during the three or six months ended June 30, 2019.

There were no loans modified as TDR’s that defaulted during the three and six months ended June 30, 2020 where the default occurred within 12 months of restructuring. A default for purposes of this disclosure is a TDR loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

As of June 30, 2020, the Company had no commitments to lend additional funds to loan customers whose terms had been modified in troubled debt restructures.

The Company has offered borrowers accommodations due to the impact from COVID-19. As of June 30, 2020, there were 222 loans totaling $77,730,000 deferring payments for up to 90 days. In addition, approximately 93 borrowers, representing $47,983,000 in loans were approved for up to six-months interest only payments as of June 30, 2020.