Loans (Tables)

12 Months Ended

Dec. 31, 2015

Loans at December 31 are summarized below:


	(In Thousands)
Loans:	2015			2014
Consumer Real Estate	$	88,189		$	97,550
Agricultural Real Estate		58,525			50,895
Agricultural		82,654			74,611
Commercial Real Estate		322,762			270,188
Commercial and Industrial		100,125			100,126
Consumer		27,770			24,277
Industrial Development Bonds		6,491			4,698

	$	686,516		$	622,345
Less: Net deferred loan fees and costs		(638	)		(419	)

		685,878			621,926
Less: Allowance for loan losses		(6,057	)		(5,905	)

Loans - Net	$	679,821		$	616,021

Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans at December 31, 2015:


	(In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years		Total
Consumer Real Estate	$	1,270	$	11,486	$	75,433	$	88,189
Agricultural Real Estate		1,073		3,300		54,152		58,525
Agricultural		52,939		24,239		5,476		82,654
Commercial Real Estate		13,030		70,699		239,033		322,762
Commercial and Industrial		45,971		34,791		19,363		100,125
Consumer		5,480		17,228		5,062		27,770
Industrial Development Bonds		1,300		185		5,006		6,491

	$	121,063	$	161,928	$	403,525	$	686,516

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of December 31, 2015:


	(In Thousands)
	Fixed Rate		Variable Rate
Consumer Real Estate	$	54,940	$	33,249
Agricultural Real Estate		42,480		16,045
Agricultural		47,305		35,349
Commercial Real Estate		206,383		116,379
Commercial and Industrial loans		54,669		45,456
Consumer, Master Card and Overdrafts		23,305		4,465
Industrial Development Bonds		6,350		141

Contractual Aging of the Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment in past due loans by portfolio classification of loans as of December 31, 2015 and 2014, net of deferred loan fees and costs:


December 31, 2015	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	$	303	$	47	$	357	$	707	$	87,240	$	87,947	$	—
Agricultural Real Estate		—		—		162		162		58,301		58,463		—
Agricultural		—		145		—		145		82,617		82,762		—
Commercial Real Estate		236		—		841		1,077		321,153		322,230		—
Commercial and Industrial		51		—		20		71		106,618		106,689		—
Consumer		19		9		—		28		27,759		27,787		—

Total	$	609	$	201	$	1,380	$	2,190	$	683,688	$	685,878	$	—


December 31, 2014	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	$	713	$	50	$	436	$	1,199	$	96,351	$	97,550	$	—
Agricultural Real Estate		—		—		—		—		50,895		50,895		—
Agricultural		25		—		—		25		74,586		74,611		—
Commercial Real Estate		78		204		709		991		269,197		270,188		—
Commercial and Industrial		—		8		—		8		104,816		104,824		—
Consumer		25		8		29		62		23,796		23,858		—

Total	$	841	$	270	$	1,174	$	2,285	$	619,641	$	621,926	$	—

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by portfolio class of loans as of December 31, 2015 and December 31, 2014:


	(In Thousands)
	2015		2014
Consumer real estate	$	1,155	$	628
Agricultural real estate		162		—
Agriculture		—		—
Commercial real estate		484		709
Commercial		202		339
Consumer		38		29

Total	$	2,041	$	1,705

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees, based on the most recent analysis performed as of the time periods shown of December 31, 2015 and December 31, 2014.


	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Industrial Development Bonds
	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
1-2	$	5,841	$	4,319	$	12,025	$	11,490	$	597	$	1,072	$	261	$	1,771	$	—	$	—
3		16,593		15,780		21,247		26,871		24,264		34,229		22,300		15,582		3,100		4,289
4		35,475		30,472		49,220		36,225		293,381		225,015		76,855		80,079		3,391		409
5		192		111		250		—		1,738		7,083		57		2,299		—		—
6		362		213		—		—		1,828		2,080		543		165		—		—
7		—		—		20		25		422		709		182		230		—		—
8		—		—		—		—		—		—		—		—		—		—

Total	$	58,463	$	50,895	$	82,762	$	74,611	$	322,230	$	270,188	$	100,198	$	100,126	$	6,491	$	4,698

Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of December 31, 2015 and December 31, 2014.


	(In Thousands)
	Consumer Real Estate
	2015		2014
Grade
Pass	$	87,292	$	97,007
Special mention (5)		48		—
Substandard (6)		332		446
Doubtful (7)		275		97

Total	$	87,947	$	97,550


	Consumer - Credit Card				Consumer - Other
	2015		2014		2015		2014
Performing	$	3,901	$	3,987	$	23,863	$	19,846
Nonperforming		—		—		23		25

Total, net of deferred fees	$	3,901	$	3,987	$	23,886	$	19,871

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2015 and 2014 are as follows:


	(In Thousands)
	2015		2014
Impaired loans without a valuation allowance	$	1,257	$	675
Impaired loans with a valuation allowance		879		1,168

Total impaired loans	$	2,136	$	1,843

Valuation allowance related to impaired loans	$	330	$	387

Total non-accrual loans	$	2,041	$	1,705

Total loans past-due ninety days or more and still accruing	$	—	$	—


	(In Thousands)
	2015		2014		2013
Average investment in impaired loans	$	2,509	$	1,929	$	3,274

Interest income recognized on impaired loans	$	96	$	87	$	60

Interest income recognized on a cash basis on impaired loans	$	60	$	51	$	17

Impaired Loans Classified as Troubled Debt Restructured

The following table represents the years ended December 31, 2015 and 2014.


December 31, 2015 Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		December 31, 2014 Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Real Estate		1	$	528	$	430	Commercial Real Estate		0	$	—	$	—
Commercial and Industrial		1		25		24	Commercial and Industrial		0		—		—

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following table presents loans individually evaluated for impairment by portfolio class of loans as of December 31, 2015 and 2014:


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
2015
With no related allowance recorded:
Consumer real estate	$	156	$	156	$	—	$	158	$	5	$	5
Agricultural real estate		63		63		—		120		—		—
Agricultural		—		—		—		—		—		—
Commercial real estate		1,038		1,038		—		421		27		27
Commercial and Industrial		—		—		—		429		27		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer real estate		275		323		64		181		7		6
Agricultural real estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial real estate		422		422		152		907		30		22
Commercial and Industrial		182		182		114		291		—		—
Consumer		—		—		—		2		—		—

Totals:
Consumer real estate	$	431	$	479	$	64	$	339	$	12	$	11

Agricultural real estate	$	63	$	63	$	—	$	120	$	—	$	—

Agricultural	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate	$	1,460	$	1,460	$	152	$	1,328	$	57	$	49

Commercial and Industrial	$	182	$	182	$	114	$	720	$	27	$	—

Consumer	$	—	$	—	$	—	$	2	$	—	$	—


	(In Thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
2014
With no related allowance recorded:
Consumer real estate	$	204	$	229	$	—	$	52	$	1	$	1
Agricultural real estate		—		—		—		93		7		—
Agricultural		—		—		—		—		—		—
Commercial real estate		471		471		—		740		7		5
Commercial and Industrial		—		—		—		319		45		18
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer real estate		97		97		36		118		6		6
Agricultural real estate		—		—		—		15		—		—
Agricultural		25		25		25		2		—		—
Commercial real estate		709		709		111		83		21		21
Commercial and Industrial		326		326		204		506		—		—
Consumer		11		11		11		1		—		—

Totals:
Consumer real estate	$	301	$	326	$	36	$	170	$	7	$	7

Agricultural real estate	$	—	$	—	$	—	$	108	$	7	$	—

Agricultural	$	25	$	25	$	25	$	2	$	—	$	—

Commercial real estate	$	1,180	$	1,180	$	111	$	823	$	28	$	26

Commercial and Industrial	$	326	$	326	$	204	$	825	$	45	$	18

Consumer	$	11	$	11	$	11	$	1	$	—	$	—

Summary of Activities in Allowance for Credit Losses

The following is an analysis of the allowance for credit losses for the years ended December 31:


	(In Thousands)
	2015			2014			2013
Allowance for Loan Losses
Balance at beginning of year	$	5,905		$	5,194		$	5,224
Provision for loan loss		625			1,191			858
Loans charged off		(1,030	)		(778	)		(1,262	)
Recoveries		557			298			374

Balance at ending of year	$	6,057		$	5,905		$	5,194

Allowance for Unfunded Loan Commitments & Letters of Credit	$	208		$	207		$	163

Total Allowance for Credit Losses	$	6,265		$	6,112		$	5,357

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2015 and 2014 is as follows:


	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	537		$	184	$	547		$	2,367		$	1,421		$	323		$	207	$	526	$	6,112
Charge Offs		(38	)		—		—			(143	)		(536	)		(313	)		—		—		(1,030	)
Recoveries		41			—		64			204			91			157			—		—		557
Provision (Credit)		(202	)		27		(29	)		88			253			170			—		318		625
Other Non-interest expense related to unfunded		—			—		—			—			—			—			1		—		1

Ending Balance	$	338		$	211	$	582		$	2,516		$	1,229		$	337		$	208	$	844	$	6,265

Ending balance: individually evaluated for impairment	$	64		$	—	$	—		$	152		$	114		$	—		$	—	$	—	$	330

Ending balance: collectively evaluated for impairment	$	274		$	211	$	582		$	2,364		$	1,115		$	337		$	208	$	844	$	5,935

Ending balance: loans acquired with deteriorated credit quality	$	1		$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	1

FINANCING RECEIVABLES:
Ending balance	$	87,947		$	58,463	$	82,762		$	322,230		$	106,689		$	27,787		$	—	$	—	$	685,878

Ending balance: individually evaluated for impairment	$	431		$	63	$	—		$	1,460		$	182		$	—		$	—	$	—	$	2,136

Ending balance: collectively evaluated for impairment	$	87,516		$	58,400	$	82,762		$	320,770		$	106,507		$	27,787		$	—	$	—	$	683,742

Ending balance: loans acquired with deteriorated credit quality	$	507		$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	507


	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:
Beginning balance	$	257		$	131	$	326	$	2,107		$	1,359	$	292		$	163	$	722		$	5,357
Charge Offs		(168	)		—		—		(229	)		—		(381	)		—		—			(778	)
Recoveries		34			—		44		4			20		196			—		—			298
Provision (Credit)		414			53		177		485			42		216			—		(196	)		1,191
Other Non-interest expense related to unfunded		—			—		—		—			—		—			44		—			44

Ending Balance	$	537		$	184	$	547	$	2,367		$	1,421	$	323		$	207	$	526		$	6,112

Ending balance: individually evaluated for impairment	$	36		$	—	$	25	$	111		$	204	$	11		$	—	$	—		$	387

Ending balance: collectively evaluated for impairment	$	501		$	184	$	522	$	2,256		$	1,217	$	312		$	207	$	526		$	5,725

Ending balance: loans acquired with deteriorated credit quality	$	2		$	—	$	—	$	—		$	—	$	—		$	—	$	—			2

FINANCING RECEIVABLES:
Ending balance	$	97,550		$	50,895	$	74,611	$	270,188		$	104,824	$	23,858		$	—	$	—		$	621,926

Ending balance: individually evaluated for impairment	$	301		$	—	$	25	$	1,179		$	327	$	11		$	—	$	—		$	1,843

Ending balance: collectively evaluated for impairment	$	97,249		$	50,895	$	74,586	$	269,009		$	104,497	$	23,847		$	—	$	—		$	620,083

Ending balance: loans acquired with deteriorated credit quality	$	526		$	—	$	—	$	—		$	—	$	—		$	—	$	—		$	526