Loans (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans

Loan balances as of September 30, 2016 and December 31, 2015:

	(In Thousands)
Loans:	September 30, 2016			December 31, 2015
Consumer Real Estate	$	87,222		$	88,189
Agricultural Real Estate		60,206			58,525
Agricultural		79,191			82,654
Commercial Real Estate		370,315			322,762
Commercial and Industrial		105,961			100,125
Consumer		30,585			27,770
Industrial Development Bonds		5,892			6,491
		739,372			686,516
Less: Net deferred loan fees and costs		(690	)		(638	)
		738,682			685,878
Less: Allowance for loan losses		(6,612	)		(6,057	)
Loans - Net	$	732,070		$	679,821

Maturity Schedule by Major Category of Loans

The following is a maturity schedule by major category of loans as of September 30, 2016:

	(In Thousands)
	Within One Year		After One Year Within Five Years		After Five Years
Consumer Real Estate	$	944	$	12,183	$	74,095
Agricultural Real Estate		745		3,189		56,272
Agricultural		50,164		23,273		5,754
Commercial Real Estate		13,808		91,293		265,214
Commercial and Industrial		47,474		32,484		26,003
Consumer		5,230		19,157		6,198
Industrial Development Bonds		1,000		185		4,707

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 September 30, 2016. Variable rate loans whose current rates are equal to their floor or ceiling are classified as fixed in this table.

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	55,459	$	31,763
Agricultural Real Estate		43,065		17,141
Agricultural		49,358		29,833
Commercial Real Estate		233,377		136,938
Commercial and Industrial		61,617		44,344
Consumer		26,283		4,302
Industrial Development Bonds		5,892		—

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 thousands) in past due loans by portfolio classification of loans as of September 30, 2016 and December 31, 2015, net of deferred loan fees and costs:

September 30, 2016	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	$	160	$	0	$	211	$	371	$	86,527	$	86,898	$	0
Agricultural Real Estate		—		—		132		132		60,030		60,162		—
Agricultural		—		—		—		—		79,332		79,332		—
Commercial Real Estate		—		395		—		395		369,326		369,721		—
Commercial and Industrial		—		—		46		46		111,907		111,953		—
Consumer		10		4		—		14		30,602		30,616		—
Total	$	170	$	399	$	389	$	958	$	737,724	$	738,682	$	0
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	$	0
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	$	0

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by class of loans as of September 30, 2016 and December 31, 2015:

	(In Thousands)
	September 30,		December 31,
	2016		2015
Consumer Real Estate	$	837	$	1,155
Agricultural Real Estate		132		162
Agricultural		—		—
Commercial Real Estate		—		484
Commercial & Industrial		163		202
Consumer		—		38
Total	$	1,132	$	2,041

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of September 30, 2016 and December 31, 2015:

	(In Thousands)
									Industrial
	Agricultural				Commercial		Commercial		Development
	Real Estate		Agricultural		Real Estate		and Industrial		Bonds
September 30, 2016
1-2	$	4,120	$	8,062	$	1,806	$	1,623	$	—
3		17,861		23,442		25,792		22,225		2,745
4		36,512		46,157		334,827		81,177		3,147
5		1,346		1,671		1,282		431		—
6		323		—		5,570		487		—
7		—		—		444		118		—
8		—		—		—		—		—
Total	$	60,162	$	79,332	$	369,721	$	106,061	$	5,892
									Industrial
	Agricultural				Commercial		Commercial		Development
	Real Estate		Agricultural		Real Estate		and Industrial		Bonds
December 31, 2015
1-2	$	5,841	$	12,025	$	597	$	261	$	—
3		16,593		21,247		24,264		22,300		3,100
4		35,475		49,220		293,381		76,855		3,391
5		192		250		1,738		57		—
6		362		—		1,828		543		—
7		—		20		422		182		—
8		—		—		—		—		—
Total	$	58,463	$	82,762	$	322,230	$	100,198	$	6,491

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 September 30, 2016 and December 31, 2015.

	(In Thousands)
	Consumer Real Estate		Consumer Real Estate
	September 30, 2016		December 31, 2015
Grade
Pass	$	86,423	$	87,292
Special Mention (5)		10		48
Substandard (6)		136		332
Doubtful (7)		329		275
Total	$	86,898	$	87,947

	(In Thousands)
	Consumer - Credit				Consumer - Other
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Performing	$	3,726	$	3,901	$	26,870	$	23,863
Nonperforming		—		—		20		23
Total	$	3,726	$	3,901	$	26,890	$	23,886

Schedule of Impaired Loans

Information about impaired loans as of September 30, 2016, December 31, 2015 and September 30, 2015 are as follows:

	(In Thousands)
	September 30, 2016		December 31, 2015		September 30, 2015
Impaired loans without a valuation allowance	$	515	$	1,257	$	1,483
Impaired loans with a valuation allowance		891		879		1,058
Total impaired loans	$	1,406	$	2,136	$	2,541
Valuation allowance related to impaired loans	$	125	$	330	$	465
Total non-accrual loans	$	1,132	$	2,041	$	2,294
Total loans past-due ninety days or more and still accruing	$	—	$	—	$	—
Quarter ended average investment in impaired loans	$	1,499	$	2,207	$	2,924
Year to date average investment in impaired loans	$	1,843	$	2,509	$	2,609

Impaired Loans Classified as Troubled Debt Restructured

The following table represents three and nine months ended September 30, 2016.

Pre-

Post-

Pre-

Post-

Three Months

Number of

Modification

Modification

Nine Months

Number of

Modification

Modification

September 30, 2016

Contracts

Outstanding

Outstanding

September 30, 2016

Contracts

Outstanding

Outstanding

(in thousands)

Modified in the

Recorded

Recorded

(in thousands)

Modified in the

Recorded

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Investment

Troubled Debt Restructurings

Last 6 Months

Investment

Investment

Consumer Real Estate

—

—

—

Consumer Real Estate

1

$

138

$

138

The following table represents three and nine months ended September 30, 2015.

Pre-

Post-

Pre-

Post-

Three Months

Number of

Modification

Modification

Nine Months

Number of

Modification

Modification

September 30, 2015

Contracts

Outstanding

Outstanding

September 30, 2015

Contracts

Outstanding

Outstanding

(in thousands)

Modified in the

Recorded

Recorded

(in thousands)

Modified in the

Recorded

Recorded

Troubled Debt Restructurings

Last 3 Months

Investment

Investment

Troubled Debt Restructurings

Last 9 Months

Investment

Investment

Commercial Real Estate

—

$

—

$

—

Commercial Real Estate

1

$

528

$

430

Commercial and Industrial

—

—

—

Commercial and Industrial

1

25

21

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for three months ended September 30, 2016 and September 30, 2015.

	(In Thousands)
											QTD
							QTD		QTD		Interest
			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
Three Months Ended September 30, 2016	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	383	$	383	$	—	$	51	$	—	$	—
Agricultural Real Estate		132		132		—		132		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		—		—		—		345		4		4
Commercial and Industrial		—		—		—		446		6		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		329		329		35		377		4		1
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		444		444		68		30		—		—
Commercial and Industrial		118		118		22		118		—		—
Consumer		—		—		—		—		—		—
Totals:
Consumer Real Estate	$	712	$	712	$	35	$	428	$	4	$	1
Agricultural Real Estate	$	132	$	132	$	—	$	132	$	—	$	—
Agricultural	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	$	444	$	444	$	68	$	375	$	4	$	4
Commercial and Industrial	$	118	$	118	$	22	$	564	$	6	$	—
Consumer	$	—	$	—	$	—	$	—	$	—	$	—

	(In Thousands)
											QTD
							QTD		QTD		Interest
			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
Three Months Ended September 30, 2015	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	201	$	201	$	—	$	159	$	2	$	2
Agricultural Real Estate		222		222		—		222		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		482		482		—		567		10		10
Commercial and Industrial		578		578		—		462		7		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		305		305		76		182		1		—
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		560		560		201		1,013		—		—
Commercial and Industrial		193		193		188		319		—		—
Consumer		—		—		—		—		—		—
Totals:
Consumer Real Estate	$	506	$	506	$	76	$	341	$	3	$	2
Agricultural Real Estate	$	222	$	222	$	—	$	222	$	—	$	—
Agricultural	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	$	1,042	$	1,042	$	201	$	1,580	$	10	$	10
Commercial and Industrial	$	771	$	771	$	188	$	781	$	7	$	—
Consumer	$	—	$	—	$	—	$	—	$	—	$	—

The following tables present loans individually evaluated for impairment by class of loans for nine months ended September 30, 2016 and September 30, 2015.

	(In Thousands)
											YTD
							YTD		YTD		Interest
			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
Nine Months Ended September 30, 2016	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	383	$	383	$	—	$	78	$	1	$	1
Agricultural Real Estate		132		132		—		152		1		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		—		—		—		367		17		16
Commercial and Industrial		—		—		—		450		18		—
Consumer		—		—		—		—		—		—
With a specific allowance recorded:
Consumer Real Estate		329		329		35		387		11		7
Agricultural Real Estate		—		—		—		13		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		444		444		68		254		—		—
Commercial and Industrial		118		118		22		142		—		—
Consumer		—		—		—		—		—		—
Totals:
Consumer Real Estate	$	712	$	712	$	35	$	465	$	12	$	8
Agricultural Real Estate	$	132	$	132	$	—	$	165	$	1	$	—
Agricultural	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	$	444	$	444	$	68	$	621	$	17	$	16
Commercial and Industrial	$	118	$	118	$	22	$	592	$	18	$	—
Consumer	$	—	$	—	$	—	$	—	$	—	$	—

	(In Thousands)
											YTD
							YTD		YTD		Interest
			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
Nine Months Ended September 30, 2015	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	201	$	201	$	—	$	159	$	2	$	2
Agricultural Real Estate		222		222		—		99		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		482		482		—		400		10		10
Commercial and Industrial		578		578		—		420		20		—
Consumer		—		—		—		—		13		—
With a specific allowance recorded:
Consumer Real Estate		305		305		76		133		8		7
Agricultural Real Estate		—		—		—		—		—		—
Agricultural		—		—		—		—		—		—
Commercial Real Estate		560		560		201		1,069		—
Commercial and Industrial		193		193		188		327		—		—
Consumer		—		—		—		2		—		—
Totals:
Consumer Real Estate	$	506	$	506	$	76	$	292	$	10	$	9
Agricultural Real Estate	$	222	$	222	$	—	$	99	$	—	$	—
Agricultural	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	$	1,042	$	1,042	$	201	$	1,469	$	10	$	10
Commercial and Industrial	$	771	$	771	$	188	$	747	$	20	$	—
Consumer	$	—	$	—	$	—	$	2	$	13	$	—

Summary of Activities in Allowance for Credit Losses

The following tables summarize the activities in the allowance for credit losses.

	(In Thousands)
	Nine Months Ended			Twelve Months Ended
	September 30, 2016			December 31, 2015
Allowance for Loan & Lease Losses
Balance at beginning of year	$	6,057		$	5,905
Provision for loan loss		924			625
Loans charged off		(476	)		(1,030	)
Recoveries		107			557
Allowance for Loan & Lease Losses	$	6,612		$	6,057
Allowance for Unfunded Loan Commitments & Letters of Credit	$	227		$	208
Total Allowance for Credit Losses	$	6,839		$	6,265

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for three months ended September 30, 2016 and September 30, 2015 is as follows:

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
Three Months Ended September 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	413		$	229	$	591		$	2,717		$	1,215		$	365		$	219	$	963		$	6,712
Charge Offs		(42	)		—		(3	)		(90	)		—			(83	)		—		—			(218	)
Recoveries		1			—		4			2			3			19			—		—			29
Provision (Credit)		(86	)		5		(12	)		376			(23	)		59			—		(11	)		308
Other Non-interest expense related to unfunded		—			—		—			—			—			—			8		—			8
Ending Balance	$	286		$	234	$	580		$	3,005		$	1,195		$	360		$	227	$	952		$	6,839
Ending balance: individually evaluated for impairment	$	35		$	—	$	—		$	68		$	22		$	—		$	—	$	—		$	125
Ending balance: collectively evaluated for impairment	$	251		$	234	$	580		$	2,937		$	1,173		$	360		$	227	$	952		$	6,714
Ending balance: loans acquired with deteriorated credit quality	$	1			—		—			—			—			—			—		—		$	1
FINANCING RECEIVABLES:
Ending balance	$	86,898		$	60,162	$	79,332		$	369,721		$	111,953		$	30,616		$	—	$	—		$	738,682
Ending balance: individually evaluated for impairment	$	712		$	132	$	—		$	444		$	118		$	—		$	—	$	—		$	1,406
Ending balance: collectively evaluated for impairment	$	86,186		$	60,030	$	79,332		$	369,277		$	111,835		$	30,616		$	—	$	—		$	737,276
Ending balance: loans acquired with deteriorated credit quality	$	265		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	265

	Consumer Real Estate		Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated		Total
Three Months Ended September 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	309	$	189	$	519		$	2,286		$	1,288		$	309		$	201		$	1,027	$	6,128
Charge Offs		—		—		—			(25	)		(79	)		(73	)		—			—		(177	)
Recoveries		12		—		61			1			66			32			—			—		172
Provision (Credit)		32		7		(60	)		144			(125	)		56			—			189		243
Other Non-interest expense related to unfunded		—		—		—			—			—			—			(5	)		—		(5	)
Ending Balance	$	353	$	196	$	520		$	2,406		$	1,150		$	324		$	196		$	1,216	$	6,361
Ending balance: individually evaluated for impairment	$	76	$	—	$	—		$	201		$	188		$	—		$	—		$	—	$	465
Ending balance: collectively evaluated for impairment	$	277	$	196	$	520		$	2,205		$	962		$	324		$	196		$	1,216	$	5,896
Ending balance: loans acquired with deteriorated credit quality	$	1		—		—			—			—			—			—			—	$	1
FINANCING RECEIVABLES:
Ending balance	$	88,020	$	54,995	$	73,310		$	301,342		$	91,114		$	26,458		$	—		$	—	$	635,239
Ending balance: individually evaluated for impairment	$	506	$	222	$	—		$	1,042		$	771		$	—		$	—		$	—	$	2,541
Ending balance: collectively evaluated for impairment	$	87,514	$	54,773	$	73,310		$	300,300		$	90,343		$	26,458		$	—		$	—	$	632,698
Ending balance: loans acquired with deteriorated credit quality	$	512	$	—	$	—		$	—		$	—		$	—		$	—		$	—	$	512

Additional analysis, presented in thousands, related to the allowance for credit losses for nine months ended September 30, 2016 and September 30, 2015 is as follows:

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
Nine Months Ended September 30, 2016
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	338		$	211	$	582		$	2,516		$	1,229		$	337		$	208	$	844	$	6,265
Charge Offs		(106	)		—		(21	)		(93	)		(20	)		(236	)		—		—		(476	)
Recoveries		23			—		9			7			8			60			—		—		107
Provision (Credit)		31			23		10			575			(22	)		199			—		108		924
Other Non-interest expense related to unfunded		—			—		—			—			—			—			19		—		19
Ending Balance	$	286		$	234	$	580		$	3,005		$	1,195		$	360		$	227	$	952	$	6,839
Ending balance: individually evaluated for impairment	$	35		$	—	$	—		$	68		$	22		$	—		$	—	$	—	$	125
Ending balance: collectively evaluated for impairment	$	251		$	234	$	580		$	2,937		$	1,173		$	360		$	227	$	952	$	6,714
Ending balance: loans acquired with deteriorated credit quality	$	1			—		—			—			—			—			—		—	$	1
FINANCING RECEIVABLES:
Ending balance	$	86,898		$	60,162	$	79,332		$	369,721		$	111,953		$	30,616		$	—	$	—	$	738,682
Ending balance: individually evaluated for impairment	$	712		$	132	$	—		$	444		$	118		$	—		$	—	$	—	$	1,406
Ending balance: collectively evaluated for impairment	$	86,186		$	60,030	$	79,332		$	369,277		$	111,835		$	30,616		$	—	$	—	$	737,276
Ending balance: loans acquired with deteriorated credit quality	$	265		$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	265

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit			Unallocated		Total
Nine Months Ended September 30, 2015
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	537		$	184	$	547		$	2,367		$	1,421		$	323		$	207		$	526	$	6,112
Charge Offs		—			—		—			(111	)		(468	)		(219	)		—			—		(798	)
Recoveries		39			—		64			203			88			124			—			—		518
Provision (Credit)		(223	)		12		(91	)		(53	)		109			96			—			690		540
Other Non-interest expense related to unfunded		—			—		—			—			—			—			(11	)		—		(11	)
Ending Balance	$	353		$	196	$	520		$	2,406		$	1,150		$	324		$	196		$	1,216	$	6,361
Ending balance: individually evaluated for impairment	$	76		$	—	$	—		$	201		$	188		$	—		$	—		$	—	$	465
Ending balance: collectively evaluated for impairment	$	277		$	196	$	520		$	2,205		$	962		$	324		$	196		$	1,216	$	5,896
Ending balance: loans acquired with deteriorated credit quality	$	1			—		—			—			—			—			—			—	$	1
FINANCING RECEIVABLES:
Ending balance	$	88,020		$	54,995	$	73,310		$	301,342		$	91,114		$	26,458		$	—		$	—	$	635,239
Ending balance: individually evaluated for impairment	$	506		$	222	$	—		$	1,042		$	771		$	—		$	—		$	—	$	2,541
Ending balance: collectively evaluated for impairment	$	87,514		$	54,773	$	73,310		$	300,300		$	90,343		$	26,458		$	—		$	—	$	632,698
Ending balance: loans acquired with deteriorated credit quality	$	512		$	—	$	—		$	—		$	—		$	—		$	—		$	—	$	512