XML 48 R35.htm IDEA: XBRL DOCUMENT v3.7.0.1
Loans and ALLL (Tables)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]    
Summary of changes in the ALLL and the recorded investment in loans by segments
A summary of changes in the ALLL and the recorded investment in loans by segments follows:

Allowance for Loan Losses
 
Year Ended December 31, 2016
 
Commercial
 
Agricultural
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
January 1, 2016
$
2,171

 
$
329

 
$
3,330

 
$
522

 
$
1,048

 
$
7,400

Charge-offs
(57
)
 
—

 
(574
)
 
(285
)
 
—

 
(916
)
Recoveries
448

 
92

 
287

 
224

 
—

 
1,051

Provision for loan losses
(748
)
 
463

 
(379
)
 
163

 
366

 
(135
)
December 31, 2016
$
1,814

 
$
884

 
$
2,664

 
$
624

 
$
1,414

 
$
7,400
 
Allowance for Loan Losses
 
Year Ended December 31, 2015

Commercial
 
Agricultural
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
January 1, 2015
$
3,821

 
$
216

 
$
4,235

 
$
645

 
$
1,183

 
$
10,100

Charge-offs
(89
)
 
(45
)
 
(397
)
 
(373
)
 
—

 
(904
)
Recoveries
477

 
72

 
220

 
206

 
—

 
975

Provision for loan losses
(2,038
)
 
86

 
(728
)
 
44

 
(135
)
 
(2,771
)
December 31, 2015
$
2,171

 
$
329

 
$
3,330

 
$
522

 
$
1,048

 
$
7,400
Allowance for Loan Losses and Recorded Investment in Loans

Allowance for Loan Losses and Recorded Investment in Loans
 
As of December 31, 2016
 
Commercial
 
Agricultural
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
ALLL
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
741

 
$
1

 
$
1,629

 
$
—

 
$
—

 
$
2,371

Collectively evaluated for impairment
1,073

 
883

 
1,035

 
624

 
1,414

 
5,029

Total
$
1,814

 
$
884

 
$
2,664

 
$
624

 
$
1,414

 
$
7,400

Loans
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
7,859

 
$
5,545

 
$
8,638

 
$
26

 
 
 
$
22,068

Collectively evaluated for impairment
567,805

 
120,947

 
257,412

 
42,383

 
 
 
988,547

Total
$
575,664

 
$
126,492

 
$
266,050

 
$
42,409

 
 
 
$
1,010,615

Allowance for Loan Losses and Recorded Investment in Loans
 
As of December 31, 2015
 
Commercial
 
Agricultural
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
ALLL
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
829

 
$
2

 
$
1,989

 
$
—

 
$
—

 
$
2,820

Collectively evaluated for impairment
1,342

 
327

 
1,341

 
522

 
1,048

 
4,580

Total
$
2,171

 
$
329

 
$
3,330

 
$
522

 
$
1,048

 
$
7,400

Loans
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
7,969

 
$
4,068

 
$
10,266

 
$
35

 
 
 
$
22,338

Collectively evaluated for impairment
440,412

 
111,843

 
241,235

 
34,664

 
 
 
828,154

Total
$
448,381

 
$
115,911

 
$
251,501

 
$
34,699

 
 
 
$
850,492
Credit quality indicators for commercial and agricultural credit exposures
The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of December 31:
 
2016
 
Commercial
 
Agricultural
 
 

Real Estate
 
Other
 
Advances to Mortgage Brokers
 
Total
 
Real Estate
 
Other
 
Total
 
Total
Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 - Excellent
$
28

 
$
438

 
$
—

 
$
466

 
$
—

 
$
—

 
$
—

 
$
466

2 - High quality
11,821

 
12,091

 
19,688

 
43,600

 
3,566

 
1,426

 
4,992

 
48,592

3 - High satisfactory
103,529

 
41,982

 
—

 
145,511

 
21,657

 
11,388

 
33,045

 
178,556

4 - Low satisfactory
299,317

 
74,432

 
—

 
373,749

 
48,955

 
22,715

 
71,670

 
445,419

5 - Special mention
3,781

 
1,178

 
—

 
4,959

 
6,009

 
3,085

 
9,094

 
14,053

6 - Substandard
5,901

 
1,474

 
—

 
7,375

 
3,650

 
3,508

 
7,158

 
14,533

7 - Vulnerable
4

 
—

 
—

 
4

 
—

 
533

 
533

 
537

8 - Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
424,381

 
$
131,595

 
$
19,688

 
$
575,664

 
$
83,837

 
$
42,655

 
$
126,492

 
$
702,156

 
2015
 
 
 
Commercial
 
Agricultural
 
 

Real Estate
 
Other
 
Advances to Mortgage Brokers
 
Total
 
Real Estate
 
Other
 
Total
 
Total
Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 - Excellent
$
—

 
$
499

 
$
—

 
$
499

 
$
—

 
$
—

 
$
—

 
$
499

2 - High quality
7,397

 
11,263

 
—

 
18,660

 
4,647

 
2,150

 
6,797

 
25,457

3 - High satisfactory
99,136

 
29,286

 
—

 
128,422

 
28,886

 
13,039

 
41,925

 
170,347

4 - Low satisfactory
222,431

 
62,987

 
—

 
285,418

 
37,279

 
22,166

 
59,445

 
344,863

5 - Special mention
4,501

 
473

 
—

 
4,974

 
3,961

 
1,875

 
5,836

 
10,810

6 - Substandard
9,941

 
256

 
—

 
10,197

 
1,623

 
139

 
1,762

 
11,959

7 - Vulnerable
211

 
—

 
—

 
211

 
146

 
—

 
146

 
357

8 - Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
343,617

 
$
104,764

 
$
—

 
$
448,381

 
$
76,542

 
$
39,369

 
$
115,911

 
$
564,292

  
Summary of past due and current loans
Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due aging. The following tables summarize the past due and current loans as of December 31:
 
2016
 
Accruing Interest
and Past Due:
 
 
 
Total Past Due and Nonaccrual
 
 
 
 

30-59
Days
 
60-89
Days
 
90 Days
or More
 
Nonaccrual
 
 
Current
 
Total
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
1,580

 
$
—

 
$
35

 
$
4

 
$
1,619

 
$
422,762

 
$
424,381

Commercial other
1,693

 
35

 
—

 
—

 
1,728

 
129,867

 
131,595

Advances to mortgage brokers
—

 
—

 
—

 
—

 
—

 
19,688

 
19,688

Total commercial
3,273

 
35

 
35

 
4

 
3,347

 
572,317

 
575,664

Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
 
Agricultural real estate
191

 
—

 
508

 
—

 
699

 
83,138

 
83,837

Agricultural other
19

 
—

 
—

 
533

 
552

 
42,103

 
42,655

Total agricultural
210

 
—

 
508

 
533

 
1,251

 
125,241

 
126,492

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior liens
1,638

 
174

 
22

 
498

 
2,332

 
216,681

 
219,013

Junior liens
15

 
—

 
—

 
25

 
40

 
8,317

 
8,357

Home equity lines of credit
270

 
6

 
68

 
—

 
344

 
38,336

 
38,680

Total residential real estate
1,923

 
180

 
90

 
523

 
2,716

 
263,334

 
266,050

Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
110

 
—

 
—

 
—

 
110

 
38,582

 
38,692

Unsecured
5

 
—

 
—

 
—

 
5

 
3,712

 
3,717

Total consumer
115

 
—

 
—

 
—

 
115

 
42,294

 
42,409

Total
$
5,521

 
$
215

 
$
633

 
$
1,060

 
$
7,429

 
$
1,003,186

 
$
1,010,615

 
2015
 
Accruing Interest
and Past Due:
 
 
 
Total Past Due and Nonaccrual
 
 
 
 

30-59
Days
 
60-89
Days
 
90 Days
or More
 
Nonaccrual
 
 
Current
 
Total
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
505

 
$
281

 
$
—

 
$
211

 
$
997

 
$
342,620

 
$
343,617

Commercial other
18

 
—

 
—

 
—

 
18

 
104,746

 
104,764

Advances to mortgage brokers
—

 
—

 
—

 
—

 
—

 
—

 
—

Total commercial
523

 
281

 
—

 
211

 
1,015

 
447,366

 
448,381

Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
 
Agricultural real estate
196

 
890

 
—

 
146

 
1,232

 
75,310

 
76,542

Agricultural other
—

 
—

 
—

 
—

 
—

 
39,369

 
39,369

Total agricultural
196

 
890

 
—

 
146

 
1,232

 
114,679

 
115,911

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior liens
1,551

 
261

 
—

 
429

 
2,241

 
199,622

 
201,863

Junior liens
40

 
8

 
—

 
6

 
54

 
9,325

 
9,379

Home equity lines of credit
225

 
—

 
—

 
—

 
225

 
40,034

 
40,259

Total residential real estate
1,816

 
269

 
—

 
435

 
2,520

 
248,981

 
251,501

Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured
27

 
—

 
—

 
—

 
27

 
30,839

 
30,866

Unsecured
4

 
—

 
—

 
—

 
4

 
3,829

 
3,833

Total consumer
31

 
—

 
—

 
—

 
31

 
34,668

 
34,699

Total
$
2,566

 
$
1,440

 
$
—

 
$
792

 
$
4,798

 
$
845,694

 
$
850,492

  
Information pertaining to impaired loans
The following summarizes information pertaining to impaired loans as of, and for the years ended, December 31:

2016

Outstanding Balance
 
Unpaid Principal Balance
 
Valuation Allowance
 
Average Outstanding Balance
 
Interest Income Recognized
Impaired loans with a valuation allowance
 
 
 
 
 
 
 
 
 
Commercial real estate
$
5,811

 
$
5,992

 
$
716

 
$
5,746

 
$
343

Commercial other
1,358

 
1,358

 
25

 
568

 
27

Agricultural real estate
—

 
—

 
—

 
91

 
6

Agricultural other
134

 
134

 
1

 
92

 
2

Residential real estate senior liens
8,464

 
9,049

 
1,615

 
9,214

 
362

Residential real estate junior liens
72

 
82

 
14

 
113

 
3

Home equity lines of credit
—

 
—

 
—

 
—

 
—

Consumer secured
—

 
—

 
—

 
—

 
—

Total impaired loans with a valuation allowance
15,839

 
16,615

 
2,371

 
15,824

 
743

Impaired loans without a valuation allowance
 
 
 
 
 
 
 
 
 
Commercial real estate
604

 
617

 
 
 
895

 
69

Commercial other
86

 
97

 
 
 
87

 
8

Agricultural real estate
4,037

 
4,037

 
 
 
3,515

 
182

Agricultural other
1,374

 
1,374

 
 
 
708

 
42

Home equity lines of credit
102

 
402

 
 
 
115

 
16

Consumer secured
26

 
26

 
 
 
32

 
3

Total impaired loans without a valuation allowance
6,229

 
6,553

 


 
5,352

 
320

Impaired loans
 
 
 
 
 
 
 
 
 
Commercial
7,859

 
8,064

 
741

 
7,296

 
447

Agricultural
5,545

 
5,545

 
1

 
4,406

 
232

Residential real estate
8,638

 
9,533

 
1,629

 
9,442

 
381

Consumer
26

 
26

 
—

 
32

 
3

Total impaired loans
$
22,068

 
$
23,168

 
$
2,371

 
$
21,176

 
$
1,063

 
2015

Outstanding Balance
 
Unpaid Principal Balance
 
Valuation Allowance
 
Average Outstanding Balance
 
Interest Income Recognized
Impaired loans with a valuation allowance
 
 
 
 
 
 
 
 
 
Commercial real estate
$
5,659

 
$
5,777

 
$
818

 
$
7,221

 
$
376

Commercial other
8

 
8

 
11

 
362

 
19

Agricultural real estate
—

 
—

 
—

 
22

 
1

Agricultural other
335

 
335

 
2

 
126

 
8

Residential real estate senior liens
9,996

 
10,765

 
1,959

 
10,610

 
425

Residential real estate junior liens
143

 
163

 
30

 
183

 
16

Home equity lines of credit
—

 
—

 
—

 
31

 
—

Consumer secured
—

 
—

 
—

 
39

 
3

Total impaired loans with a valuation allowance
16,141

 
17,048

 
2,820

 
18,594

 
848

Impaired loans without a valuation allowance
 
 
 
 
 
 
 
 
 
Commercial real estate
2,122

 
2,256

 
 
 
2,170

 
201

Commercial other
180

 
191

 
 
 
106

 
11

Agricultural real estate
3,549

 
3,549

 
 
 
1,903

 
95

Agricultural other
184

 
184

 
 
 
290

 
15

Home equity lines of credit
127

 
434

 
 
 
144

 
18

Consumer secured
35

 
35

 
 
 
6

 
1

Total impaired loans without a valuation allowance
6,197

 
6,649

 
 
 
4,619

 
341

Impaired loans
 
 
 
 
 
 
 
 
 
Commercial
7,969

 
8,232

 
829

 
9,859

 
607

Agricultural
4,068

 
4,068

 
2

 
2,341

 
119

Residential real estate
10,266

 
11,362

 
1,989

 
10,968

 
459

Consumer
35

 
35

 
—

 
45

 
4

Total impaired loans
$
22,338

 
$
23,697

 
$
2,820

 
$
23,213

 
$
1,189

  
Information pertaining to TDR's
Following is a summary of loans that defaulted in the year ended December 31, 2015, which were modified within 12 months prior to the default date:

Number of Loans
 
Pre-
Default
Recorded
Investment
 
Charge-Off
Recorded
Upon
Default
 
Post-
Default
Recorded
Investment
Commercial other
1

 
$
216

 
$
25

 
$
191

Residential real estate junior liens
1

 
39

 
39

 
—

Total
2

 
$
255

 
$
64

 
$
191

The following is a summary of TDR loan balances as of December 31:
 
2016
 
2015
TDRs
$
21,382

 
$
21,325

The following is a summary of information pertaining to TDRs granted in the years ended December 31:
 
2016
 
2015

Number of Loans
 
Pre-Modification Recorded Investment
 
Post-Modification Recorded Investment
 
Number of Loans
 
Pre-Modification Recorded Investment
 
Post-Modification Recorded Investment
Commercial other
6

 
$
2,066

 
$
2,066

 
13

 
$
3,073

 
$
3,073

Agricultural other
7

 
1,610

 
1,610

 
11

 
3,106

 
3,106

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Senior liens
4

 
143

 
143

 
6

 
678

 
678

Junior liens
—

 
—

 
—

 
1

 
30

 
30

Home equity lines of credit
—

 
—

 
—

 
1

 
94

 
94

Total residential real estate
4

 
143

 
143

 
8

 
802

 
802

Consumer unsecured
1

 
2

 
2

 
—

 
—

 
—

Total
18

 
$
3,821

 
$
3,821

 
32

 
$
6,981

 
$
6,981

The following tables summarize concessions we granted to borrowers in financial difficulty in the years ended December 31:
 
2016
 
2015

Below Market Interest Rate
 
Below Market Interest Rate and Extension of Amortization Period
 
Below Market Interest Rate
 
Below Market Interest Rate and Extension of Amortization Period
 
Number of Loans
 
Pre-Modification Recorded Investment
 
Number of Loans
 
Pre-Modification Recorded Investment
 
Number of Loans
 
Pre-Modification Recorded Investment
 
Number of Loans
 
Pre-Modification Recorded Investment
Commercial other
—

 
$
—

 
6

 
$
2,066

 
11

 
$
2,742

 
2

 
$
331

Agricultural other
2

 
419

 
5

 
1,191

 
9

 
1,360

 
2

 
1,746

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior liens
2

 
27

 
2

 
116

 
3

 
280

 
3

 
398

Junior liens
—

 
—

 
—

 
—

 
—

 
—

 
1

 
30

Home equity lines of credit
—

 
—

 
—

 
—

 
—

 
—

 
1

 
94

Total residential real estate
2

 
27

 
2

 
116

 
3

 
280

 
5

 
522

Consumer unsecured
—

 
—

 
1

 
2

 
—

 
—

 
—

 
—

Total
4

 
$
446

 
14

 
$
3,375

 
23

 
$
4,382

 
9

 
$
2,599