Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three and six months ended June 30, 2017 and 2016.

Allowance for loan losses:

For the six months ended June 30, 2017

June 30, 2017	Beginning balance		Charge- offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,018	$	(1	)	$	83	$	(492	)	$	1,608
Commercial Real Estate:
Owner Occupied		2,171		(210	)		18		31			2,010
Non-Owner Occupied		4,606		—			9		124			4,739
Residential Real Estate		3,089		(196	)		87		(304	)		2,676
Real Estate Construction		420		—			19		43			482
Farm Real Estate		442		—			—		(17	)		425
Consumer and Other		314		(81	)		14		77			324
Unallocated		245		—			—		538			783
Total	$	13,305	$	(488	)	$	230	$	—		$	13,047

Allowance for loan losses:

For the six months ended June 30, 2016

	Beginning balance		Charge- offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,478	$	(42	)	$	35	$	86		$	1,557
Commercial Real Estate:
Owner Occupied		2,467		(42	)		52		(84	)		2,393
Non-Owner Occupied		4,657		—			1,359		(1,047	)		4,969
Residential Real Estate		4,086		(225	)		361		(323	)		3,899
Real Estate Construction		371		—			2		(7	)		366
Farm Real Estate		538		—			—		(62	)		476
Consumer and Other		382		(47	)		33		(10	)		358
Unallocated		382		—			—		147			529
Total	$	14,361	$	(356	)	$	1,842	$	(1,300	)	$	14,547

Allowance for loan losses:

For the three months ended June 30, 2017

	Beginning balance		Charge- offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,569	$	—		$	27	$	12		$	1,608
Commercial Real Estate:
Owner Occupied		2,259		(210	)		16		(55	)		2,010
Non-Owner Occupied		4,543		—			4		192			4,739
Residential Real Estate		3,022		(107	)		32		(271	)		2,676
Real Estate Construction		413		—			14		55			482
Farm Real Estate		407		—			—		18			425
Consumer and Other		354		(40	)		11		(1	)		324
Unallocated		733		—			—		50			783
Total	$	13,300	$	(357	)	$	104	$	—		$	13,047

Allowance for loan losses:

For the three months ended June 30, 2016

	Beginning balance		Charge- offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,446	$	(20	)	$	30	$	101		$	1,557
Commercial Real Estate:
Owner Occupied		2,372		(42	)		3		60			2,393
Non-Owner Occupied		4,711		—			1,319		(1,061	)		4,969
Residential Real Estate		4,114		(129	)		272		(358	)		3,899
Real Estate Construction		408		—			1		(43	)		366
Farm Real Estate		496		—			—		(20	)		476
Consumer and Other		358		(39	)		19		20			358
Unallocated		528		—			—		1			529
Total	$	14,433	$	(230	)	$	1,644	$	(1,300	)	$	14,547

June 30, 2017	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	82	$	235	$	1,291	$	1,608
Commercial Real Estate:
Owner Occupied		—		4		2,006		2,010
Non-Owner Occupied		—		—		4,739		4,739
Residential Real Estate		73		103		2,500		2,676
Real Estate Construction		—		—		482		482
Farm Real Estate		—		6		419		425
Consumer and Other		—		—		324		324
Unallocated		—		—		783		783
Total	$	155	$	348	$	12,544	$	13,047
Outstanding loan balances:
Commercial & Agriculture	$	87	$	1,562	$	142,059	$	143,708
Commercial Real Estate:
Owner Occupied		—		1,715		170,547		172,262
Non-Owner Occupied		—		355		405,521		405,876
Residential Real Estate		151		1,487		256,942		258,580
Real Estate Construction		—		—		63,538		63,538
Farm Real Estate		—		614		38,455		39,069
Consumer and Other		—		—		17,784		17,784
Total	$	238	$	5,733	$	1,094,846	$	1,100,817

December 31, 2016	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	86	$	82	$	1,850	$	2,018
Commercial Real Estate:
Owner Occupied		—		4		2,167		2,171
Non-Owner Occupied		—		—		4,606		4,606
Residential Real Estate		89		102		2,898		3,089
Real Estate Construction		—		—		420		420
Farm Real Estate		—		—		442		442
Consumer and Other		—		—		314		314
Unallocated		—		—		245		245
Total	$	175	$	188	$	12,942	$	13,305
Outstanding loan balances:
Commercial & Agriculture	$	88	$	1,983	$	133,391	$	135,462
Commercial Real Estate:
Owner Occupied		—		1,896		159,468		161,364
Non-Owner Occupied		—		359		395,572		395,931
Residential Real Estate		168		1,686		245,454		247,308
Real Estate Construction		—		—		56,293		56,293
Farm Real Estate		—		614		40,556		41,170
Consumer and Other		—		1		17,977		17,978
Total	$	256	$	6,539	$	1,048,711	$	1,055,506

Credit Exposures by Internally Assigned Grades

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	136,174	$	5,245	$	2,289	$	—	$	143,708
Commercial Real Estate:
Owner Occupied		160,769		6,233		5,260		—		172,262
Non-Owner Occupied		403,157		1,916		803		—		405,876
Residential Real Estate		61,022		2,098		6,255		—		69,375
Real Estate Construction		58,340		15		27		—		58,382
Farm Real Estate		30,753		6,311		2,005		—		39,069
Consumer and Other		1,794		—		75		—		1,869
Total	$	852,009	$	21,818	$	16,714	$	—	$	890,541
December 31, 2016	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	127,867	$	4,300	$	3,295	$	—	$	135,462
Commercial Real Estate:
Owner Occupied		151,659		4,016		5,689		—		161,364
Non-Owner Occupied		393,592		1,676		663		—		395,931
Residential Real Estate		59,015		1,661		6,911		—		67,587
Real Estate Construction		50,678		16		27		—		50,721
Farm Real Estate		31,814		5,673		3,683		—		41,170
Consumer and Other		2,135		—		109		—		2,244
Total	$	816,760	$	17,342	$	20,377	$	—	$	854,479

Performing and Nonperforming Loans

Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
June 30, 2017
Performing	$	189,205	$	5,156	$	15,871	$	210,232
Nonperforming		—		—		44		44
Total	$	189,205	$	5,156	$	15,915	$	210,276

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2016
Performing	$	179,721	$	5,572	$	15,725	$	201,018
Nonperforming		—		—		9		9
Total	$	179,721	$	5,572	$	15,734	$	201,027

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of June 30, 2017 and December 31, 2016.

June 30, 2017	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	249	$	—	$	10	$	259	$	143,362	$	87	$	143,708	$	—
Commercial Real Estate:
Owner Occupied		334		640		614		1,588		170,674		—		172,262		—
Non-Owner Occupied		—		—		600		600		405,276		—		405,876		—
Residential Real Estate		263		198		979		1,440		256,989		151		258,580		—
Real Estate Construction		—		—		27		27		63,511		—		63,538		—
Farm Real Estate		504		—		—		504		38,565		—		39,069		—
Consumer and Other		150		11		44		205		17,579		—		17,784		44
Total	$	1,500	$	849	$	2,274	$	4,623	$	1,095,956	$	238	$	1,100,817	$	44

December 31, 2016	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	156	$	20	$	152	$	328	$	135,046	$	88	$	135,462	$	—
Commercial Real Estate:
Owner Occupied		722		553		280		1,555		159,809		—		161,364		—
Non-Owner Occupied		147		—		316		463		395,468		—		395,931		—
Residential Real Estate		1,812		507		1,049		3,368		243,772		168		247,308		—
Real Estate Construction		—		—		27		27		56,266		—		56,293		—
Farm Real Estate		93		—		—		93		41,077		—		41,170		—
Consumer and Other		215		31		31		277		17,701		—		17,978		9
Total	$	3,145	$	1,111	$	1,855	$	6,111	$	1,049,139	$	256	$	1,055,506	$	9

Summary of Nonaccrual Loans Excluding Purchased Credit-Impaired (PCI) Loans

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of June 30, 2017 and December 31, 2016.

	June 30, 2017		December 31, 2016
Commercial & Agriculture	$	1,342	$	1,622
Commercial Real Estate:
Owner Occupied		1,715		1,461
Non-Owner Occupied		611		464
Residential Real Estate		2,987		3,266
Real Estate Construction		27		27
Farm Real Estate		—		2
Consumer and Other		70		101
Total	$	6,752	$	6,943

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the periods ended June 30, 2017 and June 30, 2016 were as follows:

	For the Six-Month Period Ended
	June 30, 2017
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

	For the Six-Month Period Ended
	June 30, 2016
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		4	$	529	$	529
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		2		308		308
Real Estate Construction		—		—		—
Farm Real Estate		2		614		614
Consumer and Other		—		—		—
Total Loan Modifications		8	$	1,451	$	1,451

	For the Three-Month Period Ended
	June 30, 2017
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

	For the Three-Month Period Ended
	June 30, 2016
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		1	$	47	$	47
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		76		76
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		2	$	123	$	123

Impaired Financing Receivables Excluding PCI Loans

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables, excluding PCI loans, with the associated allowance amount, if applicable, as of June 30, 2017 and December 31, 2016.

	June 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	375	$	376			$	1,230	$	1,751
Commercial Real Estate:
Owner Occupied		1,485		1,650				1,658		1,803
Non-Owner Occupied		355		381				359		386
Residential Real Estate		1,105		1,177				1,259		1,590
Farm Real Estate		150		150				614		614
Consumer and Other		—		—				1		1
Total		3,470		3,734				5,121		6,145
With an allowance recorded:
Commercial & Agriculture		1,187		1,737	$	235		753		1,303	$	82
Commercial Real Estate:
Owner Occupied		230		230		4		238		238		4
Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		382		386		103		427		431		102
Farm Real Estate		464		464		6		—		—		—
Total		2,263		2,817		348		1,418		1,972		188
Total:
Commercial & Agriculture		1,562		2,113		235		1,983		3,054		82
Commercial Real Estate:
Owner Occupied		1,715		1,880		4		1,896		2,041		4
Non-Owner Occupied		355		381		—		359		386		—
Residential Real Estate		1,487		1,563		103		1,686		2,021		102
Farm Real Estate		614		614		6		614		614		—
Consumer and Other		—		—		—		1		1		—
Total	$	5,733	$	6,551	$	348	$	6,539	$	8,117	$	188

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three- and six-month periods ended June 30, 2017 and 2016.

For the six months ended:	June 30, 2017				June 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	1,756	$	20	$	1,937	$	11
Commercial Real Estate—Owner Occupied		1,829		48		1,800		45
Commercial Real Estate—Non-Owner Occupied		357		3		1,489		857
Residential Real Estate		1,610		39		1,799		39
Real Estate Construction		—		—		—		—
Farm Real Estate		614		13		1,250		10
Consumer and Other		—		—		3		—
Total	$	6,166	$	123	$	8,278	$	962

For the three months ended:	June 30, 2017				June 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	1,643	$	6	$	2,469	$	8
Commercial Real Estate—Owner Occupied		1,795		26		1,630		20
Commercial Real Estate—Non-Owner Occupied		356		2		1,363		853
Residential Real Estate		1,572		19		1,878		20
Real Estate Construction		—		—		—		—
Farm Real Estate		614		7		1,398		6
Consumer and Other		—		—		2		—
Total	$	5,980	$	60	$	8,740	$	907

Schedule of Changes in Amortized Yield for PCI Loans

Changes in the amortizable yield for PCI loans were as follows, since acquisition:

	For the Six-Month Period Ended June 30, 2017			For the Six-Month   Period Ended June 30, 2016
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	49		$	82
Acquisition of PCI loans		—			—
Accretion		(18	)		(16	)
Balance at end of period	$	31		$	66

	For the Three-Month Period Ended June 30, 2017			For the Three-Month Period Ended June 30, 2016
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	40		$	74
Acquisition of PCI loans		—			—
Accretion		(9	)		(8	)
Balance at end of period	$	31		$	66

Schedule of Loans Acquired and Accounted

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At June 30, 2017		At December 31, 2016
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)		Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	814	$	850
Carrying amount		238		256